Document:

form8k-exhibit_4b.htm

Exhibit 4(b)

 

 

PPL ELECTRIC UTILITIES CORPORATION

 

OFFICER’S CERTIFICATE

(under Sections 201 and 301 of the Indenture dated as of August 1, 2001)

 

Establishing the Form and Certain Terms of the

First Mortgage Bonds,  3.00% Series due 2021

 

The undersigned, James E. Abel, Treasurer of PPL Electric Utilities Corporation (the “Company”), pursuant to Supplemental Indenture No. 13, dated as of August 1, 2011 (“Supplemental Indenture No. 13”), and Sections 201 and 301 of the Indenture of the Company dated as of August 1, 2001 (the “Original Indenture”, and as heretofore supplemented, the “Indenture”) to The Bank of New York Mellon, as trustee (the “Trustee”), does hereby establish for the series of Securities established in Supplemental Indenture No. 13 the following terms and characteristics (capitalized terms used herein which are not defined herein shall have the meanings specified in the Indenture, and the lettered clauses set forth herein correspond to such clauses in Section 301 of the Original Indenture):

 

	
a)  

	
the title of the Securities of such series shall be “First Mortgage Bonds,  3.00% Series due 2021” (the “Bonds”);

 

	
b)  

	
the aggregate principal amount of Bonds which may be authenticated and delivered under the Indenture shall be limited to $400,000,000, except as contemplated in Section 301(b) and the last paragraph of Section 301 of the Original Indenture;

 

	
c)  

	
interest on the Bonds shall be payable to the Person or Persons in whose names the Bonds are registered at the close of business on the Regular Record Date for such interest, except as otherwise expressly provided in the form of Bond attached hereto and hereby authorized and approved;

 

	
d)  

	
the principal shall be due and payable on September 15, 2021; and the Company shall not have the right to extend the Maturity of the Bonds as contemplated in Section 301(d) of the Original Indenture;

 

	
e)  

	
as provided in the form of Bond attached as Exhibit A hereto, the Bonds shall bear interest at a fixed rate of  3.00% per annum; the Interest Payment Dates for the Bonds shall be March 15 and September 15 of each year, commencing March 15, 2012; the Regular Record Date for the interest payable on any Interest Payment Date with respect to the Bonds shall be the close of business on March 1 or September 1 (whether or not a Business Day) immediately preceding such Interest Payment Date; and the Company shall not have any right to extend any interest payment periods for the Bonds as contemplated in Sections 301(e) and 312 of the Original Indenture;

 

	  

	
f)  

	
the Corporate Trust Office of the Trustee in New York, New York shall be the office or agency of the Company at which the principal of and any premium and interest on the Bonds at Maturity shall be payable, at which registration of transfers and exchanges of the Bonds may be effected and at which notices and demands to or upon the Company in respect of the Bonds and the Indenture may be served; and the Trustee will initially be the Security Registrar and the Paying Agent for the Bonds; provided, however, that the Company reserves the right to change, by one or more Officer’s Certificates, any such office or agency and such agent; each installment of interest on a Bond shall be payable as provided in Exhibit A hereto;

 

  

  

  

	 	
g)   

	
the Bonds shall be redeemable, in whole or in part, at the option of the Company as and to the extent provided in Exhibit A hereto;

 

	 	
h)   

	
inapplicable;

 

	 	
i)   

	
the Bonds shall be issued in denominations of $1,000 and any integral multiple of $1,000 in excess thereof;

 

	 	
j)   

	
inapplicable;

 

	 	
k)   

	
inapplicable;

 

	 	
l)   

	
inapplicable;

 

	 	
m)  

	
inapplicable;

 

	 	
n)  

	
inapplicable;

 

	 	
o)  

	
reference is hereby made to the provisions of Supplemental Indenture No. 13 for certain covenants of the Company for the benefit of the Holders of the Bonds, in addition to those set forth in Article Seven of the Indenture;

 

	 	
p)  

	
inapplicable;

 

	 	
q)  

	
the only obligations or instruments that shall be considered Eligible Obligations in respect of the Bonds shall be Government Obligations; and the provisions of Section 801 of the Indenture as supplemented by Section 103 of Supplemental Indenture No. 13 shall apply to the Bonds;

 

	 	
r)  

	
the Bonds shall be initially issued in global form and the depository for the global Bonds shall initially be The Depository Trust Company (“DTC”); provided, that the Company reserves the right to provide for another depository, registered as a clearing agency under the Exchange Act, to act as depository for the global Bonds (DTC and any such successor depository, the “Depository”); beneficial interests in Bonds issued in global form may not be exchanged in whole or in part for individual certificated Bonds in definitive form, and no transfer of a global Bond in whole or in part may be registered in the name of any Person other than the Depository or its nominee except that (i) if the Depository (A) has notified the Company that it is unwilling or unable to continue as depository for the global Bonds or (B) has ceased to be a clearing agency registered under the Exchange Act and, in either case, a successor depository for such global bonds has not been appointed by the Company within 90 days of such notice or cessation, the Company will execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of definitive Bonds, will authenticate and deliver Bonds in definitive certificated form in an aggregate principal amount equal to the principal amount of the global Bonds representing such Bonds in exchange for such global Bond, such definitive Bonds to be registered in the names provided by the Depository; each global Bond (i) shall represent and shall be denominated in an amount equal to the aggregate principal amount of the outstanding Bonds to be represented by such global Bond, (ii) shall be registered in the name of the Depository or its nominee, (iii) shall be delivered by the Trustee to the Depository, its nominee, any custodian for the Depository or otherwise pursuant to the Depository’s instruction and (iv) shall bear a legend restricting the transfer of such global Bond to any person other than the Depository or its nominee; none of the Company, the Trustee, any Paying Agent or any Authenticating Agent will have any responsibility or liability for any aspect of the records relating to, or payments made on account of, beneficial ownership interests in a global Bond or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests; the Bonds in global form

 

  

2

  

will contain restrictions on transfer, substantially as described in the form set forth in Exhibit A hereto;

 

	
s)  

	
inapplicable;

 

	
t)  

	
reference is made to clause (r) above; no service charge shall be made for the registration of transfer or exchange of the Bonds; provided, however, that the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with the exchange or transfer;

 

	
u)  

	
inapplicable;

 

	
v)  

	
inapplicable; and

 

	
w)  

	
except as otherwise determined by the proper officers of the Company and communicated to the Trustee in a Company Order or as established in one or more Officer’s Certificates supplemental to this Officer’s Certificate, the Bonds shall be substantially in the form of the Bond attached hereto, which form is hereby authorized and approved, and shall have such further terms as are set forth in such form.

 

  

3

  

 

 

IN WITNESS WHEREOF, I have executed this Officer’s Certificate this 23rd day of August, 2011 in New York, New York.

 

 

 

	  	
/s/ James E. Abel                                 

Name:  James E. Abel

Title:    Treasurer

 

 

 

 

  

4

  

Exhibit A

 

[FORM OF BOND]

 

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to PPL Electric Utilities Corporation or its agent for registration of transfer, exchange or payment, and any certificate to be issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

 

 

 

	 No._______________	 CUSIP No. ____________

 

 

 

PPL ELECTRIC UTILITIES CORPORATION

 

FIRST MORTGAGE BOND, 3.00% SERIES DUE 2021

 

PPL ELECTRIC UTILITIES CORPORATION, a corporation duly organized and existing under the laws of the Commonwealth of Pennsylvania (herein referred to as the “Company”, which term includes any successor Person under the Indenture referred to below), for value received, hereby promises to pay to _________________________ or to its registered assigns, the principal sum of ($             ) Dollars on September 15, 2021(the “Stated Maturity Date”), and to pay interest on said principal sum semi-annually in arrears on March 15 and September 15 of each year commencing March 15, 2012 (each an “Interest Payment Date”) at the rate of 3.00% per annum until the principal hereof is paid or made available for payment.  Interest on the Securities of this series will accrue from and including August 23, 2011, to and excluding the first Interest Payment Date, and thereafter will accrue from and including the last Interest Payment Date to which interest has been paid or duly provided for.  No interest will accrue on the Securities with respect to the day on which the Securities mature.

