Document:

Exhibit 10.4

    
      EXHIBIT
        10.4

    

     

    
 

    Execution
      Version

     

    

     

    DISTRIBUTION
      AGREEMENT

     

    THIS
      AGREEMENT, made as of the 10th
      of
      November, 2005 (the “Effective Date”), is by and between General Motors of
      Canada Limited (“GMCL”), a Canadian corporation that is a wholly owned
      subsidiary of General Motors Corporation, a Delaware corporation (“GM”),
      Canadian Satellite Radio Inc., a Canadian corporation (“CSR”) that is a wholly
      owned subsidiary of Canadian Satellite Holdings Inc., an Ontario corporation
      (“CSR Holdings”) and XM Satellite Radio Inc., a Delaware corporation (“XM
      Radio”), that is a wholly owned subsidiary of XM Satellite Radio Holdings Inc.,
      a Delaware corporation (“XM Holdings” and, collectively, “XM”).

     

    RECITALS:

     

    A.  CSR
      has
      obtained licenses from XM for the technology and intellectual property rights
      necessary to provide an S-band Satellite Digital Audio Radio Service in the
      Territory pursuant to a license from the Canadian Radio-television and
      Telecommunications Commission (“CRTC”).

     

    B.  Distributor
      distributes GM Vehicles in the Territory.

     

    C.  CSR
      desires that Distributor factory-install XM receivers configured for Canadian
      subscription services (“CSR Receiver(s)”) in GM Vehicles.

     

    D.  Distributor
      desires to factory-install CSR Receivers in GM Vehicles.

     

    E.  CSR
      desires that Distributor promote the CSR Service in the Territory during the
      Term.

     

    AGREEMENT:

     

    NOW
      THEREFORE, in consideration of the foregoing, and other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      Parties hereby agree as follows:

     

    
      	1.  	
              DEFINITIONS:

            

    

     

    In
      addition to the terms defined elsewhere in this Agreement, and unless the
      context otherwise requires, the defined terms set forth below and used in this
      Agreement shall have the following meanings:

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    “Agreement”
means
      this Agreement, including Attachments hereto, which, by this reference, are
      incorporated in their entirety herein.

     

    “Authorized
      CSR Manufacturer(s)”
means
      a
      manufacturer(s) licensed from time to time by XM to produce CSR Receivers for
      the OEM vehicle radio market in the Territory.

     

    “Base
      Subscription Service”
means
      the combination of music, talk, sports and information audio channels referred
      to by CSR as the basic Canadian content package, excluding any premium audio
      channels, being offered by CSR in the Territory. From the Trigger Date and
      throughout the Term, it is agreed that the Base Subscription Service will be
      available for a monthly subscription fee of no more than the exchange-rate
      adjusted price of the comparable basic XM Radio Service, excluding any premium
      audio channels, being offered in the United States. The monthly subscription
      fee
      for the Base Subscription Service shall be subject to further adjustments which
      are appropriate in light of any content limitations or enhancements required
      by
      the CRTC or Industry Canada for the Territory. Except for changes made pursuant
      to the previous sentence, the Parties agree that the Base Subscription Service
      in the Territory will be substantially similar to the comparable basic XM Radio
      Service being offered in the United States.

     

    “Control”
      (including the correlative terms “controls,” “controlled by,” “controlling” and
“under common control with”) means the power to direct the management and
      policies of an entity, directly or indirectly, whether through the ownership
      of
      voting securities, by contract or otherwise.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “CRTC”
has
      the
      meaning set forth in the Recitals.

     

    “CSR”
has
      the
      meaning set forth in the preamble of this Agreement.

     

    “CSR
      Channel Line-Up”
means
      the full line-up of music, talk, sports and information audio channels
      comprising the CSR Service, including the eight (8) Canadian content channels
      required by the CRTC license.

     

    “CSR
      Holdings”
has
      the
      meaning set forth in the preamble of this Agreement.

     

    “CSR
      Receiver”
has
      the
      meaning set forth in the Recitals.

     

    “CSR
      Service”
means
      the combination of all music, talk, sports and information audio channels,
      including the Base Subscription Service and any premium audio channels, being
      offered by CSR in the Territory.

     

    “Distributor”
means
      GMCL, and its subsidiaries.

     

    “Effective
      Date”
has
      the
      meaning set forth in the preamble of the Agreement.

     

    “Enabled
      GM Vehicle”
means
      a
      new or used GM Vehicle (excluding GM Affiliate Vehicles) manufactured for sales
      in the Territory with a CSR Receiver installed by or for the Distributor,
      including, without limitation, by authorized GMCL dealers through their
      authorized association with GMCL, or its Service Parts Operations.

     

    “Four
      City Repeater Launch”
means
      CSR's completion, to the satisfaction of the Parties acting reasonably, of
      CSR's
      terrestrial repeater network in the four (4) metropolitan areas identified
      as
      the “Initial Four Cities” in Attachment 2 hereto.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Full
      Repeater Launch”
means
      CSR's completion, to the satisfaction of the Parties acting reasonably, CSR's
      terrestrial repeater network in the remainder of the metropolitan areas listed
      in Attachment 2 hereto.

     

    “Full
      Repeater Launch Date”
means
      the date of the Full Repeater Launch.

     

    “GM”
has
      the
      meaning set forth in the preamble of this Agreement or means General Motors
      and
      all of its brands, as applicable.

     

    “GMCL”
has
      the
      meaning set forth in the preamble of this Agreement.

     

    “GM
      Affiliate”
means
      an entity set forth on Attachment 1 hereto.

     

    “GM
      Affiliate Vehicle”
means
      a
      vehicle manufactured by or for a GM Affiliate and sold in the Territory under
      any GM Affiliate brand.

     

    “GM
      Vehicle”
means
      a
      vehicle manufactured by or for GMCL and sold in the Territory under any GM
      brand, including Saab. The term “GM Vehicle” includes GM Affiliate Vehicles
      unless expressly indicated to the contrary.

     

    “GM/CSR
      Subscriber”
means
      a
      subscriber to the CSR Service who receives the Base Subscription Service in
      an
      Enabled GM Vehicle, whether or not such subscriber receives any premium audio
      channels.

     

    “Initial
      Four Cities” are the four (4) metropolitan cities identified as such in
      Attachment 2 hereto.

     

    “Initial
      Funding”
has
      the
      meaning set forth in Section 11(g) of this Agreement. 

     

    “Initial
      Funding Date”
means
      the date when CSR has received the Initial Funding.

     

    “Initial
      Purchase”
means
      first sale or lease of a New Enabled GM Vehicle to a Purchaser, with a purchase
      date equal to the customer delivery date. In the case of a GMCL or authorized
      dealer company-owned or operated vehicle, the Initial Purchase will occur when
      such vehicle is no longer owned or operated by GMCL or the GMCL authorized
      dealer and is sold or leased to a third party. During the time that any Enabled
      GM Vehicle is owned or operated by GMCL or a GMCL authorized dealer, it is
      agreed that the CSR Service will be provided by CSR to such vehicle at no charge
      and GMCL and its authorized dealers will actively promote the CSR Service to
      potential customers.

     

    “Installation
      Commission”
has
      the
      meaning set forth in Section 4(a). 

     

    “IPO
      Funding”
has
      the
      meaning set forth in Section 11(g).

     

    “Letter
      of Credit”
means
      a
      letter of credit in favour of CSR, with terms acceptable to Distributor,
      obtained and paid for by John Bitove or an entity controlled by John Bitove,
      which is issued by a major financial institution with a minimum issuer credit
      rating or senior unsecured debt rating of A from Standard & Poors, A.2 from
      Moody's, or A from Fitch.

     

    “Model
      Year”
means
      the twelve (12) month period traditionally designated from July 1 of the prior
      year to June 30 of the designated year.

     

    “New
      Enabled GM Vehicle”
means
      a
      new GM Vehicle (excluding GM Affiliate Vehicles) manufactured for sale in the
      Territory with a CSR Receiver installed by or for the Distributor, including,
      without limitation, by authorized GMCL dealers through their authorized
      association with GMCL or its Service Parts Operations, which have not had an
      owner other than the manufacturer and/or an authorized dealer, including, but
      not limited to, GMCL company-owned vehicles.

     

    “Party(ies)”
means
      CSR, XM and/or Distributor, as the context requires.

     

    “Preliminary
      Prospectus Filing Date”
means
      the date on which CSR files with the regulators its Preliminary Equity
      Prospectus for the IPO Funding.

     

    “Purchase”
means
      the purchase or lease of a New Enabled GM Vehicle.

     

    “Purchaser(s)”
means
      the individual(s) or entity(ies), including, but not limited to fleet customers
      (e.g., Avis), purchasing or leasing a New Enabled GM Vehicle from a GMCL
      authorized dealer.

     

    “Qualifying
      GM/CSR Subscriber”
has
      the
      meaning set forth in Section 4(b).

     

    “Regulatory
      Force Majeure Event”
means
      (a) any action taken by the CRTC to require receivers capable of receiving
      the
      transmission signal from the XM/CSR System to be interoperable with receivers
      capable of receiving the transmission signal of Sirius Satellite Radio Inc.
      (“Sirius Service”) (or any successor thereto or licensee thereof to provide the
      Sirius Service in the Territory) or any other SDARS in the Territory such that
      it shall become impermissible for Distributor to install CSR Receivers that
      are
      exclusively able to receive the signal from the XM/CSR System; or (b) any CRTC
      denial of the CSR license application (or equivalent action from Industry
      Canada) seeking the right to broadcast SDARS in the Territory, or approval
      or
      subsequent alteration of license with terms, conditions and/or restrictions
      that
      are not acceptable to either XM Radio or Distributor.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Revenue
      Share”
has
      the
      meaning set forth in Section 4(c).

     

    “SDARS”
means
      Satellite Digital Audio Radio Service.

     

    “Service
      Availability Level”
has
      the
      meaning set forth in Attachment 2. 

     

    “Service
      Parts Organization”
is
      a
      division of GMCL.

     

    “Subscriber
      Bounty”
has
      the
      meaning set forth in Section 4(b). 

     

    “Term”
has
      the
      meaning set forth in Section 3(a). 

     

    “Territory”
means
      Canada.

     

    “Trigger
      Date”
means
      the later to occur of (i) the date on which the CSR Service is made available
      for sale in the Territory and CSR has a functioning subscriber relations,
      activation, and billing system in place, and (ii) the completion of the Four
      City Repeater Launch (with items (i) and (ii) of this paragraph being referred
      to collectively as the “Trigger Date Conditions”).

     

    “Triple
      Play”
has
      the
      meaning set forth in Section 4(f).

     

    “Vehicle
      Ship Date”
means
      the date on which a GM Vehicle equipped with a CSR Receiver is put into transit
      from a GM or GM affiliate (e.g. CAMI) assembly facility for delivery to
      authorized GM dealers in the Territory.

     

    “XM”
has
      the
      meaning set forth in the preamble of this Agreement.

     

    “XM
      Channel Line-up”
means
      the music, talk, sports and information audio channels comprising the XM
      Service.

     

    “XM
      Credit Facility”
has
      the
      meaning set forth in Section 11(f).

     

    “XM
      Holdings”
has
      the
      meaning set forth in the preamble of this Agreement.

     

    “XM
      Service”
means
      the combination of all music, talk, sports and information audio channels,
      including any premium audio channels, being offered by XM in the United
      States.

     

    “XM/CSR
      System”
means
      the combined infrastructure of XM and CSR required to provide SDARS service
      in
      the Territory. The Parties understand and agree that different elements of
      the
      XM/CSR System will be owned, operated and maintained by either XM or CSR,
      respectively.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	2.  	
              EXCLUSIVITY
                OBLIGATIONS:

            

    

     

    During
      the Term and subject to Sections 3(b)(i) and 8 hereof, (a) Distributor agrees
      to
      install CSR Receivers in certain GM Vehicles and market the CSR Service in
      the
      Territory, and (b) subject to Section 3(b)(vi), Distributor will not install
      and
      market receivers in GM Vehicles in the Territory which are capable of receiving
      signals from another subscription radio service (including, but not limited
      to,
      those subscription radio services proposed by Sirius Satellite Radio and CHUM
      Communications). It is agreed that if there is any agreement or arrangement
      between GM and XM in the United States that contains any less restrictive
      exclusivity obligation than the one agreed to by Distributor in this Section
      2,
      then the Parties agree that this Agreement will be amended to reflect the same
      agreement for the Territory.

     

    
      	3.  	
              TERM:

            

    

     

    
      	(a)  	
              Unless
                earlier terminated pursuant to the terms of this Agreement, the “Term” of
                this Agreement shall commence as of the date hereof and shall expire
                at
                the end of thirteen (13) years from the Full Repeater Launch
                Date.

            

    

     

    
      	(b)  	
              Notwithstanding
                anything in this Agreement to the contrary, upon the occurrence of
                certain
                events, one or both Parties shall have the rights set forth below
                to
                trigger a renegotiation of certain terms of, or be excused from certain
                obligations under, this Agreement as
                follows:

            

    

     

    
      	(i)  	
              Distributor
                Exclusivity.
                Provided Distributor uses commercially reasonable efforts to install
                CSR
                Receivers in GM Vehicles and market the CSR Service in the Territory,
                Distributor may, at is sole discretion, be relieved from its exclusivity
                obligations set forth in Section 2 if four (4) years following the
                Trigger
                Date, or if across any twelve month period during the Term thereafter,
                CSR's share of mobile aftermarket SDARS subscribers in the Territory
                is
                less than forty percent (40%), assuming only two (2) mobile aftermarket
                SDARS providers, and less than thirty-three percent (33%), assuming
                that
                there are three (3) mobile aftermarket SDARS providers. It is agreed
                that
                CSR will have a three-month period in which to cure any share deficiency
                described in the preceding sentence before Distributor may be relieved
                of
                its exclusivity obligations. CSR's share of mobile aftermarket SDARS
                subscribers shall be based on a mutually agreed upon source(s), and
                shall
                be based on the most recent figures available at the time of
                measurement.

            

    

     

    
      	(ii)  	
              Installation-Triggered
                Renegotiation.
                Provided CSR maintains a high quality, cost-competitive service to
                GM/CSR
                Subscribers and continues to offer the CSR Channel Line-Up, CSR may
                trigger a renegotiation (with commercially reasonable efforts to
                conclude
                a deal) of this Agreement five (5) years following the Full Repeater
                Launch Date if, at that time, the cumulative total number of Enabled
                GM
                Vehicles sold or leased by Distributor is less than 300,000
                units.

            

    

     

    
      	(iii)  	
              Automatic
                Renegotiation.
                Upon the occurrence of a Force Majeure Event and pursuant to Section
                8
                hereof, CSR and Distributor agree to use commercially reasonable
                efforts
                to renegotiate mutually acceptable terms in light of the changed
                landscape
                arising from such Force Majeure
                Event.

            

    

     

    
      	(iv)  	
              Renegotiation
                based on Financing.
                If, on or before the Initial Funding Date, CSR has not (i) obtained,
                pursuant to Section 11(g), the Initial Funding, and (ii) entered
                into the
                XM Credit Facility, or an alternative arrangement acceptable to
                Distributor, then Distributor, at its option, may trigger a renegotiation
                of this Agreement (with each party making commercially reasonable
                efforts
                to conclude a deal) and this shall not constitute a Force Majeure
                event
                under Section 8.

            

    

     

    
      	(v)  	
              Renegotiation
                based on Trigger Date Conditions.
                If CSR has not met the Trigger Date Conditions on or before December
                1,
                2005, then Distributor, at its option, may trigger a renegotiation
                of this
                Agreement (with each party making commercially reasonable efforts
                to
                conclude a deal) and this shall not constitute a Force Majeure event
                under
                Section 8.

            

    

     

    
      	(vi)  	
              Renegotiation
                based on Interoperable Radios.
                CSR may trigger a renegotiation of the terms of this Agreement at
                any time
                during the Term if GM elects to install interoperable radios (i.e.
                radios
                capable of receiving both the CSR Service and the Sirius Satellite
                Radio
                service, or other SDARS or subscription radio signals) in the absence
                of
                any regulatory requirement.

            

    

     

    
      	(c)  	
              Upon
                at least sixty (60) days prior written notice, either Party shall
                have the
                right to terminate this Agreement if the other Party has breached
                any of
                its material obligations under this Agreement; provided, however,
                that if
                such breach is of the type that is curable, then such termination
                for
                material breach shall not be effective, and the notifying Party shall
                not
                exercise any of its other rights at law or in equity, unless the
                notified
                Party has failed to cure such material breach fully and to demonstrate
                to
                the notifying Party that such material breach has been cured within
                the
                sixty (60)-day period following the notice described in this Section
                3(c).

            

    

     

    
      	(d)  	
              If
                the CRTC, at any time, revokes CSR's SDARS license (or equivalent
                action
                is taken by Industry Canada) as a result of the action(s) or inaction(s)
                of CSR, then Distributor, at its option, shall have the right to
                declare
                CSR in material breach of this Agreement, and such revocation shall
                not
                constitute a Force Majeure event under Section
                8.

