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                                                                    EXHIBIT 4.41

THE WARRANT REPRESENTED BY THIS CERTIFICATE AND ANY SECURITIES ACQUIRED UPON THE
EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND
NEITHER THIS WARRANT NOR SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE
OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT (A) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR (B) UPON
RECEIPT BY THE ISSUER OF AN OPINION OF COUNSEL, WHICH OPINION SHALL BE
REASONABLY SATISFACTORY TO ISSUER THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION
UNDER SUCH ACT AND SUCH LAWS.

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                        XM SATELLITE RADIO HOLDINGS INC.

                          COMMON STOCK PURCHASE WARRANT
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                This certifies that, for good and valuable consideration, XM
Satellite Radio Holdings Inc., a Delaware corporation (the "Company"), grants to
Boeing Satellite Systems International, Inc., a Delaware corporation with its
principal offices located at 2260 E. Imperial Highway, El Segundo, California
90245 ("BSSI" or "Warrantholder"), the right to subscribe for and purchase from
the Company shares of the Company's Class A common stock, par value $0.01 per
share (the "Common Stock"), subject to the terms, conditions and adjustments
herein set forth.

                Certain capitalized terms used herein and not otherwise defined
shall have the meanings ascribed to them in Section 11.

        Certificate No.__

        Name of Initial Warrantholder: Boeing Satellite Systems International,
Inc.

        Number of Shares: 500,000

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1.      Number of Warrant Shares; Exercise Price.

        Subject to terms, conditions and adjustments as set forth in Section 7.1
and elsewhere herein, the Warrantholder shall have the right, in respect of this
Warrant, to purchase 500,000 shares of Common Stock (the "Warrant Shares") at a
purchase price per share of $13.76 (the "Exercise Price"), which Exercise Price
equals the average closing price on the NASDAQ National Market of the Common
Stock, for the five (5) Business Days prior to XM-4 EDC.

2.      Duration and Exercise Of Warrant; Limitations on Exercise; Payment of
Taxes; Net Exercise.

                2.1     Exercisability of Warrant. The right to exercise this
                        Warrant shall vest and the Warrant shall be fully
                        exercisable by Warrantholder on January 31, 2005 (the
                        "Effective Date"), provided that Contractor shall (i)
                        have fulfilled its payment deferral obligations as set
                        forth in Article 5.9 of the Satellite Contract and (ii)
                        be in compliance with all material obligations
                        applicable to Contractor under the Satellite Contract
                        through January 31, 2005.

                2.2     Duration and Exercise of Warrant. Subject to the terms
                        and conditions set forth herein, the Warrant may be
                        exercised, in whole or in part, in respect of any
                        Warrant Shares at any time on or after the Effective
                        Date and prior to the Expiration Date by the
                        Warrantholder by:

                        (a)     the surrender of this Warrant to the Company,
                                with a duly executed Exercise Form specifying
                                the number of Warrant Shares to be purchased,
                                during normal business hours on any Business Day
                                prior to the Expiration Date; and

                        (b)     the delivery of payment to the Company, for the
                                account of the Company of the Exercise Price for
                                the number of Warrant Shares specified in the
                                Exercise Form, payable (i) in lawful money of
                                the United States of America in cash, by
                                certified or bank cashier's check or by wire
                                transfer of immediately available funds in
                                accordance with wire instructions that shall be
                                provided by the Company upon request or (ii) in
                                shares of common stock of the Company or by the
                                surrender of warrants or other securities of the
                                Company having a net value, at the time of the
                                surrender, equal to the Exercise Price.

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                                The Company agrees that such Warrant Shares
                                shall be deemed to be issued to the
                                Warrantholder as the record holder of such
                                Warrant Shares as of the close of business on
                                the date on which this Warrant shall have been
                                surrendered and payment made for the Warrant
                                Shares as aforesaid.

                2.3     Limitations on Exercise. Notwithstanding anything to the
                        contrary herein, this Warrant may be exercised only upon
                        (i) if the Warrant Shares to be received upon exercise
                        of this Warrant have not been registered under the
                        Securities Act, delivery to the Company of a written
                        certification in substantially the form of the
                        certification attached hereto as Exhibit B, or, at the
                        Warrantholder's election, the delivery to the Company of
                        an opinion of counsel, which opinion shall be reasonably
                        satisfactory to the Company, that the proposed exercise
                        of this Warrant may be effected without registration
                        under the Securities Act, and (ii) receipt of approval
                        of any applicable Governmental Authority of the proposed
                        exercise, including, but not limited to, any approval
                        required pursuant to the Hart-Scott-Rodino Antitrust
                        Improvements Act of 1976, as amended, or from the FCC
                        (including if such exercise would result in any change
                        of control). The cost of such approvals, certificate, or
                        legal opinion, if required, shall be borne by the
                        Company. In the event that the FCC shall object to the
                        proposed exercise of the Warrant, then the Company, at
                        its expense, shall be solely responsible for taking any
                        and all action required to obtain FCC approval to permit
                        such exercise as promptly as practicable.

                2.4     Warrant Shares Certificate. A stock certificate or
                        certificates for the Warrant Shares specified in the
                        Exercise Form shall be delivered to the Warrantholder
                        within five Business Days after receipt of the Exercise
                        Form and receipt of payment of the purchase price. If
                        this Warrant shall have been exercised only in part, the
                        Company shall, at the time of delivery of the stock
                        certificate or certificates, deliver to the
                        Warrantholder a new warrant evidencing the rights to
                        purchase the remaining Warrant Shares, which new warrant
                        shall in all other respects be identical with this
                        Warrant.

                2.5     Payment of Taxes. The issuance of certificates for
                        Warrant Shares shall be made without charge to the
                        Warrantholder for any documentary, stamp or similar
                        stock transfer or other issuance tax in respect thereto;
                        provided, however, that the Warrantholder shall be
                        required to pay any and all taxes which may be payable
                        in respect of any transfer involved in the issuance and
                        delivery of any certificate in a name other than that of
                        the then Warrantholder as reflected upon the books of
                        the Company.

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3.      Restrictions on Transfer; Divisibility of Warrant; Restrictive Legends.

        3.1     (a) This Warrant may not be transferred by the Warrantholder,
                except with the written consent of the Company; provided, such
                consent shall not be unreasonably withheld; and provided that
                the Warrantholder may transfer to The Boeing Company ("Boeing")
                or any wholly-owned subsidiary of Boeing without the prior
                written consent of the Company; provided further that prior to
                the Effective Date, the benefits of ownership shall remain
                within the Integrated Defense Systems business unit, or its
                successor, of Boeing; and upon the written request of the
                Company, Boeing shall evidence such ownership by written
                statement.

                (b) Subject to the provisions of this Section, upon surrender of
                this Warrant to the Company with a duly executed Assignment Form
                and funds sufficient to pay any transfer tax, the Company shall,
                without charge, execute and deliver a new Warrant or Warrants of
                like tenor in the name of the assignee named in such Assignment
                Form, and this Warrant shall promptly be canceled. Prior to any
                proposed transfer (whether as the result of a partial exercise
                or otherwise) of this Warrant, such Warrantholder shall give
                written notice to the Company of such Warrantholder's intention
                to effect such transfer. Each such notice shall describe the
                manner and circumstances of the proposed transfer in sufficient
                detail, and, if requested by the Company, shall be accompanied
                by a written opinion of legal counsel, which opinion shall be
                addressed to the Company and be reasonably satisfactory in form
                and substance to the Company, to the effect that the proposed
                transfer of this Warrant may be effected without registration
                under the Securities Act. The term "Warrant" as used herein
                shall be deemed to include any Warrants issued in substitution
                or exchange for this Warrant in accordance with the terms and
                conditions herein set forth.

                3.2     Restrictive Legends.

                        (a)     Except as otherwise permitted by this Section,
                                this Warrant shall (and each Warrant issued in
                                substitution for any Warrant pursuant to Section
                                5 shall) be stamped or otherwise imprinted with
                                a legend in substantially the following form:

                                THE WARRANT REPRESENTED BY THIS CERTIFICATE AND
                                ANY SECURITIES ACQUIRED UPON THE EXERCISE OF
                                THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
                                SECURITIES ACT OF 1933, AS AMENDED (THE
                                "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS
                                AND NEITHER THIS WARRANT NOR SUCH SECURITIES NOR
                                ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
                                TRANSFERRED, PLEDGED OR

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                                OTHERWISE DISPOSED OF EXCEPT (A) PURSUANT TO AN
                                EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT
                                OR SUCH LAWS OR (B) UPON RECEIPT BY THE ISSUER
                                OF AN OPINION OF COUNSEL, WHICH OPINION SHALL BE
                                REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH
                                TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE
                                SECURITIES ACT AND SUCH STATE SECURITIES LAWS.

                        (b)     Except as otherwise permitted by this Section,
                                each stock certificate for Warrant Shares issued
                                upon the exercise of any Warrant and each stock
                                certificate issued upon the direct or indirect
                                transfer of any such Warrant Shares shall be
                                stamped or otherwise imprinted with a legend in
                                substantially the following form:

                        THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
                BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
                (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND NEITHER
                THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
                TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT (A)
                PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT
                OR SUCH LAWS OR (B) UPON RECEIPT BY THE ISSUER OF AN OPINION OF
                COUNSEL, WHICH OPINION SHALL BE REASONABLY SATISFACTORY TO THE
                ISSUER THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE
                SECURITIES ACT AND SUCH STATE SECURITIES LAWS.

                        (c)     Notwithstanding paragraphs (a) and (b) of this
                                Section 3.2, the Warrantholder may require the
                                Company to issue to the Warrantholder a Warrant
                                or a stock certificate for Warrant Shares, in
                                each case without a legend, if either (i) the
                                resale of such Warrant or such Warrant Shares,
                                as the case may be, has been registered under
                                the Securities Act or (ii) the Warrantholder has
                                delivered to the Company an opinion of legal
                                counsel, which opinion shall be addressed to the
                                Company and be reasonably satisfactory in form
                                and substance to the Company, to the effect that
                                such registration is not required with respect
                                to the resale of such Warrant or such Warrant
                                Shares, as the case may be.

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4.      Reservation and Registration of Shares, Etc.

The Company covenants and agrees as follows:

                        (a)     all Warrant Shares which are issued upon the
                                exercise of this Warrant will, upon issuance, be
                                validly issued, fully paid, and nonassessable,
                                not subject to any preemptive rights, and free
                                from all taxes and Liens, with respect to the
                                issue thereof; and

                        (b)     the Company will, from time to time, take all
                                such action as may be required to assure that
                                the par value per share of the Warrant Shares is
                                at all times equal to or less than the then
                                effective Exercise Price; and

                        (c)     from and after the Effective Date, the Company
                                will at all times reserve and keep available,
                                free from preemptive rights, out of the
                                aggregate of its authorized but unissued Common
                                Stock or its authorized and issued Common Stock
                                held in its treasury, for the purpose of
                                enabling it to satisfy any obligation to issue
                                Warrant Shares upon exercise of the Warrants,
                                the number of shares of Common Stock which may
                                then be deliverable upon the exercise of all
                                outstanding Warrants.

                        (d)     At any time during the Registration Rights
                                Period, at the request of the Warrantholder, the
                                Company shall prepare and file, as soon as
                                reasonably practicable thereafter, a
                                Registration Statement for an offering to be
                                made on a delayed or a continuous basis pursuant
                                to Rule 415 (or any appropriate similar rule
                                that may be adopted by the Commission) under the
                                Securities Act covering the Warrant Shares (the
                                "Shelf Registration"). The Shelf Registration
                                shall be on a Form S-3 or another appropriate
                                form (unless the Warrantholder reasonably
                                requests a specific form) permitting
                                registration of such Warrant Shares for resale
                                by the Warrantholder in a non-underwritten sale.

                        (e)     The Company shall use reasonable efforts to
                                cause the Shelf Registration to become effective
                                under the Securities Act as soon as reasonably
                                practicable following the date of filing.
                                Subject to the requirements of the Securities
                                Act including, without limitation, requirements
                                relating to updating prospectuses through
                                post-effective amendments or otherwise, the
                                Company shall use reasonable efforts to keep the
                                Shelf Registration continuously effective until
                                the earlier of (i) the date on which all of the
                                Warrant Shares registered thereunder from time
                                to

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                                time are sold or (ii) the date that the
                                Warrantholder's Warrant Shares are eligible for
                                immediate sale to the public under Rule 144
                                under the Securities Act.

                        (f)     [INTENTIONALLY OMITTED]

                        (g)     [INTENTIONALLY OMITTED]

                        (h)     [INTENTIONALLY OMITTED]

                        (i)     The Company or Persons other than the
                                Warrantholder shall pay any and all registration
                                expenses incident to the filing of each
                                Registration Statement or otherwise incident to
                                the performance by the Company of or its
                                compliance with, its obligations under this
                                Section 4. The Warrantholder shall pay all
                                underwriting discounts and commissions and
                                transfer taxes, if any, relating to the sale or
                                disposition of the Warrant Shares included in
                                such Registration Statement and the fees of any
                                counsel retained by the Warrantholder in
                                connection therewith.

                        (j)     In connection with any Shelf Registration and
                                the Registration Statement effecting such
                                registration, the Company hereby covenants and
                                agrees that it shall:

                                (i) take such action as may be necessary so
                                that: (A) such Registration Statement and any
                                amendment thereto and any prospectus forming
                                part thereof and any amendment or supplement
                                thereto (and each report or other document
                                incorporated therein by reference in each case)
                                complies in all material respects with the
                                Securities Act and the Exchange Act and the
                                respective rules and regulations thereunder; (B)
                                such Registration Statement and any amendment
                                thereto does not, when it becomes effective,
                                contain an untrue statement of a material fact
                                or omit to state a material fact required to be
                                stated therein or necessary to make the
                                statements therein not misleading; and (C) any
                                prospectus forming part of such Registration
                                Statement, and any amendment or supplement to
                                such prospectus, does not include an untrue
                                statement of a material fact or omit to state a
                                material fact necessary in order to make the
                                statements therein, in light of the
                                circumstances under which they were made, not
                                misleading;

                                (ii) notify the Warrantholder as promptly as
                                practicable in any of the following
                                circumstances: (A) at any time when a prospectus
                                relating to the Warrant Shares is required to be
                                delivered under the Securities Act, of the
                                happening of any event as a result of which the
                                prospectus included in such Registration
                                Statement contains an untrue statement of a

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                                material fact or omits any fact necessary to
                                make the statements therein not misleading, and,
                                at the request of the Warrantholder, the Company
                                will prepare a supplement or amendment to such
                                prospectus so that, as thereafter delivered to
                                the purchasers of the Warrant Shares, such
                                prospectus will not contain an untrue statement
                                of a material fact or omit to state any fact
                                necessary to make the statements therein not
                                misleading; (B) when such Registration Statement
                                and any amendment thereto has been filed with
                                the Commission and when such Registration
                                Statement or any post-effective amendment
                                thereto has become effective; (C) of any request
                                by the Commission for amendment or supplements
                                to such Registration Statement or the prospectus
                                included therein or for additional information;
                                (D) of the issuance by the Commission of any
                                stop order suspending the effectiveness of such
                                Registration Statement or the initiation of any
                                proceedings for that purpose; and (E) the
                                receipt by the Company of any notification with
                                respect to the suspension of the qualification
                                of the securities included therein for sale
                                (including the Warrant Shares) in any
                                jurisdiction or the initiation of any proceeding
                                for such purpose;

                                (iii) use its best efforts to prevent the
                                issuance, and if issued to obtain the
                                withdrawal, of any order suspending the
                                effectiveness of such Registration Statement at
                                the earliest possible time;

                                (iv) use its best efforts to comply with the
                                requirements of any applicable blue sky laws of
                                such jurisdictions as the Warrantholder
                                reasonably requests and do any and all other
                                acts and things which may be reasonably
                                necessary or advisable to enable the
                                Warrantholder to consummate the disposition in
                                such jurisdictions of the Warrant Shares
                                (provided, however, that the Company will not be
                                required to: (A) qualify generally do business
                                in any jurisdiction where it would not otherwise
                                be required to qualify but for this
                                subparagraph, (B) subject itself to taxation in
                                any such jurisdictions, or (C) consent to
                                general service of process in any such
                                jurisdiction);

                                (v) cause the Warrant Shares included in such
                                Registration Statement to be listed on each
                                securities exchange or quoted in each quotation
                                system on which similar securities issued by the
                                Company are then listed or quoted; and

                                (vi) cooperate with the Warrantholder to
                                facilitate the timely preparation and delivery
                                of certificates representing the Warrant Shares
                                to be sold pursuant to such Registration

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                                Statement free of any restrictive legend and
                                registered in such names as the Warrantholder
                                may request in connection with the sale of the
                                Warrant Shares pursuant to such Registration
                                Statement.

                                The Warrantholder agrees that, upon receipt of
                                any notice from the Company of the happening of
                                any event of the kind described in Section
                                4(j)(ii) hereof, the Warrantholder will
                                immediately discontinue disposition of the
                                Warrant Shares pursuant to a Registration
                                Statement until the Warrantholder's receipt of
                                the copies of the supplemented or amended
                                prospectus contemplated by Section 4(j)(ii),
                                hereof, and, if so directed by the Company, the
                                Warrantholder will deliver to the Company (at
                                the expense of the Company) all copies in its
                                possession, other than permanent file copies
                                then in the Warrantholder's possession, of the
                                prospectus covering the Warrant Shares current
                                at the time of receipt of such notice. If the
                                Company shall give any such notice to suspend
                                the disposition of the Warrant Shares pursuant
                                to a Registration Statement, the Company shall
                                extend the period during which the Registration
                                Statement shall be maintained effective pursuant
                                to this Section 4 by the number of days during
                                the period from and including the date of the
                                giving of such notice to and including the date
                                when the Warrantholder shall have received
                                copies of the supplemented or amended prospectus
                                necessary to resume such dispositions.

                        (k)     [INTENTIONALLY OMITTED]

                        (l)     Notwithstanding anything to the contrary in this
                                Section 4, the Company may, from time to time
                                and at any time, subject to Section 4(m) herein,
                                delay filing or effectiveness of the
                                Registration Statement or direct the
                                Warrantholder to suspend sales of the Warrant
                                Shares registered thereunder, as provided
                                herein, in the event of the consummation of, or
                                negotiations relating to, a material corporate
                                transaction (i) that would require additional
                                disclosure of material information by the
                                Company in such Registration Statement (or such
                                filings), (ii) as to which the Company has a
                                bona fide business purpose for preserving
                                confidentiality and (iii) which renders the
                                Company unable to comply with Commission
                                requirements, in each case under circumstances
                                that would make it impractical or inadvisable to
                                cause such Registration Statement (or such
                                filings) to become effective or to promptly
                                amend or supplement such Registration

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                                Statement on a post-effective basis, as
                                applicable (a "Suspension Event").

                        (m)     In the case of a Suspension Event, the Company
                                may give notice (a "Suspension Notice") to the
                                Warrantholder to suspend sales of the Warrant
                                Shares so that the Company may correct or update
                                such Registration Statement (or such filings).
                                Each such suspension shall continue only for so
                                long as the Suspension Event or its effect is
                                continuing, and in no event will any such
                                suspension exceed ninety (90) days (or 120 days
                                in any calendar year) or all such suspensions
                                pursuant to this Warrant exceed an aggregate of
                                one hundred-eighty (180) days. The Warrantholder
                                agrees that it will not effect any sales of the
                                Warrant Shares pursuant to such Registration
                                Statement (or such filings) at any time after it
                                has received a Suspension Notice from the
                                Company and prior to the termination of such
                                Suspension Event. If so directed by the Company,
                                the Warrantholder will deliver to the Company
                                all copies of the prospectus covering the
                                Warrant Shares held by it at the time of receipt
                                of the Suspension Notice. The Warrantholder may
                                recommence effecting sales of the Warrant Shares
                                pursuant to such Registration Statement (or such
                                filings) following further notice to such effect
                                (an "End of Suspension Notice") from the
                                Company, which End of Suspension Notice shall,
                                in the case of a Suspension Event, be given by
                                the Company not later than five (5) days after
                                the conclusion of any Suspension Event and shall
                                be accompanied by copies of the supplemented or
                                amended prospectus necessary to resume such
                                sales.