 

In the event that any Interest Payment Date is not a Business Day, then payment of interest payable on such date will be made on the next succeeding day which is a Business Day (and without any interest or other payment in respect of such delay) with the same force and effect as if made on the Interest Payment Date. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the March 1 or September 1,  whether or not a Business Day, (each such date a “Regular Record Date”) immediately preceding such Interest Payment Date, except that interest payable at Maturity will be payable to the Person to whom principal shall be paid.  Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture referred to herein.  Interest on this

 

  

  

  

Security will be computed on the basis of a 360-day year consisting of twelve 30-day months, and with respect to any period less than a full calendar month, on the basis of the actual number of days elapsed during the period.

 

Payment of the principal of and premium, if any, and interest at Maturity on this Security shall be made upon presentation of this Security at the corporate trust office of The Bank of New York Mellon in New York, New York, or at such other office or agency as may be designated for such purpose by the Company from time to time, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts, and payment of interest, if any, on this Security (other than interest payable at Maturity) shall be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register, provided that if such Person is a securities depositary, such payment may be made by such other means in lieu of check as shall be agreed upon by the Company, the Trustee and such Person.

 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and issuable in one or more series under an Indenture dated as of August 1, 2001 (herein, together with any amendments or supplements thereto, called the “Indenture,” which term shall have the meaning assigned to it in such instrument), between the Company and The Bank of New York Mellon, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture, including Supplemental Indenture No. 13 thereto, for a statement of the property mortgaged, pledged and held in trust, the nature and extent of the security, the conditions upon which the Lien of the Indenture may be released and the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered.  The acceptance of this Security shall be deemed to constitute the consent and agreement by the Holder thereof to all of the terms and provisions of the Indenture.  This Security is one of the series designated on the face hereof.

 

This Security is subject to redemption at the option of the Company, in whole at any time or in part from time to time.  If this Security is redeemed by the Company before June 15, 2021 this Security will be redeemed by the Company at a redemption price equal to the greater of:

 

	
(a)  

	
100% of the principal amount of this Security to be so redeemed; or

 

	
(b)  

	
as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of principal and interest on the principal amount of this Security to be so redeemed (not including any portion of such payments of interest accrued to the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate, plus 15 basis points,

 

plus, in either of the above cases, accrued and unpaid interest to the date of redemption.

 

If this Security is redeemed by the Company on or after June 15, 2021 this Security will be redeemed by the Company at a redemption price equal to 100% of the principal amount of this Security to be so redeemed, plus accrued and unpaid interest to the Redemption Date.

 

“Adjusted Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for that redemption date.

 

A-2  

  

  

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having an actual or interpolated maturity comparable to the remaining term to the Stated Maturity Date of this Security to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of this Security.

 

“Comparable Treasury Price” means, with respect to any redemption date:

 

	
a)  

	
the average of five Reference Treasury Dealer Quotations for that redemption date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or

 

	
b)  

	
if the Quotation Agent obtains fewer than five Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations so received.

 

“Quotation Agent” means one of the Reference Treasury Dealers appointed by the Company.

 

“Reference Treasury Dealer” means:

 

	
(a)  

	
each of Barclays Capital Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC, and their respective successors, unless any of them ceases to be a primary U.S. Government securities dealer in the United States (a “Primary Treasury Dealer”), in which case the Company shall substitute another Primary Treasury Dealer; and

 

	
(b)  

	
any other Primary Treasury Dealer selected by the Company.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount), as provided to the Quotation Agent by that Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date.  Promptly after the calculation thereof, the Company shall give the Trustee written notice of the redemption price for any redemption occurring prior to June 15, 2021.  The Trustee shall have no responsibility for any such calculation.

 

Notice of redemption shall be given by mail to Holders of Securities of this series, not less than 30 days nor more than 60 days prior to the date fixed for redemption, all as provided in the Indenture.  As provided in the Indenture, notice of redemption at the election of the Company as aforesaid may state that such redemption shall be conditional upon the receipt by the applicable Paying Agent or Agents of money sufficient to pay the principal of and premium, if any, and interest, on this Security on or prior to the date fixed for such redemption; a notice of redemption so conditioned shall be of no force or effect if such money is not so received and, in such event, the Company shall not be required to redeem this Security.  Notwithstanding Section 504 of the Indenture, any such notice of redemption with respect to a redemption occurring prior to June 15, 2021 need not set forth the redemption price but only the manner of calculation thereof.

 

In the event of redemption of this Security in part only, a new Security or Securities of this series of like tenor representing the unredeemed portion hereof shall be issued in the name of the Holder hereof upon the cancellation hereof.

 

A-3  

  

  

 

 

If an Event of Default with respect to the Securities of this series shall occur and be continuing, the principal of this Security may be declared due and payable in the manner and with the effect provided in the Indenture.

 

The Indenture contains provisions for defeasance at any time of the entire indebtedness of this Security upon compliance with certain conditions set forth in the Indenture.

 

The Indenture contains provisions for release of the Lien thereof upon compliance with certain conditions set forth therein.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of all series to be affected.  The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of all series affected at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless (a) such Holder shall have previously given the Trustee written notice of a continuing Event of Default; (b) the Holders of 25% in aggregate principal amount of the Outstanding Securities shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity; (c) the Trustee shall not have received from the Holders of a majority in aggregate principal amount of the Outstanding Securities a direction inconsistent with such request; and (d) shall have failed to institute any such proceeding for 60 days after receipt of such notice, request and offer of indemnity.  The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein.

 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed.

 

The Securities of this series are issuable only in registered form without coupons, and in denominations of $1,000 and integral multiples thereof.  As provided in the Indenture and subject to certain limitations therein and herein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of the same series and Tranche and of like tenor and of authorized denominations, as requested by the Holder surrendering the same.

 

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

  A-4

  

  

 

 

The Company shall not be required to execute and the Security Registrar shall not be required to register the transfer of or exchange of (a) Securities of this series during a period of 15 days immediately preceding the date notice is given identifying the serial numbers of the Securities of this series called for redemption or (b) any Security so selected for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in part.

 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the absolute owner hereof for all purposes (subject to Sections 305 and 307 of the Indenture), whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

The Indenture and this Security shall be governed by and construed in accordance with the laws of the State of New York (including, without limitation, Section 5-1401 of the New York General Obligations Law or any successor to such statute), except to the extent that the Trust Indenture Act shall be applicable and except to the extent that the law of the any other jurisdiction shall mandatorily govern.

 

As used herein, “Business Day,” means any day, other than a Saturday or Sunday, that is not a day on which banking institutions or trust companies in The City of New York, New York, or other city in which a paying agent for such Security is located, are generally authorized or required by law, regulation or executive order to remain closed.  All other terms used in this Security that are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

As provided in the Indenture, no recourse shall be had for the payment of the principal of or premium, if any, or interest on any Securities, or any part thereof, or for any claim based thereon or otherwise in respect thereof, or of the indebtedness represented thereby, or upon any obligation, covenant or agreement under the Indenture, against, and no personal liability whatsoever shall attach to, or be incurred by, any incorporator, stockholder, member, officer or director, as such, past, present or future of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any constitutional provision, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly agreed and understood that the Indenture and all the Securities are solely corporate obligations and that any such personal liability is hereby expressly waived and released as a condition of, and as part of the consideration for, the execution of the Indenture and the issuance of the Securities.

 

  A-5

  

  

Unless the certificate of authentication hereon has been executed by the Trustee referred to herein by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed in New York, New York.