            

    

     

    
      	4.  	
              PAYMENTS
                TO DISTRIBUTOR

            

    

     

    
      	(a)  	
              Installation
                Commission.

            

    

     

    
      	(i)  	
              Subject
                to Section 4(g) below, CSR agrees to pay Distributor a one-time
                installation commission (the “Installation Commission”) as set forth in
                the table below for each New Enabled GM Vehicle. For the avoidance
                of
                doubt, the following payments shall not be payable to the extent
                Section
                4(g) hereof is in effect:

            

    

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              Year

               

            	
              One-time
                Payment for each New GM Enabled Vehicle

            
	
              First
                Year Following Full Repeater Launch Date

            	
              C$50

               

            
	
              Second
                Year Following Full Repeater Launch Date

               

            	
              C$25

               

            
	
              Third
                Year Following Full Repeater Launch Date and thereafter

               

            	
              C$0

               

            

    

    

     

    
      	(ii)  	
              Distributor
                shall invoice CSR (using a mutually agreed upon form) at the end
                of each
                calendar month for Installation Commissions earned during such month.
                Each
                invoice shall include the Vehicle Identification Number (“VIN”)
                of each GM Vehicle for which an Installation Commission is payable,
                the
                CSR Receiver identification number for each such GM Vehicle and any
                other
                information reasonably necessary to compute the Installation Commission.
                The invoice shall be due and payable within thirty (30) days following
                receipt by CSR. Distributor shall not invoice CSR for an Installation
                Commission covered in section 4(a) before the Vehicle Ship
                Date.

            

    

     

    
      	(b)  	
              Subscriber
                Bounty.
                During the Term and subject to Section 4(g) below, separate from
                any
                Installation Commission payable, CSR agrees to pay Distributor a
                one-time
                fifty-Canadian dollar (C$50) commission (the “Subscriber
                Bounty”)
                for each Purchaser of a New Enabled GM Vehicle (excluding GM Affiliate
                Vehicles) who becomes a GM/CSR Subscriber. The GM/CSR Subscriber
                must
                subscribe to the CSR Service within twelve (12) months of the Initial
                Purchase of such New Enabled GM Vehicle (a “Qualifying
                GM/CSR Subscriber”).
                If a Qualifying GM/CSR Subscriber for whom a Subscriber Bounty is
                payable
                fails to pay CSR at least fifty-Canadian Dollars (C$50) for receipt
                of the
                Base Subscription Service, then CSR shall have the right to credit
                the
                difference between the Subscriber Bounty paid and the amount actually
                received by CSR on account of such Qualifying GM/CSR Subscriber to
                future
                Subscriber Bounty payments. The Subscriber Bounty shall be paid in
                two (2)
                equal installments (Activation and Loyalty), (i) the first of which
                (Activation) shall be due and payable no later than thirty (30) days
                following the end of the calendar month during which a Qualifying
                GM/CSR
                Subscriber initially subscribes to the CSR Service, and (ii) the
                second of
                which (Loyalty) shall be due and payable no later than thirty (30)
                days
                following the end of the calendar month during which such Qualifying
                GM/CSR Subscriber makes his initial three (3) month subscriber payment
                for
                receipt of the Base Subscription Service. In no event shall the Subscriber
                Bounty be payable more than one time with respect to any one CSR
                Receiver.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
      	(c)  	
              Revenue
                Share for Enabled GM Vehicles.
                During the Term and subject to Section 4(g) below, Distributor shall
                receive a fifteen percent (15%) share of the revenue billed to GM/CSR
                Subscribers by CSR for the Base Subscription Service (excluding
                subscription fees generated from GM Affiliate Vehicles), less bad
                debt and
                refunds for subscription cancellations (the “Revenue
                Share”).

            

    

     

    The
      Revenue Share shall be due and payable to Distributor no later than thirty
      (30)
      days after the end of each calendar month during the Term based upon subscriber
      revenues billed to GM/CSR Subscribers during such month.

     

    
      	(d)  	
              Revenue
                Share (or other Compensation) for GM Affiliate Vehicles.
                During the Term and subject to Section 4(g) below, revenue share,
                if any,
                (or other compensation, if any) payable with respect to revenue collected
                by CSR from Base Subscription Service subscribers in GM Affiliate
                Vehicles
                that are enabled to receive the CSR Service, less any bad debt and
                refunds
                for subscription cancellations, shall be mutually agreed to from
                time to
                time by CSR and the applicable GM Affiliate, and consented to in
                writing
                by XM.

            

    

     

    
      	(e)  	
              Market
                Support Funds.
                CSR shall allocate to Distributor amounts as set forth in the table
                below
                (“Market Support Funds”). The annual budget for Market Support Funds is to
                be generally distributed to Distributor evenly in each quarter of
                the
                applicable year and will be utilized for mutually agreed marketing
                efforts
                including vehicle literature, dealer training and incentives. Before
                initiating agency work, both Parties will mutually agree to a general
                strategy and terms for the initiatives agreed to be undertaken. The
                Parties will meet as needed to discuss any issues which have arisen
                regarding prior use of the Market Support Funds and will work together
                with a view to reaching an understanding regarding the future use
                of
                Market Support Funds.

            

    

     

    
      	
              Year

               

            	
              Market
                Support Funds for Year

               

            
	
              Effective
                Date through First Anniversary of Trigger Date

               

            	
              C$2,000,000,
                of which up to C$1,000,000 may be spent prior to the Trigger Date
                (the
                “Launch Fund”). As part of this C$2,000,000, CSR to reimburse GMCL within
                10 business days of the Effective Date for expenditures incurred
                prior to
                the Effective Date.

               

            
	
              First
                Anniversary of Trigger Date through Second Anniversary of Trigger
                Date

               

            	
              C$1,500,000

               

            
	
              Each
                additional twelve-month period thereafter

               

            	
              The
                amount payable hereunder for the prior twelve month period, plus
                a 3%
                increase (prorated for any final period less than twelve
                months)

               

            

    

    

     

    Any
      unused portion of Market Support Fund dollars in any given twelve (12) month
      period will be carried forward into the subsequent twelve (12) month period.
      Both CSR and the Distributor will mutually agree on the use of carryover funds
      that are allocated into subsequent twelve (12) month periods. In the event
      that
      Market Support funds are re-distributed, formal documentation in writing of
      the
      mutual decision is required including, but not limited to, the dollar value
      being re-distributed.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Distributor
      agrees to provide CSR with monthly reporting of Market Support Fund activities,
      monies spent, committed, forecast and performance against budget.

     

    
      	(f)  	
              Initial
                Free Service.
                Distributor shall use commercially reasonable efforts to have all
                Purchasers of Enabled GM Vehicles subscribe to the CSR Service. As
                an
                incentive to increase subscriptions to the CSR Service by Purchasers
                of
                New Enabled GM Vehicles, Distributor is authorized to offer Purchasers
                of
                New Enabled GM Vehicles (excluding GM Affiliate Vehicles) up to three
                (3)
                months of free trial service to the Base Subscription Service (referred
                to
                as “Triple Play”). If Distributor elects to offer a free trial service to
                Purchasers of New Enabled GM Vehicles, then, within a reasonable
                period of
                time following receipt of the report described in Section 5(a), CSR
                will
                activate the CSR Receivers in the New Enabled GM Vehicles identified
                in
                such report and Distributor will pay CSR for the second and third
                months
                of the Triple Play.

            

    

     

    
      	(g)  	
              First
                Three Years of the Term.
                Notwithstanding the preceding portions of this Section 4 and subject
                to
                Section 11(h), it is agreed by the Parties that for the first three
                (3)
                years of the Term following the Full Repeater Launch Date, each of
                the
                Installation Commission, the Revenue Share and the Loyalty portion
                of the
                Subscriber Bounty will not be payable by CSR to Distributor. The
                Revenue
                Share and Loyalty portion of the Subscriber Bounty will resume after
                this
                period and shall be payable on all GM/CSR Subscribers thereafter,
                including Revenue Share payments for those that became GM/CSR Subscribers
                during the first three (3) years of the Term and remain GM/CSR Subscribers
                thereafter. It is agreed that for the first three (3) years following
                the
                Full Repeater Launch any amounts, on an aggregate basis, paid by
                Distributor under Section 4(f), will not exceed the aggregate amount
                payable by CSR to Distributor for the Activation portion of the Subscriber
                Bounty during that time period.

            

    

     

    
      	(h)  	
              If
                CSR breaches any of its material obligations under this Agreement
                during
                the Term and fails to cure such breach in accordance with Section
                3(c) and
                the time period described therein (or another time period mutually
                agreed
                by the Parties), then CSR will pay to Distributor any amounts which
                were
                not paid by CSR to Distributor as a result of the operation of Section
                4(g).

            

    

     

    
      	(i)  	
              As
                an incentive to increase the number of installations and subsequent
                subscribers, CSR will pay Distributor a one-time incentive payment
                based
                on the following:

            

    

     

    
      	(a)  	
              If
                at the end of the third year of the Term there are 200,000 GM/CSR
                Subscribers, excluding those on Triple Play, CSR will pay Distributor
                a
                one-time payment of $1,000,000, or

            

    

     

    
      	(b)  	
              If
                at the end of the third year of the Term there are 250,000 GM/CSR
                Subscribers, excluding those on Triple Play, CSR will pay Distributor
                a
                one-time payment of $2,000,000 (for greater certainty, payment under
                (a)
                above would not apply), or

            

    

     

    
      	(c)  	
              If
                at the end of the third year of the Term there are 300,000 GM/CSR
                subscribers, excluding those on Triple Play, CSR will pay Distributor
                a
                one-time payment of $3,000,000 (for greater certainty, payments made
                under
                (a) or (b) above would not apply).

            

    

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	5.  	
              CUSTOMER
                RELATIONSHIP:

            

    

     

    
      	(a)  	
              Upon
                installation of a CSR Receiver in an Enabled GM Vehicle, Distributor
                shall
                provide both CSR and XM with a daily report (the format and content
                of
                which shall be mutually agreed upon and in a form substantially similar
                to
                what GM currently provides XM) that, at a minimum, shall include
                the
                following information with respect to each Enabled GM Vehicle (excluding
                GM Affiliate Vehicles, unless the Parties otherwise agree) in which
                a CSR
                Receiver has been installed: (i) the make, model and VIN of such
                Enabled
                GM Vehicle and (ii) the CSR Receiver identification number of the
                CSR
                Receiver installed in such Enabled GM
                Vehicle.

            

    

     

    
      	(b)  	
              Upon
                the Purchase of an Enabled GM Vehicle, Distributor shall provide
                both CSR
                and XM with a daily report (the format and content of which shall
                be
                mutually agreed upon and in a form substantially similar to what
                GM
                currently provides XM) that, at a minimum, shall include the following
                information with respect to each Enabled GM Vehicle (excluding GM
                Affiliate Vehicles, unless the Parties otherwise agree) sold in the
                Territory during such month: (i) the make, model and VIN of such
                Enabled
                GM Vehicle, (ii) the CSR Receiver identification number of the CSR
                Receiver installed in such Enabled GM Vehicle, and (iii) the name
                and
                address of the Purchaser, and, to the extent available and permitted
                by
                applicable law, the telephone number and email address of such
                Purchaser.

            

    

     

    
      	(c)  	
              Distributor
                agrees that in connection with customer calls relating to the CSR
                Service,
                its customer service representatives shall handle customer requests,
                questions and complaints promptly and professionally and with the
                same
                level of care with which such representatives handle customer requests,
                questions and complaints regarding the OnStar
                service.

            

    

     

    
      	(d)  	
              CSR,
                at its expense, shall be responsible for the billing of the CSR Service
                purchased by GM/CSR Subscribers, as well as any associated disputes
                and/or
                discrepancies.

            

    

     

    
      	(e)  	
              CSR
                agrees that all interactions between CSR and GM/CSR Subscribers,
                including
                contracts, promotional materials, and customer support, will be made
                available in both the English and French
                languages.

            

    

     

    
      	6.  	
              INSTALLATION;
                TECHNICAL SPECIFICATIONS; TRADEMARKS:

            

    

     

    
      	(a)  	
              Distributor
                shall use commercially reasonable efforts to make CSR Receivers available
                as a factory-installed option in as many vehicle lines as possible
                in the
                2006 Model Year (a list of such vehicles is provided in Attachment
                3) and
                at least ninety percent (90%) of its vehicle lines commencing with
                the
                2007 Model Year. Adjustments will be made dependent on Trigger Date.
                The
                Parties understand and agree that such list may change from time
                to time
                and that such changes will be communicated to CSR during the meetings
                described in Section 6(b) or otherwise in a timely
                fashion.

            

    

     

    
      	(b)  	
              To
                assist CSR with its business planning, Distributor agrees to meet
                with
                representatives from CSR on at least a quarterly basis to discuss
                its
                projections for installations of CSR Receivers in GM Vehicles for
                the
                subsequent twelve (12) month period, including (i) Distributor's
                forecast
                as to the number of CSR Receivers it plans to install in GM Vehicles
                for
                the subsequent twelve (12) months, (ii) the makes and models in which
                Distributor is installing or proposing to install CSR Receivers,
                and (iii)
                the types of packages in which the CSR Service may be included.
                Distributor and CSR acknowledge a planning cumulative volume target
                of
                230,000 Enabled GM Vehicles during the first three years of the Agreement.
                CSR acknowledges that nothing contained in this Agreement, including
                the
                prior sentence, shall be construed as obligating Distributor to fulfill
                any of the projections or plans discussed with CSR at such meetings,
                provided that the provisions of Sections 3(b)(ii) and 6(a) shall
                continue
                to apply.

            

    

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	(c)  	
              Distributor
                and CSR shall meet on a quarterly basis to review the installation
                rates
                of CSR Receivers in GM Vehicles, the manner in which CSR Receivers
                are
                packaged with various GM Vehicles and the percentage of purchasers
                of such
                Enabled GM Vehicles who become GM/CSR Subscribers. In the event that
                fewer
                than fifty percent (50%) of the purchasers of Enabled GM Vehicles
                over any
                six-month period become GM/CSR Subscribers in connection with the
                purchase
                of such Enabled GM Vehicles, then (i) Distributor may, in its sole
                discretion, redirect the moneys payable by CSR to Distributor hereunder
                to
                advertising and/or marketing efforts intended to increase the percentage
                of such purchasers of Enabled GM Vehicles who become GM/CSR Subscribers,
                and (ii) CSR and Distributor shall meet to review installation forecasts
                and marketing plans relating to CSR Receivers and the CSR Service,
                with
                the purpose of making adjustments intended to increase the percentage
                of
                such purchasers of Enabled GM Vehicles who become GM/CSR
                Subscribers.

            

    

     

    
      	(d)  	
              Distributor
                shall purchase CSR Receivers for installation only from Authorized
                CSR
                Manufacturers that meet the reasonable requirements of GM's Worldwide
                Purchasing Organization. Installation of the CSR Receivers shall
                be in
                accordance with reasonable requirements and quality assurances provided
                by
                the Authorized CSR Manufacturers or CSR, including, without limitation,
                positioning of the antenna and antenna shape; provided, however,
                that such
                requirements and assurances meet the manufacturing requirements of
                Distributor.

            

    

     

    
      	(e)  	
              Distributor
                acknowledges that neither CSR nor XM manufactures CSR Receivers and
                cannot
                guarantee availability or delivery thereof on any specific date.
                In
                addition, Distributor acknowledges that neither CSR nor XM shall
                have any
                liability for any use, property, ad valorem, value added, stamp or
                other
                taxes, charges or withholdings arising out of the CSR Receivers or
                the
                delivery thereof by Authorized CSR Manufacturers to
                Distributor.

            

    

     

    
      	(f)  	
              The
                technical specifications for the CSR Receivers will be determined
                by XM in
                conjunction with the Authorized CSR Manufacturers; provided, however,
                that
                XM agrees that its internal technology group will work with GM and
                the
                Authorized CSR Manufacturers of GM's choice to consult in the development
                and testing of XM/CSR System-capable OEM radio/communications systems
                for
                GM Vehicles.

            

    

     

    
      	(g)  	
              CSR,
                Distributor and XM acknowledge and represent that each Party owns
                certain
                names, trademarks, service marks, copyrights and other intellectual
                property, and owns or has obtained certain rights in and to the
                trademarks, tradenames, copyrights, rights to publicity and other
                such
                rights of third parties (“Marks”). It is understood that in promoting the
                CSR Service, CSR and Distributor may make various references to and
                may
                display the Marks of CSR, XM and Distributor. Each party hereto grants
                to
                the other a nonexclusive, non-transferable license to use its Marks
                during
                the term of this Agreement and subject to the terms and conditions
                hereinafter set forth, solely in connection with advertising and
                promoting
                the CSR Service and the joint activities of Distributor and
                CSR.

            

    

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    CSR
      and
      Distributor must agree in writing as to the form and content of any promotional
      or advertising materials and the media in which such materials are to be used
      prior to their use, which approval the Parties shall not unreasonably withhold;
      and such use may be subject to such reasonable conditions as either party may
      impose, including, but not limited to, restrictions and requirements concerning
      the use of Marks and conditions affording each party adequate protection of
      its
      Marks. Upon termination or expiration of this Agreement, the Parties shall
      cease
      all use of the Marks of the other party as soon as practicable, but in any
      event
      within thirty (30) days unless the particular media which has been approved
      requires a longer lead time, but in no event longer than ninety (90)
      days.