                        (n)(i)  The Company shall indemnify, to the extent
                                permitted by law, the Warrantholder, each Person
                                who controls the Warrantholder (within the
                                meaning of Section 15 of the Securities Act or
                                Section 20 of the Exchange Act) and its
                                respective officers, directors, employees,
                                agents and representatives, against all actions,
                                suits, claims, damages, losses, costs, expenses
                                or proceedings (collectively, "Losses") caused
                                by any untrue or alleged untrue statement of
                                material fact contained in any Registration
                                Statement, prospectus or preliminary prospectus
                                or any amendment thereof or supplement thereto
                                or any omission or alleged omission of a
                                material fact required to be stated therein or
                                necessary to make the statements therein, in
                                light of the circumstances under which made, not
                                misleading, except insofar as the same are
                                caused by or contained in any information
                                furnished in writing to the Company by the

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                                Warrantholder expressly for use therein or by
                                the Warrantholder's failure to deliver a copy of
                                the Registration Statement or prospectus or any
                                amendments or supplements thereto after the
                                Company has furnished the Warrantholder with a
                                sufficient number of copies of the same and
                                except insofar as the same are caused by or
                                contained in any prospectus if the Warrantholder
                                failed to send or deliver a copy of any
                                subsequent prospectus or prospectus supplement
                                which would have corrected such untrue or
                                alleged untrue statement of material fact or
                                such omission or alleged omission of a material
                                fact with or prior to the delivery of written
                                confirmation of the sale by the Warrantholder
                                after the Company has furnished the
                                Warrantholder with a sufficient number of copies
                                of the same.

                        (ii)    In connection with any Registration Statement in
                                which the Warrantholder is participating, the
                                Warrantholder will furnish to the Company in
                                writing such information as the Company
                                reasonably requests for use in connection with
                                any such Registration Statement or prospectus
                                and, to the extent permitted by law, will
                                indemnify the Company, each Person who controls
                                the Company (within the meaning of Section 15 of
                                the Securities Act or Section 20 of the Exchange
                                Act) and their respective officers, directors,
                                partners, employees, agents and representatives
                                against any Losses arising out of or based upon
                                any untrue or alleged untrue statement of a
                                material fact contained in any Registration
                                Statement, prospectus, or form of prospectus, or
                                arising out of or based upon any omission or
                                alleged omission of a material fact required to
                                be stated therein or necessary to make the
                                statements therein, in light of the
                                circumstances under which made, not misleading,
                                to the extent, but only to the extent, that such
                                untrue or alleged untrue statement is contained
                                in, or such omission or alleged omission is
                                required to be contained in, any information so
                                furnished in writing by the Warrantholder to the
                                Company expressly for use in such Registration
                                Statement or prospectus and that such statement
                                or omission was relied upon by the Company in
                                preparation of such Registration Statement,
                                prospectus or form of prospectus; provided,
                                however, that the Warrantholder shall not be
                                liable in any such case to the extent that the
                                Warrantholder has furnished in writing to the
                                Company prior to the filing of any such
                                Registration Statement or prospectus or
                                amendment or supplement thereto information
                                expressly for use in such Registration Statement
                                or prospectus or any amendment or supplement
                                thereto which corrected or made not misleading,

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                                information previously furnished to the Company,
                                and the Company failed to include such
                                information therein. In no event shall the
                                liability of the Warrantholder hereunder be
                                greater in amount than the dollar amount of the
                                proceeds (net of payment of all expenses)
                                received by the Warrantholder upon the sale of
                                the Warrant Shares giving rise to such
                                indemnification obligation. Such indemnity shall
                                remain in full force and effect regardless of
                                any investigation made by or on behalf of such
                                indemnified party.

                        (iii)   If any Person shall be entitled to indemnity
                                pursuant to this Section 4(n), such indemnified
                                party shall give prompt written notice to the
                                party or parties from which such indemnity is
                                sought of the commencement of any proceeding
                                with respect to which such indemnified party
                                seeks indemnification or contribution pursuant
                                hereto; provided, however, that the failure to
                                so notify the indemnifying parties shall not
                                relieve the indemnifying parties from any
                                obligation or liability except to the extent
                                that the indemnifying parties have been
                                prejudiced by such failure. The indemnifying
                                parties shall have the right, exercisable by
                                giving written notice to an indemnified party
                                promptly after the receipt of written notice
                                from such indemnified party of such proceeding,
                                to assume, at the indemnifying parties' expense,
                                the defense of any such proceeding, with counsel
                                reasonably satisfactory to such indemnified
                                party; provided, however, that an indemnified
                                party or parties (if more than one such
                                indemnified party is named in any proceeding)
                                shall have the right to employ separate counsel
                                in any such proceeding and to participate in the
                                defense thereof, but the fees and expenses of
                                such counsel shall be at the expense of such
                                indemnified party or parties unless the parties
                                to such proceeding include both the indemnified
                                party or parties and the indemnifying party or
                                parties, and there exists, in the opinion of the
                                indemnified party(ies)' counsel, a conflict
                                between one or more indemnifying parties and one
                                or more indemnified parties, in which case the
                                indemnifying parties shall, in connection with
                                any one such proceeding or separate but
                                substantially similar or related proceedings in
                                the same jurisdiction, arising out of the same
                                general allegations or circumstances, be liable
                                for the fees and expenses of not more than one
                                separate firm of attorneys (together with
                                appropriate local counsel) at any time for such
                                indemnified party or parties. If an indemnifying
                                party assumes the defense of such proceeding,
                                the indemnifying parties will not be subject to
                                any liability for any settlement made by the

                                       12

<PAGE>

                                indemnified party without its or their consent
                                (such consent not to be unreasonably withheld).

                        (iv)    If the indemnification provided for in this
                                Section 4(n) is unavailable to an indemnified
                                party or is insufficient to hold such
                                indemnified party harmless for any Losses in
                                respect of which this Section 4(n) would
                                otherwise apply by its terms, then each
                                applicable indemnifying party, in lieu of
                                indemnifying such indemnified party, shall have
                                an obligation to contribute to the amount paid
                                or payable by such indemnified party as a result
                                of such Losses, in such proportion as is
                                appropriate to reflect the relative fault of the
                                indemnifying party, on the one hand, and such
                                indemnified party, on the other hand, in
                                connection with the actions, statements or
                                omissions that resulted in such Losses as well
                                as any other relevant equitable considerations.
                                The relative fault of such indemnifying party,
                                on the one hand, and indemnified party, on the
                                other hand, shall be determined by reference to,
                                among other things, whether any action in
                                question, including any untrue or alleged untrue
                                statement of a material fact or omission or
                                alleged omission to state a material fact, has
                                been taken by, or relates to information
                                supplied by, such indemnifying party or
                                indemnified party, and the parties' relative
                                intent, knowledge, access to information and
                                opportunity to correct or prevent any such
                                action, statement or omission. The amount paid
                                or payable by a party as a result of any Losses
                                shall be deemed to include any legal or other
                                fees or expenses incurred by such party in
                                connection with any proceeding, to the extent
                                such party would have been indemnified for such
                                expenses under Section 4(n)(iii), if the
                                indemnification provided for in Section 4(n)(i)
                                or Section 4(n)(ii) was available to such party.
                                The Company and the Warrantholder agree that it
                                would not be just and equitable if contribution
                                pursuant to this Section 4(n)(iv) were
                                determined by pro rata allocation or by any
                                other method of allocation that does not take
                                account of the equitable considerations referred
                                to in the second sentence of this paragraph.
                                Notwithstanding the provisions of this Section
                                4(n)(iv), the Warrantholder, as an indemnifying
                                party, shall not be required to contribute any
                                amount in excess of the amount by which the net
                                proceeds received by the Warrantholder exceeds
                                the amount of any damages that the Warrantholder
                                has otherwise been required to pay by reason of
                                such untrue or alleged untrue statement or
                                omission or alleged omission. No person adjudged
                                guilty of fraudulent misrepresentation (within
                                the meaning of Section

                                       13

<PAGE>

                                11(f) of the Securities Act) shall be entitled
                                to contribution from any Person who was not
                                guilty of such fraudulent misrepresentation.

                        (o)     The Company covenants that it will file any
                                reports required to be filed by it under the
                                Securities Act and the Exchange Act and that it
                                will take such further action as the
                                Warrantholder may reasonably request, all to the
                                extent required from time to time to enable the
                                Warrantholder to sell the Warrant Shares without
                                registration under the Securities Act within the
                                limitations of the exemptions provided by (a)
                                Rule 144 or 145 under the Securities Act, as
                                such rule may be amended from time to time, or
                                (b) any similar rule or regulation hereafter
                                adopted by the Commission.

                        (p)     The Warrantholder, in addition to being entitled
                                to exercise all rights provided herein or
                                granted by law, including recovery of liquidated
                                or other damages, will be entitled to specific
                                performance of its rights under this Section 4.
                                The Company agrees that monetary damages would
                                not be adequate compensation for any loss
                                incurred by reason of a breach by it of the
                                provisions of this Section 4 and hereby agrees
                                to waive the defense in any action for specific
                                performance that a remedy at law would be
                                adequate.

                        (q)(i)  If the Warrantholder transfers all of its
                                remaining Warrant Shares, the Warrantholder may
                                also transfer to its transferee all (but not
                                less than all) of the registration rights
                                granted pursuant to Section 4 hereof as an
                                entirety and then held by such Warrantholder;
                                provided, however, that BSSI (or any future
                                direct or indirect transferee of such
                                registration rights as permitted pursuant this
                                Section 4) shall not transfer such registration
                                rights to more than one transferee; and provided
                                further, that no such transfer shall be deemed
                                to obligate the Company to issue notices
                                hereunder to any additional Person, except to
                                the extent the Company shall have received
                                actual notice of such transfer to such Person.
                                At no time shall there be more than one
                                "Warrantholder" for purposes of Section 4
                                hereof.

                        (ii)    Any assignment or transfer of the registration
                                rights set forth herein shall be subject to the
                                assumption by the transferee of the terms and
                                conditions set forth in Section 4 hereof
                                applicable to the transferor, and any proposed
                                transferee shall execute such documents and
                                instruments that the Company may

                                       14

<PAGE>

                                reasonably require to evidence that such
                                transferee is bound by the terms and conditions
                                set forth in Section 4 hereof.

5.      Loss or Destruction of Warrant.

Upon receipt by the Company of evidence reasonably satisfactory to it of the
loss, theft, destruction or mutilation of this Warrant and, in the case of loss,
theft or destruction, of such bond or indemnification as the Company may
reasonably require, and, in the case of such mutilation, upon surrender and
cancellation of this Warrant, the Company will execute and deliver a new Warrant
of like tenor.

6.      Ownership of Warrant.

The Company may deem and treat the Person in whose name this Warrant is
registered as the holder and owner hereof (notwithstanding any notations of
ownership or writing hereon made by anyone other than the Company) for all
purposes and shall not be affected by any notice to the contrary, until
presentation of this Warrant for registration of transfer in accordance with
Section 3.1.

7.      Certain Adjustments

        7.1     The number of Warrant Shares purchasable upon the exercise of
                this Warrant and the Exercise Price shall be subject to
                adjustment as follows:

                (a)     Stock Dividends. If at any time after the date of the
                        issuance of this Warrant (i) the Company shall fix a
                        record date for the issuance of any stock dividend (on
                        the Common Stock) payable in shares of Common Stock; or
                        (ii) the number of shares of Common Stock shall have
                        been increased by a subdivision or split-up of shares of
                        Common Stock, then, on the record date fixed for the
                        determination of holders of Common Stock entitled to
                        receive such dividend or immediately after the effective
                        date of such subdivision or split-up, as the case may
                        be, the number of shares to be delivered upon exercise
                        of this Warrant will be increased so that the
                        Warrantholder will be entitled to receive the number of
                        shares of Common Stock that the Warrantholder would have
                        owned immediately following such action had this Warrant
                        been exercised immediately prior thereto, and the
                        Exercise Price will be adjusted as provided below in
                        paragraph (g).

                (b)     Combination of Stock. If the number of shares of Common
                        Stock outstanding at any time after the date of the
                        issuance of this Warrant shall have been decreased by a
                        combination of the outstanding shares of Common Stock,
                        then, immediately after

                                       15

<PAGE>

                        the effective date of such combination, the number of
                        shares of Common Stock to be delivered upon exercise of
                        this Warrant will be decreased so that the Warrantholder
                        thereafter will be entitled to receive the number of
                        shares of Common Stock that the Warrantholder would have
                        owned immediately following such action had this Warrant
                        been exercised immediately prior thereto, and the
                        Exercise Price will be adjusted as provided below in
                        paragraph (g).

                (c)     Reorganization, etc. If any capital reorganization of
                        the Company, any reclassification of the Common Stock,
                        any consolidation of the Company with or merger of the
                        Company with or into any other Person, or any sale or
                        lease or other transfer of all or substantially all of
                        the assets of the Company to any other Person, shall be
                        effected in such a way that the holders of Common Stock
                        shall be entitled to receive stock, other securities,
                        cash or assets (whether such stock, other securities,
                        cash or assets are issued or distributed by the Company
                        or another Person) with respect to or in exchange for
                        Common Stock, then, upon exercise of this Warrant, the
                        Warrantholder shall have the right to receive the kind
                        and amount of stock, other securities, cash or assets
                        receivable upon such reorganization, reclassification,
                        consolidation, merger or sale, lease or other transfer
                        by a holder of the number of shares of Common Stock that
                        the Warrantholder would have been entitled to receive
                        upon exercise of this Warrant had this Warrant been
                        exercised immediately before such reorganization,
                        reclassification, consolidation, merger or sale, lease
                        or other transfer, subject to adjustments that shall be
                        as nearly equivalent as may be practicable to the
                        adjustments provided for in this Section 7. If the
                        Company effects any such consolidation, merger or sale,
                        lease or other transfer, the Company shall ensure that
                        prior to, or simultaneously with, the consummation
                        thereof, the successor Person (if other than the
                        Company) resulting from such consolidation or merger, or
                        such Person purchasing, leasing or otherwise acquiring
                        such assets, shall assume, by written instrument, the
                        obligation to deliver to the Warrantholder the shares of
                        stock, securities or assets to which, in accordance with
                        the foregoing provisions, the Warrantholder may be
                        entitled and all other obligations of the Company under
                        this Warrant. The provisions of this paragraph (C) shall
                        apply to successive reorganizations, reclassifications,
                        consolidations, mergers, sales, leasing transactions and
                        other transfers.

                                       16

<PAGE>

                (d)     Distributions to all holders of Common Stock. If the
                        Company shall, at any time after the date of issuance of
                        this Warrant, fix a record date to distribute to all
                        holders of its Common Stock any shares of capital stock
                        of the Company (other than Common Stock) or evidences of
                        its indebtedness or cash or other assets or rights or
                        warrants to subscribe for or purchase any of its
                        securities, then the Warrantholder shall be entitled to
                        receive, upon exercise of this Warrant, that portion of
                        such distribution to which it would have been entitled
                        had the Warrantholder exercised its Warrant immediately
                        prior to the date of such distribution. At the time it
                        fixes the record date for such distribution, the Company
                        shall allocate sufficient reserves to ensure the timely
                        and full performance of the provisions of this
                        Subsection. The Company shall promptly (but in any case
                        no later than five Business Days prior to the record
                        date of such distribution) give notice to the
                        Warrantholder that such distribution will take place.

                (e)     Fractional Shares. No fractional shares of Common Stock
                        or scrip shall be issued to the Warrantholder in
                        connection with the exercise of this Warrant. Instead of
                        any fractional shares of Common Stock that would
                        otherwise be issuable to the Warrantholder, the Company
                        will pay to the Warrantholder a cash adjustment in
                        respect of such fractional interest in an amount equal
                        to that fractional interest of the then current Fair
                        Market Value per share of Common Stock.

                (f)     Carryover. Notwithstanding any other provision of this
                        Section 7, no adjustment shall be made to the number of
                        shares of Common Stock to be delivered to the
                        Warrantholder (or to the Exercise Price) if such
                        adjustment represents less than 0.10% of the number of
                        shares to be so delivered, but any lesser adjustment
                        shall be carried forward and shall be made at the time
                        and together with the next subsequent adjustment which
                        together with any adjustments so carried forward shall
                        amount to 0.10% or more of the number of shares to be so
                        delivered.

                (g)     Exercise Price Adjustment. Whenever the number of
                        Warrant Shares purchasable upon the exercise of this
                        Warrant is adjusted, as herein provided, the Exercise
                        Price payable upon the exercise of this Warrant shall be
                        adjusted by multiplying such Exercise Price immediately
                        prior to such adjustment by a fraction, of which the
                        numerator shall be the number of Warrant Shares
                        purchasable upon the exercise of the Warrant immediately
                        prior to such adjustment, and of which the

                                       17

<PAGE>

                        denominator shall be the number of Warrant Shares
                        purchasable immediately thereafter.

                (h)     Certain Events. If any event occurs of the type
                        contemplated by the provisions of this Section 7.1 but
                        not expressly provided for by such provisions, then the
                        Board of Directors of the Company shall in good faith
                        make an appropriate adjustment in the Exercise Price so
                        as to protect the rights of the Warrantholder under this
                        Warrant.

        7.2     Rights Offering. In the event the Company shall effect an
                offering of Common Stock pro rata among its stockholders, the
                Warrantholder shall be entitled to elect to participate in each
                and every such offering as if this Warrant had been exercised
                immediately prior to each such offering. The Company shall
                promptly (but in any case no later than five Business Days prior
                to such rights offering) give notice to the Warrantholder that
                such rights offering will take place. The Company shall not be
                required to make any adjustment with respect to the issuance of
                shares of Common Stock pursuant to a rights offering in which
                the holder hereof elects to participate under the provisions of
                this Section 7.2.

        7.3     Notice of Adjustments. Whenever the number of Warrant Shares or
                the Exercise Price of such Warrant Shares is adjusted, as herein
                provided, the Company at its expense shall promptly give to the
                Warrantholder notice of such adjustment or adjustments and a
                certificate of the independent public accountants regularly
                employed by the Company or a firm of independent public
                accountants of recognized national standing selected by the
                Board of Directors of the Company (which shall be appointed at
                the Company's expense) setting forth the number of Warrant
                Shares and the Exercise Price of such Warrant Shares after such
                adjustment, a brief statement of the facts requiring such
                adjustment, and the computation by which such adjustment was
                made.

        7.4     Notice of Extraordinary Corporate Events. In case the Company
                after the date hereof shall propose to (i) distribute any
                dividend (whether stock or cash or otherwise) to the holders of
                shares of Common Stock or to make any other distribution to the
                holders of shares of Common Stock, (ii) offer to the holders of
                shares of Common Stock rights to subscribe for or purchase any
                additional shares of any class of stock or any other rights or
                options, or (iii) effect any reclassification of the Common
                Stock (other than a reclassification involving merely the
                subdivision or combination of outstanding shares of Common
                Stock), any capital reorganization, any consolidation or merger
                (other than a merger in which no distribution of securities or
                other property is to be made to holders of shares of Common
                Stock), any sale or lease or transfer or other disposition of
                all or substantially all of its property, assets and business,
                or
                                       18

<PAGE>

                the liquidation, dissolution or winding up of the Company,
                then, in each such case, the Company shall give to the
                Warrantholder notice of such proposed action, which notice shall
                specify the date on which (a) the books of the Company shall
                close, or (b) a record shall be taken for determining the
                holders of Common Stock entitled to receive such stock dividends
                or other distribution or such rights or options, or (c) such
                reclassification, reorganization, consolidation, merger, sale,
                transfer, other disposition, liquidation, dissolution or winding
                up shall take place or commence, as the case may be, and the
                date, if any, as of which it is expected that holders of record
                of Common Stock shall be entitled to receive securities or other
                property deliverable upon such action. Such notice shall be
                given in the case of any action covered by clause (i) or (ii)
                above at least ten days prior to the record date for determining
                holders of Common Stock for purposes of receiving such payment
                or offer, or in the case of any action covered by clause (iii)
                above at least 30 days prior to the date upon which such action
                takes place and 20 days prior to any record date to determine
                holders of Common Stock entitled to receive such securities or
                other property.

7.5     Effect of Failure to Notify. Failure to file any certificate or notice
        or to give any notice, or any defect in any certificate or notice
        pursuant to Sections 7.3 and 7.4 shall not affect the legality or
        validity of the adjustment to the Exercise Price, the number of shares
        purchasable upon exercise of this Warrant, or any transaction giving
        rise thereto.