 

	  	
PPL ELECTRIC UTILITIES CORPORATION

 

By:_______________________________________

 

 

 

 

 

[FORM OF CERTIFICATE OF AUTHENTICATION]

 

CERTIFICATE OF AUTHENTICATION

 

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

Dated: August     , 2011

 

	  	
THE BANK OF NEW YORK MELLON, as Trustee

 

By:_______________________________________

                              Authorized Signatory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A-6Exhibit 10.1

EMPLOYMENT AGREEMENT

                    EMPLOYMENT
AGREEMENT, dated as of August 23, 2011 (this “Agreement”), between
SIRIUS XM RADIO INC., a Delaware corporation (the “Company”), and DARA
F. ALTMAN (the “Executive”).

                    In
consideration of the mutual covenants and conditions set forth herein, the
Company and the Executive agree as follows:

                    1.
Employment. Subject to the terms and conditions of this Agreement, the
Company hereby employs the Executive, and the Executive hereby agrees to
continue her employment with the Company.

                    2.
Duties and Reporting Relationship. (a) The Executive shall be employed
in the capacity of Executive Vice President and Chief Administrative Officer of
the Company, which shall include being the head of each of the Human Resources,
Facilities, Real Estate and Security functions. During the Term (as defined
below), the Executive shall, on a full-time basis and consistent with the needs
of the Company, use her skills and render services to the best of her ability.
The Executive shall perform such activities and duties consistent with her
position as the Chief Executive Officer of the Company shall from time to time
reasonably specify and direct. During the Term, the Executive shall not perform
any consulting services for, or engage in any other business enterprises with,
any third parties without the express written consent of the Chief Executive
Officer of the Company, other than passive investments.

                    (b)
The Executive shall generally perform her duties and conduct her business at
the principal offices of the Company in Washington, DC. 

                    (c)
The Executive shall report solely to the Chief Executive Officer of the
Company. 

                    3.
Term. The term of this Agreement shall commence on August 23, 2011 (the
“Effective Date”) and end on August 22, 2015, unless terminated earlier
pursuant to the provisions of Section 6 (the “Term”).

                    4.
Compensation. (a) During the Term, the Executive shall be paid an annual
base salary of $500,000 and thereafter may be subject to increase from time to
time by recommendation of the Chief Executive Officer of the Company to, and
approval by, the Board of Directors of the Company (the “Board”) (such
amount, as increased, the “Base Salary”). All amounts paid to the
Executive under this Agreement shall be in U.S. dollars. The Base Salary shall
be paid at least monthly and, at the option of the Company, may be paid more
frequently.

                    (b)
On the date hereof, the Company shall grant to the Executive an option to
purchase 7,500,000 shares of the Company’s common stock, par value $.001 per
share (the “Common Stock”), at an exercise price of $1.69 per share, the
closing price of the Common Stock on the Nasdaq Global Select Market on the
date hereof. Such options shall be subject to

2

the terms and
conditions set forth in the Option Agreement attached to this Agreement as
Exhibit A. 

                    (c)
All compensation paid to the Executive hereunder shall be subject to any
payroll and withholding deductions required by applicable law, including, as
and where applicable, federal, New York state and New York City income tax
withholding, federal unemployment tax and social security (FICA).

                    5.
Additional Compensation; Expenses and Benefits. (a) During the Term, the
Company shall reimburse the Executive for all reasonable and necessary business
expenses incurred and advanced by her in carrying out her duties under this
Agreement. The Executive shall be entitled to fly business, or if business is
not offered on such flight, first class when traveling for business purposes.
The Executive shall present to the Company an itemized account of all expenses
in such form as may be required by the Company from time to time.

                    (b)
During the Term, the Executive shall be entitled to participate fully in any
other benefit plans, programs, policies and fringe benefits which may be made
available to the executive officers of the Company generally, including,
without limitation, disability, medical, dental and life insurance and benefits
under the Company’s 401(k) savings plan.

                    (c)
During the Term, the Executive shall be entitled to participate in any bonus
plans generally offered to executive officers of the Company. Bonuses may be
subject to the Executive’s individual performance and satisfaction of
objectives established by the Board or the compensation committee thereof (the
“Compensation Committee”). Bonuses may be paid in the form of cash,
stock options, restricted stock, restricted stock units or other securities of
the Company. 

                    (d)
The Executive shall be entitled to accrue vacation under the Company’s policy
at a rate of not less than four weeks per year.

                    6.
Termination. The date upon which the Executive’s employment with the
Company under this Agreement is deemed to be terminated in accordance with any
of the provisions of this Section 6 is referred to herein as the “Termination
Date.” A termination of employment shall not be deemed to have occurred for
purposes of any provision of this Agreement providing for the payment of any
amounts or benefits upon or following a termination of employment unless such
termination also constitutes a “separation from service” within the meaning of
Section 409A (“Section 409A”) of the Internal Revenue Code of 1986, as
amended (the “Code”), and the regulations thereunder (a “Separation
from Service”), and notwithstanding anything contained herein to the
contrary, the date on which a Separation from Service takes place shall be the
Termination Date.

                    (a)
The Company has the right and may elect to terminate this Agreement for Cause
at any time. For purposes of this Agreement, “Cause” means the
occurrence or existence of any of the following:

	
  

 	
  

 
	
  

 	
                     (i)
 (A) a material breach by the Executive of the terms of this Agreement, (B) a
 material breach by the Executive of the Executive’s duty not to engage in any
 transaction that represents, directly or indirectly, self-dealing with the
 Company or 

 

3

	
  

 	
  

 
	
  

 	
 any of its
 affiliates (which, for purposes hereof, shall mean any individual,
 corporation, partnership, association, limited liability company, trust,
 estate, or other entity or organization directly or indirectly controlling,
 controlled by, or under direct or indirect common control with the Company)
 which has not been approved by a majority of the disinterested directors of
 the Board, or (C) the Executive’s violation of the Company’s Code of Ethics
 which is demonstrably and materially injurious to the Company, if any such
 material breach or violation described in clauses (A), (B) or (C), to the
 extent curable, remains uncured after 15 days have elapsed following the date
 on which the Company gives the Executive written notice of such material
 breach or violation;

 
	
  

 	
  

 
	
  

 	
                     (ii)
 the Executive’s act of dishonesty, misappropriation, embezzlement,
 intentional fraud, or similar intentional misconduct by the Executive
 involving the Company or any of its affiliates; 

 
	
  

 	
  

 
	
  

 	
                     (iii)
 the Executive’s conviction or the plea of nolo contendere or the equivalent in
 respect of a felony; 

 
	
  

 	
  

 
	
  

 	
                     (iv)
 any damage of a material nature to any property of the Company or any of its
 affiliates caused by the Executive’s willful misconduct or gross negligence; 

 
	
  

 	
  

 
	
  

 	
                     (v)
 the repeated nonprescription use of any controlled substance or the repeated
 use of alcohol or any other non-controlled substance that, in the reasonable
 good faith opinion of the Board, renders the Executive unfit to serve as an
 officer of the Company or its affiliates; 

 
	
  

 	
  

 
	
  

 	
                     (vi)
 the Executive’s failure to comply with the Chief Executive Officer’s
 reasonable written instructions on a material matter within 5 days; or 

 
	
  

 	
  

 
	
  

 	
                     (vii)
 conduct by the Executive that in the reasonable good faith written
 determination of the Board demonstrates unfitness to serve as an officer of
 the Company or its affiliates, including a finding by the Board or any
 judicial or regulatory authority that the Executive committed acts of
 unlawful harassment or violated any other state, federal or local law or
 ordinance prohibiting discrimination in employment. 