     

    No
      Party
      will impugn, challenge or assist in any challenge to the validity of another
      Party's Marks, any registrations thereof, or the ownership thereof. Each Party
      will be solely responsible for taking such actions as it deems appropriate
      to
      obtain trademark, service mark or copyright registration for its respective
      Marks. All uses of or references to the Marks shall inure to the benefit of
      the
      respective owner, and all rights with respect to the Marks not specifically
      granted in this Agreement shall be and are hereby reserved to the respective
      owner.

     

    No
      Party
      is granted any right or license under this Agreement to sell, or otherwise
      distribute for sale, any of the promotional or advertising materials, or items
      related thereto. If a Party desires to sell, or distribute for sale, any of
      such
      materials or other merchandising or novelty items bearing the names, trademarks,
      copyrights or other intellectual property of another Party, then it shall
      request permission to do so from the other Party, and if granted, the Parties
      shall negotiate in good faith a separate licensing agreement covering such
      materials or items before they may be sold or distributed for sale.

     

    
      	7.  	
              WARRANTIES
                AND INDEMNITIES:

            

    

     

    
      	(a)  	
              Each
                Party represents and warrants to the other that (i) it is duly organized,
                validly existing and in good standing under the laws of the state
                or
                Province under which it is organized, (ii) it has the power and authority
                to enter into this Agreement and to perform fully its obligations
                hereunder; (iii) it is under no contractual or other legal obligation
                that
                shall in any way interfere with its full, prompt and complete performance
                hereunder; (iv) the individual executing this Agreement on its behalf
                has
                the authority to do so; and (v) the obligations created by this Agreement,
                insofar as they purport to be binding on it, constitute legal, valid
                and
                binding obligations enforceable in accordance with their
                terms.

            

    

     

    
      	(b)  	
              NEITHER
                CSR NOR XM IS A MANUFACTURER OF CSR RECEIVERS AND NEITHER MAKE ANY
                REPRESENTATIONS OR WARRANTIES OF ANY KIND, NATURE OR DESCRIPTION,
                EXPRESS
                OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY
                OR FITNESS OF ANY OF THE CSR RECEIVERS FOR ANY PARTICULAR PURPOSE,
                OR ANY
                OTHER WARRANTY REGARDING THE DESIGN, CONDITION, CAPABILITY OR PERFORMANCE
                OF CSR RECEIVERS, AND XM AND CSR HEREBY DISCLAIM THE SAME. CSR and
                XM
                shall not be responsible for any loss or damage resulting from any
                defect
                of or in CSR Receivers, latent or otherwise, or resulting from any
                failure
                of CSR Receivers to operate or faulty operation of CSR Receivers,
                nor for
                any direct, indirect, consequential, incidental or other similar
                damage
                (including lost profits) resulting from the transportation, installation,
                service, operation or use of CSR Receivers, and shall not be responsible
                for any such loss or damage resulting from the maintenance or repair
                of
                CSR Receivers. Rather, warranty claims relating to CSR Receivers
                installed
                in GM Vehicles shall be handled by the Authorized CSR Manufacturers,
                in
                accordance with Distributor's standard practices with suppliers.
                In
                addition, CSR and XM shall not be responsible for any breach of any
                Authorized CSR Manufacturer's warranties, indemnities or supply
                agreements, and no breach thereof shall affect the limitation on
                liabilities, rights and obligations of the Parties set forth in this
                Agreement.

            

    

     

    
      	(c)  	
              CSR,
                XM and Distributor shall each indemnify, defend and forever hold
                harmless
                the other, 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 (“CSR
                Indemnitees”,
                “XM Indemnitees” and “Distributor
                Indemnitees”,
                respectively), against and from any and all losses, liabilities,
                claims,
                costs, damages and expenses, including, without limitation, fines,
                forfeitures, attorneys' fees, disbursements and court or administrative
                costs (collectively, “Costs”),
                arising out of any breach (of the indemnifying party) of any term
                of this
                Agreement or any warranty, covenant or representation contained
                herein.

            

    

     

    
      	(d)  	
              CSR
                Indemnification.

            

    

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	(i)  	
              If
                any Distributor Indemnitee is charged with infringement of a third
                party's
                intellectual property rights, including patent, trademark, copyright,
                industrial design right, or other proprietary right, or misuse or
                misappropriation of trade secret rights, as a result of the installation,
                use, sale, offer for sale or import of CSR Receivers in or for use
                in GM
                Vehicles, and if such alleged infringement arises in any way from
                an
                aspect or function of the CSR Receiver that meets a requirement or
                specification of CSR for receipt of the CSR Service by the CSR Receiver,
                CSR will, at no expense to Distributor: (i) defend, hold harmless
                and
                indemnify the Distributor Indemnitees against any Costs relating
                to such
                charge or claim, including, but not limited to, Costs for past
                infringement; and (ii) to the extent appropriate, either, (A) procure
                for
                Distributor the right to continue the installation, use, sale, offer
                for
                sale or import of CSR Receivers in GM Vehicles, (B) procure for
                Distributor the availability of modified or replacement CSR Receivers
                such
                that CSR Receivers no longer infringe, provided that such modification
                can
                be done without substantially impairing its functionality or performance,
                or (C) with Distributor's consent, terminate the use of the CSR Receivers
                which allegedly infringe upon such third party rights, without liability,
                upon written notice to Distributor.

            

    

     

    
      	(ii)  	
              With
                respect to claims arising under this Section 7(d), Distributor will
                promptly notify CSR in writing of any claim of infringement or
                indemnification and will provide CSR with the authority, information
                and
                assistance necessary to defend or settle such claim; provided, however,
                that Distributor will have the right to participate in such defense
                and to
                approve any proposed settlement in advance. Distributor will have
                the
                right to take over from CSR the defense of a claim at any time, provided
                that Distributor releases CSR in writing from any further obligation
                of
                defense or indemnification in connection with such claim unless otherwise
                mutually agreed.

            

    

     

    
      	(iii)  	
              The
                obligations of CSR and Distributor under this Section 7(d) will survive
                termination of this Agreement with respect to CSR Receivers installed
                in
                GM Vehicles.

            

    

     

    
      	(e)  	
              A
                Party claiming indemnity under this Section 7 must give the indemnifying
                party prompt notice of any claim, and the indemnifying party shall
                have
                the right to assume the full defense of any claims to which its indemnity
                applies. The indemnified party, at the indemnifying party's cost,
                will
                cooperate fully with the indemnifying party in such defense of any
                such
                claim. If the indemnified party compromises or settles any such claim
                without the prior written consent of the indemnifying party, then
                the
                indemnifying party shall be released from its indemnity obligations
                with
                respect to the claim so settled.

            

    

     

    
      	(f)  	
              The
                representations, warranties and indemnities contained in this Section
                7
                shall continue throughout the Term and the indemnities shall survive
                the
                termination of this Agreement regardless of the reason for such
                termination.

            

    

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	8.  	
              FORCE
                MAJEURE:

            

    

     

    Neither
      CSR, XM nor Distributor shall have any rights against the other Party for the
      non-operation of facilities, the non-furnishing of the CSR Service, or its
      inability to perform its terms and obligations under this Agreement if such
      non-operation, non-furnishing or inability is due to an act of God or other
      cause beyond such Party's reasonable control, including, but not limited to,
      the
      occurrence of a Regulatory Force Majeure Event.

     

    
      	9.  	
              NOTICES:

            

    

     

    Any
      notice or report given under this Agreement shall be in writing, shall be sent
      postage prepaid by certified mail with return receipt requested, or by hand
      delivery, or by Federal Express or similar overnight delivery service, or by
      facsimile transmission, to the other Party, at the following address (unless
      the
      Parties, at any time or times, designates another address for itself by
      notifying the other Parties by certified mail, in which case all notices to
      such
      Party thereafter shall be given at its most recently so designated
      address):

     

    

     

    
      	
              To
                CSR:

               

            	
              Canadian
                Satellite Radio Inc.

              161
                Bay Street

              Suite
                2300

              Canada
                Trust Tower

              Toronto,
                Ontario, M5J 2S1

              Facsimile
                Number: 416-361-6018

              Attention:
                Chief Executive Officer

              cc:
                Executive Vice-President

               

            
	
              To
                Holdings or XM:

               

            	
              XM
                Satellite Radio

              1500
                Eckington Place, N.E.

              Washington,
                D.C. 20002

              Facsimile
                Number: 202-380-4500

              Attention:
                President & CEO

              cc:
                General Counsel

               

            
	
              To
                Distributor:

               

            	
              President,
                General Motors of Canada Limited

              1908
                Colonel Sam Drive

              Oshawa,
                Ontario, L1H 8P7

              Facsimile
                Number: 905-644-7772

              cc:
                General Counsel

               

            

    

    

     

    Notice
      or
      report given by hand delivery shall be deemed received on delivery. Notice
      or
      report given by mail shall be deemed received on the earlier to occur of actual
      receipt or on the fifth day following mailing if sent in accordance with the
      notice requirements of this Section 9. Notice or report given by Federal Express
      or similar overnight delivery service shall be deemed received on the next
      business day following delivery of the notice or report to such service with
      instructions for overnight delivery. Notice or report given by facsimile
      transmission shall be deemed received when there is personal confirmation of
      receipt by the person to whom such notice or report is sent. 

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	10.  	
              CONFIDENTIALITY
                AND PRIVACY:

            

    

     

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      	(a)  	
              Neither
                CSR, XM nor Distributor shall disclose (whether orally or in writing,
                or
                by press release or otherwise) to any third party any information
                with
                respect to the terms and provisions of this Agreement or any information
                contained in any data or report required or delivered hereunder or
                any
                materials related thereto, except (a) disclosure as may be required
                by
                law, regulation, court or government agency of competent jurisdiction
                (redacted to the greatest extent possible); (b) disclosure to each
                Party's
                respective officers, directors, employees and attorneys, in their
                capacity
                as such; provided, however, that the disclosing Party agrees to be
                responsible for any breach of the provisions of this Section 10 by
                such
                officers, directors, employees or attorneys; (c) disclosure by CSR
                or XM
                in connection with its bona fide financing activities, (d) in the
                event
                that CSR becomes subject to financial information reporting requirements,
                this Agreement may be made publicly available by CSR to investors
                in
                accordance with applicable rules and. regulations under Canadian
                securities or similar laws, (e) disclosure in the form of a public
                statement or press release approved by the other Party hereto in
                advance
                of such statement or release; (f) general marketing information releases
                describing the nature of this Agreement in general terms; and (g)
                as
                mutually agreed upon, in writing, by CSR, XM and Distributor in advance
                of
                such disclosure. This confidentiality provision shall remain in effect
                for
                the full Term of the Agreement whether or not there is an early
                termination of this Agreement.

            

    

     

    
      	(b)  	
              In
                relation to the subject matter of this Agreement, each Party agrees
                to
                comply with applicable privacy laws, to comply with their own privacy
                policies and statements, and to cooperate with the other Parties
                in this
                regard. Such cooperation will include, but will not be limited to,
                making
                commercially reasonable efforts to obtain the appropriate form of
                privacy
                consent from consumers which is necessary or desirable for the other
                Party. Unless otherwise agreed to by the Parties in writing, the
                information that Distributor provides to both CSR and XM under Section
                5(a) and Section 5(b) of this Agreement shall be used by CSR and
                XM
                exclusively to facilitate the enrolment of such customers; specifically,
                CSR and XM may use this information to (i) set up the customer's
                account,
                (ii) provide informational material to them regarding the service
                they
                have selected including details of the service, how to use the service,
                and how to continue receiving the service after the promotional period,
                and (iii) to match radio IDs that have been installed and activated.
                If
                one of the Parties requests it, the Parties will cooperate toward
                entering
                into a separate and mutually acceptable Privacy Agreement or Letter
                of
                Understanding.

            

    

     

    
      	11.  	
              OTHER
                MATTERS:

            

    

     

    
      	(a)  	
              Pursuant
                to Section 11(c) below and the resulting share issuance agreement
                to be
                entered into between Distributor and CSR and CSR Holdings (the “Share
                Issuance Agreement)” and Director Nomination Agreement to be entered into
                by CSR Holdings, Distributor, XM Holdings and Canadian Satellite
                Radio
                Investments Inc. (the “Director Nomination Agreement”), it is understood
                and agreed that for the Term of this Agreement, the Distributor shall
                be
                granted the right to nominate one person to serve on CSR Holdings'
                Board
                of Directors, provided there has not been an Installation-Triggered
                Renegotiation as described in Section 3(c)(ii) and subject to the
                provisions of the Director Nomination Agreement.
                

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
      	(b)  	
              Prior
                to Distributor being granted the right to select one person to serve
                on
                CSR Holdings' Board of Directors under the Director Nomination Agreement,
                a representative of the Distributor or GM shall be permitted to observe
                all CSR Board meetings.

            

    

     

    
      	(c)  	
              Pursuant
                to the Share Issuance Agreement, CSR Holdings shall issue to the
                Distributor at no cost a number of its Class A Shares that represents
                a
                seven percent (7%) fully diluted economic equity interest in CSR
                Holdings
                (calculated as of the transfer date), with dilution protection as
                set
                forth in the Share Issuance
                Agreement.

            

    

     

    
      	(d)  	
              If
                CSR Holdings shall not have issued to an automaker distribution partner
                of
                CSR other than Distributor at the direction of XM an option to acquire
                a
                three percent (3%) equity interest in CSR Holdings (calculated on
                the same
                basis as described in (c) above) on or before March 31, 2006, such
                option
                shall be assigned to Distributor. Such option will have a nominal
                strike
                price and expire after a period not to exceed 60 days, and shall
                be in
                substantially the form of the Share Issuance Agreement (except that
                it
                shall be an option).

            

    

     

    
      	(e)  	
              Any
                commercial arrangements between CSR and any other vehicle manufacturer
                will be no more favourable than the terms provided by CSR to GM,
                including, but not limited to, on a timing of payment
                basis.

            

    

     

    
      	(f)  	
              No
                later than the Initial Funding Date, CSR will enter into a credit
                facility
                with XM in substantially the form set out as Attachment 4 hereto
                (the “XM
                Credit Facility”), with such XM Credit Facility subject to XM Board
                approval, or will enter into an alternative arrangement which is
                acceptable to Distributor.

            

    

     

    
      	(g)  	
              CSR
                will obtain C$15 Million of equity capital from John Bitove or an
                entity
                controlled by John Bitove on or before the Initial Funding Date.
                In
                addition, CSR will obtain C$50 Million of equity capital (the “IPO
                Funding”), in a form satisfactory to Distributor, no later than the
                Initial Funding Date as described below. The IPO Funding may include
                equity or equity-like support from XM. If for any reason the IPO
                Funding
                falls short of C$50 Million or is not received by CSR by the Initial
                Funding Date, then CSR agrees, within three (3) business days of
                the
                Initial Funding Date, to issue and draw upon the Letter of Credit
                up to
                C$15 Million to cover any shortfall up to C$15 Million. (The IPO
                Funding
                plus the additional C$15 Million from John Bitove is referred to
                herein as
                the “Initial Funding”.)

            

    

     

    In
      relation to the IPO Funding, CSR agrees that the Preliminary Prospectus Filing
      Date is November 4, 2005. The Initial Funding Date will be no later than seven
      (7) weeks following the actual Preliminary Prospectus Filing Date. CSR will
      notify Distributor of the Preliminary Prospectus Filing Date and will keep
      Distributor apprised of the progress in relation to the Initial Funding. CSR
      acknowledges that Distributor is relying on CSR's commitment to obtain the
      Initial Funding by the Initial Funding Date in making a decision (following
      the
      Preliminary Prospectus Filing Date) to commence the production of Enabled
      Vehicles prior to the Initial Funding Date.

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	(h)  	
              If
                CSR obtains firm, binding commitments for a total of C$90 Million
                in
                capital (the Initial Funding plus an additional C$25 Million in equity
                and/or debt financing in a form satisfactory to Distributor) by or
                before
                the Trigger Date, CSR may elect, in its sole discretion, to require
                the
                Parties to enter into an amendment to this Agreement, in a form mutually
                acceptable to the Parties, which eliminates Sections 4(g) and 11(0
                of this
                Agreement, and amends the reference to “thirteen (13) years” in Section
                3(a) to “ten (10) years”.

            

    

     

    
      	(i)  	
              CSR
                and XM agree not to directly or indirectly market, promote or endorse
                any
                company that distributes radio hardware of any description on an
                after-market basis to Distributor's authorized motor vehicle dealers
                without the prior written consent of Distributor, and will not communicate
                or interact with such dealers except for the purposes outlined in
                this
                Agreement or with the prior written consent of
                Distributor.