8.      Reports Under Securities Exchange Act of 1934. With a view to making
        available to the Warrantholder the benefits of Rule 144 promulgated
        under the Securities Act or any other similar rule or regulation of the
        SEC that may at any time permit the Warrantholder to sell securities of
        the Company to the public without registration ("Rule 144"), the Company
        agrees, at all times when the Warrantholder may need to rely on Rule 144
        to sell such securities to the public without registration, to:

                (a)     make and keep public information available, as those
                        terms are understood and defined in Rule 144, at all
                        times;

                (b)     file with the SEC in a timely manner all reports and
                        other documents required of the Company under the
                        Securities Act and the Exchange Act; and

                (c)     furnish to the Warrantholder so long as the
                        Warrantholder owns this Warrant, promptly upon request,
                        (i) a written statement by the Company that it has
                        complied with the reporting requirements of Rule 144 (at
                        any time after 90 days after the effective date of the
                        first registration statement filed by the Company), the
                        Securities Act and the Exchange Act (at any time

                                       19

<PAGE>

                        after it has become subject to such reporting
                        requirements), (ii) a copy of the most recent annual or
                        quarterly report of the Company and such other reports
                        and documents so filed by the Company, and (iii) such
                        other information as may be reasonably requested to
                        permit the Warrantholder to sell such securities without
                        registration.

9.      Amendments. Any provision of this Warrant may be amended and the
        observance thereof may be waived (either generally or in a particular
        instance and either retroactively or prospectively), only with the
        written consent or approval of the Company and the Warrantholder. Any
        amendment or waiver effected in accordance with this Section shall be
        binding upon the Warrantholder and the Company.

10.     Expiration of the Warrant. The obligations of the Company pursuant to
        this Warrant shall terminate on the Expiration Date.

11.     Definitions.

                As used herein, unless the context otherwise requires, the
        following terms have the following respective meanings:

                Affiliate: with respect to any Person, any other Person that
        directly, or indirectly through one or more intermediaries, controls, is
        controlled by or is under common control with, such specified Person,
        for so long as such Person remains so associated to the specified
        Person.

                Assignment Form: an instrument of transfer of a warrant in the
        form annexed hereto as Exhibit C

                Business Day: any day other than a Saturday, Sunday or a day on
        which banks are required or authorized by law to close in The City of
        New York, State of New York.

                Bylaws: the bylaws of the Company, as the same may be amended
        and in effect from time to time.

                Certificate of Incorporation: the Restated Certificate of
        Incorporation of the Company, as the same may be amended and in effect
        from time to time.

                Common Stock: the meaning specified on the cover of this
        Warrant.

                Company: the meaning specified on the cover of this Warrant.

                Contractor: Boeing Satellite Systems International, Inc., as
        contractor under the Satellite Contract.

                                       20

<PAGE>

                Contractual Obligation: as to any Person, any agreement,
        undertaking, contract, indenture, mortgage, deed of trust or other
        instrument to which such Person is a party or by which it or any of its
        property is bound.

                Exchange Act: the Securities Exchange Act of 1934, as amended,
        or any similar Federal statute, and the rules and regulations of the SEC
        thereunder, all as the same shall be in effect at the time. Reference to
        a particular section of the Exchange Act shall include a reference to a
        comparable section, if any, of any such similar Federal statute.

                Exercise Form: a request to exercise this Warrant in respect of
        some or all of the Warrant Shares in the form annexed hereto as Exhibit
        A.

                Exercise Price: the meaning specified in Section 1 of this
        Warrant.

                Expiration Date: July 31, 2008, which date is the fifth
        anniversary of the XM-4 EDC.

                Fair Market Value: With respect to a share of Common Stock as of
        a particular date:

                (i)     if the Common Stock is registered under the Exchange
                        Act, (a) the average of the daily closing sales prices
                        of the Common Stock for the 10 consecutive trading days
                        immediately preceding such date, or (b) if the
                        securities have been registered under the Exchange Act
                        for less than 10 consecutive trading days before such
                        date, then the average of the daily closing sales prices
                        for all of trading days before such date for which
                        closing sales prices are available, in the case of each
                        of (a) and (b), as certified by the Chief Financial
                        Officer of the Company; or

                (ii)    If the Common Stock is not registered under the Exchange
                        Act, then the Fair Market Value shall be as reasonably
                        determined in good faith by the Board of Directors of
                        the Company or a duly appointed committee thereof (which
                        determination shall be reasonably described in the
                        written notice given to the Warrantholder); provided,
                        however, that if the Warrantholder reasonably objects to
                        such determination of Fair Market Value by the Board of
                        Directors or a duly appointed committee thereof, then
                        such determination shall at the Company's expense be
                        referred to an unaffiliated investment banking firm of
                        national reputation whose determination shall be final
                        and binding upon the parties.

                For the purposes of clause (i) of this definition, the closing
        sales price for each such trading day shall be: (1) in the case of a
        security listed or admitted to trading on any United States national
        securities exchange or quotation system, the closing

                                       21

<PAGE>

        sales price, regular way, on such day, or if no sale takes place on such
        day, the average of the closing bid and asked prices on such day; (2) in
        the case of a security not then listed or admitted to trading on any
        national securities exchange or quotation system, the last reported sale
        price on such day, or if no sale takes place on such day, the average of
        the closing bid and asked prices on such day, as reported by a reputable
        quotation source designated by the Company; (3) in the case of a
        security not then listed or admitted to trading on any national
        securities exchange or quotation system and as to which no such reported
        sale price or bid and asked prices are available, the average of the
        reported high bid and low asked prices on such day, as reported by a
        reputable quotation service, or a newspaper of general circulation in
        the Borough of Manhattan, City and State of New York, customarily
        published on each Business Day, designated by the Company, or if there
        shall be no bid and asked prices on such day, the average of the high
        bid and low asked prices, as so reported, on the most recent day (not
        more than 30 days prior to the date in question) for which prices have
        been so reported; and (4) if there are no bid and asked prices reported
        during the 30 days prior to the date in question, the Fair Market Value
        shall be determined as if the securities were not registered under the
        Exchange Act.

                FCC: the Federal Communications Commission.

                Governmental Authority: the government of any nation, state,
        city, locality or other political subdivision of any thereof, and any
        entity exercising executive, legislative, judicial, regulatory or
        administrative functions of or pertaining to government or any
        international regulatory body having or asserting jurisdiction over a
        Person, its business or its properties.

                Lien: any mortgage, deed of trust, pledge, hypothecation,
        assignment, encumbrance, lien (statutory or other), charges, restriction
        or other security interest of any kind or nature whatsoever.

                Person: any individual, firm, corporation, partnership, limited
        liability company, trust, incorporated or unincorporated association,
        joint venture, joint stock company, Governmental Authority or other
        entity of any kind.

                Registration Rights Period: the period of time commencing on the
        Effective Date and ending on the date that all of the Warrantholder's
        Warrant Shares are eligible for immediate sale (of all the Warrant
        Shares) to the public under Rule 144 under the Securities Act.

                Registration Statement: a registration statement filed with the
        Commission pursuant to the Securities Act.

                Requirement of Law: as to any Person, any law, treaty, rule,
        regulation, qualification, license or franchise or determination of an
        arbitrator or a court or

                                       22

<PAGE>

        other Governmental Authority, in each case applicable or binding upon
        such Person or any of its property or to which such Person or any of its
        property is subject or pertaining to any or all of the transactions
        contemplated hereby.

                Rule 144: the meaning specified in Section 8 of this Warrant.

                Satellite Contract: the Satellite Purchase Contract for In-Orbit
        Delivery effective March 23, 1998 as amended, assigned, restated,
        superseded and/or supplemented from time to time and in effect through
        and including the date hereof (including the amendment made on July 31,
        2003 (the "July 2003 Amendment") by and between the Company and BSSI.

                SEC: the Securities and Exchange Commission or any other Federal
        agency at the time administering the Securities Act or the Exchange Act,
        whichever is the relevant statute for the particular purpose.

                Securities Act: the meaning specified on the cover of this
        Warrant, or any similar Federal statute, and the rules and regulations
        of the SEC thereunder, all as the same shall be in effect at the time.
        Reference to a particular section of the Securities Act, shall include a
        reference to the comparable section, if any, of any such similar Federal
        statute.

                Warrant Shares: the meaning specified on the cover of this
        Warrant.

                Warrantholder: BSSI (for so long as BSSI holds any interest in
        the Warrant) and any transferee or transferees of BSSI's rights in the
        Warrant in accordance with Section 3 hereof (for so long as such
        transferee holds such rights).

                XM-4 EDC: the Effective Date of the July 2003 Amendment to the
        Satellite Contract, i.e., July 31, 2003.

12.     No Impairment. The Company shall not by any action, including, without
        limitation, amending its Certificate of Incorporation or through any
        reorganization, transfer of assets, consolidation, merger, dissolution,
        issue or sale of securities or any other voluntary action, avoid or seek
        to avoid the observance or performance of any of the terms of this
        Warrant, but will at all time in good faith assist in the carrying out
        of all such terms and in the taking of all such reasonable actions as
        may be necessary or appropriate to protect the rights of the
        Warrantholder against impairment. Without limiting the generality of the
        foregoing, the Company shall (a) take all such actions as may be
        necessary or appropriate in order that the Company may validly and
        legally issue fully paid and nonassesable shares of Common Stock upon
        the exercise of this Warrant, and (b) provide reasonable assistance to
        the Warrantholder in obtaining all authorizations, exemptions or
        consents from any Governmental

                                       23

<PAGE>

        Authority which may be necessary in connection with the exercise of this
        Warrant.

13.     Miscellaneous.

        13.1    Entire Agreement. This Warrant constitutes the entire agreement
                between the Company and the Warrantholder with respect to the
                Warrant.

        13.2    Binding Effects; Benefits. This Warrant shall inure to the
                benefit of and shall be binding upon the Company and the
                Warrantholder and their respective heirs, legal representatives,
                permitted successors and permitted assigns. Nothing in this
                Warrant, expressed or implied, is intended to or shall confer on
                any Person other than the Company and the Warrantholder, or
                their respective heirs, legal representatives, permitted
                successors or permitted assigns, any rights, remedies,
                obligations or liabilities under or by reason of this Warrant.

        13.3    Section and Other Headings. The section and other headings
                contained in this Warrant are for reference purposes only and
                shall not be deemed to be a part of this Warrant or to affect
                the meaning or interpretation of this Warrant.

        13.4    Pronouns. All pronouns and any variations thereof refer to the
                masculine, feminine or neuter, singular or plural, as the
                context may require.

        13.5    Further Assurances. Each of the Company and the Warrantholder
                shall do and perform all such further acts and things and
                execute and deliver all such other certificates, instruments and
                documents as the Company or the Warrantholder may, at any time
                and from time to time, reasonably request in connection with the
                performance of any of the provisions of this Warrant.

        13.6    Notices. All notices and other communications required or
                permitted to be given under this Warrant shall be in writing and
                shall be deemed to have been duly given if (i) delivered
                personally or (ii) sent by facsimile on a Business Day with
                receipt confirmed or recognized overnight courier or by United
                States first class certified mail, postage prepaid, to the
                parties hereto at the following addresses or to such other
                address as any party hereto shall hereafter specify by notice to
                the other party hereto:

                if to the Company, addressed to:

        XM Satellite Radio Holdings Inc.
        1500 Eckington Place, N.E.
        Washington, D.C. 20002
        Attention: Chief Financial Officer

                if to the Warrantholder, addressed to:

                                       24

<PAGE>

        Boeing Satellite Systems International, Inc.
        2260 E. Imperial Highway,
        El Segundo, California 90245.
        Attention:
        Fax:
        Telephone:

        with a copy to

        The Boeing Company
        100 North Riverside
        Chicago, Illinois 60606-1596
        Attention: General Counsel
        Fax: 312.544.2829

        Except as otherwise provided herein, all such notices and communications
shall be deemed to have been received (a) on the date of delivery thereof, if
delivered personally or sent by facsimile, (b) on the second Business Day
following delivery into the custody of an overnight courier service, if sent by
overnight courier, provided that such delivery is made before such courier's
deadline for next-day delivery, or (c) on the third Business Day after the
mailing thereof.

13.7    Separability. Any term or provision of this Warrant which is invalid or
        unenforceable in any jurisdiction shall, as to such jurisdiction, be
        ineffective to the extent of such invalidity or unenforceability without
        rendering invalid or unenforceable the terms and provisions of this
        Warrant or affecting the validity or enforceability of any of the terms
        or provisions of this Warrant in any other jurisdiction.

13.8    Governing Law. This Warrant shall be deemed to be a contract made under
        the laws of New York and for all purposes shall be governed by and
        construed in accordance with the laws of such State applicable to such
        agreements made and to be performed entirely within such State, except
        that all matters relating to issuances of stock shall be governed by
        Delaware General Corporation Law.

13.9    No Rights or Liabilities as Stockholder. Nothing contained in this
        Warrant shall be deemed to confer upon the Warrantholder any rights as a
        stockholder of the Company or as imposing any liabilities on the
        Warrantholder to purchase any securities whether such liabilities are
        asserted by the Company or by creditors or stockholders of the Company
        or otherwise.

13.10   Representations of the Company. The Company hereby represents and
        warrants, as of the date hereof, to the Warrantholder as follows:

                                       25

<PAGE>

                (a)     Corporate Existence and Power. The Company (i) is a
                        corporation duly incorporated, validly existing and in
                        good standing under the laws of the State of Delaware;
                        (ii) has all requisite corporate power and authority to
                        own and operate its property, to lease the property it
                        operates as lessee and to conduct the business in which
                        it is engaged; and (iii) has the corporate power and
                        authority to execute, deliver and perform its
                        obligations under this Warrant. The Company is duly
                        qualified to do business as a foreign corporation in,
                        and is in good standing under the laws of, each
                        jurisdiction in which the conduct of its business or the
                        nature of the property owned requires such
                        qualification, except where the failure to qualify would
                        not, individually or in the aggregate, result in a
                        material adverse effect on the business, operations,
                        affairs, assets, liabilities, financial condition or
                        properties of the Company and its subsidiaries, taken as
                        a whole.

                (b)     Corporate Authorization; No Contravention. The
                        execution, delivery and performance by the Company of
                        this Warrant and the transactions contemplated hereby,
                        including, without limitation, the sale, issuance and
                        delivery of the Warrant Shares, (i) have been duly
                        authorized by all necessary corporate action of the
                        Company; (ii) do not contravene the terms of the
                        Certificate of Incorporation or Bylaws; and (iii) do not
                        violate, conflict with or result in any breach or
                        contravention of, or the creation of any Lien under, any
                        Contractual Obligation of the Company or any Requirement
                        of Law applicable to the Company. No event has occurred
                        and no condition exists which, upon notice or the
                        passage of time (or both), would constitute a default
                        under any indenture, mortgage, deed of trust, credit
                        agreement, note or other evidence of indebtedness or
                        other material agreement of the Company or the
                        Certificate of Incorporation or Bylaws.

                (c)     Issuance of Warrant Shares. The Warrant Shares have been
                        duly authorized and reserved for issuance. When issued,
                        such shares will be validly issued, fully paid and
                        non-assessable, and free and clear of all Liens and
                        preemptive rights, and the holders thereof shall be
                        entitled to all rights and preferences accorded to a
                        holder of Common Stock.

                (d)     Binding Effect. This Warrant has been duly executed and
                        delivered by the Company and constitutes the legal,
                        valid and binding obligation of the Company enforceable
                        against the Company in accordance with its terms, except
                        as enforceability

                                       26

<PAGE>

                        may be limited by applicable bankruptcy, insolvency,
                        fraudulent conveyance or transfer, moratorium or other
                        similar laws affecting the enforcement of creditors'
                        rights generally and by general principles of equity.

                                       27

<PAGE>

                IN WITNESS WHEREOF, the Company has caused this Warrant to be
signed by its duly authorized officer.

                                       XM SATELLITE RADIO HOLDINGS INC.

                                       By: Joseph J. Euteneuer

                                             /s/ Joseph J. Euteneuer
                                           -----------------------------------
                                           Joseph J. Euteneuer
                                           Executive Vice President and Chief
                                           Financial Officer

                                    Dated:  As of July 31, 2003

                Attest:

By: Joseph M. Titlebaum

      /s/ Joseph M. Titlebaum
    ------------------------------------
    Joseph M. Titlebaum
    Executive Vice President, General Counsel
      and Secretary

                                       28

<PAGE>

                                    Exhibit A

                                  EXERCISE FORM

                 (To be executed upon exercise of this Warrant)

                The undersigned hereby irrevocably elects to exercise the right,
represented by this Warrant, to purchase __________ shares of Common Stock and
herewith tenders payment for such Common Stock to the order of XM Satellite
Radio Holdings Inc. in the amount of $__________, which amount includes payment
of the par value for the Common Stock, in accordance with the terms of this
Warrant. The undersigned requests that a certificate for such shares of Common
Stock be registered in the name of __________________ and that such certificates
be delivered to __________________ whose address is
___________________________________.

                  Dated:______________

                                        Signature
                                                  ------------------------------

                                                  ------------------------------
                                                  (Print Name)

                                                  ------------------------------
                                                  (Street Address)

                                                  ------------------------------
                                                  (City)  (State)  (Zip Code)

Signed in the Presence of:
--------------------------------------------------------------------------------

                                       29

<PAGE>

                                    Exhibit B

                               CERTIFICATION FORM

                The undersigned hereby certifies to XM Satellite Radio Holdings
Inc. that he, she or it is:

     a.  an "accredited investor" as that term is defined in Regulation D
         promulgated pursuant to the Securities Act or any successor regulation,
         as such provisions may be in effect on the date hereof, and is an
         "accredited investor" pursuant to Rule 501 of such provision; and

     b.  is knowledgeable, sophisticated and experienced in business and
         financial matters and in securities similar to the Common Stock; is
         aware of the limitation on the transfer of the Common Stock; is aware
         of the limitation on the transfer of the Common Stock imposed by
         applicable securities laws and any limitations on transfer imposed by
         contracts with the Company or others; and has had access to, or been
         furnished with, all information about the Common Stock and the Company
         deemed necessary to conclude that he, she or it has the ability to bear
         the economic risk of the investment in the Common Stock and to afford
         the complete loss of such investment.

                IN WITNESS WHEROF, the undersigned has executed this
CERTIFICATION this ___ day of ____________, ____.

                                        Signature
                                                 ------------------------------

                                                 ------------------------------
                                                 (Print Name)

                                                 ------------------------------
                                                 (Street Address)

                                                 ------------------------------
                                                 (City)  (State)  (Zip Code)

Signed in the Presence of:
--------------------------------------------------------------------------------

<PAGE>

                                    Exhibit C

                               FORM OF ASSIGNMENT

               (To be executed only upon transfer of this Warrant)

        For value received, the undersigned registered holder of the within
Warrant hereby sells, assigns and transfers unto ______________________ the
right represented by such Warrant to purchase ________________ shares of Common
Stock of XM Satellite Radio Holdings Inc. to which such Warrant relates and all
other rights of the Warrantholder under the within Warrant, and authorizes XM
Satellite Radio Holdings Inc., or any of its officers, to make such transfer on
the books of XM Satellite Radio Holdings Inc. maintained for such purpose, with
full power of substitution in the premises. This sale, assignment and transfer
has been previously approved in writing by XM Satellite Radio Holdings Inc.

         Dated:______________

         Signature
                  ------------------------------

         ---------------------------------------
         (Print Name)

         ---------------------------------------
         (Street Address)

         ----------------------------------------
         (City) (State) (Zip Code)

         Signed in the Presence of:

         ----------------------------------------------------------------<PAGE>

                                                                    Exhibit 10.1

****Confidential treatment has been requested for portions of this contract. The
copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as [****]. A complete version of this contract
has been filed separately with the Securities and Exchange Commission.