 

Termination of
the Executive for Cause pursuant to this Section 6(a) shall be communicated by
a Notice of Termination for Cause. For purposes of this Agreement, a “Notice
of Termination for Cause” shall mean delivery to the Executive of a copy of
a resolution or resolutions duly adopted by the affirmative vote of not less
than a majority of the directors present (in person or by teleconference) and
voting at a meeting of the Board called and held for that purpose after fifteen
days’ notice to the Executive (which notice the Company shall use reasonable
efforts to confirm that Executive has actually received and which notice for
purposes of this Section 6(a) may be delivered, in addition to the requirements
set forth in Section 17, through the use of electronic mail) and a reasonable
opportunity for the Executive, together with the Executive’s counsel, to be
heard before the Board prior to such vote, finding that in the good faith
opinion of the Board, the Executive was guilty of conduct set forth in any of
clauses (i) through (vii) of this Section 6(a) and specifying the particulars
thereof in reasonable detail. For purposes of this Section 6(a),

4

this Agreement
shall terminate on the date specified by the Board in the Notice of Termination
for Cause.

                    (b)
This Agreement and the Executive’s employment shall terminate upon the death of
the Executive. If the Executive is unable to perform the essential duties and
functions of her position because of a disability, even with a reasonable
accommodation, for one hundred eighty days within any three hundred sixty-five
day period (“Disability”), the Company shall have the right and may
elect to terminate the services of the Executive by a Notice of Disability
Termination. The Executive shall not be terminated following a Disability
except pursuant to this Section 6(b). For purposes of this Agreement, a “Notice
of Disability Termination” shall mean a written notice that sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive’s employment under this Section 6(b). For purposes
of this Agreement, no such purported termination shall be effective without
such Notice of Disability Termination. This Agreement shall terminate on the
day such Notice of Disability Termination is received by the Executive.

                    (c)
The Executive shall have the absolute right to terminate her employment at any
time with or without Good Reason (as defined below). Should the Executive wish
to resign from her position with the Company during the Term, for other than
Good Reason, the Executive shall give at least fourteen days prior written
notice to the Company. This Agreement shall terminate on the effective date of
the resignation set forth in the notice of resignation, however, the Company
may, at its sole discretion, instruct that the Executive perform no job
responsibilities and cease her active employment immediately upon receipt of
the notice from the Executive.

                    (d)
The Company shall have the absolute right to terminate the Executive’s
employment without Cause at any time. This Agreement shall terminate one day
following receipt of such notice by the Executive, however, the Company may, at
its sole discretion, instruct that the Executive cease active employment and
perform no more job duties immediately upon provision of such notice to the
Executive. 

                    (e)
Should the Executive wish to resign from her position with the Company for Good
Reason during the Term, the Executive shall give seven days prior written
notice to the Company. This Agreement shall terminate on the date specified in
such notice, however, the Company may, at its sole discretion, instruct that
the Executive cease active employment and perform no more job duties
immediately upon receipt of such notice from the Executive.

                    For
purposes of this Agreement, “Good Reason” shall mean the continuance of
any of the following events (without the Executive’s prior written consent) for
a period of thirty days after delivery to the Company by the Executive of a
notice of the occurrence of such event during which time the Company shall be
afforded the opportunity to cure such event:

	
  

 	
  

 
	
  

 	
                     (i)
 the assignment to the Executive by the Company of duties not reasonably
 consistent with the Executive’s positions, duties, responsibilities, titles
 or offices at the commencement of the Term, any reduction on the Executive’s
 title, any material reduction in the Executive’s duties or responsibilities
 as described in Section 2, or any removal of the Executive from, or any
 failure to re-elect the Executive to, any of 

 

5

	
  

 	
  

 
	
  

 	
 such
 positions (except in connection with the termination of the Executive’s
 employment for Cause, Disability or as a result of the Executive’s death or
 by the Executive other than for Good Reason); or

 
	
  

 	
  

 
	
  

 	
                     (ii)
 the Executive ceasing to report directly to the Chief Executive Officer of
 the Company; or

 
	
  

 	
  

 
	
  

 	
                     (iii)
 the relocation of the Executive’s principal place of employment to a location
 more than 35 miles from the Executive’s principal place of employment as of
 the date of this Agreement or the Company’s requiring the Executive to be based
 anywhere other than such principal place of employment (or permitted
 relocation thereof), except for required travel on the Company’s business to
 an extent substantially consistent with the Executive’s present business
 travel obligations; or

 
	
  

 	
  

 
	
  

 	
                     (iv)
 any reduction in the Base Salary; or

 
	
  

 	
  

 
	
  

 	
                     (v)
 the Company’s failure to make a bona fide offer in writing to renew this
 Agreement, for an additional one-year term, on the terms and conditions set
 forth in this Agreement (including the Base Salary set forth in Section 4(a),
 but excluding any equity–based compensation set forth in Section 4(b)), at
 least 90 days prior to (x) the fourth anniversary of the Effective Date and
 (y) each subsequent anniversary of the Effective Date following the fourth
 anniversary of the Effective Date; provided that (for purposes of this
 clause (y) only) this Agreement has been renewed on the previous anniversary
 of the Effective Date; or

 
	
  

 	
  

 
	
  

 	
                     (vi)
 any material breach by the Company of this Agreement.

 

                    (f)
(i) If the employment of the Executive is terminated by the Company for Cause,
by the Executive other than for Good Reason or due to death or Disability, the
Executive shall, in lieu of any future payments or benefits under this
Agreement, be entitled to (A) any earned but unpaid Base Salary and any
business expenses incurred but not reimbursed, in each case, prior to the
Termination Date and (B) any other vested benefits under any other benefit
plans or programs in accordance with the terms of such plans and programs
(collectively, the “Accrued Payments and Benefits”). 

                    (ii)
If the employment of the Executive is terminated without Cause or the Executive
terminates her employment for Good Reason, then the Executive shall have an
absolute and unconditional right to receive, and the Company shall pay to the
Executive without setoff, counterclaim or other withholding, except as set
forth in Section 4(c), (A) the Accrued Payments and Benefits, (B) a lump sum
amount equal to the sum of (x) the Executive’s annualized Base Salary then in
effect and (y) an amount in cash equal to the bonus, whether denominated as an
annual, performance, incentive, retention or other bonus, last paid (or due and
payable) to the Executive in respect of the fiscal year immediately preceding
the year in which the Termination Date occurs, and (C) the continuation, at the
Company’s expense (by direct payment, not reimbursement to the Executive) of
(1) medical and dental benefits for her and her dependents in a manner that
will not be taxable to the Executive and (2) life insurance benefits, on the
same terms as provided by the Company for active employees for one year
following the

6

Termination
Date. The lump sum amount contemplated by clause (B) above shall be paid on the
10th business day after the Release is no longer cancellable or
revocable by the Executive.

                    (g)
The Company’s obligations under Section 6(f)(ii) shall be conditioned upon the
Executive executing, delivering, and not revoking during the seven day
revocation period a waiver and release of claims against the Company,
substantially in the form attached as Exhibit B (the “Release”) within
30 days following the Termination Date; provided that the Executive
shall have no obligation to execute such Release in order to receive the
payments and benefits under Section 6(f)(ii) in the event that a Release
executed by the Company has not been delivered by the Company to the Executive
within five days following the Termination Date.

                    (h)
Notwithstanding any provisions of this Agreement to the contrary, if the
Executive is a “specified employee” (within the meaning of Section 409A and
determined pursuant to policies adopted by the Company) at the time of her
Separation from Service and if any portion of the payments or benefits to be
received by the Executive upon Separation from Service would be considered
deferred compensation under Section 409A (“Nonqualified Deferred Compensation”),
amounts that would otherwise be payable pursuant to this Agreement during the
six-month period immediately following the Executive’s Separation from Service
that constitute Nonqualified Deferred Compensation and benefits that would
otherwise be provided pursuant to this Agreement during the six-month period
immediately following the Executive’s Separation from Service that constitute
Nonqualified Deferred Compensation will instead be paid or made available on
the earlier of (x) the first business day of the seventh month following the
date of the Executive’s Separation from Service and (y) the Executive’s death. 