            

    

     

    
      	(j)  	
              CSR
                agrees to provide a high quality, cost-competitive service to GM/CSR
                Subscribers and agrees that it is responsible for offering the CSR
                Channel
                Line-Up in the Territory throughout the Term. It is agreed that
                Distributor will only be responsible for installing CSR Receivers
                of the
                type installed by GM in vehicles produced for the United States,
                and CSR
                will be responsible for ensuring that the XM/CSR System and the CSR
                Channel Line-Up are consistent with such
                receivers.

            

    

     

    
      	(k)  	
              CSR
                agrees to fulfill the Trigger Date Conditions on or before December
                1,
                2005, and complete the Full Repeater Launch on or about March 1,
                2006 (and
                no later than April 15, 2006). CSR acknowledges that Distributor
                is
                relying on CSR's commitments in this Section 11(k) in making its
                decision
                to commence the production and marketing of XM Enabled Vehicles prior
                to
                December 1, 2005.

            

    

     

    
      	(l)  	
              CSR
                agrees to provide the Service Availability Level as defined in Attachment
                2 throughout the Term (i) for the Initial Four Cities commencing
                on the
                Four City Launch Date, and (ii) for the remaining metropolitan cities
                on
                Attachment 2 commencing on the Full Repeater Launch Date. The Parties
                will
                form a committee to consider customer and dealer complaints regarding
                service levels in the Territory.

            

    

     

    
      	(m)  	
              CSR
                agrees to offer free trial service of the Base Subscription Service
                to all
                Purchasers who Purchase prior to the Full Repeater Launch until the
                date
                of the Full Repeater Launch. Such free trial service will be at CSR's
                expense and will be followed by Triple Play commencing on the date
                of Full
                Repeater Launch.

            

    

     

    
      	12.  	
              MISCELLANEOUS:

            

    

     

    
      	(a)  	
              Audit
                Rights.
                (i) During the Term and for a period of one year thereafter, any
                Party or
                its authorized representative shall have the right, at its expense,
                to
                inspect, audit, and copy any such books and records of any other
                Party, at
                the other Party's offices, during normal business hours upon not
                less than
                thirty (30) days prior written notice, that relate to the performance
                of
                the other Party's obligations hereunder. In the event any such audit
                indicates a discrepancy between amounts previously paid and the amounts
                rightfully due and payable at such time, the audited Party shall
                have ten
                (10) days from the date of receipt of notice from the auditing Party
                that
                such underpayment or overpayment has occurred to pay the discrepancy
                to
                the auditing Party. If the amount of the discrepancy is greater than
                five
                percent (5%) of the amount due for the period being audited, the
                audited
                Party shall reimburse the auditing Party for the reasonable costs
                and
                expenses of such audit.

            

    

     

    
      	(b)  	
              Assignment:
                Binding Effect; Reorganization.
                This Agreement shall be binding on the respective transferees and
                successors of the Parties hereto, except that neither this Agreement
                nor
                any Party's rights or obligations hereunder shall be assigned or
                transferred by any Party without the prior written consent of the
                other
                Parties (which consent shall not be unreasonably withheld); provided,
                however, no consent is necessary in the event of an assignment to
                a
                successor entity resulting from a merger, acquisition or consolidation
                by
                any Party or assignment to an entity under common control; controlled
                by
                or in control of any Party.

            

    

     

    
      	(c)  	
              Regulated
                Entity.
                It is understood by the Parties that the business of CSR is regulated
                by
                the CRTC and that nothing set forth in this Agreement shall be construed
                (i) to require CSR to act in a manner inconsistent with rules or
                regulations of CRTC, or the informal interpretations thereof communicated
                from time to time by the staff of CRTC (provided that CSR represents
                and
                warrants that nothing contained in this Agreement is. inconsistent
                therewith as of the date first above written), or (ii) to prevent
                CSR from
                taking positions on issues relating to its license or other rules
                and
                regulations applicable to CSR, or the appropriate interpretation
                thereof.
                If the CRTC determines that the method of reconfiguring the CSR Receivers
                in New GM Enabled Vehicles to receive the CSR Service (as opposed
                to the
                XM Service) is deficient, the Parties will cooperate and will make
                commercially reasonable efforts to address the concerns of the
                CRTC.

            

    

     

    
      	(d)  	
              Entire
                Agreement; Amendments; Waivers; Cumulative Remedies.
                This Agreement contains the entire understanding of the Parties hereto
                and
                supersedes and abrogates all contemporaneous and prior understandings
                of
                the Parties, whether written or oral, relating to the subject matter
                hereof. This Agreement may not be modified except in a writing executed
                by
                the Parties hereto. Any waiver of any provision of this Agreement
                must be
                in writing and signed by the Party whose rights are being waived.
                No
                waiver of any breach of any provision hereof shall be or be deemed
                to be a
                waiver of any preceding or subsequent breach of the same or any other
                provision of this Agreement. The failure of Distributor, CSR or XM
                to
                enforce or seek enforcement of the terms of this Agreement following
                any
                breach shall not be construed as a waiver of such breach. All remedies,
                whether at law, in equity or pursuant to this Agreement shall be
                cumulative.

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
      	(e)  	
              Governing
                Law.
                This Agreement and all matters or issues collateral thereto shall
                be
                governed by the laws of the Province of Ontario and the laws of Canada
                applicable therein, without regard to its choice of law
                rules.

            

    

     

    
      	(f)  	
              Disputes
                and Interpretation.
                In the event of any dispute or question of interpretation under this
                Agreement, each of the Parties agrees that prior to commencing any
                legal
                action in any court of competent jurisdiction, it shall first refer
                the
                matter for review and consideration by the Parties' respective operating
                executives, who shall initially be (i) on behalf of Distributor,
                the
                General Counsel or his or her delegate, (ii) on behalf of CSR, the
                President & COO or his or her delegate and (iii) on behalf of XM, the
                General Counsel or his or her delegate. In the event that such operating
                executives fail to resolve the dispute or question of interpretation
                within 30 days of the matter being referred to them, then the Parties
                shall be free to pursue judicial action in a court of competent
                jurisdiction.

            

    

     

    
      	(g)  	
              Relationship.
                No Party shall be, or hold itself out as, the agent of another or
                as joint
                venturers under this Agreement.

            

    

     

    
      	(h)  	
              Severability.
                The invalidity under applicable law of any provision of this Agreement
                shall not affect the validity of any other provision of this Agreement,
                and in the event, that any provision hereof is determined to be invalid
                or
                otherwise illegal, this Agreement shall remain effective and shall
                be
                construed in accordance with its terms as if the invalid or illegal
                provision were not contained
                herein.

            

    

     

    
      	(i)  	
              No
                Inference Against Author.
                CSR, XM and Distributor each acknowledge that this Agreement was
                fully
                negotiated by the Parties and, therefore, no provision of this Agreement
                shall be interpreted against any Party because such Party or its
                legal
                representative drafted such
                provision.

            

    

     

    
      	(j)  	
              No
                Third Party Beneficiaries.
                The provisions of this Agreement are for the exclusive benefit of
                the
                Parties hereto and their permitted assigns, and no third party shall
                be a
                beneficiary of, or have any rights by virtue of, this
                Agreement.

            

    

     

    
      	(k)  	
              Headings.
                The titles and headings of the sections in this Agreement are for
                convenience only and shall not in any way affect the interpretation
                of
                this Agreement. Any reference in this Agreement to a “Section”
                or “Attachment”
                shall, unless the context expressly requires otherwise, be a reference
                to
                a “Section” in, or an “Attachment” to, this
                Agreement.

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
      	(l)  	
              Non-Recourse.
                Notwithstanding anything contained in this Agreement to the contrary,
                it
                is expressly understood and agreed by the Parties hereto that each
                and
                every representation, warranty, covenant, undertaking and agreement
                made
                in this Agreement was not made or intended to be made as a personal
                representation, undertaking, warranty, covenant, or agreement on
                the part
                of any individual, and any recourse, whether in common law, in equity,
                by
                statute or otherwise, against any individual is hereby forever waived
                and
                released.

            

    

     

    
      	(m)  	
              Counterparts
                and Fax or Email Delivery.
                This Agreement may be executed by the Parties in counterparts and
                may be
                delivered by fax or email, provided each Party will thereafter deliver
                an
                original executed Agreement to each other Party by
                courier.

            

    

     

    The
      Parties hereto have executed this Agreement as of the date first above written
      and the signatories below represent that they have authority to bind their
      respective corporations.

     

    
      	
              CANADIAN
                SATELLITE RADIO INC.:

               

            	 	
               

              GENERAL
                MOTORS OF CANADA LIMITED:

               

            
	
               

               

               

              By:

            	
              /s/
                John I. Bitove

            	 	
               

               

               

              By:

            	
               

              /s/
                Michael A. Grimaldi

            
	
               

              Name:

            	
               

              John
                I. Bitove

            	 	
               

              Name:

            	
               

              Michael
                A. Grimaldi

            
	
               

              Title:

            	
               

              Chairman
                and CEO

            	 	
               

              Title:

            	
               

              President

            
	
               

              Date:

            	
               

              November
                30, 2005

            	
            	
               

              Date:

            	
               

              November
                30, 2005

            
	
               

              XM
                SATELLITE RADIO INC.:

               

            	 	 
	
               

               

               

              By:

            	
              /s/
                Joseph M. Titlebaum

            	 	
               

               

               

              By:

            	
              /s/
                Marc J. Comeau

            
	
               

              Name:

            	
               

              Joseph
                M. Titlebaum

            	
            	
               

              Name:

            	
               

              Marc
                J. Comeau

            
	
               

              Title:

            	
               

              Executive
                Vice-President, General Counsel

            	
            	
               

              Title:

            	
               

              Vice
                President, Sales, Service, Marketing

            
	
               

              Date:

            	
               

              November
                30, 2005

            	 	
               

              Date:

            	
               

              November
                30, 2005

            

    

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    Attachment
      1: GM Affiliates (As of Effective Date)

     

    

     

    Affiliates
      with Canadian Distribution:

     

    1. Isuzu

     

    2. Suzuki

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    Attachment
      2

     

    The
      sixteen (16) Metropolitan Areas Designated for Terrestrial Repeater Network
      Build-outs are listed below and each will have a combination of high power
      repeaters and low power repeaters. CSR agrees that all cities, with the possible
      exception of Calgary, will have at least one high power repeater installed.
      The
      Initial Four Cities are identified with an asterisk.

     

    1. Ottawa*

    2. Calgary

    3. Toronto*

    4. Montreal*

    5. Vancouver*

    6. Edmonton

    7. Quebec
      City

    8. Winnipeg

    9. Hamilton

    10. London

    11. Kitchener

    12. St.
      Catharines

    13. Halifax

    14. Victoria

    15. Windsor

    16. St.
      John's

    

     

    SERVICE
      AVAILABILITY LEVEL:

     

    For
      those
      cities listed in this Attachment 2, CSR, utilizing the XM Satellites as
      augmented by the CSR Terrestrial Repeater Network, shall provide 99%
      availability (or better) for the mobile usage model along designated drive
      routes within the respective metropolitan areas (polygons) as defined in
      coverage maps (with such drive routes to be determined based on the final
      terrestrial repeater network design for each metropolitan area). Availability
      is
      defined as percentage of marginal-to-good coverage as defined by XM Standard
      Analysis (no Reed Solomon block errors) over a test drive route that is
      representative of the primary, secondary and tertiary routes within the urban
      coverage polygon and shall be agreed by the Parties to be representative before
      the test is conducted. The representative drive test shall not exceed 250
      kilometres per urban coverage polygon. The test vehicle shall be a GM mid-size
      vehicle with a sunroof and a representative (OEM) XM receiver and antenna.
      The
      test vehicle, representative (OEM) XM receiver and antenna shall be greed by
      the
      Parties to be representative before the test is conducted.

     

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    Attachment
      3

     

    2006
      Model Year

     

    Chevrolet:

     

    Avalanche,
      Cobalt, Colorado, Corvette, Equinox, HHR, Impala, Malibu, Malibu Maxx,
      Monte-Carlo, Silverado, Suburban, Tahoe, Trailblazer, Trailblazer EXT,
      Uplander

     

    Cadillac:

     

    CTS,
      DTS,
      Escalade, Escalade EXT, Escalade ESV, SRX, STS, XLR

     

    Buick:

     

    Allure,
      Lucerne, Rainier, Rendezvous, Terraza

     

    GMC:

     

    Canyon,
      Denali, Denali XL, Envoy, Envoy XL, Sierra, Yukon, Yukon XL

     

    Hummer:

     

    H2,
      H2
      SUT, H3

     

    Pontiac:

     

    Grand
      Prix, G6, Montana SV6, Pursuit, Solstice, Torrent, Vibe

     

    Saab:

     

    SAAB
      9-3,
      SAAB 9-5, SAAB 9-7

     

    Saturn:

     

    ION,
      Relay, VUE

     

    

     

    2007
      Model Year

     

    At
      least
      90% of Distributor's vehicle lines in the 2007 model year.

     

    Attachment
      4: XM Credit FacilityExhibit 10.5

    
       

       

      
        EXHIBIT
          10.5

      

      

        EXECUTION
          VERSION

         

      CANADIAN
        SATELLITE RADIO HOLDINGS INC.

       

      SHAREHOLDERS
        AGREEMENT

       

      THIS
        SHAREHOLDERS AGREEMENT is
        made
        as of the 17th
        day of
        November, 2005 between Canadian Satellite Radio Holdings Inc., a corporation
        incorporated under the laws of the Province of Ontario (the “Corporation”),
        Canadian Satellite Radio Inc., a corporation incorporated under the laws
        of
        Canada (“CSR”),
        Canadian Satellite Radio Investments Inc., a corporation existing under the
        laws
        of the
        Province of Ontario
        (“CSR
        InvestCo”),
        XM
        Satellite Radio Holdings Inc., a Delaware corporation (“XM
        Holdings”), and
        any
        person who is permitted by this Agreement to become a party after the date
        hereof and becomes a party hereto by executing an acknowledgement in the
        form
        annexed hereto as Schedule
        A
        (each,
        an “Additional
        Party”).

       

       

      RECITALS:

       

      WHEREAS
        the
        parties hereto other than the Corporation and CSR together currently own,
        directly or indirectly, all of the issued and outstanding shares in the capital
        of the Corporation, with CSR InvestCo owning at least two thirds of such
        shares
        and the other parties hereto owning no more than one third of such
        shares;

       

      AND
        WHEREAS
        the
        Corporation owns all of the issued and outstanding shares of its operating
        subsidiary, CSR;

       

      AND
        WHEREAS the
        parties have entered into this Agreement to record their agreement as to
        the
        manner in which the Corporation’s affairs are to be conducted and to grant
        certain rights and obligations with respect to the ownership of the shares
        of
        the Corporation; 

       

      NOW
        THEREFORE THIS AGREEMENT WITNESSES that
        in
        consideration of the premises and the mutual covenants and agreements herein
        contained the parties hereto covenant and agree as follows: 

       

       

      ARTICLE 1  

       

      DEFINITIONS
        AND PRINCIPLES OF INTERPRETATION

       

      1.1  Definitions

       

      Whenever
        used in this Agreement, the following words and terms have the meanings set
        out
        below: 

       

      
        	(a)  	
                “Act”
                  means the Business
                  Corporations Act
                  (Ontario), as the same may be amended from time to
                  time;

              

      

       

      
        	(b)  	
                “affiliate”
                  has the meaning ascribed to such term in the Act;
                  

              

      

       

      
        	(c)  	
                “Agreement”
                  means this Shareholders Agreement and all attached schedules and
                  all
                  instruments supplemental to or in amendment or confirmation of
                  this
                  Agreement; 

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	(d)  	
                “arm’s
                  length”
                  has the meaning that it has for purposes of the Income
                  Tax Act
                  (Canada);

              

      

       

      
        	(e)  	
                “Articles”
                  means the articles of incorporation of the Corporation, as amended
                  from
                  time to time, the form of which that will be in effect immediately
                  following the Initial Public Offering (or if no Initial Public
                  Offering
                  has occurred, by December 16, 2005) is set forth as Exhibit
                  1
                  hereto;

              

      

       

      
        	(f)  	
                “Bitove”
                  means John Bitove, a Canadian citizen residing in Toronto;
                  

              

      

       

      
        	(g)  	
                “Bitove
                  Affiliates”
                  means Bitove’s Family Members or a custodian, trustee (including an RRSP,
                  RIF, IRA or similar retirement or investment fund) or other fiduciary
                  for
                  Bitove and/or his Family Members or a corporation wholly owned
                  by Bitove
                  and/or other Bitove Affiliates;

              

      

       

      
        	(h)  	
                “Board”
                  means the board of directors of CSR or the Corporation, as applicable;
                  

              

      

       

      
        	(i)  	
                “Business
                  Day”
                  means any day except Saturday, Sunday or any statutory holiday
                  in the
                  Province of Ontario;

              

      

       

      
        	(j)  	
                “Capital
                  Stock”
                  means, with respect to any Person, any and all shares of the Person
                  issued
                  or issuable upon the exercise of any warrants, options, or any
                  other
                  rights to acquire shares (however designated, whether voting or
                  non-voting) of such Person, whether now outstanding or issued subsequent
                  hereto, including, without limitation, all series and classes of
                  common
                  stock and preferred stock.