                           THIRD AMENDED AND RESTATED
                     SHAREHOLDERS AND NOTEHOLDERS AGREEMENT

     This Third Amended and Restated Shareholders and Noteholders Agreement,
dated as of June 16, 2003 (this "Agreement"), is hereby entered into by and
among XM Satellite Radio Holdings Inc., a corporation duly organized under the
laws of the State of Delaware (the "Company"); Clear Channel Investments, Inc.,
a corporation duly organized under the laws of the State of Nevada ("Clear
Channel"); Columbia XM Radio Partners, LLC, a limited liability company duly
organized under the laws of the Commonwealth of Virginia ("Columbia Radio
Partners"); DIRECTV Enterprises, LLC, a limited liability company duly organized
under the laws of the State of Delaware ("DIRECTV"); General Motors Corporation,
a corporation duly organized under the laws of the State of Delaware (together
with its Affiliate, OnStar Corporation, a Delaware corporation, "GM"); Madison
Dearborn Capital Partners III, L.P. ("Madison Capital"), Madison Dearborn
Special Equity III, L.P. ("Madison Equity"), Special Advisors Fund I, LLC
("Madison Advisors" and, collectively with Madison Capital and Madison Equity,
each an entity duly organized under the laws of the State of Delaware,
"Madison"); AEA XM Investors I LLC, AEA XM Investors II LLC, AEA XM Investors IA
LLC and AEA XM Investors IIA LLC, each a limited liability company organized
under the laws of the State of Delaware (individually or collectively "AEA XM"),
Columbia XM Satellite Partners III, LLC, a limited liability company duly
organized under the laws of the Commonwealth of Virginia ("Columbia Satellite
Partners"), Columbia Capital Equity Partners III (QP), L.P., and Columbia
Capital Equity Partners II (QP), L.P., each a limited partnership duly organized
under the laws of the State of Delaware ("Columbia Equity Partners", and
collectively with Columbia Radio Partners and Columbia Satellite Partners,
"Columbia"); American Honda Motor Co., Inc., a corporation duly organized under
the laws of the State of California ("Honda"); Black Bear Fund I, L.P., a
limited partnership duly organized under the laws of the State of California
("Black Bear I"), Black Bear Fund II, L.L.C., a limited liability company duly
organized under the laws of the State of California ("Black Bear II"), Black
Bear Offshore Master Fund Limited, an exempted company organized under the laws
of the Cayman Islands ("Black Bear Fund", and collectively with Black Bear I and
Black Bear II, "Black Bear"); and each of the other Persons identified on
Exhibit A attached hereto ("Additional Note Purchasers"). Clear Channel,
Columbia Radio Partners, DIRECTV, GM and Madison, each in its capacity as a
holder of securities in the Company other than Series C Convertible Preferred
Stock (as defined below) or Common Stock (as defined below) issuable upon
conversion thereof, are collectively referred to herein as the "Original
Investors." AEA XM, Columbia Satellite Partners, Columbia Equity Partners,
Columbia Radio Partners, DIRECTV, Honda, Madison Capital and Madison Equity,
each in its capacity as a holder of the Series C Convertible Preferred Stock or
Common Stock issuable upon conversion thereof, are collectively referred to
herein as the "Series C Investors." GM, Black Bear, and the Additional Note
Purchasers, each in its or his capacity as a holder of New Notes or GM Note (as
defined below), as the case may be, or Common Stock issuable upon conversion
thereof, are collectively referred to herein as the "Note Investors." The
Original Investors, the Series C Investors and the Note Investors are
collectively referred to herein as the "Investors." The Company and the
Investors are collectively referred to herein as the "Parties."

<PAGE>

                                   WITNESSETH

     WHEREAS, the Company, the Original Investors, the Series C Investors and
the Note Investors are parties to a Second Amended and Restated Shareholders and
Noteholders Agreement, dated January 28, 2003 (the "January 2003 Agreement");

     WHEREAS, the Company owns one hundred percent (100%) of the issued and
outstanding shares of common stock of XM Satellite Radio Inc. ("XM");

     WHEREAS, XM Radio Inc., a wholly owned subsidiary of XM, holds a license
awarded by the U.S. Federal Communications Commission for the establishment of a
Satellite Digital Audio Radio Service ("SDARS") system in the United States;

     WHEREAS, GM has entered into a note purchase agreement with the Company and
XM, dated as of December 21, 2002 (the "GM Note Purchase Agreement"), under
which GM has acquired a 10% Senior Secured Convertible Note due 2009 issued by
the Company and XM, as joint obligors (the "GM Note"), in an aggregate principal
amount of $89,042,387, which GM Note bears interest at a rate of 10% per annum
that may be paid in cash or, at the Company's option, in Class A Common Stock,
and is convertible into Class A Common Stock, on the terms and conditions
described in the GM Note Purchase Agreement, received a warrant to purchase
10,000,000 shares of Class A Common Stock (the "GM Warrant") and entered into a
credit agreement and other agreements under which GM may receive additional
securities of the Company;

     WHEREAS, Black Bear and the Additional Note Investors have entered into a
note purchase agreement with the Company and XM, dated as of December 21, 2002
(the "New Note Purchase Agreement"), under which such Note Investors have
purchased 10% Senior Secured Discount Convertible Notes due 2009 of the Company
and XM in an aggregate principal amount of up to $366,300,000 at maturity, under
which they may receive additional notes as payment of certain interest due
thereunder (collectively, the "New Notes" and together with the GM Note, the
"Notes"), on the terms and conditions described in the New Note Purchase
Agreement;

          WHEREAS, the January 2003 Agreement was amended on June 16, 2003 with
the written consent of the Company, Investors holding 75% of the aggregate of
the Common Stock Deemed Outstanding held by Investors, and greater than 75% of
the aggregate principal amount at maturity of the then outstanding Notes held by
the Note Investors, which is binding upon each Investor and the Company, by
means of three separate consents (collectively, the "Consent Amendment"), copies
of which have been provided to all Investors as of the date hereof, which
Consent Amendment provided, among other things, for the incorporation of certain
covenants as a new Article VIII hereof (the "New Provisions"); and

          WHEREAS, the consent executed by GM also provides that GM consents to
the taking of any actions by the Company and XM from time to time after June 16,
2003 that would be permitted by the New Provisions, particularly those in
Sections 8.3(xvi) and 8.6(b) hereof, if they had been included in the GM Note
Purchase Agreement in lieu of Sections 7.5 through 7.10

                                       -2-

<PAGE>

and 7.12 through 7.16 thereof, so long as any approval required by Section
5.1(q) hereof is obtained; and

          WHEREAS, the Consent Amendment provided for the amendment and
restatement of the January 2003 Agreement reflecting provisions of the Consent
Amendment without further consent of the Parties, and this document constitutes
such amendment and restatement; and

     WHEREAS, the Company and each of the Investors believe it to be in the best
interests of the Company and the mutual best interests of each of the Investors
to set forth herein their agreements with respect to certain matters related to
the ownership and corporate governance of the Company by amending and restating
the January 2003 Agreement.

     NOW, THEREFORE, in consideration for the mutual covenants contained herein,
the adequacy, receipt, and sufficiency of which are hereby acknowledged, the
undersigned hereby agree as follows:

                                   ARTICLE I.

                                   DEFINITIONS

     Section 1.1 Definitions.

     Accredited Investor: has the meaning specified in Rule 501 of Regulation D
promulgated under the Securities Act.

     Affiliate: means, as applied to any Person, any other Person directly or
indirectly controlling, controlled by, or under direct or indirect common
control with, such Person. For purposes of this definition, "control"
(including, with correlative meanings, the terms "controlling," "controlled by"
and "under common control with"), as applied to any Person, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise. For purposes of
Sections 5.1, 5.2, 6.1 and 7.12, a member of a limited liability company or a
partner of a partnership shall be deemed an Affiliate of said company or
partnership.

     Antidilution Protection: means any right to have the relevant price or
price ratio for the conversion of securities of the Company into any class of
common stock of the Company, or the number of securities issuable upon such
conversion, adjusted where the Company sells common stock (or securities
convertible into or exercisable or exchangeable for common stock) for a price
below a specified dollar amount that is less than the then applicable conversion
price of the securities subject to the adjustment or below the market price (as
defined in the terms of such right) of the common stock. As used herein,
Antidilution Protection is not intended to include stock splits,
reorganizations, distributions of stock or rights to all holders of common stock
or similar transactions.

                                       -3-

<PAGE>

     Board or Board of Directors: means the Board of Directors of the Company or
a committee consisting of one or more directors lawfully exercising the powers
of the Board.

     Business Day: means any day other than a Saturday, Sunday or any other day
on which commercial banks are authorized or required by law to be closed in New
York City or the District of Columbia.

     Capital Stock: means any and all securities, shares, interests, warrants,
options, rights to acquire equity or equity-linked securities of the Company,
participations or other equivalents (however designated, whether voting or
non-voting) in equity of the Company, whether issued by the Company or its
Subsidiaries, and whether now outstanding or issued subsequently hereto,
including, without limitation, all series and classes of Common Stock and
preferred stock of the Company, and all Convertible Securities, including the
Series A Convertible Preferred Stock, the Series B Convertible Preferred Stock,
the Series C Convertible Preferred Stock, the GM Note, the GM Warrant and the
New Notes.

     Class A Common Stock: means the Class A Common Stock, par value $0.01 per
share, of the Company having one (1) vote per share.

     Clear Channel Operational Assistance Agreement: means the operational
assistance agreement dated on or about June 7, 1999, between Clear Channel and
the Company, as it may be amended from time to time.

     Commission: means the Securities and Exchange Commission or any other
Federal agency at the time administering the Securities Act.

     Common Stock: means all classes and series of the common stock of the
Company, any stock into which such common stock shall have been changed or
converted or any stock resulting from any capital reorganization or
reclassification of such common stock, and all other stock of any class or
classes (however designated) of the Company, the holders of which have the
right, without limitation as to amount, either to all or to a share of the
balance of current dividends and liquidating dividends after the payment of
dividends and distributions of any shares entitled to preference.

     Common Stock Deemed Outstanding: means, at any given time, the number of
shares of Common Stock actually outstanding at such time, plus the number of
shares of Common Stock issuable upon the conversion, exchange, or exercise in
full, of all Convertible Securities, whether or not the Convertible Securities
are convertible into or exercisable or exchangeable for Common Stock at such
time.

     Communications Act: has the meaning specified in Section 2.1.

     Concurrent Financing Transactions: means (1) the issuance to GM of the GM
Note in lieu of certain guaranteed payments due to GM during the period from
2003 to 2006 under XM's Distribution Agreement with GM (the "Distribution
Agreement"), (2) the amendment of the Distribution Agreement to provide for,
among other things, the issuance of the GM Note and the payment of up to
$35,000,000 in subscriber bounty payments payable to GM in the form of Class

                                       -4-

<PAGE>

A Common Stock, (3) the issuance of XM's 14% Senior Secured Discount Notes due
2009, warrants to purchase Class A Common Stock (the "Exchange Warrants") and
cash in exchange for some or all of XM's outstanding 14% Senior Secured Notes
due 2010, (4) entering into a $100,000,000 Senior Secured Credit Facility with
GM (the "GM Credit Facility") to finance certain revenue share payments owed to
GM under the Distribution Agreement or other amounts which may be owed to GM,
(5) the issuance of the GM Warrant, (6) the issuance and sale, on or before the
closing of the transactions described in this definition, to the extent
determined to be desirable by the Company, or after the closing, to the extent
contemplated by the letter agreement between the Company and BayStar Group, of
Class A Common Stock, with or without warrants to purchase Class A Common Stock,
in accordance with Section 4(2) of the Securities Act or pursuant to the
Company's effective shelf registration statement under the Securities Act,
including the proposed sale of 5,555,556 shares of Class A Common Stock and the
issuance of a warrant to purchase 900,000 shares of Class A Common Stock, (7)
the issuance of the New Notes, and (8) the execution, delivery and performance
of all agreements, documents and instruments, including this Agreement,
evidencing the transactions described in clauses (1) through (7) of this
definition, and all arrangements contemplated thereby.

     Concurrent Financing Transactions Issuances: means the issuances or
potential issuances of, without limitation, (1) Class A Common Stock upon
conversion of the GM Note and the New Notes, (2) the GM Warrant and the Class A
Common Stock upon exercise thereof, (3) the Exchange Warrants and the Class A
Common Stock upon exercise thereof, (4) Class A Common Stock as payment of
interest on the GM Note, (5) Class A Common Stock as payment of interest under
the GM Credit Facility, (6) Class A Common Stock pursuant to the Distribution
Agreement in accordance with the terms thereof, and (7) Class A Common Stock and
warrants issued and sold as contemplated by clause (6) of the definition of
Concurrent Financing Transactions.

     Convertible Securities: means securities or obligations that are
exercisable for, convertible into or exchangeable for shares of Common Stock.
The term includes options, warrants or other rights to subscribe for or purchase
Common Stock or to subscribe for or purchase other securities or obligations
that are convertible into or exercisable or exchangeable for Common Stock,
including, without limitation, the Series A Convertible Preferred Stock, the
Series B Convertible Preferred Stock, the Series C Convertible Preferred Stock,
the GM Note, the New Notes and the GM Warrant.

     DIRECTV Operational Assistance Agreement: means the operational assistance
agreement dated on or about June 7, 1999 between DIRECTV, Inc. (an Affiliate of
DIRECTV) and XM, as it may be amended from time to time.

     Disinterested: means when used in respect of a director, a director who
does not have a direct or indirect interest in the terms or nature of the
transaction to be entered into (other than as a stockholder of the Company), it
being understood that directors of an Affiliate of the Person that designated a
director that is not deemed to be Disinterested shall not be deemed to be
Disinterested.

                                       -5-

<PAGE>

     Excluded Securities: means any (a) Common Stock or Convertible Securities
outstanding as of January 28, 2003 and any Common Stock issuable upon exercise
of such Convertible Securities, (b) Common Stock or Convertible Securities
issued under a Qualifying Stock Plan and (c) Common Stock or Convertible
Securities issued to Persons who are not Affiliates of the Company as partial
consideration for senior debt financing, equipment lease financing or
underwritten High Yield Debt financing pursuant to a registered public offering
under the Securities Act or pursuant to Rule 144A thereunder.

     FCC: means the Federal Communications Commission, or successor agency
thereof.

     GM Warrant: has the meaning specified in the recitals hereto.

     High Yield Debt: means secured or unsecured debt securities issued by the
Company or a wholly owned Subsidiary of the Company in a registered public
offering or an offering to Qualified Institutional Buyers and/or institutional
Accredited Investors under Rule 144A of the Securities Act of at least $50
million after the Series C Closing Date, with or without attached warrants or
quasi-equity rights issued by the Company or a Subsidiary of the Company.

     Investors: means the Persons specified in the Preamble.

     Non-Public Capital Stock: means Capital Stock that the Company intends to
issue without registration under the Securities Act.

     Notice of Proposed Issuance: has the meaning specified in Section 6.

     Offered Non-Public Capital Stock: has the meaning specified in Section 6.

     Permitted Transferees: means each transferee of any Capital Stock, with the
transfer being made in compliance with the provisions hereof.

     Person: means any individual, partnership, corporation, joint venture,
limited liability company, association, trust, unincorporated organization, or a
government or agency or political subdivision thereof.

     Private Financing Transaction: means a private placement or similar
transaction which provides financing to the Company in the amount of $25,000,000
or more, excluding the Concurrent Financing Transactions and Concurrent
Financing Transactions Issuances and transactions in which (i) the only
investors are Persons that have, or following such transaction will have,
substantive business relationship with the Company (other than the ownership of
securities of the Company or its Subsidiaries) and (ii) the consideration
received by the Company does not consist solely of cash.

     Qualified Institutional Buyer: has the meaning specified in Rule 144A
promulgated under the Securities Act.

     Qualifying Stock Plan: means, collectively, all approved stock incentive
plans for employees, consultants and non-employee directors, provided that (i)
issuances under a

                                       -6-

<PAGE>

Qualifying Stock Plan do not exceed 10% in the aggregate of the shares of Common
Stock Deemed Outstanding and (ii) such Qualifying Stock Plan has been approved
by a compensation committee of the Board of Directors or the full Board of
Directors, which, in either case, shall include at least one director designated
by the Original Investors and which approval shall include the approval of such
director so designated.

     Right of First Offer: means the rights granted to each Investor pursuant to
Section 6.1 hereof.

     Securities Act: means the Securities Act of 1933, as amended, or any
similar federal statute and the rules and regulations of the Commission
thereunder, all as the same shall be in effect from time to time.

     Series A Convertible Preferred Stock: means the Series A Convertible
Preferred Stock, par value $1.00 per share, of the Company having zero (0) votes
per share.

     Series B Convertible Preferred Stock: means the Series B Convertible
Redeemable Preferred Stock, par value $.01 per share, of the Company having zero
(0) votes per share.

     Series C Closing Date: means August 8, 2000.

     Series C Convertible Preferred Stock: means the Series C Convertible
Redeemable Preferred Stock, par value $.01 per share, of the Company, having the
same voting rights as the Class A Common Stock determined on an as converted
basis.

     Subsidiary: means, with respect to any Person, any corporation, association
or other business entity of which more than fifty percent (50%) of the voting
power of the outstanding Capital Stock is owned, directly or indirectly, by such
Person or one or other Subsidiaries of such Person.

     TCM Group: means Columbia, Madison and Telcom-XM Investors, L.L.C., a
Delaware limited liability company.

     TCM: means TCM, LLC, a Delaware limited liability company.

     TCM Operational Assistance Agreement: means the operational assistance
agreement dated on or about August 8, 2000 between TCM and the Company, as
amended by the parties from time to time.

                                   ARTICLE II.

                       COMPLIANCE WITH COMMUNICATIONS ACT

     Section 2.1 Conduct of Business. The Company, XM and XM Radio Inc. shall,
and the Company shall cause XM and its Subsidiaries to, conduct their business
in such manner as to comply with all applicable laws and regulations (including
but not limited to the

                                       -7-

<PAGE>

Communications Act of 1934, as amended (the "Communications Act"), and the rules
and regulations of the FCC).

     Section 2.2 Cooperation of Investors. The Company and the Investors agree
to work cooperatively in connection with the preservation, maintenance and any
extension or renewal by XM Radio Inc. of its SDARS license and to provide (and
to cause the Company to provide), with reasonable promptness, such information,
and assist in making all filings, as may be required or appropriate in
accordance with the Communications Act, FCC rules, regulations, and processes to
preserve, maintain and extend or renew XM Radio Inc.'s SDARS license.

     Section 2.3 Regulatory Approvals. To the extent that any regulatory
approval, notification or other submission or procedure is required or
customarily provided in connection with the exercise of any right or obligations
as set forth in this Agreement with respect to the transfer or assignment of
Capital Stock or changes to the Boards of Directors or appointment rights of
such directors (including, but not limited to, FCC approvals (if required) and
applicable securities laws), such transfer or assignment of Capital Stock or
changes pursuant to this Agreement will be delayed and will only take place
after such approval, notification or other submission or procedure has been
obtained, submitted or completed.

                                  ARTICLE III.

                   BOARD OBSERVATION; OPERATIONAL INVOLVEMENT

     Section 3.1 Observation Rights.

     (a) For such time as any of GM and DIRECTV (i) continues to hold, in the
aggregate, in excess of 5% of the Common Stock Deemed Outstanding, or (ii)
retains the full amount of its original investment in the Company (whether or
not converted into shares of Series A Convertible Preferred Stock or Class A
Common Stock), GM and DIRECTV together shall be allowed one observer at Board of
Directors meetings to represent whichever company does not have a representative
serving on the Board of Directors at that time.

     (b) For such time as any of Columbia and Madison (i) continues to hold in
excess of 2% of the Common Stock Deemed Outstanding, or (ii) retains at least
50% of its investment in the Company as of the Series C Closing Date, such
Investor shall be allowed to have an observer at Board of Directors meetings so
long as such company does not have an Affiliate serving as a member of the Board
of Directors at that time.

     (c) For such time as Clear Channel (i) continues to hold in excess of 5% of
the Common Stock Deemed Outstanding, or (ii) retains the full amount of its
original investment in the Company, Clear Channel shall be allowed an observer
at Board of Directors meetings.

     (d) For such time as Honda (i) retains at least 25% of its investment,
including debt and equity securities, in the Company (measured by the purchase
price paid by Honda for such securities and without regard to (A) whether or not
such securities have been converted into any other security of the Company or
(B) the current market value of any such securities) as of

                                       -8-

<PAGE>

January 28, 2003 and (ii) Honda does not have an Affiliate serving as a member
of the Board of Directors, Honda shall be allowed an observer at Board of
Directors meetings.

     Section 3.2 Operational Involvement of Clear Channel, DIRECTV and the TCM
Group.

     (a) For such time as Clear Channel (i) continues to hold in excess of 5% of
the Common Stock Deemed Outstanding, or (ii) retains the full amount of its
original investment in the Company, the Company agrees that Clear Channel shall
have operational rights and involvement as set forth in the Clear Channel
Operational Assistance Agreement, provided that such rights and involvement
shall terminate if Clear Channel ceases to be a wholly-owned subsidiary of Clear
Channel Communications, Inc.

     (b) For such time as DIRECTV (i) continues to hold in excess of 5% of the
Common Stock Deemed Outstanding, or (ii) retains the full amount of its original
investment in the Company, (whether or not converted into shares of Series A
Convertible Preferred Stock or Class A Common Stock), the Company agrees that
DIRECTV, Inc. shall have operational rights and involvement as set forth in the
DIRECTV Operational Assistance Agreement. Solely during such time as DIRECTV
remains a wholly owned subsidiary of Hughes Electronics Corporation, any Capital
Stock transferred to Hughes Electronics Corporation by DIRECTV (and held by
Hughes Electronics Corporation) shall be treated as Capital Stock held by
DIRECTV, for purposes of the preceding sentence.