                    7.
Nondisclosure of Confidential Information. (a) The Executive
acknowledges that in the course of her employment she will occupy a position of
trust and confidence. The Executive shall not, except in connection with the
performance of her functions or as required by applicable law, disclose to
others or use, directly or indirectly, any Confidential Information. 

                    (b)
“Confidential Information” shall mean information about the Company’s
business and operations that is not disclosed by the Company for financial
reporting purposes and that was learned by the Executive in the course of her
employment by the Company, including, without limitation, any business plans,
product plans, strategy, budget information, proprietary knowledge, patents,
trade secrets, data, formulae, sketches, notebooks, blueprints, information and
client and customer lists and all papers and records (including computer
records) of the documents containing such Confidential Information, other than
information that is publicly disclosed by the Company in writing. The Executive
acknowledges that such Confidential Information is specialized, unique in
nature and of great value to the Company, and that such information gives the
Company a competitive advantage. The Executive agrees to deliver or return to
the Company, at the Company’s request at any time or upon termination or
expiration of her employment or as soon as possible thereafter, all documents,
computer tapes and disks, records, lists, data, drawings, prints, notes and
written information (and all copies thereof) furnished by or on behalf of the
Company or prepared by the Executive in the course of her employment by the
Company, provided that the Executive will be able to keep her blackberry,
personal computer, personal rolodex and the like so long as any Confidential
Information is removed from such items.

7

                    (c)
The provisions of this Section 7 shall survive indefinitely.

                    8.
Covenant Not to Compete. During the Restricted Period (as defined
below), the Executive shall not, directly or indirectly, enter into the
employment of, render services to, or acquire any interest whatsoever in
(whether for her own account as an individual proprietor, or as a partner, associate,
stockholder, officer, director, consultant, trustee or otherwise), or otherwise
assist, any person or entity engaged in the distribution or transmission of
radio programming or any activity that directly competes with the business of
the Company (each, a “Competitive Activity”); provided that
nothing in this Agreement shall prevent the purchase or ownership by the
Executive by way of investment of less than five percent of the shares or
equity interest of any corporation or other entity. Without limiting the
generality of the foregoing, the Executive agrees that during the Restricted
Period, the Executive shall not call on or otherwise solicit business or assist
others to solicit business from any of the customers of the Company as to any
product or service described above that competes with any product or service
provided or marketed by the Company on the date of the Executive’s termination
of employment with the Company during the Term (as such Term may be extended in
accordance with Section 6(e)(v) of the Agreement) (the “Milestone Date”).
The Executive agrees that during the Restricted Period she will not solicit or
assist others to solicit the employment of or hire any employee of the Company
without the prior written consent of the Company. For purposes of this
Agreement, the “Restricted Period” shall mean the period of one year
following the Milestone Date. For purposes of this Agreement, the term “radio”
shall mean terrestrial radio, satellite radio, HD radio, internet radio and
other audio delivered terrestrially, by satellite, HD or the internet. Notwithstanding
anything to the contrary in this Section 8, it shall not be a violation of this
Section 8 for the Executive to join a division or business line of a commercial
enterprise with multiple divisions or business lines if such division or
business line is not engaged in a Competitive Activity; provided that
the Executive performs services solely for such non-competitive division or
business line.

                    9.
Change of Control Provisions. If the Executive is, in the opinion of a
nationally recognized accounting firm jointly selected by the Executive and the
Company, required to pay an excise tax on “excess parachute payments” (as
defined in Section 280G(b) of the Code) under Section 4999 of the Code as a
result of an acceleration of the vesting of stock options or otherwise, the
Company shall have an absolute and unconditional obligation to pay the
Executive in accordance with the terms of this Section 9 the amount of such
taxes. In addition, the Company shall have an absolute and unconditional
obligation to pay the Executive such additional amounts as are necessary to place
the Executive in the exact same financial position that she would have been in
if she had not incurred any tax liability under Section 4999 of the Code. The
determination of the exact amount, if any, of any “excess parachute payments”
and any tax liability under Section 4999 of the Code shall be made by a
nationally-recognized independent accounting firm selected by the Executive and
the Company. The fees and expenses of such accounting firm shall be paid by the
Company. The determination of such accounting firm shall be final and binding
on the parties. The Company irrevocably agrees to pay to the Executive, in
immediately available funds to an account designated in writing by the
Executive, any amounts to be paid under this Section 9 within two business days
after receipt by the Company of written notice from the accounting firm which
sets forth such accounting firm’s determination. In addition, in the event that
such payments are not sufficient to pay all excise taxes on “excess parachute
payments” under Section 4999 of the Code as a result of an

8

acceleration
of the vesting of options or for any other reason and to place the Executive in
the exact same financial position that she would have been in if she had not
incurred any tax liability under Section 4999 of the Code, then the Company
shall have an absolute and unconditional obligation to pay the Executive such
additional amounts as may be necessary to pay such excise taxes and place the
Executive in the exact same financial position that she would have been had she
not incurred any tax liability as a result of a change in control under the
Code. Notwithstanding the foregoing, in the event that a written ruling
(whether public or private) of the Internal Revenue Service (“IRS”) is
obtained by or on behalf of the Company or the Executive, which ruling
expressly provides that the Executive is not required to pay, or is entitled to
a refund with respect to, all or any portion of such excise taxes or additional
amounts, the Executive shall promptly reimburse the Company in an amount equal
to all amounts paid to the Executive pursuant to this Section 9 less any excise
taxes or additional amounts which remain payable by, or are not refunded to,
the Executive after giving effect to such IRS ruling. Each of the Company and
the Executive agrees to promptly notify the other party if it receives any such
IRS ruling. The payments contemplated by this Section 9 shall in all events be
paid no later than the end of the Executive’s taxable year next following the
Executive’s taxable year in which the excise tax (and any income or other
related tax or interest or penalties thereon) on a payment is remitted to IRS
or any other applicable taxing authority; or, in the case of amounts relating
to any claim by IRS or any other taxing authority that does not result in the
remittance of any federal, state, local and foreign income, excise, social
security and other taxes, the calendar year in which the claim is finally
settled or otherwise resolved. Any amounts required to be repaid to the Company
pursuant to this Section 9 will be repaid to the Company within five business
days of the Executive’s receipt of any refund with respect to any excise tax.

                    10.
Remedies. The Executive and Company agree that damages for breach of any
of the covenants under Sections 7 and 8 will be difficult to determine and
inadequate to remedy the harm which may be caused thereby, and therefore
consent that these covenants may be enforced by temporary or permanent
injunction without the necessity of bond. The Executive believes, as of the
date of this Agreement, that the provisions of this Agreement are reasonable
and that the Executive is capable of gainful employment without breaching this
Agreement. However, should any court or arbitrator decline to enforce any
provision of Section 7 or 8 of this Agreement, this Agreement shall, to the
extent applicable in the circumstances before such court or arbitrator, be
deemed to be modified to restrict the Executive’s competition with the Company
to the maximum extent of time, scope and geography which the court or
arbitrator shall find enforceable, and such provisions shall be so enforced. 

                    11.
Indemnification. The Company shall indemnify the Executive to the full
extent provided in the Company’s Amended and Restated Certificate of
Incorporation and Amended and Restated Bylaws and the law of the State of
Delaware in connection with her activities as an officer of the Company.

                    12.
Entire Agreement. The provisions contained herein constitute the entire
agreement between the parties with respect to the subject matter hereof and
supersede any and all prior agreements, understandings and communications
between the parties, oral or written, with respect to such subject matter,
including the Employment Agreement between the Executive and the Company dated
September 26, 2008, but excluding any equity award agreements between the
Executive and the Company. For the avoidance of doubt, nothing herein is
intended to

9

supersede or
waive obligations of the Executive to comply with any assignment of invention
provisions applicable to the Executive under the Code of Ethics or any
assignment of invention agreement(s) between the Company and the Executive. 

                    13.
Modification. Any waiver, alteration, amendment or modification of any
provisions of this Agreement shall not be valid unless in writing and signed by
both the Executive and the Company.