              

      

       

      
        	(k)  	
                “Class
                  A Shares”
                  means Class A Subordinate Voting Shares in the capital of the Corporation
                  and includes the Class A Subordinate Voting Shares of the Corporation
                  currently issued, as well as any additional Class A Subordinate
                  Voting
                  Shares in the capital of the Corporation that may hereafter be
                  issued, the
                  terms of which are described in the Articles, including having
                  one (1)
                  vote per share; 

              

      

       

      
        	(l)  	
                “Class
                  B Shares”
                  means Class B Voting Shares in the capital of the Corporation and
                  includes
                  the Class B Voting Shares of the Corporation currently issued,
                  as well as
                  any additional Class B Voting Shares in the capital of the Corporation
                  that may hereafter be issued, the terms of which are described
                  in the
                  Articles, including having one (1) vote per share and each three
                  (3) Class
                  B Voting Shares being convertible into one (1) Class A
                  Share;

              

      

       

      
        	(m)  	
                “Class
                  C Shares” means
                  Class C Shares in the capital of the Corporation that may hereafter
                  be
                  issued, the terms of which are described in the constating documents
                  of
                  the Corporation.

              

      

       

      
        	(n)  	
                “CRTC”
                  mean the Canadian Radio-television and Telecommunications
                  Commission;

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	(o)  	
                “CSR
                  InvestCo Change of Control”
                  means Bitove and Bitove Affiliates holding, directly or indirectly,
                  less
                  than 50.01% of the voting rights of 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 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 not being held by Bitove or Bitove
                  Affiliates. 

              

      

       

      
        	(p)  	
                “Family
                  Members”
                  means, in respect of an individual, any parent, spouse, child,
                  spouse of a
                  child, grandchild and/or sibling; 

              

      

       

      
        	(q)  	
                “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 Bitove
                  or Bitove Affiliates has the primary economic interest in such
                  equity or
                  shares or any appreciation in the value
                  thereof;

              

      

       

      
        	(r)  	
                “Independent,”
                  with reference to a director, means an “independent”
                  director meeting all corporate governance requirements for independence
                  of
                  each stock exchange on which the Shares are then listed or proposed
                  to be
                  listed, and all independence requirements of each regulatory agency
                  with
                  corporate governance rules or regulations binding on the Corporation,
                  and
                  with reference to a director or other individual,
                  meets the following requirements: (i) owns less than 5% of the
                  shares of
                  any Shareholder; (ii) is not an officer or employee of the Corporation
                  or
                  CSR; and (iii) is not an associate, officer, director, principal,
                  partner
                  or employee of any Shareholder;

              

      

       

      
        	(s)  	
                “Initial
                  Debt Offering”
                  shall mean the Corporation’s or CSR’s first offering of its debt
                  securities that closes on or before March 1, 2006 and is pursuant
                  to any
                  of the following: a prospectus filed under applicable Canadian
                  securities
                  laws in respect of which a (final) receipt has been obtained and/or
                  a
                  registration statement that has been declared effective under the
                  United
                  States Securities Act of 1933, as amended (the “Securities
                  Act”)
                  or an offering memorandum under Rule 144A of the Securities
                  Act;

              

      

       

      
        	(t)  	
                “Initial
                  Public Offering”
                  shall mean the Corporation’s first public offering of its securities that
                  closes on or before March 1, 2006 and is pursuant to any of the
                  following:
                  a prospectus filed under applicable Canadian securities laws in
                  respect of
                  which a (final) receipt has been obtained and/or a registration
                  statement
                  that has been declared effective under the Securities Act or
                  any other equity financing or other public offering of securities
                  (including a reverse take-over) directly or indirectly involving
                  the
                  Corporation that has been duly authorized by the Corporation’s Board in
                  which the aggregate offering proceeds equals or exceeds Cdn$50,000,000,
                  accompanied by the listing of the Class A Shares on the Toronto
                  Stock
                  Exchange, the Nasdaq National Market or the New York Stock
                  Exchange;

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	(u)  	
                “Parties”
                  means, collectively, the Shareholders, the Corporation, CSR and
                  any
                  Additional Party, and “Party”
                  means any one of them;

              

      

       

      
        	(v)  	
                “Permitted
                  Additional Securities”
                  means (i) any options, shares or other securities issued or issuable
                  to employees, directors, officers or consultants under a Stock
                  Plan,
                  (ii) any options, warrants, shares or other securities issued or
                  issuable to suppliers or business partners for consideration other
                  than
                  cash as part of a commercial arrangement in the ordinary course
                  of the
                  Corporation’s or CSR’s satellite radio business (which shall be understood
                  to include without limitation any facets of the satellite radio
                  business
                  as conducted by XM Holdings), (iii) any securities issued as a
                  dividend or distribution on all of the Shares, (iv) any securities
                  issuable to XM Holdings, General Motors of Canada Limited (“GM
                  Canada”)
                  or any other original equipment manufacturer (whether directly
                  or to a
                  trust for the benefit of such manufacturer), all as contemplated
                  by a
                  Share Issuance Agreement dated on or about the date hereof, among
                  the
                  Corporation, CSR and XM Holdings (the “Share
                  Issuance Agreement”),
                  (v) any securities issued in the Initial Public Offering including
                  any
                  over-allotment option relating thereto, (vi) securities issued
                  to CSR
                  InvestCo in transactions resulting in the cash contribution referred
                  to in
                  clause (i) of the definition of the Required Equity Funding Date
                  and (vii)
                  securities listed on the schedule of Shares or rights to purchase
                  Shares
                  granted prior to the Required Equity Funding Date as to which XM
                  Holdings
                  has agreed in writing would be included in Permitted Additional
                  Securities;

              

      

       

      
        	(w)  	
                “Person”
                  includes any individual, partnership, corporation, joint venture,
                  limited
                  liability company, association, trust, unincorporated organization,
                  or
                  government or agency or political subdivision
                  thereof;

              

      

       

      
        	(x)  	
                “Required
                  Equity Funding Date” means
                  the date immediately after the Corporation has issued Capital Stock
                  for
                  consideration, in cash, of at least Cdn $65,000,000, which shall
                  include
                  (i) at least Cdn $15,000,000 in cash contributed by or on behalf
                  of CSR
                  InvestCo, either after the date of this Agreement or before the
                  date of
                  this Agreement for the procurement of property and services for
                  CSR’s
                  satellite radio business, and (ii) at least Cdn $50,000,000 in
                  net cash
                  proceeds from a public offering of Class A Shares. For greater
                  certainty,
                  any over-allotment option and any securities issued upon exercise
                  of such
                  over-allotment option in connection with a public offering shall
                  (1) be
                  deemed to be part of the public offering and to have taken place
                  on the
                  same date as the initial closing of the public offering in the
                  event that
                  the net cash proceeds of such over-allotment option, when added
                  to the net
                  cash proceeds of the Class A Shares sold at the initial closing
                  of the
                  offering, causes the sum of such net cash proceeds to equal or
                  exceed Cdn
                  $50,000,000, and (2) be deemed not to be part of the public offering
                  and to have taken place subsequent to the date of the initial closing
                  of
                  the public offering in the event that the net cash proceeds of
                  the Class A
                  Shares sold at the initial closing of the offering equals or exceeds
                  Cdn$50,000,000.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	(y)  	
                “Shareholder”
                  means each of the following, to the extent that it is an owner
                  of Shares:
                  CSR InvestCo and XM Holdings and the Additional Parties, and “Shareholders”
                  means all of such Persons
                  collectively;

              

      

       

      
        	(z)  	
                “Shares”
                  means Class A Shares, Class B Shares and Class C Shares, as applicable,
                  of
                  the Corporation, provided that for purposes of any formula where
                  the
                  number of Class B Shares is added to the number of Class A Shares
                  and
                  Class C Shares to arrive at a total number of Shares, (1) since each
                  three (3) Class B Shares are convertible into one (1) Class A Share,
                  the
                  Class B Shares shall be treated as on an as-converted to Class
                  A Shares
                  basis (for greater certainty, the number of Class B Shares effectively
                  shall be divided by three (3) before being added to the number
                  of Class A
                  Shares, and (2) since each Class C Share is economically equivalent
                  to a Class A Share (even though non-voting and non-convertible
                  into Class
                  A Shares), each Class C Share shall be counted the same as a Class
                  A
                  Share);

              

      

       

      
        	(aa)  	
                “Stock
                  Plan”
                  means any incentive plan established by the Corporation or CSR
                  and
                  approved by the Board and, if required by applicable rules or regulations
                  (including without limitation those of a stock
                  exchange on which the Shares are then listed or proposed to be
                  listed), by
                  the shareholders of the Corporation and includes for greater certainty
                  the
                  Corporation’s existing stock option plan;

              

      

       

      
        	(bb)  	
                “Takeover
                  Restrictions”
                  means any restrictions under the Securities Act (Ontario) that
                  would limit
                  CSR InvestCo’s ability to purchase additional Class A Shares without
                  making an offer to purchase all of the Class A
                  Shares.

              

      

       

      
        	(cc)  	
                “Transfer”
                  means any disposition, transfer, sale, exchange, assignment, gift,
                  bequest, disposition, mortgage, charge, pledge, encumbrance, grant
                  of
                  security interest, or any arrangement by which possession, legal
                  title or
                  beneficial ownership passes, directly or indirectly, from one person
                  or
                  entity to another, or to the same person or entity in a different
                  capacity, whether or not voluntary and whether or not for value,
                  and
                  includes any agreement to effect the
                  foregoing.

              

      

       

      1.2  Additional
        Definitions

       

      Unless
        there is something inconsistent in the subject matter or context, or unless
        otherwise provided in this Agreement, all other words and terms used in this
        Agreement that are defined in the Act have the meanings set out in the
        Act.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      1.3  Certain
        Rules of Interpretation

       

      In
        this
        Agreement:

       

      
        	(a)  	
                Consent
                  -
                  Whenever a provision of this Agreement requires an approval or
                  consent and
                  such approval or consent is not delivered within the applicable
                  time
                  limit, then, unless otherwise specified, the Party whose consent
                  or
                  approval is required is conclusively deemed to have withheld its
                  approval
                  or consent.

              

      

       

      
        	(b)  	
                Governing
                  Law
                  -
                  This Agreement shall be governed by and construed in accordance
                  with the
                  laws of the Province of Ontario, without regard to the province’s conflict
                  of law provisions, and each of the Parties irrevocably agrees to
                  submit to
                  the exclusive jurisdiction of the courts of such province for and
                  in
                  connection with any proceedings relating to this
                  Agreement.

              

      

       

      
        	(c)  	
                Headings
                  -
                  Headings of articles and sections are inserted for convenience
                  of
                  reference only and do not affect the construction or interpretation
                  of
                  this Agreement.

              

      

       

      
        	(d)  	
                Including
                  -
                  Where the word “including” or the word “includes” is used in this
                  Agreement, it means “including (or includes) without
                  limitation”.

              

      

       

      
        	(e)  	
                Number
                  and Gender
                  -
                  Unless the context otherwise requires, words importing the singular
                  include the plural and vice versa and words importing gender include
                  all
                  genders.

              

      

       

      
        	(f)  	
                Severability
                  -
                  If, in any jurisdiction, any provision of this Agreement or its
                  application to any Party or circumstance is restricted, prohibited
                  or
                  unenforceable, such provision is, as to such jurisdiction, ineffective
                  only to the extent of such restriction, prohibition or unenforceability
                  without invalidating the remaining provisions of this Agreement
                  and
                  without affecting the validity or enforceability of such provision
                  in any
                  other jurisdiction or without affecting its application to other
                  Parties
                  or circumstances.

              

      

       

      
        	(g)  	
                Time
                  -
                  Time is of the essence in the performance of the Parties’ respective
                  obligations.

              

      

       

      
        	(h)  	
                Time
                  Periods
                  -
                  Unless otherwise specified, time periods within or following which
                  any
                  payment is to be made or act is to be done are calculated by excluding
                  the
                  day on which the period commences and including the day on which
                  the
                  period ends and by extending the period to the following Business
                  Day if
                  the last day of the period is not a Business
                  Day.

              

      

       

      
        	(i)  	
                Currency
                  -
                  Unless otherwise indicated all dollar amounts referred to in this
                  Agreement, including the symbol “$”, refer to lawful money of
                  Canada.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE 2  

       

      PURPOSE
        AND SCOPE

       

      2.1  Compliance
        with Agreement 

       

      Each
        Shareholder agrees to vote and act as a shareholder of the Corporation to
        fulfil
        the provisions of this Agreement and in all other respects to comply with,
        and
        use all reasonable efforts to cause the Corporation to comply with, this
        Agreement. The Shareholders further undertake that they will use their influence
        as Shareholders to cause such meetings of the Corporation to be held,
        resolutions passed, by-laws enacted, agreements and other documents signed
        and
        acts or things performed or done as may be necessary or desirable to ensure
        that
        the provisions of this Agreement are implemented and given full force and
        effect. Each of the Corporation and CSR undertakes to carry out and be bound
        by
        the provisions of this Agreement to the full extent that it has the capacity
        and
        power at law to do so.

       

      2.2  Canadian
        Ownership

       

      Notwithstanding
        any other provisions of this Agreement, including those relating to share
        transfers, the Corporation and CSR will act to ensure that all requirements
        relating to the ownership and control of broadcasting undertakings as set
        out in
        the Broadcasting
        Act
        (Canada)
        and related regulations, rules and regulatory policies, directions and decisions
        in effect from time to time and the terms of licenses granted to the Corporation
        or CSR by the CRTC or Industry Canada (the “Restrictions”),
        are
        complied with at all times, including as required by the Broadcasting
        Act
        (Canada)
        and including the establishment of an independent programming committee of
        CSR
        that meets regulatory approval and such other mechanisms that will ensure
        the
        Corporation and CSR are controlled in fact by Canadian entities. The Corporation
        and CSR will act to ensure that, other than the issuance of Shares to XM
        Holdings under the Share Issuance Agreement dated on or about the date hereof,
        no transfer or issuance of Shares or other securities of the Corporation
        or CSR
        shall be permitted if such transfer or issuance would cause CSR, after giving
        effect to the issuance of the Shares to XM Holdings under the Share Issuance
        Agreement, to cease to be a “qualified corporation” in the context of “The
        Direction to the CRTC (Ineligibility of Non-Canadians)” dated April 8, 1997 or
        the equivalent under successor legislation, regulation, rules or regulatory
        policies, directions or decisions and unless such Transfer is in compliance
        with
        the Investment
        Canada Act
        (Canada). The Corporation and CSR will act to ensure that XM Holdings shall
        not
        be required by the Restrictions or the constating documents of the Corporation
        (unless XM Holdings is then the only non-Canadian) to sell, transfer or divest
        any of the Shares acquired under the Share Issuance Agreement without violation
        of the Restrictions, and in each instance when there is a proposed transfer
        or
        issuance of Class B Shares to XM Holdings that the Corporation or XM Holdings
        reasonably concludes might be prohibited by the Restrictions but would not
        be
        prohibited if the Shares to be transferred or issued were Class A Shares,
        the
        Parties shall use all reasonable efforts and take such reasonable actions
        to
        permit XM Holdings to acquire Class A Shares in lieu of the Class B Shares.
        The
        Corporation and CSR acknowledge and agree that the covenants and agreements
        in
        this Section may limit the Corporation’s ability to issue shares of the
        Corporation or CSR to other non-Canadian investors through the Required Equity
        Funding Date, and that they will include provisions in the Articles, obtain
        agreements from other non-Canadian investors or take other actions as may
        be
        necessary such that in the event of a violation of the Restrictions or CSR
        ceasing to be a “qualified corporation” as described above, the Corporation will
        be able to take such actions as may be necessary, including preventing
        non-Canadians from voting their shares and to the extent permitted by applicable
        law, requiring non-Canadians to sell, transfer or divest their ownership
        interests in the Corporation as needed (in each case such non-Canadian investors
        to be selected in inverse order as provided in the Articles, and the Corporation
        will ensure that XM Holdings is registered first so that it will be the last
        non-Canadian that can be prevented from voting or required to sell under
        the
        Articles) so that XM Holdings can receive and retain the Shares acquired
        under
        the Share Issuance Agreement without violation of the Restrictions.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2.3  Conflict
        with Articles or By-laws

       

      In
        the
        event of any conflict between the provisions of this Agreement and the
        provisions of the Articles or the by-laws of the Corporation or CSR, the
        provisions of this Agreement shall prevail, and the Shareholders shall take
        such
        steps as are required to amend the Articles and by-laws of the Corporation
        or
        CSR so as to ensure conformity with the terms of this Agreement.

       

      2.4  No
        Indirect Public Offerings

       

      Unless
        otherwise agreed in writing by each of CSR InvestCo and XM Holdings, neither
        CSR
        InvestCo nor any other Person through which Bitove owns Shares shall undertake
        any public offering of securities prior to an initial (and subsequent) public
        offering(s) of Class A Shares by the Corporation in which the aggregate gross
        proceeds to the Corporation equals or exceeds Cdn$50 million, accompanied
        by the
        listing of the Class A Shares on the Toronto Stock Exchange, the Nasdaq National
        Market or the New York Stock Exchange.