     (c) For such time as Columbia and Madison (i) continue to hold, in the
aggregate, in excess of 5% of the Common Stock Deemed Outstanding, or (ii)
retain, in the aggregate, at least 50% of their investment in the Company as of
the Series C Closing Date, the Company agrees that the TCM Group shall have
operational rights and involvement as set forth in the TCM Operational
Assistance Agreement.

                                   ARTICLE IV.

                             CERTAIN REPRESENTATIONS

     Each Party hereby represents and warrants on behalf of itself to each other
Party that:

     Section 4.1 Existence and Power. To the extent such Party is an entity:

     (a) it is an entity duly organized, validly existing and in good standing
under the laws of its jurisdiction of formation;

     (b) it has the power and authority to own its assets, carry on its business
and execute, deliver, and perform its obligations under this Agreement; and

     (c) it is duly qualified to do business and is licensed and in good
standing under the laws of each jurisdiction where its ownership, lease or
operation of property or the conduct of its

                                       -9-

<PAGE>

business requires such qualification or license except where such failure to
qualify would not have a material adverse effect on the business or financial
condition of such Party.

     Section 4.2 Due Authorization; No Contravention. To the extent such Party
is an entity, the execution, delivery and performance by it of this Agreement
have been duly authorized by all necessary action, and do not and will not:

     (a) Breach or violate the terms of its certificate of incorporation (or
similar constituent document) or bylaws (or similar constituent document);

     (b) Breach or violate the terms of any material agreement to which it is
party; or

     (c) Violate any law or regulation applicable to it, including but not
limited to the Communications Act and the rules and regulations promulgated from
time to time by the FCC.

     To the extent such Party is an individual, the execution, delivery and
performance by him of this Agreement does not and will not breach or violate the
terms of any material agreement to which he is a party or violate any law or
regulation applicable to him.

     Section 4.3 Binding Effect. This Agreement has been duly authorized (to the
extent such Party is an entity), executed and delivered by such Party and
constitutes the legal, valid and binding obligation of such Party enforceable
against such Party in accordance with the terms hereof, subject to applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and
similar laws affecting creditors' rights generally and to general principles of
equity (regardless of whether enforcement is sought in a proceeding in equity or
at law).

                                   ARTICLE V.

                              CONSENT REQUIREMENTS

     Section 5.1 Investor Approval Rights. For so long as an aggregate of at
least 50% of the original aggregate principal amount of the Notes at maturity
continues to be held by the Note Investors, the affirmative vote or consent of
Note Investors holding greater than 75% of the aggregate principal amount at
maturity of the then outstanding Notes held by Note Investors, voting as a
separate class, will be required for the following actions:

     (a)  Any amendment, alteration or repeal of any provision of the
          Certificate of Incorporation (including any certificate of
          designations) or By-laws of the Company or any of its Subsidiaries
          that is material to the rights of the Note Investors;

     (b)  Any increase in the outstanding number of shares of the Series A
          Convertible Preferred Stock, the Series B Convertible Preferred Stock
          or the Series C Convertible Preferred Stock, except for increases in
          connection with anti-dilution adjustments under the terms of such
          securities;

                                      -10-

<PAGE>

     (c)  The issuance of Common Stock or securities convertible into Common
          Stock, (excluding Common Stock issued in respect of (1) Convertible
          Securities outstanding on January 28, 2003, (2) securities issued as
          payment of or in lieu of a dividend or interest payment on securities
          outstanding on January 28, 2003 and (3) any securities issued pursuant
          to the agreements contemplated by or which implement the Concurrent
          Financing Transactions), which would increase the number of shares of
          Common Stock Deemed Outstanding on January 28, 2003 (after giving
          effect to the Concurrent Financing Transactions and the Concurrent
          Financing Transactions Issuances) by 20% or more in one or more than
          one issuance;

     (d)  The incurrence by the Company or any of its Subsidiaries of any
          indebtedness or the issuance of any securities, in each case, that
          contain financial, operational or subscriber maintenance or milestone
          covenants that if not met would put the Company or any of its
          Subsidiaries in default under the terms of any indebtedness or
          securities;

     (e)  The declaration and payment of any dividends on, or the making of any
          distribution with respect to, any securities junior to or pari passu
          with the Notes, other than dividends consisting solely of Class A
          Common Stock to the holders of Series B Convertible Preferred Stock or
          the Series C Convertible Preferred Stock to the extent such dividends
          are required to be paid by the terms of such securities;

     (f)  Any merger or consolidation or sale, transfer, assignment, conveyance
          or other disposition to a third party of all or substantially all of
          the properties or assets of the Company or any of its Subsidiaries in
          one or more related transactions;

     (g)  The dissolution of the Company or any Subsidiary or adoption of a plan
          of liquidation for the Company or any Subsidiary;

     (h)  The purchase, redemption or other acquisition or retirement by the
          Company or any Subsidiary for value (including, in connection with any
          merger or reorganization) of any securities of the Company or any
          Subsidiary, except that (i) the Company or XM may repurchase or redeem
          up to 35% of XM's 14% Senior Secured Discount Notes due 2010 (or such
          applicable percentage as may be required upon a change of control) and
          exercise any similar option to repurchase or redeem contained in
          future issuances of High Yield Debt, (ii) the Company or XM may
          undertake any redemption under any of the documents contemplated by
          the Concurrent Financing Transactions, including without limitation,
          an offer to purchase in connection with a change of control, (iii) the
          Company may redeem its equity securities in an aggregate amount not to
          exceed $5 million; and (iv) the repurchase, redemption, retirement or
          acquisition of equity, debt, convertible securities, warrants or
          similar securities of the Company or XM in connection with any
          exchange transactions involving the issuance of shares of Class A
          Common Stock and/or use of cash proceeds of substantially

                                      -11-

<PAGE>

          concurrent issuances of Class A Common Stock in exchange for or as a
          repurchase, redemption, retirement or acquisition of such securities,
          approved by the Finance Committee of the Company's Board of Directors
          after June 1, 2003;

     (i)  any change in the terms of the Notes or any securities or debt
          obligations of the Company or its Subsidiaries ranking senior to or on
          a parity with the Notes (other than with respect to the Company's
          credit agreement with Boeing Capital Corporation and the Company's
          mortgage with respect to its headquarters facility) or any change in
          the terms of securities or debt obligations ranking junior to the
          Notes as to right of payment or priority with respect to the
          collateral securing the Notes that increases the seniority of such
          junior securities or debt obligations so that they rank senior to or
          on a parity with the Notes; provided, that (a) any change in the terms
          of the New Notes that is not adverse to the GM Note shall require only
          the approval of 75% of the aggregate principal amount at maturity of
          the then outstanding New Notes and (b) any change in the terms of the
          GM Note that is not adverse to the New Notes shall require only the
          approval of GM;

     (j)  Any action that results in any agreement, arrangement or understanding
          that would impose material restrictions on the Company's or any of its
          Subsidiary's ability to honor the exercise of any rights of the Note
          Investors or violate or conflict with, rights of the Note Investors;

     (k)  The making of loans or advances to, transferring properties to, or
          guaranteeing any indebtedness of the Company's Subsidiaries other than
          Subsidiaries directly engaged in the satellite radio business;

     (l)  Any change in the principal nature of the business of the Company and
          its Subsidiaries, taken as a whole, to a business other than the
          satellite radio business or a business substantially related thereto;

     (m)  any payments to, or any sale, lease, transfer or other disposition of
          any of the Company's or any of its Subsidiaries' properties or assets
          to, or purchase of any property or assets from, or entering into or
          making or amending any transaction, contract, agreement,
          understanding, loan, advance or guarantee with, or for the benefit of,
          any Affiliate (each, an "Affiliate Transaction"), unless the following
          are complied with:

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

          (ii) the Company delivers to the Note Investors:

               (A)  with respect to any Affiliate Transaction or series of
                    related Affiliate Transactions involving aggregate
                    consideration in excess

                                      -12-

<PAGE>

                    of $5.0 million, a resolution of the Board of Directors set
                    forth in an officers' certificate certifying that such
                    Affiliate Transaction complies with this clause (m) and, if
                    an opinion meeting the requirements of clause (B) below has
                    not been obtained, that such Affiliate Transaction has been
                    approved by a majority of the Disinterested members of the
                    Board of Directors with respect to such Affiliate
                    Transaction; and

               (B)  with respect to any Affiliate Transaction or series of
                    related Affiliate Transactions involving aggregate
                    consideration in excess of $20.0 million or any Affiliate
                    Transaction or series of related Affiliate Transactions
                    involving aggregate consideration in excess of $5.0 million
                    where none of the members of the Board of Directors
                    qualifies as Disinterested, an opinion as to the fairness to
                    the Company or such Subsidiary of such Affiliate Transaction
                    from a financial point of view issued by an accounting,
                    appraisal or investment banking firm of national standing.

               The following items shall not be deemed to be Affiliate
Transactions and, therefore, will not be subject to the provisions of this
clause (m):

               (1)  any transaction by the Company or any of its Subsidiaries
                    with an Affiliate directly related to the purchase, sale or
                    distribution of products in the ordinary course of business
                    consistent with industry practice which has been approved by
                    a majority of the members of the Board of Directors of the
                    Company who are Disinterested with respect to such
                    transaction;

               (2)  any employment agreement or arrangement or employee benefit
                    plan entered into or instituted by the Company or any of its
                    Subsidiaries in the ordinary course of business of the
                    Company or Subsidiary and which has been approved by a
                    majority of the members of the Board of Directors of the
                    Company who are Disinterested with respect to such
                    transaction;

               (3)  transactions between or among the Company and/or its
                    wholly-owned Subsidiaries;

               (4)  payment of reasonable directors fees and the provision of
                    customary indemnification to directors, officers and
                    employees of the Company and its Subsidiaries;

               (5)  contractual arrangements existing on January 28, 2003, and
                    any renewals, extensions, implementations or modifications
                    thereof that are not materially adverse to the Note
                    Investors that have been

                                      -13-

<PAGE>

                    approved by a majority of the members of the Board of
                    Directors of the Company who are Disinterested with respect
                    to such transaction.

     (n)  Entering into any transaction that would result in any Subsidiary of
          the Company material to the Company's satellite radio business not
          being wholly owned, directly or indirectly, by the Company other than
          pledges of the common stock of any Subsidiary of the Company permitted
          pursuant to the Note Purchase Agreement in connection with the
          Concurrent Financing Transactions;

     (o)  Any optional redemption, repurchase or other acquisition of debt or
          equity securities or other debt obligations for cash of the Company or
          any Subsidiaries of the Company, which securities or obligations are
          pari passu with or junior to the Notes in right of payment, except to
          the extent permitted by (h) above;

     (p)  Any authorization, creation, reclassification or issuance of any debt
          or equity securities or other debt obligations senior to (or otherwise
          having a preference over) or ranking pari passu with the Notes in
          right of payment or priority with respect to the security provided
          therefor or otherwise other than as permitted by the Concurrent
          Financing Transactions documents as in effect on January 28, 2003;

     (q)  Any amendment, alteration or waiver of any provision of Article VIII
          hereof; or

     (r)  Agreeing or committing to do any of the foregoing.

     Section 5.2 Consent Rights Non-transferable. The consent rights conferred
upon the Note Investors pursuant to Section 5.1 hereof are personal to the Note
Investors and shall not be assignable or otherwise transferable other than to an
Affiliate of a Note Investor or another Note Investor.

                                   ARTICLE VI.

                  RIGHT OF FIRST OFFER; ANTIDILUTION PROTECTION

     Section 6.1 Right of First Offer. The Company shall only issue Non-Public
Capital Stock in a Private Financing Transaction in accordance with the
following terms:

     (a) The Company shall not issue any Non-Public Capital Stock in a Private
Financing Transaction unless it first delivers to each Investor who is then an
Eligible Purchaser (as defined below) and who, in the case of Note Investors,
purchases at least $10 million in aggregate principal amount at maturity of New
Notes at the closing of the Concurrent Financing Transactions (each such Person
being referred to in this Section 6 as a "Buyer"), a written notice (the "Notice
of Proposed Issuance") specifying the type and total number of such shares of
Non-Public Capital Stock that the Company then intends to issue (the "Offered
Non-Public Capital Stock"), all of the material terms, including the price upon
which the Company proposes to issue the Offered Non-Public Capital Stock and
stating that the Buyers shall have the right to purchase

                                      -14-

<PAGE>

the Offered Non-Public Capital Stock in the manner specified in this Section 6.1
for the same price per share and in accordance with the same terms and
conditions specified in such Notice of Proposed Issuance.

     (b) For a period of ten (10) calendar days from the date the Company
delivers to all of the Buyers the Notice of Proposed Issuance (the "Ten Day
Period"), the Buyers may elect to subscribe to purchase Offered Non-Public
Capital Stock at the same price per share and upon the same terms and conditions
specified in the Notice of Proposed Issuance. Each Buyer electing to purchase
Offered Non-Public Capital Stock must give written notice of its election to the
Company prior to the expiration of the Ten Day Period. If the Offered Non-Public
Capital Stock is being offered as part of an investment unit together with debt
or other instruments, any election by a Buyer to purchase Offered Non-Public
Capital Stock shall also constitute an election to purchase a like portion of
such debt or other instruments.

     (c) Each Buyer shall have the right to purchase that number of shares of
the Offered Non-Public Capital Stock as shall be equal to the number of shares
of the Offered Non-Public Capital Stock multiplied by a fraction, the numerator
of which shall be the number of shares of Common Stock then held by such Buyer
plus all shares of Common Stock issuable upon conversion of all Convertible
Securities then held by such Buyer and the denominator of which shall be the
aggregate number of shares of Common Stock Deemed Outstanding. The amount of
such Offered Non-Public Capital Stock that each Buyer is entitled to purchase
under this Section 6 shall be referred to as its "Proportionate Share."

     (d) Each Buyer shall have a right of oversubscription such that if any
other Buyer fails to elect to purchase his or its full Proportionate Share of
the Offered Non-Public Capital Stock, the other Buyer(s) shall, among them, have
the right to purchase up to the balance of such Offered Non-Public Capital Stock
not so purchased. The Buyers may exercise such right of oversubscription by
electing to purchase more than their Proportionate Share of the Offered
Non-Public Capital Stock by so indicating in their written notice given during
the Ten Day Period. If, as a result thereof, such oversubscription elections
exceed the total number of the Offered Non-Public Capital Stock available in
respect to such oversubscription privilege, the oversubscribing Buyers shall be
cut back with respect to oversubscriptions on a pro rata basis in accordance
with their respective Proportionate Share or as they may otherwise agree among
themselves.

     (e) If all of the Offered Non-Public Capital Stock has not been subscribed
for by the Buyers pursuant to the foregoing provisions, then the Company shall
have the right, until the expiration of one-hundred eighty (180) consecutive
days commencing on the first day immediately following the expiration of the Ten
Day Period, to issue the Offered Non-Public Capital Stock not purchased by the
Buyers at not less than, and on terms no more favorable in any material respect
to the purchaser(s) thereof than, the price and terms specified in the Notice of
Proposed Issuance. If such remaining Offered Non-Public Capital Stock is not
issued within such period and at such price and on such terms, the right to
issue in accordance with the Notice of Proposed Issuance shall expire and the
provisions of this Agreement shall continue to be applicable to the Offered
Non-Public Capital Stock.

                                      -15-

<PAGE>

     (f) The Company may proceed with the issuance of Non-Public Capital Stock
without first following the foregoing procedures provided that within ten (10)
days following the issuance of such Non-Public Capital Stock, the Company or the
purchaser of the Non-Public Capital Stock undertakes steps substantially similar
to those described above to offer to all Buyers the right to purchase from such
purchaser or from the Company such amount of such Non-Public Capital Stock at
the same price and terms applicable to the purchaser's purchase thereof as is
necessary for the Buyers to maintain the same ownership percentage of the
Company on a fully diluted basis as existed prior to such issuance of Non-Public
Capital Stock.

     (g) Notwithstanding the foregoing, the Right of First Offer described in
this Section 6 shall not apply with respect to the issuance of Excluded
Securities or to any Investor who is not an Eligible Purchaser. For purposes of
this Section 6, any Investor shall be an "Eligible Purchaser" with respect to a
proposed issuance of Non-Public Capital Stock if such Investor meets the
Company's reasonable requirements for investors generally (such as being an
Accredited Investor or Qualified Institutional Buyer) to purchase Non-Public
Capital Stock in the particular Private Financing Transaction.

     (h) The rights granted under this Section 6.1 are personal to the Investors
and shall not be assignable or otherwise transferable other than to an Affiliate
of an Investor.

     Section 6.2 Antidilution Protection.

     (a) In the event that, at a time when Series C Convertible Preferred Stock
is then outstanding, the Company grants any Antidilution Protection to any
purchaser(s) of 1% or more (on a fully diluted basis) of the Capital Stock which
would (if granted to the holders of the Series C Convertible Preferred Stock) be
materially more favorable (taken as a whole) to the holders of the Series C
Convertible Preferred Stock than the Antidilution Protection then applicable to
the Series C Convertible Preferred Stock (a "New Antidilution Protection"), then
if the holders of a majority of the Series C Convertible Preferred Stock
outstanding so elect by written notice to the Company, the Company and the
Series C Investors shall use their best efforts to take all steps determined in
good faith by the Board of Directors to be reasonably necessary to provide (and
the Investors and their Permitted Transferees, other than Permitted Transferees
of Common Stock sold pursuant to an effective registration statement or Rule 144
or Rule 145 under the Securities Act of 1933, as amended) shall vote in favor of
any amendment to the Certificate of Designation of the Series C Convertible
Preferred Stock which may be necessary), as nearly as practicable under the
circumstances and consistent with the other terms of Certificate of Designation
for the Series C Convertible Preferred Stock, the New Antidilution Protection to
the holders of the Series C Convertible Preferred Stock as a replacement for the
Antidilution Protection then applicable to the Series C Convertible Preferred
Stock.

     (b) In the event that a New Antidilution Protection is granted to the
holders of the Series C Convertible Preferred Stock as a replacement for the
Antidilution Protection then applicable to the Series C Convertible Preferred
Stock, if the Note Investors holding a majority of the outstanding aggregate
principal amount at maturity of the New Notes so elect, the Company and the Note
Investors shall use their best efforts to take all steps determined in good
faith by the Board of Directors to be reasonably necessary to provide, as nearly
as practicable under the

                                      -16-

<PAGE>

circumstances and consistent with the GM Note Purchase Agreement, the New Note
Purchase Agreement, the Notes and this Agreement, the New Antidilution
Protection to the Note Investors.

                                  ARTICLE VII.

                                  MISCELLANEOUS

     Section 7.1 Amendment and Restatement. This Agreement hereby restates,
amends and supersedes the January 2003 Agreement.

     Section 7.2 Notices. Except as otherwise provided in this Agreement,
notices and other communications under this Agreement shall be in writing and
shall be deemed properly served if: (i) mailed by registered or certified mail,
return receipt requested, (ii) delivered by a recognized overnight courier
service, (iii) delivered personally, or (iv) sent by facsimile transmission
addressed to each Party at its address for notices specified on Schedule I
attached hereto, or at such other address, or to the attention of such officer,
as any Party shall have furnished to each other Party in writing pursuant to
this Section 7.2. Such notice shall be deemed to have been received: (i) three
(3) Business Days after the date of mailing if sent by certified or registered
mail, (ii) one (1) Business Day after the date of delivery if sent by overnight
courier, (iii) the date of delivery if personally delivered, or (iv) the next
succeeding Business Day after transmission by facsimile with confirmation of
receipt.

     Section 7.3 Amendment. Any term of this Agreement may be amended only with
the written consent of (a) the Company, (b) Investors holding, (i) in the case
of amendments to provisions of this Agreement generally, 75% of the aggregate of
the Common Stock Deemed Outstanding held by Investors, and (ii) in the case of
any non-material change or technical correction of this Agreement, a majority of
the aggregate of the Common Stock Deemed Outstanding held by Investors, (c) in
the case of amendments to Section 6.1 or 6.2(a) of this Agreement, in addition
to the consents listed in clauses (a) and (b) of this Section, at least 66-2/3%
of the aggregate of the Common Stock Deemed Outstanding held by Series C
Investors, (d) in the case of amendments to Section 6.1 or 6.2(b) of this
Agreement, in addition to the consents listed in clauses (a) and (b) of this
Section, at least 66-2/3% of the aggregate principal amount at maturity of the
then outstanding Notes, and (e) in the case of amendments to Section 5.1 of this
Agreement, in addition to the consents listed in clauses (a) and (b) of this
Section, greater than 75% of the aggregate principal amount at maturity of the
then outstanding Notes held by the Note Investors; provided, however, that in
the event the rights, preferences or obligations hereunder of one or more
Investors are being amended in a manner that is materially adverse to such
Investors and in a manner that is different from those of other Investors, such
rights, preferences or obligations may be so amended only with the consent of
the Investors holding at least 75% in the aggregate of the Common Stock Deemed
Outstanding held by Investors whose rights, preferences or obligations are being
materially adversely amended in such different manner. Any amendment effected in
accordance with this Section 7.3 shall be binding upon each Investor and the
Company.