                    14.
Severability. If any provision of this Agreement shall be declared to be
invalid or unenforceable, in whole or in part, such invalidity or
unenforceability shall not affect the remaining provisions hereof, which shall
remain in full force and effect.

                    15.
Assignment. The Executive may not assign any of her rights or delegate
any of her duties hereunder without the prior written consent of the Company.
The Company may not assign any of its rights or delegate any of its obligations
hereunder without the prior written consent of the Executive, except that any
successor to the Company by merger or purchase of all or substantially all of
the Company’s assets shall assume this Agreement.

                    16.
Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the successors in interest of the Executive and the Company.

                    17.
Notices. All notices and other communications required or permitted
hereunder shall be made in writing and shall be deemed effective when delivered
personally or transmitted by facsimile transmission, one business day after
deposit with a nationally recognized overnight courier (with next day delivery
specified) and five days after mailing by registered or certified mail:

	
  

 	
  

 
	
  

 	
 if to the
 Company:

 
	
  

 	
  

 
	
  

 	
 Sirius XM Radio
 Inc.

 
	
  

 	
 1221 Avenue
 of the Americas

 
	
  

 	
 36th
 Floor

 
	
  

 	
 New York,
 New York 10020

 
	
  

 	
 Attention:
 Chief Executive Officer

 
	
  

 	
 Telecopier:
 (212) 584-5353

 
	
  

 	
  

 
	
  

 	
 if to the Executive:

 
	
  

 	
  

 
	
  

 	
 Dara Altman

 
	
  

 	
 Address on file at the offices

 
	
  

 	
 of the
 Company

 

or to such
other person or address as either party shall furnish in writing to the other
party from time to time.

                    18.
Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed entirely within the State of New York.

10

                    19.
Non-Mitigation. The Executive shall not be required to mitigate damages
or seek other employment in order to receive compensation or benefits under
Section 6 of this Agreement; nor shall the amount of any benefit or payment
provided for under Section 6 of this Agreement be reduced by any compensation
earned by the Executive as the result of employment by another employer.

                    20.
Arbitration. (a) The Executive and the Company agree that if a dispute
arises concerning or relating to the Executive’s employment with the Company,
or the termination of the Executive’s employment, such dispute shall be
submitted to binding arbitration under the rules of the American Arbitration
Association regarding resolution of employment disputes in effect at the time
such dispute arises. The arbitration shall take place in New York, New York,
before a single experienced arbitrator licensed to practice law in New York and
selected in accordance with the American Arbitration Association rules and
procedures. Except as provided below, the Executive and the Company agree that
this arbitration procedure will be the exclusive means of redress for any
disputes relating to or arising from the Executive’s employment with the
Company or her termination, including disputes over rights provided by federal,
state, or local statutes, regulations, ordinances, and common law, including
all laws that prohibit discrimination based on any protected classification. The parties
expressly waive the right to a jury trial, and agree that the arbitrator’s
award shall be final and binding on both parties, and shall not be appealable.
The arbitrator shall have discretion to award monetary and other damages, and
any other relief that the arbitrator deems appropriate and is allowed by law.
The arbitrator shall have the discretion to award the prevailing party
reasonable costs and attorneys’ fees incurred in bringing or defending an
action, and shall award such costs and fees to the Executive in the event the
Executive prevails on the merits of any action brought hereunder. 

                    (b)
The Company shall pay the cost of any arbitration proceedings under this
Agreement if the Executive prevails in such arbitration on at least one
substantive issue. 

                    (c)
The Company and the Executive agree that the sole dispute that is excepted from
Section 20(a) is an action seeking injunctive relief from a court of competent
jurisdiction regarding enforcement and application of Sections 7, 8 or 10 of
this Agreement, which action may be brought in addition to, or in place of, an
arbitration proceeding in accordance with Section 20(a).

                    21.
Compliance with Section 409A. (a) To the extent applicable, it is
intended that the compensation arrangements under this Agreement be in full
compliance with Section 409A (it being understood that certain compensation
arrangements under this Agreement are intended not to be subject to Section
409A). The Agreement shall be construed, to the maximum extent permitted, in a
manner to give effect to such intention. Notwithstanding anything in this
Agreement to the contrary, distributions upon termination of the Executive’s
employment may only be made upon a Separation from Service. Neither the Company
nor any of its affiliates shall have any obligation to indemnify or otherwise
hold the Executive harmless from any or all such taxes, interest or penalties,
or liability for any damages related thereto. The Executive acknowledges that
she has been advised to obtain independent legal, tax or other counsel in
connection with Section 409A. 

11

                    (b)
With respect to any amount of expenses eligible for reimbursement under this Agreement,
such expenses will be reimbursed by the Company within thirty (30) days
following the date on which the Company receives the applicable invoice from
the Executive in accordance with the Company’s expense reimbursement policies,
but in no event later than the last day of the Executive’s taxable year
following the taxable year in which the Executive incurs the related expenses.
In no event will the reimbursements or in-kind benefits to be provided by the
Company in one taxable year affect the amount of reimbursements or in-kind
benefits to be provided in any other taxable year, nor will the Executive’s
right to reimbursement or in-kind benefits be subject to liquidation or
exchange for another benefit.

                    (c)
Each payment under this Agreement shall be regarded as a “separate payment” and
not of a series of payments for purposes of Section 409A.

                    22.
Counterparts. This Agreement may be executed in counterparts, all of
which shall be considered one and the same agreement, and shall become
effective when one or more counterparts have been signed by each of the parties
and delivered to the other party.

                    23.
Executive’s Representation. The Executive hereby represents and warrants
to Company that she is not now under any contractual or other obligation that
is inconsistent with or in conflict with this Agreement or that would prevent,
limit, or impair the Executive’s performance of her obligations under this
Agreement.

                    24.
Survivorship. Upon the expiration or other termination of this Agreement
or the Executive’s employment with the Company, the respective rights and
obligations of the parties hereto shall survive to the extent necessary to
carry out the intentions of the parties under this Agreement.

12

                    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SIRIUS XM
 RADIO INC.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ 

 	
 Patrick
 Donnelly 

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
 Patrick
 Donnelly 

 
	
  

 	
  

 	
  

 	
 Executive Vice President, General 

 
	
  

 	
  

 	
  

 	
 Counsel and Secretary

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 /s/

 	
 Dara F.
 Altman 

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
 Dara F.
 Altman

 

Exhibit A

THIS OPTION MAY NOT BE TRANSFERRED EXCEPT BY
WILL OR UNDER THE LAWS

OF DESCENT AND DISTRIBUTION.

SIRIUS XM RADIO 2009 LONG-TERM STOCK
INCENTIVE PLAN

STOCK OPTION AGREEMENT

                    This
STOCK OPTION AGREEMENT (this “Agreement”), dated August 23, 2011,
between SIRIUS XM RADIO INC., a Delaware corporation (the “Company”),
and DARA F. ALTMAN (the “Executive”).

                    1.
Grant of Option; Vesting. (a) Subject to the terms and conditions of
this Agreement, the Sirius XM Radio 2009 Long-Term Stock Incentive Plan (the “Plan”),
and the Employment Agreement, dated as of August 23, 2011, between the Company
and the Executive (the “Employment Agreement”), the Company hereby
grants to the Executive the right and option (this “Option”) to purchase
7,500,000 shares (the “Shares”) of common stock, par value $0.001 per
share, of the Company at a price per share of $1.69 (the “Exercise Price”).
This Option is not intended to qualify as an Incentive Stock Option for
purposes of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).
In the case of any stock split, stock dividend or like change in the Shares
occurring after the date hereof, the number of Shares and the Exercise Price
shall be adjusted as set forth in Section 4(b) of the Plan.

                    (b)
Subject to the terms of this Agreement, this Option shall vest and become
exercisable in four equal installments on each of August 23, 2012, August 23,
2013, August 23, 2014 and August 23, 2015.