       

      2.5  OEM
        Stakeholders

       

      The
        Parties agree that pursuant to a Share Issuance Agreement dated on or about
        the
        date hereof General Motors of Canada Limited (“GM
        Canada”)
        will
        acquire Shares representing a 7% fully diluted economic interest in the
        Corporation as of the date hereof (as defined and with
        dilution protection as described therein until the Required Equity Funding
        Date), subject to GM Canada entering into or being a party to a distribution
        agreement with CSR. The
        Parties also agree that upon
        issuance of stock to GM Canada, the Corporation, XM Holdings, GM Canada and
        CSR
        InvestCo will be entering into a Director Nomination Agreement on customary
        terms and conditions under which GM Canada will be entitled to nominate one
        of
        the directors of the Corporation for as long as GM Canada owns either
        (i) at least 5% of the outstanding
        Shares (treating
        all Shares as a single class of Class A Shares on an as-converted basis,
        including counting each Class C Share as one Class A Share) or
        (ii) at least 50% of the number of Shares GM Canada acquires pursuant to a
        Share Issuance Agreement (as adjusted for any recapitalization prior to the
        Required Equity Funding Date).
        The
        Parties acknowledge that the Corporation is or will be entering into a
        settlement with the trustee named therein under which an option to purchase,
        for
        nominal consideration and for a period not to exceed 60 days, Class A Shares
        representing 3% of the fully diluted economic equity interest in the Corporation
        as of the date hereof (as defined and with
        dilution protection as described therein until the Required Equity Funding
        Date)
        is being
        or will be deposited into the trust created by such settlement to be assigned
        upon instructions by XM to one or more automotive
        distribution partners that are expected to become distributors of CSR’s services
        in Canada (“OEM
        Stakeholders”),
        in
        whole or in parts, subject
        to such OEM
        Stakeholders entering
        into or being parties to distribution agreements with CSR.
        

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ARTICLE 3  

       

      MANAGEMENT
        OF THE CORPORATION

       

      3.1  Board
        of Directors
        of CSR and the Corporation

       

      
        	(a)  	
                Unless
                  otherwise permitted by applicable Canadian law, a majority of Board
                  members of the Corporation, at least 80 percent of Board members
                  of CSR
                  and the Chairman of the Board of each of CSR and the Corporation
                  shall be
                  “Canadians” (as defined under “The Direction to the CRTC (Ineligibility of
                  Non-Canadians)” dated April 8, 1997) (the “Residency
                  Requirements”).

              

      

       

      
        	(b)  	
                The
                  Board of the Corporation initially shall be comprised of nine members.
                  The
                  Board of CSR shall be comprised of five members. For as
                  long as CSR InvestCo owns at least 33-1/3% of the outstanding Shares
                  (treating
                  all Shares as a single class of Class A Shares on an as-converted
                  basis,
                  including counting each Class C Share as one Class A Share) and
                  has not undergone a CSR InvestCo Change of Control, CSR
                  InvestCo shall
                  be entitled to: (i) nominate a total of three of the nine directors
                  of the
                  Corporation and four of the five directors of CSR; (ii) increase
                  the size
                  of the Board of the Corporation to 12 members; and (iii) nominate
                  six of
                  the 12 directors of the Corporation if the size of the Board has
                  been
                  increased to 12 members. If CSR InvestCo owns less than 33-1/3%
                  of the
                  outstanding Shares (treating
                  all Shares as a single class of Class A Shares on an as-converted
                  basis,
                  including counting each Class C Share as one Class A Share) but
                  owns either (i) at least 15% of the outstanding Shares (treating
                  all Shares as a single class of Class A Shares on an as-converted
                  basis,
                  including counting each Class C Share as one Class A Share) or
                  (ii) at least 50% of the number of Shares CSR InvestCo owns on the
                  date hereof (as adjusted for any recapitalization or additional
                  capital
                  contribution prior to the Required Equity Funding Date) and has
                  not
                  undergone a CSR InvestCo Change of Control, CSR InvestCo will be
                  entitled
                  to nominate three directors of the Corporation and four of the
                  five
                  directors of CSR. For as long as XM Holdings owns either (i) at least
                  10% of the outstanding Shares (treating
                  all Shares as a single class of Class A Shares on an as-converted
                  basis,
                  including counting each Class C Share as one Class A Share) or
                  (ii) at least 50% of the number of Shares XM Holdings owns on the
                  date hereof (as adjusted for any recapitalization prior to the
                  Required
                  Equity Funding Date and all Shares acquired pursuant to a Share
                  Issuance
                  Agreement dated on or about the date hereof) XM Holdings will be
                  entitled
                  to nominate two of the directors of the Corporation and one of
                  the five
                  directors of CSR. GM
                  Canada will be entitled to nominate one of the directors of the
                  Corporation upon becoming a holder of Shares as provided in Section
                  2.5.
                  At least three of the directors of the Corporation will be Independent
                  directors of recognized expertise and stature reasonably acceptable
                  to CSR
                  InvestCo (so long as CSR InvestCo has not undergone a CSR InvestCo
                  Change
                  of Control) and to XM Holdings and meeting
                  all corporate governance requirements of each stock exchange on
                  which the
                  Shares are then listed or proposed to be listed, and of each regulatory
                  agency with corporate governance rules or regulations binding on
                  the
                  Corporation, including any requirement that they be
                  “financially literate” within the meaning of Canadian securities laws. For
                  the initial Board of the
                  Corporation, CSR InvestCo will only nominate three of the six directors
                  it
                  is entitled to nominate under this paragraph. All
                  nominees
                  for either Board shall have a personal and professional reputation,
                  qualifications and experience suitable to serving as a director
                  in a
                  company that will become publicly listed in the near future and
                  a
                  willingness and ability to devote time and resources to fulfill
                  his or her
                  duties as a member of the Board.
                  Fulfillment of the Residency Requirements shall be accomplished
                  solely by
                  the appointment of the nominees of CSR InvestCo and the Independent
                  directors and not XM Holdings or GM
                  Canada.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Each
        Shareholder shall vote its Shares to elect the directors nominated in accordance
        with this Agreement.

       

      3.2  Removal
        and Replacement of Nominees

       

      Any
        Shareholder entitled to nominate and elect a director may require the removal
        of
        any such director by notice to such director, the other Shareholders and
        to each
        of CSR and the Corporation. Any vacancy occurring on a Board by reason of
        the
        death, disqualification, inability to act, resignation or removal of any
        director may be filled only by a further nominee of the Shareholder or
        Shareholders whose nominee’s departure caused such vacancy, so as to maintain a
        Board consisting of the nominees specified in Section 3.1.

       

      3.3  Meetings
        of Board

       

      Each
        Board shall meet at least once in every quarter during the term of this
        Agreement, and the Chairman shall call a special meeting of the applicable
        Board
        upon the request of any director nominated by a Shareholder. 

       

      3.4  Notice
        of Meetings

       

      In
        addition to any notice required by the By-laws, CSR or the Corporation, as
        applicable, shall notify each director nominated by a Shareholder, in writing,
        of the intended date of any meeting of a Board at least 5 Business Days prior
        to
        the date of such intended meeting unless such requirement is waived by the
        Shareholder nominating such director. If any director nominated by a Shareholder
        notifies CSR or the Corporation, as applicable, in writing, on or before
        the day
        immediately preceding the day of the intended meeting, requesting a delay
        of the
        intended meeting, CSR or the Corporation, as applicable, shall delay the
        intended meeting at least three calendar days from the day originally scheduled
        for the intended meeting or such earlier date as may be contained in such
        notice. Notice of a Board meeting to a director nominated by a Shareholder
        shall
        be accompanied by an agenda together with copies of any documents to be
        considered at such meeting. 

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      3.5  Quorum

       

      A
        quorum
        for meetings of a Board consists of a majority of the members of the Board,
        provided that: (i) to the extent required by applicable law or regulation,
        a
        majority of directors present and entitled to vote are resident Canadians
        who
        are either Independent members of the Board or (so
        long
        as CSR InvestCo has not undergone a CSR InvestCo Change of Control) nominees
        of CSR
        InvestCo;
        (ii) at
        any time when XM Holdings has the right under this Agreement to nominate
        one or
        more directors, at least one director present and entitled to vote is a nominee
        of XM Holdings; and (iii) at any time when CSR InvestCo has the right under
        this
        Agreement to nominate one or more directors, at least one director present
        and
        entitled to vote is a nominee of CSR InvestCo. If a quorum is not obtained
        at
        any meeting, the meeting shall be adjourned and may be reconvened upon two
        business days written notice to the directors, at which reconvened meeting
        the
        quorum is a majority of the directors for the purposes of all business set
        forth
        in the agenda for the original adjourned meeting, provided that, to the extent
        required by applicable law or regulation, a majority of directors present
        and
        entitled to vote at the reconvened meeting are resident Canadians who are
        either
        Independent members of the Board or (so
        long
        as CSR InvestCo has not undergone a CSR InvestCo Change of Control) nominees
        of CSR
        InvestCo.
        

       

      3.6  Committees
        of the Board

       

      Representation
        on committees of the Board shall be in accordance with the rules and regulations
        of any stock
        exchange on which the Shares are then listed or proposed to be listed, and
        all
        independence requirements of each regulatory agency with corporate governance
        rules or regulations binding on the Corporation. In addition, all members
        of the
audit
        committee shall be Independent and
        will
        be “financially literate” within the meaning of Canadian securities
        laws.
        To the
        extent required by the terms of CSR’s licence from the CRTC, the Board of CSR
        will have a programming committee with the powers and responsibilities specified
        in such licence.

       

      3.7  Telephone
        Meetings

       

      Any
        or
        all directors may participate in a meeting of a Board or any committee thereof
        by means of such telephone, electronic or other communication facilities
        as
        permit all Persons participating in the meeting to hear and communicate with
        each other simultaneously, and a director participating in such a meeting
        by
        such means is deemed to be present at the meeting. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3.8  Annual
        Budget

       

      The
        annual operating plan in any financial year of and in respect of CSR and
        the
        Corporation shall be subject to the approval of the Board of each of CSR
        and the
        Corporation, respectively. 

       

       

      ARTICLE 4  

       

      SPECIAL
        CONSENT RIGHTS

       

      Except
        to
        the extent the following covenants and provisions of this Article 4 are waived
        in writing in any instance by each Party holding consent rights, each of
        the
        Corporation and CSR covenants and agrees that (1) for
        as
        long as XM Holdings owns either (i) at least 10% of the outstanding Shares
(treating
        all Shares as a single class of Class A Shares on an as-converted basis,
        including counting each Class C Share as one Class A Share) or
        (ii) at least 50% of the number of Shares XM Holdings owns on the date
        hereof (as adjusted for any recapitalization prior to the Required Equity
        Funding Date and all Shares acquired pursuant to a Share Issuance Agreement
        dated on or about the date hereof) (the “XM
        Ownership Threshold”),
        the
        prior
        written consent of XM Holdings shall be required, and (2) if
        CSR
        InvestCo owns less than 33-1/3% of the outstanding Shares (treating
        all Shares as a single class of Class A Shares on an as-converted basis,
        including counting each Class C Share as one Class A Share) but
        owns
        either (i) at least 15% of the outstanding Shares (treating
        all Shares as a single class of Class A Shares on an as-converted basis,
        including counting each Class C Share as one Class A Share) or
        (ii) at least 50% of the number of Shares CSR InvestCo owns on the date
        hereof (as adjusted for any recapitalization or additional capital contribution
        prior to the Required Equity Funding Date) (the “CSR
        InvestCo Ownership Threshold”)
        and
        has not undergone a CSR InvestCo Change of Control, the
        prior
        written consent of CSR InvestCo shall be required, in each case for the
        following actions:

       

      
        	(a)  	
                Any
                  merger or consolidation or sale, transfer, assignment, conveyance
                  or other
                  disposition to a third party of all or substantially all of the
                  property
                  and assets of the Corporation, CSR or any direct or indirect subsidiary
                  of
                  the Corporation or CSR;

              

      

       

      
        	(b)  	
                the
                  dissolution or winding-up of the Corporation, CSR or any direct
                  or
                  indirect subsidiary of the Corporation or CSR or adoption of a
                  plan of
                  liquidation for the Corporation, CSR or any direct or indirect
                  subsidiary
                  of the Corporation or CSR;

              

      

       

      
        	(c)  	
                the
                  making of loans or advances to, transferring properties (other
                  than in the
                  ordinary course of business) to, or guaranteeing any debt of any
                  other
                  person in any amount by the Corporation or CSR (other than in connection
                  with the Initial Debt Offering or a credit facility to be provided
                  to the
                  Corporation or CSR by XM Holdings), which loans, advances, transfers
                  and
                  guarantees would exceed USD $1.0 million in the aggregate at any
                  time
                  outstanding;

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	(d)  	
                the
                  authorization or filing of articles of amendment or articles of
                  amalgamation for the Corporation or
                  CSR;

              

      

       

      
        	(e)  	
                any
                  action or transaction not in the ordinary course of the Corporation’s or
                  CSR’s satellite radio business, which shall be understood to include
                  without limitation any facets of the satellite radio business as
                  conducted
                  by XM Holdings;

              

      

       

      
        	(f)  	
                the
                  issuance of shares of CSR to any Person other than the
                  Corporation;

              

      

       

      
        	(g)  	
                the
                  incurrence
                  of any indebtedness for borrowed money or the issuance of any debt
                  securities by the Corporation or CSR,
                  other than under a credit facility provided to the Corporation
                  or CSR by
                  XM Holdings, the Initial Debt offering, intercompany indebtedness
                  and
                  working capital facilities not to exceed USD $5.0 million (“Excluded
                  Debt Issuances”),
                  which when combined with all incurrences of any indebtedness for
                  borrowed
                  money and issuances of debt securities by the Corporation or CSR
                  within
                  the preceding two years other than Excluded Debt Issuances, would
                  exceed USD $50.0 million in the aggregate;
                  

              

      

       

      
        	(h)  	
                the
                  issuance of Class A Shares, Class B Shares or other equity securities
                  (or
                  securities convertible into equity securities) by the Corporation
                  other
                  than Permitted
                  Additional Securities (or Shares issued upon exercise or conversion
                  of the
                  same) and Shares issued upon conversion by XM Holdings of amounts
                  at any
                  time outstanding under
                  a credit facility provided to the Corporation or CSR by XM Holdings
                  which,
                  when combined with all other equity issuances by the Corporation
                  issued
                  within the preceding two years, other than Permitted
                  Additional Securities (or Shares issued upon exercise or conversion
                  of the
                  same) and Shares issued upon conversion by XM Holdings of amounts
                  at any
                  time outstanding under
                  a credit facility provided to the Corporation or CSR by XM
                  Holdings,
                  would exceed Cdn $50.0 million in the aggregate;
                  and

              

      

       

      
        	(i)  	
                any
                  transaction between the Corporation or CSR and a Shareholder or
                  an
                  affiliate of a Shareholder involving aggregate consideration in
                  excess of
                  Cdn $1.0 million.

              

      

       

       

      ARTICLE 5  

       

      DEALING
        WITH SHARES

       

      5.1  Restrictions
        on Transfer of Shares

       

      
        	(a)  	
                Notwithstanding
                  any provision in this Agreement and without limiting the powers
                  of the
                  Board of the Corporation under the Articles to restrict the issue,
                  transfer and voting of Shares, the Corporation shall not issue
                  Shares to
                  any person and a Shareholder may not Transfer any Shares unless
                  such
                  issuance or transfer has received all required approvals of the
                  CRTC and
                  of any other regulatory authority having jurisdiction.
                  

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	(b)  	
                Except
                  as may otherwise be agreed in writing by CSR InvestCo (so
                  long as CSR InvestCo has not undergone a CSR InvestCo Change of
                  Control)
                  and XM Holdings, and except for the transfers discussed in Section
                  5.4,
                  Section 5.5 and Section 5.6, no Shareholder shall Transfer any
                  Shares, or
                  any of its rights or obligations under this Agreement, to any Person,
                  except as specifically permitted by this Agreement and only in
                  accordance
                  with the terms of this Agreement. The Corporation shall not be
                  required:
                  (A) to Transfer on its books any Shares, nor (B) to treat as the
                  owner of
                  the Shares, or otherwise to accord voting or dividend rights to,
                  any
                  transferee to whom the Shares have been Transferred in contravention
                  of
                  this Agreement. 

              

      

       

      
        	(c)  	
                Notwithstanding
                  any other term of this Agreement, every Transfer of Shares held
                  by a
                  Shareholder to an Affiliate of such Shareholder is subject to the
                  condition that
                  the proposed transferee, if not already bound by the terms of this
                  Agreement, first agrees, in writing, to become a party to and be
                  bound by
                  the terms of this Agreement by signing an acknowledgment substantially
                  in
                  the form annexed hereto as Schedule
                  “A”.