     Section 7.4 Specific Performance. Each Party acknowledges (i) that it will
be impossible to measure in money the damage to each other Party if any of them
or any legal

                                      -17-

<PAGE>

representative of any Party fails to comply with any of the provisions of this
Agreement, (ii) that every such provision is material, and (iii) that in the
event of any such failure, the Company and the Investors will not have an
adequate remedy at law or in damages. Accordingly, each Party hereto consents to
the issuance of an injunction or the enforcement of other equitable remedies
against it at the suit of an aggrieved Party without the posting of any bond or
other security, to compel specific performance of all of the terms hereof and to
prevent any disposition of shares of Capital Stock in contravention of any terms
of this Agreement, and waives any defense thereto, including, without
limitation, the defenses of (i) failure of consideration, (ii) breach of any
other provision of this Agreement and (iii) availability or relief in damages.

     Section 7.5 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT GIVING
EFFECT TO ANY CONFLICT OF LAW PROVISIONS THEREOF.

     EACH OF THE PARTIES ACKNOWLEDGES THAT (i) IT IS A KNOWLEDGEABLE, INFORMED,
SOPHISTICATED BUSINESS ENTITY CAPABLE OF UNDERSTANDING AND EVALUATING THE
PROVISIONS SET FORTH IN THIS AGREEMENT, INCLUDING THIS SECTION 7.5, AND (ii) IT
HAS BEEN REPRESENTED BY SUCH COUNSEL AND OTHER ADVISORS OF ITS CHOOSING AS IT
HAS DEEMED APPROPRIATE IN CONNECTION WITH ITS DECISION TO ENTER INTO THIS
AGREEMENT.

     Section 7.6 Parties In Interest. This Agreement shall be binding upon and
shall inure to the benefit of each Party and their respective successors and
assigns as provided for herein, and by their signatures hereto, and each Party
intends to and does hereby become bound. Nothing expressed or mentioned in this
Agreement is intended or shall be construed to give any Person other than the
Parties hereto and their respective successors and assigns any legal or
equitable right, remedy or claim under or in or in respect of this Agreement or
any provision herein contained.

     Section 7.7 Severability of Provisions. In case any one or more of the
provisions contained in this Agreement should be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby.

     Section 7.8 Plural; Singular. When used herein, the singular of each term
includes the plural and the plural of each term includes the singular.

     Section 7.9 Counterparts. This Agreement may be executed in any number of
counterparts all of which taken together shall constitute one agreement and any
Party hereto may execute this Agreement by signing any such counterpart.

     Section 7.10 Descriptive Headings. The descriptive headings of the several
sections of this Agreement are inserted for convenience only and do not
constitute a part of this Agreement.

                                      -18-

<PAGE>

     Section 7.11 Future Assurances. Each Party shall execute and deliver all
such future instruments and take such other and further action as may be
reasonably necessary or appropriate to carry out the provisions of this
Agreement and the intention of the Parties as expressed herein.

     Section 7.12 Termination. This Agreement shall be immediately terminated
upon any of the following: (i) the unanimous written consent to the termination
hereof by the Parties hereto, (ii) the dissolution, bankruptcy or receivership
of the Company, or (iii) at such time as only one (1) Investor remains a Party
hereto. This Agreement shall be immediately terminated as to any Party that
transfers all of its Capital Stock to any Person that is not an Affiliate of
such Party.

                                  ARTICLE VIII.

                                    COVENANTS

     The Obligors hereby covenant and agree with each Note Investor who is a
holder of consent rights under Section 5.1 (after giving effect to Section 5.2)
of this Agreement as follows:

     Section 8.1. Restricted Payments. Neither of the Obligors shall directly or
indirectly (through a Material Subsidiary or otherwise): (i) declare or pay any
dividend or make any other payment or distribution on account of the Equity
Interests of either Obligor (including any payment in connection with any merger
or consolidation involving an Obligor) or to the direct or indirect holders of
such Equity Interests in their capacities as such (other than dividends or
distributions payable in Equity Interests (other than Disqualified Stock) of an
Obligor and cash in lieu of fractional interests not to exceed 1% of the Equity
Interests distributed or paid); (ii) other than pursuant to a Parent Company
Merger, purchase, redeem or otherwise acquire or retire for value (including in
connection with any merger or consolidation involving an Obligor) any Equity
Interests of an Obligor (other than any such Equity Interests owned by an
Obligor or any of its Material Subsidiaries) or any Affiliate of an Obligor
(other than any of its Material Subsidiaries); (iii) make any payment on or with
respect to, or purchase, redeem, defease or otherwise acquire or retire for
value any Indebtedness that is subordinated in right of payment to the Notes
except a payment of interest or a payment of principal at Stated Maturity
thereof; or (iv) make any Investment other than a Permitted Investment (all such
payments and other actions set forth in clauses (i) through (iv) above being
collectively referred to as "Restricted Payments"). So long as no Default has
occurred and is continuing or would be caused thereby, the foregoing provisions
shall not prohibit: (1) the redemption, repurchase, retirement, defeasance or
other acquisition of any Subordinated Indebtedness of an Obligor or of any
Equity Interests of the Company in exchange for, or out of the net cash proceeds
of the substantially concurrent sale (other than to a Subsidiary of an Obligor)
of, Equity Interests of the Company (other than Disqualified Stock) and cash
payments in lieu of fractional interests not to exceed 1% of the Equity
Interests so redeemed, repurchased, retired, defeased or otherwise acquired; (2)
the purchase, redemption, defeasance or other acquisition or retirement for
value of Subordinated Indebtedness of an Obligor in exchange for, or out of the
net cash proceeds of a substantially concurrent incurrence (other than to a
Subsidiary of an Obligor) of, Permitted Refinancing Indebtedness; (3) the
declaration or payment of any dividend or distribution by a Wholly Owned
Subsidiary of an Obligor to the holders of its common Equity Interests; (4) the
repurchase,

                                      -19-

<PAGE>

redemption or other acquisition or retirement for value of any Equity Interests
of The Company or any Subsidiary thereof held by any member of such Obligor's
(or any of its Subsidiaries') management pursuant to any management equity
subscription agreement or stock option agreement in effect as of January 28,
2003; provided that the aggregate price paid for all such repurchased, redeemed,
acquired or retired Equity Interests shall not exceed $250,000 in any
twelve-month period; (5) the purchase of any Subordinated Indebtedness of an
Obligor at a purchase price not greater than 100% of the principal amount or
accreted value thereof, as the case may be, together with accrued interest, if
any, following an Asset Sale in accordance with provisions similar to those
contained in Section 8.4; provided, however, that prior to making any such
purchase the Obligor has made the Asset Sale Offer as provided in such covenant
with respect to the Notes and has purchased all Notes validly tendered for
payment in connection with such Asset Sale Offer; (6) making payments to
dissenting shareholders pursuant to applicable law in connection with a
consolidation or merger of an Obligor made in compliance with the provisions of
this Agreement; (7) Investments, other than Permitted Investments, in an amount
equal to 100% of Total Incremental Equity determined as of the date any such
Investment is made; (8) the purchase of (a) any Subordinated Indebtedness of an
Obligor at a purchase price not greater than 101% of the principal amount or
accreted value thereof, as the case may be, together with accrued interest, if
any, in the event of a Change of Control in accordance with provisions similar
to those of Section 8.7 or (b) any Preferred Stock of an Obligor at a purchase
price not greater than 101% of the liquidation preference thereof, together with
accrued dividends, if any, in the event of a Change of Control in accordance
with provisions similar to those of Section 8.7; provided, however, that, in
each case, prior to such purchase the Obligors have made the Change of Control
Offer required by this Agreement with respect to the Notes and have purchased
all Notes validly tendered for payment in connection with such Change of Control
Offer; (9) the payment of any dividend required pursuant to the Tax Sharing
Agreement, as such is in effect on January 28, 2003; and (10) any payments
required by Section 9.7(b) of the New Note Purchase Agreement (as defined in
this Agreement).

     The amount of all Restricted Payments (other than cash) shall be the fair
market value on the date of the Restricted Payment of the assets or securities
proposed to be transferred or issued to or by an Obligor pursuant to the
Restricted Payment. The fair market value of any assets or securities that are
required to be valued by this covenant shall be determined by the Board of
Directors of such Obligor whose Board Resolution with respect thereto shall be
conclusive. Such Board of Directors' determination must be based upon an opinion
or appraisal issued by an accounting, appraisal or investment banking firm of
national standing if the fair market value of such assets or securities exceeds
$20,000,000.

     Section 8.2. Dividend and Other Payment Restrictions Affecting Material
Subsidiaries. Neither of the Obligors shall, or permit any of the Material
Subsidiaries to, directly or indirectly, create or permit to exist or become
effective any consensual encumbrance or restriction on the ability of any
Material Subsidiary to (a) pay dividends or make any other distributions on its
Capital Stock to such Obligor or any of its Material Subsidiaries or with
respect to any other interest or participation in, or measured by, its profits
or pay any indebtedness owed to either of the Obligors or any of the Material
Subsidiaries, (b) make loans or advances to either of the Obligors or any of the
Material Subsidiaries, (c) transfer any of its properties or assets to either of

                                      -20-

<PAGE>

the Obligors or any of the Material Subsidiaries, or (d) guarantee any
Indebtedness of either of the Obligors or any of the Material Subsidiaries.

     However, the preceding restrictions will not apply to encumbrances or
restrictions existing under or by reason of:

     (1) Existing Indebtedness as in effect on January 28, 2003, and any
amendments, modifications, restatements, renewals, increases, supplements,
refundings, replacements or refinancings thereof, provided that such amendments,
modifications, restatements, renewals, increases, supplements, refundings,
replacement or refinancings are no more restrictive, taken as a whole, with
respect to such dividend and other payment restrictions than those contained in
such Existing Indebtedness or Indebtedness pursuant to the Concurrent Financing
Transactions, as in effect on January 28, 2003;

     (2) Indebtedness pursuant to the Notes and this Agreement;

     (3) applicable law;

     (4) any instrument governing Indebtedness or Capital Stock of a Person
acquired by either of the Obligors or any of the Material Subsidiaries as in
effect at the time of such acquisition (except to the extent such Indebtedness
was incurred in connection with or in contemplation of such acquisition), which
encumbrance or restriction is not applicable to any Person, or the properties or
assets of any Person, other than the Person, or the property or assets of the
Person, so acquired, provided that, in the case of Indebtedness, such
Indebtedness was permitted by the terms of this Agreement to be incurred;

     (5) customary non-assignment provisions in leases or contracts or real
property mortgages or related documents entered into in the ordinary course of
business and consistent with past practices;

     (6) purchase money obligations, Capital Lease Obligations or mortgage
financings that impose restrictions on the property so acquired of the nature
described in clause (c) of the preceding paragraph;

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

     (8) Permitted Refinancing Indebtedness, provided that the restrictions
contained in the agreements governing such Permitted Refinancing Indebtedness
are no more restrictive, taken as a whole, than those contained in the
agreements governing the Indebtedness being refinanced;

     (9) Liens securing Indebtedness that limit the right of the debtor to
dispose of the assets subject to such Lien;

     (10) provisions with respect to the disposition or distribution of assets
or property in joint venture agreements, asset sale agreements, stock sale
agreements and other similar agreements entered into in the ordinary course of
business; and

                                      -21-

<PAGE>

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

     Section 8.3. Incurrence of Indebtedness and Issuance of Preferred Stock.
Neither of the Obligors shall, or shall permit any of its Material Subsidiaries
to, directly or indirectly, create, incur, issue, assume, guarantee or otherwise
become directly or indirectly liable, contingently or otherwise, with respect to
(collectively, "incur") any Indebtedness (including Acquired Debt), and neither
of the Obligors shall issue any Disqualified Stock.

     Neither of the Obligors shall incur any Indebtedness (including Permitted
Debt) that is contractually subordinated in right of payment to any other
Indebtedness of such Obligor unless such Indebtedness is also contractually
subordinated to the Notes on substantially identical terms; provided, however,
that no Indebtedness of such Obligor shall be deemed to be contractually
subordinated in right of payment to any other Indebtedness of such Obligor
solely by virtue of being unsecured.

     The provisions of the first paragraph of this Section 8.3 shall not apply
to the incurrence of any of the following items of Indebtedness (collectively,
"Permitted Debt"):

     (i) the incurrence by an Obligor of Pari Passu Indebtedness in an aggregate
principal amount (including the aggregate principal amount of all Permitted
Refinancing Indebtedness incurred to refund, refinance or replace any
Indebtedness incurred pursuant to this clause (i)), which does not exceed
$100,000,000 (in the aggregate for both Obligors), provided that (A) no more
than $50,000,000 thereof (less any amount of Indebtedness incurred under clause
(xii) below) may consist of Indebtedness under revolving credit working capital
facilities entered into with one or more commercial bank or similar
institutional lenders and (B) none of which may consist of Indebtedness under
any other type of borrowing arrangement with a commercial bank or similar
institutional lender;

     (ii) unsecured Subordinated Indebtedness or Disqualified Stock of an
Obligor incurred to finance the construction, expansion, development or
acquisition of music libraries and other recorded music programming, furniture,
fixtures and equipment (including satellites, ground stations and related
equipment) if such Subordinated Indebtedness or Disqualified Stock, as
applicable, has a Weighted Average Life to Maturity longer than the Weighted
Average Life to Maturity of the Notes and has a final Stated Maturity of
principal later than the Stated Maturity of principal of the Notes;

     (iii) unsecured Subordinated Indebtedness or Disqualified Stock of an
Obligor in an aggregate principal amount (or liquidation preference, as
applicable) (including the aggregate principal amount (or liquidation
preference, as applicable) of all Permitted Refinancing Indebtedness incurred to
refund, refinance or replace any Indebtedness or Disqualified Stock, as
applicable, incurred pursuant to this clause (iii)) at any time outstanding not
to exceed the product of (a) $100.00 and (b) the number of Subscribers at such
time if such Subordinated Indebtedness or Disqualified Stock, as applicable, has
a Weighted Average Life to Maturity longer than the Weighted Average Life to
Maturity of the Notes and has a final Stated Maturity of principal later than
the Stated Maturity of principal of the Notes;

                                      -22-

<PAGE>

     (iv) the incurrence by an Obligor or a Material Subsidiary of Existing
Indebtedness and the incurrence by an Obligor or a Material Subsidiary of
Indebtedness pursuant to the Concurrent Financing Transactions;

     (v) the incurrence by the Obligors of the Indebtedness represented by the
Notes;

     (vi) the incurrence by an Obligor or a Material Subsidiary of Indebtedness
represented by Capital Lease Obligations, mortgage financings or purchase money
obligations, in each case, incurred for the purpose of financing all or any part
of the purchase price or cost of acquisition, construction or improvement of (A)
replacement satellites and related equipment and launches in an aggregate
principal amount (or initial accreted value if such indebtedness is issued with
original issue discount), including all Permitted Refinancing Indebtedness
incurred to refund, refinance or replace any Indebtedness incurred pursuant to
this clause (vi)(A), not to exceed $200,000,000 at anytime outstanding in the
aggregate for both of the Obligors and all of the Material Subsidiaries and (B)
property, plant or equipment used in the business of such Obligor or Material
Subsidiary, in an aggregate principal amount, including all Permitted
Refinancing Indebtedness incurred to refund, refinance or replace any
Indebtedness incurred pursuant to this clause (vi), not to exceed $30,000,000 at
any time outstanding in the aggregate for both of the Obligors and all of the
Material Subsidiaries;

     (vii) the incurrence by an Obligor or a Material Subsidiary of Permitted
Refinancing Indebtedness in exchange for, or the net proceeds of which are used
to refund, refinance or replace Indebtedness (other than intercompany
Indebtedness) that was permitted by this Agreement to be incurred under clauses
(i), (ii), (iii), (iv), (v), (vi), (xii), (xiii), (xiv) or (xv) of this
paragraph;

     (viii) the incurrence by an Obligor or a Material Subsidiary of
intercompany Indebtedness between or among such Obligor and any of its Material
Subsidiaries; provided, however, that: (a) if such Obligor is the obligor on
such Indebtedness, such Indebtedness must be expressly subordinated to the prior
payment in full in cash of all Obligations with respect to the Notes; and (b)
(i) any subsequent issuance or transfer of Equity Interests that results in any
such Indebtedness being held by a Person other than such Obligor or a Material
Subsidiary thereof and (ii) any sale or other transfer of any such Indebtedness
to a Person that is not either such Obligor or a Material Subsidiary thereof;
shall be deemed, in each case, to constitute an incurrence of such Indebtedness
by such Obligor or such Material Subsidiary, as the case may be, that was not
permitted by this clause (viii);

     (ix) the incurrence by an Obligor of Hedging Obligations that are incurred
for the sole purpose of fixing or hedging (x) interest rate risk with respect to
any floating rate Indebtedness that is permitted by the terms of this Agreement
to be outstanding or (y) fluctuation in currency values;

     (x) the accrual of interest, the accretion or amortization of original
issue discount, the payment of interest on any Indebtedness in the form of
additional Indebtedness with the same terms, and the payment of dividends on
Disqualified Stock in the form of additional shares of the

                                      -23-

<PAGE>

same class of Disqualified Stock will not be deemed to be an incurrence of
Indebtedness or an issuance of Disqualified Stock for purposes of this covenant;

     (xi) the incurrence by an Obligor of additional Indebtedness (including
Acquired Debt) or Disqualified Stock in an aggregate principal amount (or
liquidation preference or accreted value, as applicable) at any time
outstanding, including all Permitted Refinancing Indebtedness incurred to
refund, refinance or replace any Indebtedness or Disqualified Stock incurred
pursuant to this clause (xi), not to exceed $30,000,000 in the aggregate for
both Obligors;

     (xii) Indebtedness the proceeds of which are utilized solely to finance
working capital in an aggregate principal amount not to exceed the lesser of (a)
$50,000,000 and (b) 80% of Qualified Receivables (in the aggregate for both
Obligors);

     (xiii) financing provided by a satellite or satellite launch vendor or
Affiliate thereof of all or part of the cost of construction, launch and
insurance of one or more replacement satellites or satellite launches relating
to such satellites provided by such vendor or its Affiliates;

     (xiv) Indebtedness for which the Obligors have received consent of the Note
Investors in accordance with Section 5.1 of this Agreement;

     (xv) any Qualified Sale and Leaseback Transaction; and

     (xvi) the incurrence by the Obligor of Reissued Pari Passu Indebtedness and
Indebtedness ("Satellite Insurance Shortfall Indebtedness") up to the amount of
any Satellite Insurance Shortfall, it being understood that any such Reissued
Pari Passu Indebtedness shall not reduce the amount of Pari Passu Indebtedness
the Obligors are permitted to issue under Section 8.3(i).

     For purposes of determining compliance with this Section 8.3, in the event
that an item of Indebtedness meets the criteria of more than one of the
categories of Permitted Debt described in clauses (i) through (xvi) above, an
Obligor shall, in its sole discretion, classify such item of Indebtedness in any
manner that complies with this Section 8.3 and such item of Indebtedness shall
be treated as having been incurred pursuant to only one of such clauses.

     Section 8.4. Asset Sales. Neither of the Obligors shall, or shall permit
any of its Material Subsidiaries to, consummate an Asset Sale unless (x) such
Obligor or Material Subsidiary receives consideration at the time of such Asset
Sale at least equal to the fair market value of the assets or Equity Interests
issued, sold or otherwise disposed of; (y) such fair market value shall be
determined by such Obligor's Board of Directors (whose good faith determination
shall be conclusive) and evidenced by a Board Resolution; and (z) at least 75%
of the consideration received therefore by such Obligor or Material Subsidiary
is in the form of cash or Cash Equivalents; provided, however, that the amount
of (A) any liabilities (as shown on such Obligor's or Material Subsidiary's most
recent balance sheet or in the notes thereto) of such Obligor or Material
Subsidiary (other than contingent liabilities and liabilities that are by their
terms contractually subordinated in right of payment to the Notes or any
Guarantee thereof) that

                                      -24-

<PAGE>

are assumed by the transferee of any such assets pursuant to a customary
novation agreement that releases such Obligor or Material Subsidiary from
further liability and (B) any securities, notes or other obligations received by
such Obligor or Material Subsidiary from such transferee that are converted by
such Obligor or Material Subsidiary into cash (to the extent of the cash
received in that conversion) within 30 days of receipt thereof, shall be deemed
to be cash for purposes of this provision.