                    (c)
If the Executive’s employment with the Company terminates for any reason, this
Option, to the extent not then vested, shall immediately terminate without consideration;
provided that if the Executive’s employment is terminated (x) due to
death or Disability (as defined in the Employment Agreement), (y) by the
Company without Cause (as defined in the Employment Agreement), or (z) by the
Executive for Good Reason (as defined in the Employment Agreement), the
unvested portion of this Option, to the extent not previously cancelled or
forfeited, shall immediately become vested and exercisable. 

                    2.
Term. This Option shall terminate on August 23, 2021 (the “Option
Expiration Date”); provided that if:

	
  

 	
  

 
	
  

 	
           (a)
 the Executive’s employment with the Company is terminated due to the
 Executive’s death or Disability, by the Company without Cause or by the
 Executive for Good Reason, the Executive may exercise this Option in full
 until the first anniversary of such termination (at which time the Option
 shall be cancelled), but not later than the Option Expiration Date;

 

	
  

 	
  

 
	
  

 	
           (b)
 the Executive’s employment with the Company is terminated for Cause, the
 Option shall be cancelled upon the date of such termination; and

 
	
  

 	
  

 
	
  

 	
           (c)
 the Executive voluntarily terminates her employment with the Company without
 Good Reason, the Executive may exercise the vested portion of this Option
 until ninety days following the date of such termination (at which time the
 Option shall be cancelled), but not later than the Option Expiration Date.

 

                    3.
Exercise. Subject to Sections 1 and 2 of this Agreement and the terms of
the Plan, this Option may be exercised, in whole or in part, in accordance with
Section 6 of the Plan.

                    4.
Non-transferable. This Option may not be transferred, assigned, pledged
or hypothecated in any manner (whether by operation of law or otherwise) other
than by will or by the applicable laws of descent and distribution, and shall
not be subject to execution, attachment or similar process. Any attempt to
transfer, assign, pledge, hypothecate or otherwise dispose of the Option or of
any right or privilege conferred hereby shall be null and void.

                    5.
Withholding. Prior to delivery of the Shares purchased upon exercise of
this Option, the Company shall determine the amount of any United States
federal, state and local income tax, if any, which is required to be withheld
under applicable law and shall, as a condition of exercise of this Option and
delivery of certificates representing the Shares purchased upon exercise of
this Option, collect from the Executive the amount of any such tax to the
extent not previously withheld. The Executive may satisfy her withholding
obligations in the manner contemplated by Section 14(d) of the Plan.

                    6.
Rights of the Executive. Neither this Option, the execution of this
Agreement nor the exercise of any portion of this Option shall confer upon the
Executive any right to, or guarantee of, continued employment by the Company,
or in any way limit the right of the Company to terminate employment of the
Executive at any time, subject to the terms of the Employment Agreement or any
other written employment or similar agreement between the Company and the
Executive.

                    7.
Professional Advice. The acceptance and exercise of this Option may have
consequences under federal and state tax and securities laws that may vary
depending upon the individual circumstances of the Executive. Accordingly, the
Executive acknowledges that the Executive has been advised to consult her
personal legal and tax advisor in connection with this Agreement and this
Option.

                    8.
Agreement Subject to the Plan. The Option and this Agreement are subject
to the terms and conditions set forth in the Plan, which terms and conditions
are incorporated herein by reference. Capitalized terms used herein but not
defined shall have the meaning set forth in the Plan. A copy of the Plan
previously has been delivered to the Executive. This Agreement, the Employment
Agreement and the Plan constitute the entire understanding between the Company
and the Executive with respect to this Option.

                    9.
Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York without regard to its
conflict of laws

principles,
and shall bind and inure to the benefit of the heirs, executors, personal
representatives, successors and assigns of the parties hereto.

                    10.
Notices. All notices and other communications hereunder shall be in
writing and shall be deemed given when delivered personally or when telecopied
(with confirmation of transmission received by the sender), three business days
after being sent by certified mail, postage prepaid, return receipt requested
or one business day after being delivered to a nationally recognized overnight
courier with next day delivery specified to the parties at the following
addresses (or at such other address for a party as shall be specified by like
notice): Company: Sirius XM Radio Inc., 1221 Avenue of the Americas, 36th
Floor, New York, New York 10020, Attention: Chief Executive Officer; and
Executive: Address on file at the office of the Company. Notices sent by email
or other electronic means not specifically authorized by this Agreement shall
not be effective for any purpose of this Agreement.

                    11.
Binding Effect. This Agreement has been duly executed and delivered by
the Company and constitutes the legal, valid and binding obligation of the
Company enforceable against the Company in accordance with its terms.

                    12.
Amendment. The rights of the Executive hereunder may not be impaired by
any amendment, alteration, suspension, discontinuance or termination of the
Plan or this Agreement without the Executive’s consent. 

                    IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SIRIUS XM
 RADIO INC.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
 Patrick
 Donnelly

 
	
  

 	
  

 	
  

 	
 Executive Vice President, General

 
	
  

 	
  

 	
  

 	
 Counsel and Secretary

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
 Dara F.
 Altman

 

Exhibit B

AGREEMENT AND RELEASE

                    This
Agreement and Release, dated as of _________, 20__ (this “Agreement”),
is entered into by and between DARA ALTMAN (the “Executive”) and SIRIUS
XM RADIO INC., and its subsidiaries and affiliated companies (collectively, the
“Company”). 

                    The
purpose of this Agreement is to completely and finally settle, resolve, and
forever extinguish all obligations, disputes and differences arising out of the
Executive’s employment with and separation from Company.

                    NOW,
THEREFORE, in consideration of the mutual promises and covenants contained in
this Agreement, the Executive and the Company hereby agree as follows:

                    1.
The Executive’s employment with the Company is terminated as of _____________,
20__ (the “Termination Date”).

                    2.
The Company and the Executive agree that the Executive shall be provided
severance pay, less all legally required and authorized deductions in
accordance with the terms of Section 6(f) of the Employment Agreement, dated as
of August 23, 2011 (the “Employment Agreement”), between the Executive
and the Company; provided that no such severance shall be paid if the
Executive revokes this Agreement pursuant to Section 4 below. The Executive
acknowledges and agrees that she is entering into this Agreement in
consideration of such severance and the Company’s agreements set forth herein.
All vacation pay earned and unused as of the Termination Date will be paid to
Executive as required by law. Except as set forth above, the Executive will not
be eligible for any other compensation or benefits following the Termination
Date other than any vested, accrued benefits under the Company’s compensation
and benefit plans, and other than the rights, if any, granted to the Executive
under the terms of any stock option, restricted stock, or other equity award
agreements or plans. 

                    3.
The Executive, for herself, and for her heirs, attorneys, agents, spouse and
assigns, hereby waives, releases and forever discharges the Company and its
predecessors, successors, and assigns, if any, as well as its and their
officers, directors and employees, stockholders, agents, servants,
representatives, and attorneys, and the predecessors, successors, heirs and
assigns of each of them (collectively “Released Parties”), from any and
all grievances, claims, demands, causes of action, obligations, damages and/or
liabilities of any nature whatsoever, whether known or unknown, suspected or
claimed, which the Executive ever had, now has, or claims to have against the
Released Parties, by reason of any act or omission occurring before the date
hereof, including, without limiting the generality of the foregoing, (a) any
act, cause, matter or thing stated, claimed or alleged, or which was or which
could have been alleged in any manner against the Released Parties prior to the
execution of this Agreement and (b) all claims for any payment under the
Employment Agreement; provided that nothing contained in this Agreement
shall affect the Executive’s rights (i) to indemnification from the Company as
provided in the Employment Agreement or otherwise; (ii) to coverage under the
Company’s insurance policies covering officers and directors; (iii) to other
benefits which by their express terms extend beyond the Executive’s separation
from employment (including

Executive’s
rights under Section 6(f) of the Employment Agreement); and (iv) under this
Agreement, and (c) all claims for discrimination, harassment and/or retaliation,
under Title VII of the Civil Rights Act of 1964, as amended, the Civil Rights
Act of 1991, as amended, the New York State Human Rights Law, as amended, as
well as any and all claims arising out of any alleged contract of employment,
whether written, oral, express or implied, or any other federal, state or local
civil or human rights or labor law, ordinances, rules, regulations, guidelines,
statutes, common law, contract or tort law, arising out of or relating to the
Executive’s employment with and/or separation from the Company, including the
termination of her employment on the Termination Date, and/or any events
occurring prior to the execution of this Agreement.