              

      

       

      
        	(d)  	
                In
                  the event that any Shareholder files for protection from creditors
                  under
                  the Bankruptcy
                  and Insolvency Act
                  (Canada), the Companies’
                  Creditors Arrangement Act
                  (Canada), Chapter 11 of the U.S. Bankruptcy Code or similar process,
                  this
                  Agreement shall remain in force, but all restrictions on share
                  Transfers
                  imposed by this Agreement shall no longer be in force (except for
                  corporate and regulatory
                  restrictions).

              

      

       

      5.2  Endorsement
        on Certificates

       

      In
        addition to such legends as may be required by applicable securities laws
        or the
        Articles, share certificates of the Corporation that are issued to the
        Shareholders shall bear the following language either as an endorsement or
        on
        the face of such share certificate: 

       

      “The
        shares represented by this certificate are subject to all the terms and
        conditions of a Shareholders Agreement made November 17, 2005 as it may be
        amended from time to time, which agreement contains, among other things,
        restrictions on the right of the holder hereof to transfer or sell the shares.
        A
        copy of such agreement is on file at the registered office of the
        Corporation.”

       

      5.3  Pre-Emptive
        Rights

       

      
        	(a)  	
                Other
                  than Shares to be issued in the Initial Public Offering, and subject
                  to
                  the Restrictions and applicable regulatory approvals, if any additional
                  Shares or options, rights, warrants or other instruments to purchase
                  Shares or securities convertible into or exchangeable for Shares
                  (collectively referred to in this Section as “Additional
                  Securities”),
                  are to be issued by the Corporation for cash, the Corporation shall
                  first
                  offer to each of CSR
                  InvestCo (so long as CSR InvestCo has not undergone a CSR InvestCo
                  Change
                  of Control and owns a number of Shares at least equal to the CSR
                  InvestCo
                  Ownership Threshold) and
                  to XM Holdings (to the extent permitted by applicable Canadian
                  laws and so
                  long as XM Holdings owns a number of Shares at least equal to the
                  XM
                  Ownership Threshold), such portion of the Additional Securities
                  as will
                  enable them to continue to hold the same percentage (on a fully
                  diluted
                  basis) of Shares (treating all Shares as a single class of Class
                  A Shares
                  on an as-converted basis, including counting each Class C Share
                  as one
                  Class A Share) following the issuance of the Additional Securities
                  as held
                  by CSR InvestCo and XM Holdings prior to the issuance of the Additional
                  Securities, by written notice (the “Pre-Emptive
                  Rights Notice”)
                  given to it of the Corporation’s intention to issue Additional Securities
                  and the number and purchase price of such Additional Securities
                  to be so
                  issued; provided, however, that CSR InvestCo, to the extent it
                  wishes to
                  purchase Additional Securities consisting of Class A Shares or
                  rights to
                  purchase Class A Shares, shall be permitted to purchase a combination
                  of
                  Class A Shares and Class B Shares (or rights to purchase the same)
                  that
                  most nearly approximates the voting percentage then held by CSR
                  InvestCo
                  (the “Voting
                  Equivalent Shares”).
                  Each of CSR
                  InvestCo and
                  XM Holdings shall have 10 Business Days from the date the Pre-Emptive
                  Rights Notice is given to give a notice to the Corporation of its
                  intention to purchase all or any of the Additional Securities to
                  which it
                  is entitled and shall indicate in such notice the maximum number
                  of
                  Additional Securities that it is willing to purchase. The transaction
                  of
                  purchase and sale by the Corporation of Additional Securities shall
                  be
                  completed on the date specified by the Board, provided that such
                  date
                  shall not be more than 45
                  days after the date of the Pre-Emptive Rights Notice.
                  

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	(b)  	
                The
                  Corporation may issue Additional Securities without complying with
                  the
                  provisions of subsection (a)
                  of
                  this Section 5.3: 

              

      

       

      
        	(i)  	
                if
                  such Additional Securities are Permitted Additional Securities;
                  or

              

      

       

      
        	(ii)  	
                if
                  the application of Section 5.3(a)
                  is
                  waived in writing by CSR InvestCo and XM Holdings.
                  

              

      

       

      
        	(c)  	
                Subject
                  to Section 5.3(b)(i) and despite Section 5.3(a), if applicable
                  Canadian
                  laws change so as to permit XM Holdings to hold greater than 33-1/3%
                  of
                  the Shares (treating all Shares as a single class of Class A Shares
                  on an
                  as-converted basis, including counting each Class C Share as one
                  Class A
                  Share), then after such date if any Additional Securities which
                  XM
                  Holdings would be permitted to purchase under applicable Canadian
                  laws
                  (collectively referred to in this Section as “Law
                  Change Additional Securities”)
                  are to be issued, the Corporation shall, subject to applicable
                  regulatory
                  requirements, first offer 50% of such Law Change Additional Securities
                  to
                  XM Holdings and the other 50% to CSR InvestCo by written notice
                  given to
                  it of the Corporation’s intention to issue Law Change Additional
                  Securities and the number and purchase price of such Law Change
                  Additional
                  Securities to be so issued, provided, however, that CSR InvestCo,
                  to the
                  extent it wishes to purchase Law Change Additional Securities consisting
                  of Class A Shares or rights to purchase Class A Shares, shall be
                  permitted
                  to purchase the Voting Equivalent Shares. XM Holdings and CSR InvestCo
                  shall have 10 Business Days from the date such notice is given
                  to give a
                  notice to the Corporation of its intention to purchase all or any
                  of the
                  Law Change Additional Securities offered to it pursuant to this
                  Section to
                  which it is entitled and shall indicate in such notice the maximum
                  number
                  of Law Change Additional Securities offered to it pursuant to this
                  Section
                  that it is willing to purchase. 

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5.4  Permitted
        Transfers

       

      
        	(a)  	
                CSR
                  InvestCo may,
                  after giving notice to the Corporation, Transfer all or any part
                  of the
                  Shares owned by CSR
                  InvestCo: 

              

      

       

      
        	(i)  	
                to
                  a Bitove Affiliate who agrees to be bound by and become a party
                  to this
                  Agreement in accordance with Section 5.1; or

              

      

       

      
        	(ii)  	
                into
                  the public market through a broker or underwriter in compliance
                  with
                  applicable securities laws
                  (provided, that if only one class of Shares is publicly traded,
                  any Shares
                  not of the publicly traded class shall first be converted to the
                  publicly
                  traded class of Shares prior to being transferred).
                  

              

      

       

      provided,
        in the
        case of (i) above, the transferee agrees to be bound by, and become a party
        to,
        this Agreement in accordance with Section 5.1.
        

       

      
        	(b)  	
                XM
                  Holdings may, after giving notice to the Corporation, Transfer
                  all or any
                  part of the Shares of the Corporation owned by
                  it:

              

      

       

      
        	(i)  	
                to
                  any affiliate of XM Holdings that agrees to be bound by and become
                  a party
                  to this Agreement in accordance with Section 5.1;
                  or

              

      

       

      
        	(ii)  	
                into
                  the public market through a broker or underwriter in compliance
                  with
                  applicable securities laws.

              

      

       

      
        	(c)  	
                Section
                  5.5 of this Agreement shall not apply to any transfer permitted
                  under
                  Section 5.4(a)(i)
                  or Section 5.4 (b)(i), and Section 5.6 of this Agreement shall
                  not apply
                  to any transfer permitted under paragraphs (a)
                  or
                  (b). For greater certainty, Section 5.5 of this Agreement shall
                  apply to
                  any transfer permitted under Section 5.4(a)(ii) or Section
                  5.4(b)(ii).

              

      

       

      5.5  Right
        of First Refusal

       

      
        	(a)  	
                To
                  the extent permitted by applicable Canadian laws, if any Shareholder
                  (a
                  “Selling
                  Shareholder”)
                  receives from a third party (the “Third
                  Party”),
                  acting as principal and dealing at arm’s length with the Selling
                  Shareholder, a bona fide written offer (the “Third
                  Party Offer”)
                  to purchase for cash all or any of the Shares of the Corporation
                  then
                  owned by the Selling Shareholder, which Third Party Offer the Selling
                  Shareholder wishes to accept (subject
                  to compliance with the provisions of this Section 5.5), or if the
                  Selling
                  Shareholder wishes to sell into the public market all or any of
                  the Shares
                  of the Corporation then owned by the Selling Shareholder, then
                  such
                  Selling Shareholder shall deliver a notice in writing (the “Notice
                  of Sale”)
                  to the other Shareholders (“Other
                  Shareholders”)
                  offering to sell to the Other Shareholders the Shares proposed
                  to be sold
                  by the Selling Shareholder (the “Offered
                  Shares”)
                  at the same price and in all other respects on the same terms and
                  conditions as provided in the Third Party Offer (except that the
                  Notice of
                  Sale shall be deemed to contain the provisions of Section 6.1)
                  or proposed sale into the public market. The offer contained in
                  the Notice
                  of Sale shall be irrevocable except with the consent of the Other
                  Shareholders and shall be open for acceptance for a period of 10
                  Business
                  Days after the date upon which the Notice of Sale was delivered
                  to the
                  Other Shareholders (the “Acceptance
                  Period”).

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	(b)  	
                Upon
                  the Notice of Sale being given, the Other Shareholders have the
                  right to
                  purchase all, or less than all, of the Offered Shares in proportion
                  to the
                  numbers of Shares (treating all Shares as a single class of Class
                  A Shares
                  on an as-converted basis, including counting each Class C Share
                  as one
                  Class A Share) then held by the Other Shareholders or such other
                  proportions that they may agree upon. Such right to purchase such
                  Offered
                  Shares shall be subject to the Restrictions and shall not apply
                  to the
                  extent such right would conflict with the requirements of the
                  Restrictions; provided, however, that if XM Holdings is prevented
                  from
                  purchasing Offered Shares by the Restrictions or could not purchase
                  such
                  Offered Shares without triggering a requirement under the Takeover
                  Restrictions to offer to purchase all Class A Shares, XM Holdings
                  shall
                  have the right to assign its right to purchase Offered Shares to
                  a Person
                  that would be able to purchase such Offered Shares without such
                  a conflict
                  or requirement, subject to the consent of CSR InvestCo (so
                  long as CSR InvestCo has not undergone a CSR InvestCo Change of
                  Control)
                  not to be unreasonably withheld; and provided, further, that if
                  CSR
                  InvestCo could not purchase such Offered Shares without triggering
                  a
                  requirement under the Takeover Restrictions to offer to purchase
                  all Class
                  A Shares, CSR InvestCo shall have the right to assign its right
                  to
                  purchase Offered Shares to a Person that would be able to purchase
                  such
                  Offered Shares without such a requirement, subject to the consent
                  of XM
                  Holdings not to be unreasonably
                  withheld.

              

      

       

      
        	(c)  	
                Within
                  the Acceptance Period, but subject to paragraph (b), each of the
                  Other
                  Shareholders may give to the Selling Shareholder a notice in writing
                  (an
                  “Acceptance
                  Notice”)
                  accepting in full or in part the offer contained in the Notice
                  of
                  Sale.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	(d)  	
                If
                  any of the Other Shareholders gives an Acceptance Notice within
                  the
                  Acceptance Period confirming its agreement to purchase all or less
                  than
                  all of the Offered Shares, the sale of the Offered Shares to such
                  Other
                  Shareholder shall be completed within 20 Business Days of the expiry
                  of
                  the Acceptance Period. An Other Shareholder that gives an Acceptance
                  Notice may not exercise its rights pursuant to Section 5.6 hereof.
                  If the
                  Selling Shareholder does not receive
                  an
                  Acceptance Notice from
                  the Other Shareholders within the Acceptance Period confirming
                  their
                  agreement to purchase all of the Offered Shares, the right of the
                  Other
                  Shareholders to purchase the Offered Shares not the subject of
                  an
                  Acceptance Notice shall cease and the Selling Shareholder may,
                  within 30
                  Business Days after the Acceptance Period, sell the Offered Shares
                  to the
                  Third Party at the price and upon the terms and conditions specified
                  in
                  the Third Party Offer or into the public market (for greater certainty,
                  if
                  the Third Party Offer or Notice of Sale sets forth a price or terms
                  determined by reference to the market price, the sale of the Offered
                  Shares may be at a similarly determined price or terms even though
                  the
                  market price may have changed prior to the sale), as
                  applicable.

              

      

       

      5.6  Co-Sale
        Rights

       

      
        	(a)  	
                Subject
                  to Section 5.5(d)
                  and the condition in Section 5.6(c),
                  if any Shareholder (a “Co-Sale
                  Shareholder”)
                  receives a Third Party Offer that it wishes to accept, then, prior
                  to the
                  acceptance of the Third Party Offer, the Co-Sale Shareholder shall
                  notify
                  the other Shareholders of such proposed sale and the terms of such
                  proposed sale and the Co-Sale Shareholder shall, if required by
                  the other
                  Shareholders, obtain from the Third Party within five (5) days
                  of the
                  receipt of such notice a bona fide offer addressed to the other
                  Shareholders, on terms and conditions at least as favourable as
                  those
                  contained in the Third Party Offer, to purchase from the other
                  Shareholders (the “Co-Sale
                  Offer”):
                  (i) that number of Shares (treating all Shares as a single class
                  of Class
                  A Shares on an as-converted basis, including counting each Class
                  C Share
                  as one Class A Share) that is the same proportion of the total
                  number of
                  Shares held by the other Shareholders as the number of Shares proposed
                  to
                  be sold by the Co-Sale Shareholder pursuant to the Third Party
                  Offer bears
                  to the total number of Shares then held by the Co-Sale Shareholder,
                  or
                  (ii) if the Third Party Offer relates to a limited number of Shares
                  only,
                  such limited number of Shares (treating all Shares as a single
                  class of
                  Class A Shares on an as-converted basis, including counting each
                  Class C
                  Share as one Class A Share) multiplied by the quotient of X/Y,
                  where X is
                  equal to the total number of Shares then held by the other Shareholders
                  and Y is equal to sum of all Shares held by the
                  Shareholders.

              

      

       

      
        	(b)  	
                The
                  Co-Sale Shareholder as applicable shall deliver the Co-Sale Offer
                  to the
                  other Shareholders, together with a copy of the Third Party Offer.
                  The
                  Co-Sale Offer shall be irrevocable and shall be open for acceptance
                  by the
                  other Shareholders for five (5) days after the delivery thereof
                  to the
                  other Shareholders. 

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	(c)  	
                The
                  Co-Sale Shareholder and the other Shareholders wishing to make
                  transfers
                  under this Section 5.6 shall be permitted to make a transfer to
                  which this
                  Section 5.6
                  shall apply only if the purchaser of Shares is a credit worthy
                  Canadian
                  and qualified corporation in good standing that is not a competitor
                  to XM
                  Holdings and is reasonably acceptable to each of the
                  Shareholders.

              

      

       

      5.7  Minimum
        Ownership Thresholds

       

      The
        provisions of Section 5.3 through 5.6 shall cease to apply to (i) CSR InvestCo
        when it holds a number of Shares less than the CSR InvestCo Ownership Threshold
        or there has been a CSR InvestCo Change of Control, (ii) XM Holdings when
        it
        holds a number of Shares less than the XM Ownership Threshold, and (iii)
        any
        other Shareholder when such Shareholder no longer holds at least 5% of the
        outstanding Shares (treating all Shares as a single class of Class A Shares
        on
        an as-converted basis, including counting each Class C Share as one Class
        A
        Share).

       

      5.8  Lock-up

       

      If
        requested in writing by the underwriters or agents for an Initial Public
        Offering of the Corporation, each Shareholder shall agree not to Transfer
        any of
        its securities of the Corporation without the consent of such underwriters
        or
        agents, for a period not to exceed 180 days following the effective date
        of such
        Initial Public Offering;
        provided,
        however,
        that
        the Corporation shall have used its best efforts to obtain agreements from
        all
        persons holding in excess of 1% of the capital stock of the Corporation on
        a
        fully diluted, as-converted basis (counting
        each Class C Share as one Class A Share)
        and all
        executive officers and directors of the Corporation not to sell publicly
        their
        shares of the Corporation under the circumstances and pursuant to the terms
        set
        forth in this Section.
        

       

      5.9  Regulatory
        Approvals

       

      Notwithstanding
        any time period otherwise specified in Section 5.3, Section 5.5, or Section
        5.6
        in respect of the closing date for the purchase and sale of Shares, such
        closing
        date shall be automatically extended for such period of time as shall be
        necessary to receive the necessary approval of the purchase and sale of Shares
        as contemplated by the applicable Section of the Agreement by the CRTC and
        by
        any other regulatory authority having jurisdiction. If such approvals are
        not
        obtained within 180 days of submission of an application, the Corporation
        or any
        Shareholder who is purchasing or selling shares may elect not to close. Each
        of
        the Shareholders who is purchasing or selling shares and the Corporation
        agrees
        to use commercially reasonable efforts to obtain all such CRTC and other
        regulatory approvals and to co-operate in the provision of information to
        obtain
        such approvals.