     A transfer of assets by the Company to a Material Subsidiary or by a
Material Subsidiary to an Obligor or to another Material Subsidiary, and an
issuance of Equity Interests by a Material Subsidiary to an Obligor or to
another Material Subsidiary, shall not be deemed to be an Asset Sale. Any
Restricted Payment that is permitted by Section 8.1 hereof will not be deemed to
be an Asset Sale.

     Within 360 days after the receipt of any Net Proceeds from an Asset Sale,
the Obligor or a Material Subsidiary may (a) apply the Net Proceeds from such
Asset Sale, at its option, (i) to acquire all or substantially all of the assets
of, or a majority of the Voting Stock of, another Permitted Business, or Voting
Stock of a Subsidiary engaged in a Permitted Business (other than any such
Voting Stock owned or held by an Obligor or a Material Subsidiary), (ii) to make
a capital expenditure, or (iii) to acquire other assets that are used or useful
in a Permitted Business that have an expected useful life of one year or longer;
(b) enter into a legally binding agreement to apply such Net Proceeds as
described in the preceding clause (a) within six months after such agreement is
entered into and apply such Net Proceeds in accordance with the terms of such
agreement or the provisions of clause (a) above; provided that if such agreement
terminates such Obligor shall have until the earlier of (i) 90 days after the
date of such termination and (ii) six months after the date of the Asset Sale
resulting in such Net Proceeds to effect such an application; or (c) permanently
repay (and reduce the commitments with respect to) Pari Passu Indebtedness and
the Notes, pro rata. Pending the final application of any such Net Proceeds, the
Obligor or a Material Subsidiary may temporarily reduce revolving credit
borrowings or otherwise invest such Net Proceeds in any manner that is not
prohibited by this Agreement. Any Net Proceeds from such Asset Sale that are not
finally applied or invested as provided in the first sentence of this paragraph
will be deemed to constitute "Excess Proceeds." Within five days of each date on
which the aggregate amount of Excess Proceeds exceeds $10,000,000, the Obligors
shall commence an offer (an "Asset Sale Offer") pursuant to this Section 8.4 to
all Holders of Notes and all holders of Pari Passu Indebtedness containing
provisions similar to those set forth in this Agreement with respect to offers
to purchase or redeem with the proceeds of sales of assets (including the
Indebtedness under the Indenture) to purchase the maximum principal amount (or,
if applicable, accreted value) of Notes and such Pari Passu Indebtedness that
may be purchased out of the Excess Proceeds at an offer price in cash in an
amount equal to 100% of the Accreted Value of the Notes or the accreted value or
principal amount (as appropriate) of such Pari Passu Indebtedness, plus accrued
and unpaid interest thereon, if any, to the date fixed for the closing of such
offer, in accordance with the procedures set forth in this Section 8.4. To the
extent that the aggregate amount of Accreted Value of the Notes tendered
pursuant to an Asset Sale Offer, together with any accrued and unpaid interest
thereon, is less than the Excess Proceeds, the Obligors may use such difference
for any purpose not otherwise prohibited by this Agreement or the New Note
Purchase Agreement. If the aggregate Accreted Value of the Notes and accreted
value or principal amount (as appropriate) of such Pari Passu Indebtedness
tendered

                                      -25-

<PAGE>

into such Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee
shall select the Notes and such Pari Passu Indebtedness to be purchased on a pro
rata basis based on the Accreted Value of the Notes and the accreted value or
principal amount (as appropriate) of such Pari Passu Indebtedness. Upon
completion of each Asset Sale Offer, the amount of Excess Proceeds shall be
deemed to be reset at zero.

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

     In the event that the Obligors shall be required to commence an Asset Sale
Offer, they shall follow the procedures specified below.

     The Asset Sale Offer shall remain open for a period of 20 Business Days
following its commencement and no longer, except to the extent that a longer
period is required by applicable law (the "Offer Period"). No later than five
Business Days after the termination of the Offer Period (the "Purchase Date"),
the Obligors shall purchase the Accreted Value of Notes required to be purchased
pursuant to this Section 8.4 (the "Offer Amount") or, if less than the Offer
Amount has been tendered, all Notes tendered in response to the Asset Sale
Offer. Payment for any Notes so purchased shall be made in cash.

     Any accrued and unpaid interest on the Notes so purchased shall be paid to
the Holders who tender Notes pursuant to the Asset Sale Offer.

     Upon the commencement of an Asset Sale Offer, the Obligors shall send a
notice to the Holders. The notice shall contain all instructions and materials
necessary to enable such Holders to tender Notes pursuant to the Asset Sale
Offer. The Asset Sale Offer shall be made to all Holders. The notice, which
shall govern the terms of the Asset Sale Offer, shall state:

     (a) that the Asset Sale Offer is being made pursuant to this Section 8.4
and the length of time the Asset Sale Offer shall remain open;

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

     (c) that any Note not tendered or accepted for payment shall continue to
accrete or accrue interest;

     (d) that, unless the Obligors default in making such payment, any Note
accepted for payment pursuant to the Asset Sale Offer shall cease to accrete or
accrue interest after the Purchase Date;

     (e) that Holders electing to have a Note purchased pursuant to any Asset
Sale Offer shall be required to surrender the Note, with the form entitled
"Option of Holder to Elect

                                      -26-

<PAGE>

Purchase" on the reverse of the Note completed, to the Obligors at the address
specified in the notice at least three days before the Purchase Date;

     (f) that Holders shall be entitled to withdraw their election if the
Obligors receive, not later than the expiration of the Offer Period, a telegram,
telex, facsimile transmission or letter setting forth the name of the Holder,
the principal amount of the Note the Holder delivered for purchase and a
statement that such Holder is withdrawing its election to have such Note
purchased;

     (g) that, if the aggregate Accreted Value of Notes surrendered by Holders
exceeds the Offer Amount, the Obligors shall select the Notes to be purchased on
a pro rata basis; and

     (h) that Holders whose Notes were purchased only in part shall be issued
new Notes equal in principal amount at maturity to the unpurchased portion of
the Notes surrendered.

     On or before the Purchase Date, the Obligors shall, to the extent lawful,
accept for payment, on a pro rata basis to the extent necessary, the Offer
Amount of Notes or portions thereof tendered pursuant to the Asset Sale Offer,
or if less than the Offer Amount has been tendered, all Notes tendered. The
Obligors shall promptly (but in any case not later than five Business Days after
the Purchase Date) mail or deliver to each tendering Holder an amount equal to
the purchase price of the Notes tendered by such Holder and accepted by the
Obligors for purchase, and the Obligors shall promptly issue a new Note, and
shall mail or deliver such new Note to such Holder, in a principal amount at
maturity equal to any unpurchased portion of the Note surrendered. Any Note not
so accepted shall be promptly mailed or delivered by the Obligors to the Holder
thereof.

     Section 8.5. Transactions with Affiliates. Neither of the Obligors shall,
or shall permit any of its Material Subsidiaries to, make any payment to, or
sell, lease, transfer or otherwise dispose of any of its properties or assets
to, or purchase any property or assets from, or enter into or make or amend any
transaction, contract, agreement, understanding, loan, advance or guarantee
with, or for the benefit of, any Affiliate (each, an "Affiliate Transaction"),
unless: (a) such Affiliate Transaction is on terms that are no less favorable to
such Obligor or Material Subsidiary than those that would have been obtained in
a comparable transaction by such Obligor or such Material Subsidiary with an
unrelated Person; and (b) (i) with respect to any Affiliate Transaction or
series of related Affiliate Transactions involving aggregate consideration in
excess of $5,000,000, if an opinion meeting the requirements set forth in clause
(ii) of this paragraph has not been obtained, such Affiliate Transaction has
been approved by a majority of the members of such Obligor's Board of Directors
who have no direct financial interest in such Affiliate Transaction (other than
as a stockholder of such Obligor), and (ii) with respect to (x) any Affiliate
Transaction or series of related Affiliate Transactions involving aggregate
consideration in excess of $20,000,000, or (y) any Affiliate Transaction or
series of related Affiliate Transactions involving aggregate consideration in
excess of $5,000,000 where none of the members of such Obligor's Board of
Directors qualify as having no direct financial interest in such Affiliate
Transaction (other than as a stockholder of such Obligor), such Obligor obtains
an opinion as to the fairness to such Obligor or such Material Subsidiary of
such Affiliate Transaction from a financial point of view issued by an
accounting, appraisal or investment

                                      -27-

<PAGE>

banking firm of national standing; provided however that the following items
shall not be deemed to be Affiliate Transactions and, therefore, will not be
subject to the provisions of this paragraph:

     (1) any transaction by an Obligor or any Material Subsidiary with an
Affiliate directly related to the purchase, sale or distribution of products in
the ordinary course of business consistent with industry practice which has been
approved by a majority of the members of the Board of Directors who are
disinterested with respect to such transaction;

     (2) any employment agreement or arrangement or employee benefit plan
entered into by an Obligor or any of its Material Subsidiaries in the ordinary
course of business of such Obligor or such Material Subsidiary;

     (3) transactions between or among an Obligor and its Material Subsidiaries;

     (4) payment of reasonable directors fees and provisions of customary
indemnification to directors, officers and employees of an Obligor and its
Material Subsidiaries;

     (5) sales of Equity Interests (other than Disqualified Stock) to Affiliates
of an Obligor;

     (6) Restricted Payments that are permitted by the provisions of Section 8.1
hereof (other than clause (7) thereof);

     (7) transactions pursuant to the Tax Sharing Agreement;

     (8) contractual arrangements existing on January 28, 2003, and any
renewals, extensions, implementations or modifications thereof that are not
materially adverse to the Holders;

     (9) the Concurrent Financing Transactions (including all agreements
evidencing the same in substantially the form provided to the Investors on
December 19, 20 or 21, 2002 and arrangements contemplated thereby); and

     (10) a Parent Company Merger.

     Section 8.6. Liens. Neither of the Obligors shall, or shall permit any of
its Material Subsidiaries to, create, incur, assume or otherwise cause or suffer
to exist or become effective any Lien of any kind (other than (a) Permitted
Liens and (b) Liens on any assets of an Obligor or its Material Subsidiaries
securing Satellite Insurance Shortfall Indebtedness or Permitted Refinancing
Indebtedness in respect thereof provided that the Notes shall be equally and
ratably secured by such assets) upon any of their property or assets, now owned
or hereafter acquired, other than any Liens for which the Obligors have received
consent of the Note Investors (as defined therein) in accordance with Section
5.1 of this Agreement.

     Section 8.7. Offer to Purchase upon Change of Control.

                                      -28-

<PAGE>

     (a) Upon the occurrence of a Change of Control, the Obligors shall make an
offer (a "Change of Control Offer") to each Holder to repurchase all or any part
(equal to $1,000 or an integral multiple thereof) of each Holder's Notes at a
purchase price equal to 101% of the Accreted Value thereof plus accrued and
unpaid interest, if any, to the date of purchase (the "Change of Control
Payment"). Within 30 days following any Change of Control, the Obligors shall
mail a notice to each Holder stating: (1) that the Change of Control Offer is
being made pursuant to this Section 8.7 and that all Notes tendered will be
accepted for payment; (2) the purchase price and the purchase date, which shall
be no earlier than 30 and no later than 60 calendar days from the date such
notice is mailed (the "Change of Control Payment Date"); (3) that any Note not
tendered will continue to accrete or accrue interest; (4) that, unless the
Obligors default in the payment of the Change of Control Payment, all Notes
accepted for payment pursuant to the Change of Control Offer shall cease to
accrete or accrue interest after the Change of Control Payment Date; (5) that
Holders electing to have any Notes purchased pursuant to a Change of Control
Offer will be required to surrender the Notes, with the form entitled "Option of
Holder to Elect Purchase" on the reverse of the Notes completed, to the Obligors
at the address specified in the notice prior to the close of business on the
third Business Day preceding the Change of Control Payment Date; (6) that
Holders will be entitled to withdraw their election if the Obligors receive, not
later than the close of business on the second Business Day preceding the Change
of Control Payment Date, a telegram, telex, facsimile transmission or letter
setting forth the name of the Holder, the principal amount at maturity of Notes
delivered for purchase, and a statement that such Holder is withdrawing his
election to have the Notes purchased; and (7) that Holders whose Notes are being
purchased only in part will be issued new Notes equal in principal amount at
maturity to the unpurchased portion of the Notes surrendered, which unpurchased
portion must be equal to $1,000 in principal amount at maturity or an integral
multiple thereof. The Obligors shall comply with the requirements of Rule 14e-1
under the Exchange Act and any other securities laws and regulations thereunder
to the extent such laws and regulations are applicable in connection with the
repurchase of Notes in connection with a Change of Control. To the extent that
the provisions of any securities laws or regulations conflict with the Change of
Control provisions of this Agreement, the Obligors will comply with the
applicable securities laws and regulations and will not be deemed to have
breached their obligations under the Change of Control provisions of this
Agreement by virtue of such conflict.

     (b) On the Change of Control Payment Date, the Obligors shall, to the
extent lawful, accept for payment all Notes or portions thereof properly
tendered pursuant to the Change of Control Offer. The Obligors shall promptly
mail to each Holder of Notes so tendered the Change of Control Payment for such
Notes, and shall promptly mail (or cause to be transferred by book entry) to
each Holder a new Note equal in principal amount at maturity to any unpurchased
portion of the Notes surrendered by such Holder, if any; provided, that each
such new Note shall be in a principal amount at maturity of $1,000 or an
integral multiple thereof. The Obligors shall publicly announce the results of
the Change of Control Offer on or as soon as practicable after the Change of
Control Payment Date.

     (c) The Obligors shall not be required to make a Change of Control Offer
upon a Change of Control if a third party makes the Change of Control Offer in
the manner, at the times and otherwise in compliance with the requirements set
forth in this Agreement applicable to a

                                      -29-

<PAGE>

Change of Control Offer made by the Obligors and purchases all Notes validly
tendered and not withdrawn under such Change of Control Offer.

     Section 8.8. Limitation on Sale and Leaseback Transactions. Neither of the
Obligors shall, or shall permit any of its Material Subsidiaries to, enter into
any sale and leaseback transaction; provided that an Obligor may enter into a
sale and leaseback transaction if: (i) the lease is for a period, including
renewal rights, of not in excess of five years; (ii) the transaction is solely
between such Obligor and any Material Subsidiary or solely between Material
Subsidiaries; (iii) such Obligor or such Material Subsidiary, within 12 months
after the sale or transfer of any assets or properties is completed, applies an
amount not less than the Net Proceeds received from such sale in accordance with
Section 8.4 hereof; or (iv) such sale and leaseback transaction is a Qualified
Sale and Leaseback Transaction.

     Section 8.9. Limitation on Issuances and Sales of Equity Interests of
Material Subsidiaries. Neither of the Obligors (i) shall, or shall permit any of
its Material Subsidiaries to, transfer, convey, sell, lease or otherwise dispose
of any Equity Interests in a Material Subsidiary of such Obligor to any Person
or (ii) shall permit any of its Material Subsidiaries to issue any Equity
Interests other than:

     (a) to an Obligor or another Material Subsidiary;

     (b) issuances of directors' qualifying shares to the extent necessary to
comply with applicable law;

     (c) to the extent required by applicable law, issuances or transfers to
nationals of the jurisdiction in which a Material Subsidiary is organized in an
amount not to exceed 1% of the total Equity Interests of such Material
Subsidiary;

     (d) distributions of Capital Stock other than Disqualified Stock to all
common shareholders of a Material Subsidiary on a pro rata basis; or

     (e) the sale of all the Equity Interests in such Material Subsidiary
(excluding the Company), provided that the cash Net Proceeds from such transfer,
conveyance, sale, lease or other disposition are applied in accordance with
Section 8.4 hereof.

     Section 8.10. Insurance.

     (a) The Obligors shall obtain prior to the launch of each satellite and
shall maintain launch insurance with respect to each satellite launch covering
the period from the launch to 180 days following the launch of each satellite in
an amount equal to or greater than the sum of (1) the cost to replace such
satellite with a satellite of comparable or superior technological capability
(as determined by the Board of Directors of the Company, whose determination
shall be conclusive and evidenced by a Board Resolution) and having at least as
much transmission capacity as the satellite to be replaced, (2) the cost to
launch a replacement satellite pursuant to the contract whereby a replacement
satellite will be launched and (3) the cost of launch insurance for such
replacement or, in the event that the Obligors have reason to believe that the
cost of

                                      -30-

<PAGE>

obtaining comparable insurance for a replacement would be materially higher, the
Obligors' best estimate of the cost of such comparable insurance (in each case
such costs being determined as of the date such insurance is procured by the
Board of Directors of the Company, whose determination shall be conclusive and
evidenced by a Board Resolution). Notwithstanding the foregoing, at any time
when the Obligors have two primary satellites in orbit and fully functioning,
the Obligors shall not be obligated to obtain insurance pursuant to this
paragraph (a) with respect to the launch of any satellite that the Obligors do
not intend to use as a replacement for one of the two primary satellites used by
them to provide the XM Radio Service.

     (b) The Obligors shall maintain full in-orbit insurance with respect to
each satellite they own and launch in an amount at least equal to the sum of (1)
the cost to replace such satellite with a satellite of comparable or superior
technological capability (as determined by the Board of Directors of the
Company, whose determination shall be conclusive and evidenced by a Board
Resolution) and having at least as much transmission capacity as the satellite
to be replaced (or such percentage of replacement value as is then reasonably
obtainable in the insurance market at a commercially reasonable cost), (2) the
cost to launch a replacement satellite pursuant to the contract pursuant to
which a replacement satellite will be launched and (3) the cost of launch
insurance for such replacement or, in the event that the Obligors have reason to
believe that the cost of obtaining comparable insurance for a replacement would
be materially higher, the Obligors' best estimate of the cost of such comparable
insurance (provided, however, that with respect to any satellite as to which
there has been an insured loss, the required amount of such insurance shall
equal the lesser of such sum and the amount reasonably obtainable in the
insurance market at a commercially reasonable cost, as determined by the Board
of Directors of the Company, whose determination shall be conclusive and
evidenced by a Board Resolution). The in-orbit insurance required by this
paragraph shall provide that if 50% or more of a satellite's capacity is lost,
the full amount of insurance shall become due and payable, and that if a
satellite is able to maintain more than 50% but less than 100% of its capacity,
a portion of such insurance shall become due and payable.

     (c) In the event that the Obligors receive proceeds from insurance relating
to any satellite, the Obligors shall be entitled to use all or any portion of
such proceeds for any purpose, including (1) to repay any vendor or third-party
purchase money financing pertaining to such satellite that is required to be
repaid by reason of the loss giving rise to such insurance proceeds, (2) to
develop and construct a replacement satellite, or (3) general corporate
purposes.

     Section 8.11. Merger, Consolidation, or Sale of Assets.

     (a) Neither of the Obligors shall, directly or indirectly, consolidate or
merge with or into (whether or not such Obligor is the surviving corporation),
or sell, assign, transfer, convey or otherwise dispose of all or substantially
all of the properties or assets of such Obligor and its Material Subsidiaries
taken as a whole, in one or more related transactions to, another Person unless
(i) such Obligor is the surviving corporation or the Person formed by or
surviving any such consolidation or merger (if other than such Obligor) or to
which such sale, assignment, transfer, conveyance or other disposition shall
have been made is a corporation organized or existing under the laws of the
United States, any state thereof or the District of Columbia, (ii) the Person
formed by or surviving any such consolidation or merger (if other than such
Obligor) or

                                      -31-

<PAGE>

the Person to which such sale, assignment, transfer, conveyance or other
disposition shall have been made assumes all the obligations of the Obligors
under the Registration Rights Agreement, the Security Agreements, the
Intercreditor Agreements, the Notes and this Agreement pursuant to agreements in
a form reasonably satisfactory to the Majority Holders, (iii) immediately after
such transaction, no Default or Event of Default exists and (iv) such Obligor or
the Person formed by or surviving any such consolidation or merger (if other
than such Obligor), or to which such sale, assignment, transfer, conveyance or
other disposition shall have been made (A) shall have Consolidated Net Worth
immediately after the transaction equal to or greater than the Consolidated Net
Worth of such Obligor immediately preceding the transaction and (B) shall, on
the date of such transaction after giving pro forma effect thereto and any
related financing transactions as if the same had occurred at the beginning of
such Obligor's latest four fiscal quarters for which consolidated financial
statements of such Obligor are available immediately preceding the date of such
transaction, have a ratio of Total Consolidated Indebtedness to Adjusted
Consolidated Operating Cash Flow for such four-quarter period less than 6.0 to
1.0. In addition, each Obligor shall not, directly or indirectly, lease all or
substantially all of its properties or assets, in one or more related
transactions, to any other Person. The provisions of this Section 8.11(a) shall
not be applicable to a consolidation, merger, sale, assignment, transfer,
conveyance or other disposition of properties or assets between or among (i)
either Obligor and its Material Subsidiaries or (ii) the Obligors.