                    4.
The Executive specifically waives all rights or claims that she has or may have
under the Age Discrimination In Employment Act of 1967, 29 U.S.C.
§§ 621-634, as amended (“ADEA”), including, without limitation,
those arising out of or relating to the Executive’s employment with and/or
separation from the Company, the termination of her employment on the
Termination Date, and/or any events occurring prior to the execution of this
Agreement. In accordance with the ADEA, the Company specifically hereby advises
the Executive that: (1) she may and should consult an attorney before signing
this Agreement, (2) she has twenty-one (21) days to consider this Agreement,
and (3) she has seven (7) days after signing this Agreement to revoke this
Agreement. 

                    5.
Notwithstanding the above, nothing in this Agreement prevents or precludes
Executive from (a) challenging or seeking a determination of the validity of
this Agreement under the ADEA; or (b) filing an administrative charge of
discrimination under any applicable statute or participating in any
investigation or proceeding conducted by a governmental agency.

                    6.
Executive acknowledges that she has read and understands the foregoing release
and executes it voluntarily and without coercion.

                    7.
The Company, for itself, and for its predecessors, successors, and assigns, if
any, as well as its and their officers, directors and employees, stockholders,
agents, servants, representatives, and attorneys, and the predecessors,
successors, heirs and assigns of each of them, hereby waives, releases and
forever discharges the Executive and her heirs, attorneys, agents, spouse and
assigns (collectively, “Executive Released Parties”) from any and all
grievances, claims, demands, causes of action, obligations, damages and/or
liabilities of any nature whatsoever, which the Company ever had, now has, or
claims to have against the Executive Released Parties by reason of any act or
omission occurring before the date hereof including, without limiting the
generality of the foregoing, any act, cause, matter or thing stated, claimed or
alleged of which the Company has actual knowledge which was or could have been
alleged in any manner against the Executive Released Parties prior to the
execution of this Agreement.

                    8.
This release does not affect or impair the Executive’s rights with respect to
workman’s compensation or similar claims under applicable law or any claims
under medical, dental, disability, life or other insurance arising prior to the
date hereof. 

                    9.
The Executive warrants that she has not made any assignment, transfer,
conveyance or alienation of any potential claim, cause of action, or any right
of any kind whatsoever, including but not limited to, potential claims and
remedies for discrimination, harassment, retaliation, or wrongful termination,
and that no other person or entity of any kind has had, or now has, any
financial or other interest in any of the demands, obligations, causes of
action, debts, liabilities, rights, contracts, damages, costs, expenses, losses
or claims which could have been asserted by the Executive against the Company.

                    10.
The Executive shall not make any disparaging remarks about the Company, or its
officers, agents, employees, practices or products; provided that the
Executive may provide truthful and accurate facts and opinions about the
Company where required to do so by law. The Company shall not, and shall
instruct its officers not to, make any disparaging remarks about the Executive;
provided that the Company and its officers may provide truthful and
accurate facts and opinions about the Executive where required to do so by law.

                    11.
The parties expressly agree that this Agreement shall not be construed as an
admission by any of the parties of any violation, liability or wrongdoing, and
shall not be admissible in any proceeding as evidence of or an admission by any
party of any violation or wrongdoing. The Company expressly denies any
violation of any federal, state, or local statute, ordinance, rule, regulation,
order, common law or other law in connection with the employment and
termination of employment of the Executive.

                    12.
In the event of a dispute concerning the enforcement of this Agreement, the
finder of fact shall have the discretion to award the prevailing party
reasonable costs and attorneys’ fees incurred in bringing or defending an
action, and shall award such costs and fees to the Executive in the event the
Executive prevails on the merits of any action brought hereunder. All other
requests for relief or damages awards shall be governed by Sections 20(a) and
20(b) of the Employment Agreement.

                    13.
The parties declare and represent that no promise, inducement, or agreement not
expressed herein has been made to them.

                    14.
This Agreement in all respects shall be interpreted, enforced and governed
under the laws of the State of New York and any applicable federal laws
relating to the subject matter of this Agreement. The language of all parts of
this Agreement shall in all cases be construed as a whole, according to its
fair meaning, and not strictly for or against any of the parties. This
Agreement shall be construed as if jointly prepared by the Executive and the
Company. Any uncertainty or ambiguity shall not be interpreted against any one
party.

                    15.
This Agreement, the Employment Agreement, [and list any outstanding award agreements]
between the Executive and the Company contain the entire agreement of the
parties as to the subject matter hereof. No modification or waiver of any of
the provisions of this Agreement shall be valid and enforceable unless such
modification or waiver is in writing and signed by the party to be charged, and
unless otherwise stated therein, no such modification or waiver shall
constitute a modification or waiver of any other provision of this Agreement
(whether or not similar) or constitute a continuing waiver.

                    16.
The Executive and the Company represent that they have been afforded a
reasonable period of time within which to consider the terms of this Agreement,
that they have read this Agreement, and they are fully aware of its legal
effects. The Executive and the Company further represent and warrant that they
enter into this Agreement knowingly and voluntarily, without any mistake,
duress or undue influence, and that they have been provided the opportunity to
review this Agreement with counsel of their own choosing. In making this
Agreement, each party relies upon her or its own judgment, belief and
knowledge, and has not been influenced in any way by any representations or
statements not set forth herein regarding the contents hereof by the entities
who are hereby released, or by anyone representing them.

                    17.
This Agreement may be executed in counterparts, all of which shall be
considered one and the same agreement, and shall become effective when one or
more counterparts have been signed by each of the parties and delivered to the
other parties. The parties further agree that delivery of an executed
counterpart by facsimile shall be as effective as delivery of an originally
executed counterpart. This Agreement shall be of no force or effect until
executed by all the signatories.

                    18.
The Executive warrants that she will return to the Company all software,
computers, computer-related equipment, keys and all materials (including
copies) obtained or created by the Executive in the course of her employment
with the Company on or before the Termination Date; provided that the
Executive will be able to keep her blackberry, personal computer, personal
rolodex and the like so long as any confidential information is removed from
such items.

                    19.
Any existing obligations the Executive has with respect to confidentiality,
nonsolicitation of Company clients, nonsolicitation of Company employees and
noncompetition with the Company shall remain in full force and effect,
including, but not limited to, Sections 7 and 8 of the Employment Agreement. 

                    20.
Any disputes arising from or relating to this Agreement shall be subject to the
arbitration provision pursuant to Section 20 of the Employment Agreement.

                    21.
Should any provision of this Agreement be declared or be determined by a forum
with competent jurisdiction to be illegal or invalid, the validity of the
remaining parts, terms or provisions shall not be affected thereby and said
illegal or invalid part, term, or provision shall be deemed not to be a part of
this Agreement.

                    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 SIRIUS XM
 RADIO INC.

 
	
  

 
	
 Dated: 

 	
  

 	
  

 	
 By: 

 	
  

 
	
  

 	 

 	
  

 	
  

 	 

 
	
  

 	
  

 	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
  

 	
  

 	
 Title:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Dated:

 	
  

 	
  

 	
  

 	
  

 
	
  

 	 

 	
  

 	
  

 	 

 
	
  

 	
  

 	
  

 	
  

 	
 Dara Altman

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}]]