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ARTICLE 6  

       

      ARRANGEMENTS
        REGARDING DISPOSITIONS

       

      6.1  Closing

       

      The
        following provisions apply to any Transfer of Shares pursuant to this Agreement:
        

       

      
        	(a)  	
                The
                  Transfer shall be completed at the Corporation’s registered office on the
                  date specified for closing. At such time, the transferor(s) shall
                  Transfer
                  to the transferee(s) good title to the Shares being transferred
                  free and
                  clear of all liens, charges and encumbrances and deliver to the
                  transferee(s) certificates and other documents of title evidencing
                  ownership of the Shares being transferred, duly endorsed in blank
                  for
                  transfer by the holders of record. In addition, if the transferor
                  is
                  disposing of all or substantially all of its Shares, the transferor(s)
                  shall deliver to the Corporation all records, accounts and other
                  documents
                  in its possession belonging to the Corporation and the resignations
                  and
                  releases of its nominees on the Board, all such resignations to
                  be
                  effective no later than the time of delivery. The transferee(s)
                  shall
                  deliver to the transferor(s) full payment of the purchase price
                  (subject
                  to any escrow or holdback requirement) payable for the Shares being
                  transferred.

              

      

       

      
        	(b)  	
                If,
                  at the time of closing, a transferor fails to complete the subject
                  transaction of purchase and sale, the transferee shall have the
                  right, if
                  not in default under this Agreement, without prejudice to any other
                  rights
                  that it may have, upon payment of that part of the purchase price
                  payable
                  to the transferor at the time of closing to the credit of the transferor
                  in the main branch of the Corporation’s bank, to execute and deliver, on
                  behalf of and in the name of the transferor, such deeds, transfers,
                  share
                  certificates, resignations or other documents that may be necessary
                  to
                  complete the subject transaction and the transferor hereby irrevocably
                  appoints the transferee its attorney in that behalf. Such appointment
                  and
                  power of attorney, being coupled with an interest, shall not be
                  revoked by
                  the insolvency or bankruptcy of the transferor and the transferor
                  hereby
                  ratifies and confirms and agrees to ratify and confirm all that
                  the
                  transferee may lawfully do or cause to be done by virtue of such
                  appointment and power.

              

      

       

      6.2  Repayment
        of Debt

       

      
        	(a)  	
                In
                  the event that at the time of the sale of any Shares under any
                  provision
                  of this Agreement, the vendor thereof is indebted to the Corporation
                  or
                  any affiliate thereof, the vendor shall assign and set over to
                  the
                  Corporation or such affiliate and shall direct the purchaser to
                  pay to the
                  Corporation or such affiliate, if requested by the Corporation
                  to do so,
                  the purchase price of such Shares to the extent required to discharge
                  the
                  vendor’s indebtedness to the Corporation or such
                  affiliate.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	(b)  	
                In
                  the event that at the time of the sale of any Shares under any
                  provision
                  of this Agreement, the Corporation or any affiliate thereof is
                  indebted to
                  the vendor, the Corporation or such affiliate shall pay all such
                  indebtedness to the vendor (unless it otherwise agrees in writing
                  and
                  other than any indebtedness under a credit facility to be provided
                  to the
                  Corporation or CSR by XM Holdings) at the time of closing herein
                  provided
                  for.

              

      

       

       

      ARTICLE 7  

       

      INSPECTION
        RIGHTS AND REPORTING

       

      7.1  Inspection

       

      Subject
        to the requirements of applicable Canadian securities laws, the Corporation
        and
        CSR shall permit the Shareholders and any agents or representatives thereof
        to
        visit and inspect the properties of each of the Corporation and CSR, to examine
        and make abstracts from any of each of the Corporation’s and CSR’s books and
        records (including agreements, licences, and similar documents) at any
        reasonable time and as often as the Shareholders or such agents or
        representatives may reasonably request, and to discuss the business, operations,
        prospects, assets, properties, and condition (financial or otherwise) of
        the
        Corporation and CSR with any of the officers, directors, employees, agents,
        or
        representatives of the Corporation or CSR.

       

      7.2  Books
        and Records

       

      Each
        of
        the Corporation and CSR shall keep and maintain adequate and proper books
        and
        records of account, in which complete entries are made in accordance with
        generally accepted accounting principles consistently applied and in accordance
        with all applicable laws, rules, and regulations, reflecting all financial
        and
        other transactions of the Corporation and CSR normally or customarily included
        in books and records of account of companies engaged in the same or similar
        businesses and activities as the Corporation or CSR. All financial statements
        that the Corporation and CSR shall prepare and deliver pursuant to this
        Agreement (i) shall be true, correct, and complete in all material
        respects, (ii) shall be in accordance with the books and records of CSR in
        all material respects, (iii) subject, in the case of quarterly financial
        statements, to year-end adjustments, which shall not, in the aggregate, be
        material, shall present fairly the financial position of the Corporation
        and CSR
        as of the respective dates and the results of operations and changes in
        financial positions of the Corporation and CSR for the respective periods
        indicated, and (iv) shall have been prepared in accordance with generally
        accepted accounting principles applied on a consistent basis.

       

      7.3  Inspection
        Rights

       

      
        	(a)  	
                The
                  Corporation and CSR shall furnish to the Shareholders: as soon
                  as
                  available and in any event within ninety (90) days after the end
                  of each
                  fiscal year of the Corporation and CSR, a copy of the audited balance
                  sheet of each of the Corporation and CSR as of the end of such
                  fiscal year
                  and the related audited statements of income, stockholders' equity,
                  and
                  changes in financial condition for such fiscal year, all prepared
                  in
                  reasonable detail and in accordance with the requirements of
                  Section 7.2 hereof, and certified by independent certified public
                  accountants of recognized international standing as presenting
                  fairly the
                  financial position of each of the Corporation and CSR and approved
                  by the
                  Board of Directors of the Corporation and CSR; and as soon as available
                  and in any event within forty-five (45) days after the end of each
                  fiscal
                  quarter of CSR (other than the last quarter of each fiscal year),
                  a copy
                  of the unaudited balance sheet of each of the Corporation and CSR
                  as of
                  the end of such quarter and the related unaudited statements of
                  income,
                  stockholders' equity, and changes in financial condition of each
                  of the
                  Corporation and CSR for the periods commencing at the end of the
                  previous
                  quarter and ending at the end of such quarter and commencing at
                  the
                  beginning of the fiscal year and ending at the end of such quarter,
                  in
                  each case including footnotes and setting forth in comparative
                  form the
                  corresponding figures for the corresponding period of the preceding
                  fiscal
                  year and the figures for such period set forth in the operating
                  plan and
                  budget delivered by the Corporation and CSR pursuant to paragraph
                  (b)(iv),
                  all prepared in reasonable detail and duly certified by the chief
                  financial officer of each of the Corporation and CSR as having
                  been
                  prepared in accordance with the requirements of Section 7.2
                  hereof.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	(b)  	
                The
                  Corporation and CSR shall furnish to the Shareholders, subject
                  to the
                  requirements of applicable Canadian securities
                  laws:

              

      

       

      
        	(i)  	
                promptly
                  after the commencement thereof, notice of all actions, suits, and
                  proceedings before or by any court, other governmental authority,
                  or
                  arbitrator affecting the Corporation, CSR or any of their
                  Subsidiaries;

              

      

       

      
        	(ii)  	
                promptly
                  upon the occurrence of a material adverse change in the business,
                  operations, prospects, assets, properties, or condition (financial
                  or
                  otherwise) of the Corporation or CSR, a statement of the chief
                  financial
                  officer of the Corporation and CSR setting forth the details thereof
                  and
                  the action that the Corporation or CSR proposes to take with respect
                  thereto;

              

      

       

      
        	(iii)  	
                promptly
                  after the sending or filing thereof, copies of all financial statements
                  and reports that the Corporation or CSR sends to its stockholders
                  and
                  copies of all regular, periodic, and special reports which the
                  Corporation
                  or CSR files with any governmental
                  authority;

              

      

       

      
        	(iv)  	
                as
                  soon as available and in any event no later than forty-five (45)
                  days
                  prior to the first day of each fiscal year of the Corporation and
                  CSR, an
                  annual operating plan and budget (including cash flow data) for
                  the
                  Corporation and CSR for such fiscal year, each prepared in reasonable
                  detail, as each such operating plan and budget has been approved
                  by the
                  Board of Directors of the Corporation and
                  CSR;

              

      

       

      
        	(v)  	
                as
                  soon as available and in any event no later the sixtieth (60th) day
                  of each fiscal year, an updated five-year business plan for the
                  Corporation and CSR, each prepared in reasonable detail, as each
                  such
                  updated business plan has been approved by the Board of Directors
                  of the
                  Corporation and CSR; and

              

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	(vi)  	
                promptly
                  upon receipt of a reasonable good faith request from the Shareholders
                  therefor, such other information respecting the business, operations,
                  prospects, assets, properties or condition (financial or otherwise)
                  of CSR
                  as the Shareholders from time to time reasonably may
                  request.

              

      

       

       

      ARTICLE 8

       

      GENERAL

       

      8.1  Application
        of this Agreement

       

      The
        terms
        of this Agreement shall apply mutatis
        mutandis
        to any
        Shares that may hereafter be issued by the Corporation to the Shareholders
        and
        to any shares or other securities:

       

      
        	(a)  	
                resulting
                  from the conversion, reclassification, redesignation, subdivision,
                  consolidation of other change to the Shares held by the Shareholders;
                  or

              

      

       

      
        	(b)  	
                of
                  the Corporation or any successor body corporate that may be received
                  by
                  the Shareholders on a merger, amalgamation, arrangement or other
                  reorganization of or including the
                  Corporation;

              

      

       

      and
        prior
        to any action referred to in (a) or (b) above being taken the Parties shall
        give
        due consideration to any changes that may be required to this Agreement in
        order
        to give effect to the intent of this Section 8.1.

       

      8.2  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.

              

      

       

      8.3  Undertaking

       

      The
        Parties undertake to sign and complete all such deeds, documents, resolutions,
        minutes and other instruments and to do all such acts as are necessary to
        give
        full effect to the terms, conditions and restrictions contemplated by this
        Agreement and to make them binding on the Parties as well as on third parties
        who are not privy to the terms hereof.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      8.4  Notices

       

      Any
        notice, consent or approval required or permitted to be given in connection
        with
        this Agreement (in this Section referred to as a “Notice”) must be in writing
        and is sufficiently given if delivered (whether in person, by courier service
        or
        other personal method of delivery), or if transmitted by fax:

       

      
        	(a)  	
                in
                  the case of a Notice to the Corporation
                  at:

              

      

       

      Suite
        2300, P.O. Box 222

      Canada
        Trust Tower, BCE Place

      161
        Bay
        Street

      Toronto,
        Ontario M5J 2S1

      Attention:
        Legal Department

      Fax:
        (416) 361-6018

       

      
        	(b)  	
                in
                  the case of a Notice to CSR InvestCo
                  at:

              

      

       

      Suite
        2300, P.O. Box 222

      Canada
        Trust Tower, BCE Place

      161
        Bay
        Street

      Toronto,
        Ontario M5J 2S1

      Attention:
        

      Fax:
        (416) 361-6018

       

      
        	(c)  	
                in
                  the case of a Notice to XM Holdings
                  at:

              

      

       

      1500
        Eckington Place, N.E.

      Washington,
        D.C. 20002

      Attention: Joseph
        Titlebaum

                                  Executive
        Vice
        President, General Counsel

                                  Joseph
        Verbrugge

                                  Vice
        President,
        International Operations

      Fax:
        (202) 380-4500

      

      
        	(d)  	
                in
                  the case of any other Shareholder, at the address contained in
                  the records
                  of the Corporation with respect to such
                  Shareholder.

              

      

       

      Any
        Notice made or given by personal delivery shall be conclusively deemed to
        have
        been given on the day of actual delivery thereof and, if made or given by
        courier, on the second Business Day following the deposit thereof with the
        courier and, if made or given by fax, on the day of transmittal thereof
        (provided the original copy is immediately forwarded by courier). 

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      8.5  Amendment

       

      No
        amendment, supplement or modification of this Agreement and, unless otherwise
        specified, no waiver, consent or approval by any Party, is binding unless
        approved by the Corporation’s Board, and approved in writing by CSR InvestCo and
        XM Holdings, and any amendment, supplement, modification, waiver, consent
        or
        approval so approved shall be binding upon each of the Parties.

       

      8.6  Execution
        and Delivery

       

      This
        Agreement may be executed by the Parties in counterparts and may be executed
        and
        delivered by fax, and all such counterparts and facsimiles together constitute
        one agreement. 

       

      8.7  Benefit
        of the Agreement

       

      This
        Agreement enures to the benefit of and is binding upon the respective heirs,
        executors, administrators, successors and permitted assigns of the
        Parties.

       

      8.8  Assignment

       

      Except
        as
        expressly provided in this Agreement, none of the Parties to this Agreement
        may
        assign its rights, benefits, remedies and obligations under this Agreement
        without the prior written consent of the Corporation, CSR and CSR InvestCo
        (so
        long as CSR InvestCo has not undergone a CSR InvestCo Change of Control)
        and XM
        Holdings other than in a transfer permitted under Section 5.4(a)(i) or (ii)
        or
        Section 5.4 (b)(i) and upon the transferee entering into an agreement reasonably
        acceptable to the Parties to be bound by this Agreement.
        The
        rights granted under Article 4 are personal to XM Holdings and to CSR InvestCo
        and shall not be assignable or otherwise transferable other
        than in a transfer permitted under Section 5.4(a)(i) or (ii) or Section 5.4
        (b)(i) and upon the transferee entering into an agreement reasonably acceptable
        to the Parties to be bound by this Agreement. 

       

      8.9  Termination

       

      This
        Agreement terminates upon the first to occur of:

       

      
        	(a)  	
                the
                  date the Agreement is replaced by a new agreement between the
                  Parties;

              

      

       

      
        	(b)  	
                the
                  date this Agreement is terminated by the written approval of all
                  Shareholders; 

              

      

       

      
        	(c)  	
                the
                  date that the Corporation is wound-up, liquidated or dissolved,
                  whether
                  voluntarily or involuntarily; and 

              

      

       

      
        	(d)  	
                that
                  date that one Person becomes the beneficial owner of all of the
                  Shares;
                  

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      except
        that the provisions of Section 5.8 continue upon a termination of this
        Agreement.

       

      [The
        remainder of this page is intentionally left blank.]

       

      
        
           

           

           

           

          
          

        

        
          
          

          
            

          

        

        
          
          

           

           

        

      

      Counterpart
        Signature Page To Shareholder Agreement

       

      IN
        WITNESS OF WHICH the Parties have duly executed this Agreement.

       

      
        	 	 	 
	 	
                CANADIAN
                  SATELLITE RADIO HOLDINGS INC.

              
	 
 	 
 	 
 
	Date: 	By:  	/s/ John
                I.
                Bitove
	 	
                

                Name: John
                  I. Bitove

              
	 	
                Title: Chairman
                  and CEO

              

      

       

       

      
        	 	 	 
	 	
                CANADIAN
                  SATELLITE RADIO INVESTMENTS INC.

              
	 
 	 
 	 
 
	Date: 	By:  	/s/
                John
                I. Bitove 
	 	
                

                Name: John
                  I. Bitove

              
	 	
                Title: President

              

      

       

      
        	 	 	 
	 	
                XM
                  SATELLITE RADIO HOLDINGS INC.

              
	 
 	 
 	 
 
	Date: 	By:  	/s/ Gary
                M.
                Parsons
	 	
                

                Name: Gary
                  M. Parsons

              
	 	
                Title: Chairman

              

      

       

      
        	 	 	 
	 	
                CANADIAN
                  SATELLITE RADIO INC.

              
	 
 	 
 	 
 
	Date: 	By:  	/s/
                John
                I. Bitove 
	 	
                

                Name: John
                  I. Bitove

              
	 	
                Title: Chairman
                  and CEO

              

      

      
        
           

           

           

           

          
          

        

        
          
          

          
            

          

        

        
          
          

           

           

        

      

      SCHEDULE
        “A”

       

      FORM
        OF JOINDER

       

      
        	
                To:
                  

              	
                The
                  parties to the Shareholders Agreement (the “Agreement”)
                  made as of the [
                  ] day
                  of  [
                  ],
                  2005 between Canadian Satellite Radio Holdings Inc. (the “Corporation”),
                  Canadian Satellite Radio Inc. and certain shareholders of the Corporation
                  specified therein.

              

      

       

      The
        undersigned,     ,
        having
        purchased certain shares of the Corporation [previously held by    ],
        in
        consideration of the approval by the Board of Directors of the Corporation
        of
        the transfer [or issuance] of such shares to the undersigned and other good
        and
        valuable consideration (receipt of which is hereby acknowledged), hereby
        agrees
        to be an Additional Party to and bound by all of the provisions of the
        Shareholders Agreement as if the undersigned were an original party
        thereto.

       

      DATED
        at
        ____________________ ,
        this
        __________ 
        day of
        __________ 
        ,
        200 .

       

      

       

      SIGNED,
        SEALED AND
        DELIVERED                      )

      in
        the
        presence
        of                                                      
 )

      ) 
        _______________________________________      

      )

       

      _________________________________

       

       

      OR

       

                                  l

                           
        
         

      

      Per: ______________________________c/

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