     (b) Upon any consolidation or merger, or any sale, assignment, transfer,
lease, conveyance or other disposition of all or substantially all of the assets
of an Obligor in accordance with Section 8.11(a) hereof, the successor
corporation formed by such consolidation or into or with which such Obligor is
merged or to which such sale, assignment, transfer, lease, conveyance or other
disposition is made shall succeed to, and be substituted for (so that from and
after the date of such consolidation, merger, sale, lease, conveyance or other
disposition, the provisions of this Agreement referring to such "Obligor" shall
refer instead to the successor corporation), and may exercise every right and
power of such Obligor under this Agreement with the same effect as if such
successor Person had been named as such Obligor herein; provided, however, that
the predecessor Obligor shall not be relieved from the obligation to pay the
principal of and interest (and premium, if any) on the Notes except in the case
of a sale, assignment, transfer, conveyance or other disposition of all of the
Obligor's assets that meets the requirements of Section 8.11(a) hereof.

     Section 8.12. Definitions.

     (a) Capitalized terms used but not defined in this Article VIII shall have
the respective meanings set forth in the New Note Purchase Agreement.

     (b) For purposes of Section 8.3(xvi), the following terms have the
indicated meanings:

     "Comprehensive Satellite Insurance Settlement" means a written agreement
entered into between the Company and/or XM and the insurance companies that
issued the insurance on XM-Rock and XM-Roll, which agreement resolves all or
substantially all of the claims made by XM or the Company under its satellite
insurance policies with regard to XM-Rock and XM-Roll and

                                      -32-

<PAGE>

*****Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

described in the Company's Annual Report on Form 10-K for the year ended
December 31, 2002.

     "Reissued Pari Passu Indebtedness" means any Pari Passu Indebtedness issued
on a date after June 1, 2003 in an amount not to exceed:

     (i)  the aggregate principal amount of all Pari Passu Indebtedness retired
          or redeemed prior to stated maturity after June 1, 2003 and during the
          Applicable Period by XM, the Company or a Wholly-Owned Subsidiary of
          XM or the Company, less

     (ii) the aggregate principal amount of all Reissued Pari Passu Indebtedness
          issued after June 1, 2003 and during the Applicable Period.

          If more than one such retirement or redemption of Pari Passu
Indebtedness described in the preceding clause (i) is or was so effected, the
principal amounts of such retired or redeemed Pari Passu Indebtedness shall be
netted against the principal amounts of Reissued Pari Passu Indebtedness in the
chronological order in which such retirements or redemptions were effected and
such Reissued Pari Passu Indebtedness was issued (starting with the earliest
occurring retirement or redemption and the earliest occurring issuance of
Reissued Pari Passu Indebtedness). Any such netted principal amounts of retired
or redeemed Pari Passu Indebtedness and Reissued Pari Passu Indebtedness shall
not be taken into account in calculating clause (i) or (ii) above, respectively.

For purposes of this definition, "Applicable Period" means the six-month period
ending immediately prior to the issue date, or, if the issue date occurs on or
after the date of the Comprehensive Satellite Insurance Settlement, the
one-month period ending immediately prior to the issue date.

     Notwithstanding the foregoing, Pari Passu Indebtedness that is convertible
into equity securities of XM or the Company and is then converted into equity
securities of XM or the Company shall not be considered to be a retirement or
redemption for these purposes, except to the extent that cash is paid to the
holder of such retired or redeemed Pari Passu Indebtedness.

     "Satellite Insurance Shortfall" means the amount, determined as of the date
of a Comprehensive Satellite Insurance Settlement, by which the sum of all
payments to be made to XM or the Company under the Comprehensive Satellite
Insurance Settlement is less than $[****].

     Section 8.13 Treatment of 12% Notes.

     The 12% Senior Secured Notes due 2010 of XM, guaranteed by the Company,
issued in June 2003, plus any over-allotment amount issued in June or July 2003,
not to exceed $200,000,000 in aggregate principal amount (the "12% Notes"), (i)
are deemed to be

                                      -33-

<PAGE>

Indebtedness of the type described in, and shall be applied against the amount
provided by, Section 8.3(vi)(A) hereof, up to the maximum amount specified
therein; and (ii) to the extent applied under Section 8.3(vi)(A) hereof, shall
not constitute Pari Passu Indebtedness for purposes of Section 8.3(i) hereof.

     For the avoidance of doubt, to the extent that actions taken by the Company
or XM from and after January 28, 2003 through June 16, 2003 have resulted in the
incurrence of Permitted Debt, such Indebtedness shall continue to be taken into
account, and shall be applied against the maximum amount permitted, in
determining whether approvals may be required under Section 5.1 hereof.

     Section 8.14 Definitions.

     Capitalized terms used in this Article VIII and not otherwise defined
herein have the meanings set forth in the New Note Purchase Agreement.

                                      -34-

<PAGE>

          IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly
     signed as of the date first above written.

XM SATELLITE RADIO HOLDINGS INC.

By: /s/ Joseph M. Titlebaum
    ---------------------------
Name: Joseph M. Titlebaum
Title: Executive Vice President

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

CLEAR CHANNEL INVESTMENTS, INC.

By: /s/ Randall T. Mays
    ---------------------------
Name:
Title:

   Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

GENERAL MOTORS CORPORATION

By: /s/ Anne T. Larin
    ---------------------------
Name: Anne T. Larin
Title: Assistant Secretary

   Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

DIRECTV ENTERPRISES, LLC

By:
    ---------------------------
Name:
Title:

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

MADISON DEARBORN CAPITAL PARTNERS III, L.P.
By Madison Dearborn Partners III, L.P., its general partner
By Madison Dearborn Partners LLC, its general partner

By: /s/ James N. Perry, Jr.
    ---------------------------
Name: James N. Perry, Jr.
Title: Managing Director

MADISON DEARBORN SPECIAL EQUITY III, L.P.
By Madison Dearborn Partners III, L.P., its general partner
By Madison Dearborn Partners LLC, its general partner

By: /s/ James N. Perry, Jr.
    ---------------------------
Name: James N. Perry, Jr.
Title: Managing Director

SPECIAL ADVISORS FUND I, LLC
By Madison Dearborn Partners III, L.P., its manager
By Madison Dearborn Partners LLC, its general partner

By: /s/ James N. Perry, Jr.
    ---------------------------
Name: James N. Perry, Jr.
Title: Managing Director

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

<TABLE>
<S>                                                     <C>
AEA XM INVESTORS I LLC                                  AEA XM INVESTORS II LLC
By XM Investors I LP, its Sole Member                   By XM Investors II LP, its Sole Member
By AEA XM Investors Inc., its General Partner           By AEA XM Investors Inc., its General Partner

By: /s/ Roger Freeman                                   By: /s/ Roger Freeman
    ---------------------------                             ---------------------------
Name: Roger Freeman                                     Name: Roger Freeman
Title: President                                        Title: President

AEA XM INVESTORS IA LLC                                 AEA XM INVESTORS IIA LLC
By XM Investors IA LP, its Sole Member                  By XM Investors IIA LP, its Sole Member
By AEA XM Investors Inc., its General Partner           By AEA XM Investors Inc., its General Partner

By: /s/ Roger Freeman                                   By: /s/ Roger Freeman
    ---------------------------                             ---------------------------
Name: Roger Freeman                                     Name: Roger Freeman
Title: President                                        Title: President
</TABLE>

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

<TABLE>
<S>                                                     <C>
COLUMBIA XM SATELLITE PARTNERS III, LLC                 COLUMBIA XM RADIO PARTNERS, LLC
By: Columbia Capital III, L.L.C., its Managing Member   By Columbia Capital L.L.C., its Managing Member

By: /s/ Donald A. Doering                               By: /s/ Donald A. Doering
    ---------------------------                             ---------------------------
Name: Donald A. Doering                                 Name: Donald A. Doering
Title: Chief Financial Officer                          Title: Chief Financial Officer

COLUMBIA CAPITAL EQUITY PARTNERS III                    COLUMBIA CAPITAL EQUITY PARTNERS II
(QP), L.P.                                              (QP), L.P.
By Columbia Capital Equity Partners III, L.P.,          By Columbia Capital Equity Partners III, L.L.C.,
   its General Partner                                     its General Partner

By: /s/ Donald A. Doering                               By: /s/ Donald A. Doering
    ---------------------------                             ---------------------------
Name: Donald A. Doering                                 Name: Donald A. Doering
Title: Chief Financial Officer                          Title: Chief Financial Officer
</TABLE>

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

<TABLE>
<S>                                                     <C>
BLACK BEAR FUND I, L.P.                                 BLACK BEAR FUND II, L.L.C.
By Eastbourne Capital Management, L.L.C.,               By Eastbourne Capital Management, L.L.C.,
  its general partner                                     its manager

By: /s/ Eric M. Sippel                                  By: /s/ Eric M. Sippel
    ---------------------------                             ---------------------------
    Eric M. Sippel                                          Eric M. Sippel
    Chief Operating Officer                                 Chief Operating Officer

BLACK BEAR OFFSHORE MASTER FUND LIMITED
By Eastbourne Capital Management, L.L.C., its
   investment adviser and attorney in fact

By:  /s/ Eric M. Sippel
    ---------------------------
     Eric M. Sippel
     Chief Operating Officer
</TABLE>

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

HEARST COMMUNICATIONS, INC.

By: /s/ Kenneth A. Bronfin
    ---------------------------
Name: Kenneth A. Bronfin
Title: President, Hearst Interactive Media, a division
of Hearst Communications, Inc.

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

AMERICAN HONDA MOTOR CO., INC.

By: /s/ Thomas G. Elliott
    ---------------------------
Name: Thomas G. Elliott
Title: Executive Vice President

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

BAYSTAR CAPITAL II, L.P.
By BayStar Capital Management, LLC, its general partner

By:
    ---------------------------
Name:
Title:

BAYSTAR INTERNATIONAL II LTD.
By BayStar Capital Management LLC, its investment manager

By:
    ---------------------------
Name:
Title:

ROYAL BANK OF CANADA
By its agent, RBC Dominion Securities Corporation

By:
    ---------------------------
Name:
Title:

By:
    ---------------------------
Name:
Title:

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

SUPERIUS SECURITIES GROUP, INC. MONEY PURCHASE PLAN

By:
    ---------------------------
Name:
Title:

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

SF CAPITAL PARTNERS, LTD.

By:
    ---------------------------
Name:
Title:

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

MICHAEL W. HARRIS

-------------------------------

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

PAUL GREENWALD

-------------------------------

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

HUGHES ELECTRONICS CORPORATION

By: /s/ Patrick T. Doyle
    ---------------------------
Name: Patrick T. Doyle
Title: Vice President, Treasurer and Controller

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

AVDAN PARTNERS, L.P.

By:
    ---------------------------
Name:
Title:

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

NEERA SINGH and RAJENDRA SINGH JTWROS

-------------------------------

-------------------------------

HERSH RAJ SINGH EDUCATIONAL TRUST

By:

-------------------------------
Name:
Title: Trustee

-------------------------------
Name:
Title: Trustee

SAMIR RAJ SINGH EDUCATIONAL TRUST

By:

-------------------------------
Name:
Title: Trustee

-------------------------------
Name:
Title: Trustee

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

JOHN DEALY

/s/ John Dealy
-------------------------------

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

A.R. SANCHEZ, JR.

-------------------------------

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

GEORGE HAYWOOD

/s/ George Haywood
-------------------------------

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

<TABLE>
<S>                                                     <C>
PRISM PARTNERS OFFSHORE FUND                            PRISM PARTNERS I, L.P.
By: Weintraub Capital Management LLC,                   By: Weintraub Capital Management LLC,
   its Investment Manager                                  its Investment Manager

By:                                                     By:
    ---------------------------                            ---------------------------
Name: Jerald M. Weintraub                               Name:
Title:  Managing Partner                                Title:

PRISM PARTNERS II OFFSHORE FUND
By: Weintraub Capital Management LLC,
   its Investment Manager

By:
    ---------------------------
Name:
Title:
</TABLE>

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

EVEREST CAPITAL MASTER FUND LP
By: Everest Capital Limited, its General
   Partner

By: /s/ Malcolm Stott
    ---------------------------
Name: Malcolm Stott
Title: Chief Operating Officer

By: /s/ Simon Onabowald
    ---------------------------
Name: Simon Onabowald
Title: Principal

EVEREST CAPITAL SENIOR DEBT FUND LP
By: Everest Capital Limited, its General
   Partner

By: /s/ Malcolm Stott
    ---------------------------
Name: Malcolm Stott
Title: Chief Operating Officer

By: /s/ Simon Onabowald
    ---------------------------
Name: Simon Onabowald
Title: Principal

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

U.S. TRUST COMPANY

By: /s/ David Williams
    ---------------------------
Name: David Williams
Title: Managing Director

    Signature Page to Third Amended and Restated Shareholders and Noteholders
                                   Agreement

<PAGE>

                                    EXHIBIT A

                           Additional Note Purchasers

AEA
   AEA XM Investors IA LLC
   AEA XM Investors IIA LLC
Columbia Capital
   Columbia Capital Equity Partners II (QP), L.P.
   Columbia XM Radio Partners, LLC
   Columbia Capital Equity Partners III (QP), L.P.
   Columbia XM Satellite Partners III, LLC
Hughes Electronics Corporation
George Haywood
Hearst Communications, Inc.
BayStar Group
   BayStar Capital II, LP
   BayStar International II, Ltd.
   Royal Bank of Canada
American Honda Motor Co., Inc.
Superius Securities Group, Inc. Money Purchase Plan
John Dealy
Avdan Partners, L.P.
Michael W. Harris
Paul Greenwald
SF Capital Partners, Ltd.
Neera Singh and Rajendra Singh JWTROS
Hersh Raj Singh Educational Trust
Samir Raj Singh Educational Trust
A.R. Sanchez, Jr.
Prism Partners Offshore Fund
Prism Partners II Offshore Fund
Prism Partners I, L.P.
Everest Capital Master Fund LP
Everest Capital Senior Debt Fund LP
U.S. Trust Company

<PAGE>

                                   SCHEDULE I

                NAMES, ADDRESSES AND FACSIMILE NUMBERS OF PARTIES

<TABLE>
<S>                                     <C>                                           <C>
The Company:                            XM Satellite Radio Holdings Inc.              202-380-4500
                                        1500 Eckington Place, N.E.
                                        Washington, DC  20002
                                        Attention:  Joseph M. Titlebaum, Esq.

Clear Channel:                          Clear Channel Investments, Inc.               210-822-2299
                                        200 E. Basse Road
                                        San Antonio, TX  78209
                                        Attention: Ken Wyker, Esq.

Columbia:                               Columbia Capital LLC                          703-519-3904
                                        201 North Union Street, Suite 300
                                        Alexandria, Virginia 22314
                                        Attention: Mr. James B. Fleming

DIRECTV:                                DIRECTV Enterprises, Inc.                     310-964-4114
                                        2230 East Imperial Highway
                                        El Segundo, CA 90245
                                        Attention: Mr. Steven J. Cox

GM:                                     General Motors Corporation                    212-418-6258
                                        100 Renaissance Center
                                        Detroit, MI 48265 - 1000
                                        Attention: Anne Larin, Esq.

Telcom:                                 Telcom-XM Investors, L.L.C.                   703-873-4501
                                        7925 Jones Branch Drive, Suite 6300
                                        McLean, VA 22102
                                        Attention: Hal B. Perkins, Esq.

Madison:                                Madison Dearborn Partners, Inc.               312-895-1221
                                        Three First National Plaza
                                        Chicago, Illinois 60602
                                        Attention: Mr. James N. Perry

AEA XM:                                 AEA Investors Inc.                            212-702-0518
                                        65 E. 55th Street
                                        New York, New York 10022
                                        Attention: General Counsel

Black Bear Fund I, L.P.                 c/o Eastbourne Capital Management, L.L.C.     415-448-1210
Black Bear Fund II, L.L.C.              1101 Fifth Avenue, Suite 160
Black Bear Offshore Master Fund         San Rafael, CA 94901
  Limited

George Haywood                          c/o Cronin & Vris, LLP                        718-832-8292
                                        380 Madison Avenue
                                        24th Floor
                                        New York, New York 10017
</TABLE>

<PAGE>

<TABLE>
<S>                                     <C>                                           <C>
Honda:                                  America Honda Motor Co., Inc.                 310-783-2210
                                        1919 Torrance Boulevard
                                        Torrance, California 90501-2746
                                        Attention: Shinichi Sakamoto

                                        Honda North America, Inc.                     310-781-4970
                                        700 Van Ness Avenue
                                        Torrance, California 90501
                                        Attention: Law Department

U.S. Trust Company                      3 Essex Square                                860-767-8057
                                        Essex, CT 06426

Hughes Electronics Corporation          200 N. Sepulveda Boulevard                    310-640-1734
                                        El Segundo, California 90245

Hearst Communications, Inc.             c/o Hearst Interactive Media                  212-582-7739
                                        959 Eighth Avenue
                                        New York, New York 10019
                                        Attn: President, Hearst Interactive Media

                                        The Hearst Corporation                        212-649-2035
                                        959 Eighth Avenue
                                        New York, New York 10019
                                        Attn: General Counsel

BayStar Group                           c/o BayStar Capital Management, LLC           415-272-5421
BayStar Capital II, LP                  80 E. Sir Francis Drake Blvd., Suite 2B
BayStar International II, Ltd           Larkspur, California 94939

Superius Securities Group, Inc. Money   Superius Securities Group, Inc.               201-568-9392
  Purchase Plan                         Money Purchase Plan 94 Grand Ave.
                                        Englewood, New Jersey 07631

John Dealy                              c/o XM Satellite Radio Holdings Inc.          202-380-4500
                                        1500 Eckington Place, NE
                                        Washington, District of Columbia 20002-2194

Avdan Partners, L.P.                    Avdan Partners, L.P.                          415-239-3946
                                        100 Shoreline Highway, Suite 185-A
                                        Mill Valley, California 94941

Michael W. Harris                       c/o Harris & Panels                           315-472-2481
                                        120 East Washington Street
                                        Suite 511
                                        Syracuse, New York 13202

Paul Greenwald                          c/o Harris & Panels                           315-472-2481
                                        120 East Washington Street
                                        Suite 511
                                        Syracuse, New York 13202

SF Capital Partners, Ltd.               c/o Staro Asset Management, LLC               414-294-7687
                                        3600 South Lake Drive
</TABLE>

<PAGE>

<TABLE>
<S>                                     <C>                                           <C>
                                        St. Francis, Wisconsin 53235
                                        Attn:  Brian H. Davidson

Neera Singh and Rajendra Singh JWTROS   7925 Jones Branch Drive                       703-873-4501
Hersh Raj Singh Educational Trust       Suite 6400
Samir Raj Singh Educational Trust       McLean, Virginia 22102
                                        Attn: General Counsel

A.R. Sanchez, Jr.                       1920 Sandman                                  956-722-1017
                                        Laredo, Texas 78041

Prism Partners Offshore Fund            c/o Weintraub Capital Management LLC          415-288-8960
Prism Partner I, L.P.                   44 Montgomery Street, Suite 4100
Prism Partners II Offshore Fund         San Francisco, California 94104

Everest Capital Master Fund LP          c/o Everest Capital Limited                   441-292-2285
Everest Capital Senior Debt Fund LP     The Bank of Butterfield Building, 6th Floor
                                        65 Front Street
                                        Hamilton HM 12, Bermuda
                                        Attn: Compliance Officer

Royal Bank of Canada                    c/o RBC Dominion Securities Corporation       212-858-439
                                        165 Broadway
                                        One Liberty Plaza
                                        New York NY 10006
                                        Attention: Michael Frommer
</TABLE>

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