Document:

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                               SECURITY AGREEMENT

                          dated as of January __, 2003

                                      among

                            XM SATELLITE RADIO INC.,
                        XM SATELLITE RADIO HOLDINGS INC.
                                       and
                            XM EQUIPMENT LEASING LLC
                                   as Grantors

                                       and

                              THE BANK OF NEW YORK,
                               as Collateral Agent

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                       PAGE
                                                                                       ----
<S>                                                                                    <C>
1.    DEFINITIONS. ...................................................................   2
      1.1    General Definitions .....................................................   2
      1.2    Definitions; Interpretation .............................................   7

2.    GRANT OF SECURITY. .............................................................   7
      2.1    Grant of Security .......................................................   7
      2.2    Intercreditor Agreement .................................................   8

3.    SECURITY FOR OBLIGATIONS. ......................................................   8
      3.1    Security for Obligations ................................................   8
      3.2    Obligations Remain. .....................................................   8

4.    REPRESENTATIONS AND WARRANTIES AND COVENANTS. ..................................   9
      4.1    Generally. ..............................................................   9
      4.2    Intellectual Property. ..................................................  10
      4.3    Investment Property. ....................................................  11
      4.4    Documents, Chattel Paper, Instruments and Deposit Accounts ..............  13

5.    FURTHER ASSURANCES; ADDITIONAL GRANTORS. .......................................  14
      5.1    Further Assurances ......................................................  14
      5.2    Additional Grantors .....................................................  15

6.    ATTORNEY-IN-FACT. ..............................................................  15
      6.1    Power of Attorney .......................................................  15
      6.2    No Duty on the Part of Collateral Agent .................................  16

7.    REMEDIES. ......................................................................  17
      7.1    Generally ...............................................................  17
      7.2    Application of Proceeds .................................................  18
      7.3    Investment Property .....................................................  18
      7.4    Intellectual Property. ..................................................  18
      7.5    FCC Licenses ............................................................  20

8.    CONTINUING SECURITY INTEREST; TERMINATION AND RELEASE. .........................  20

9.    STANDARD OF CARE; SECURED PARTY MAY PERFORM. ...................................  21

10.   INDEMNITY. .....................................................................  21

11.   MISCELLANEOUS. .................................................................  22
      11.1   Notices .................................................................  22
      11.2   Expenses ................................................................  22
      11.3   Amendments and Waivers ..................................................  22
      11.4   Successors and Assigns ..................................................  22
      11.5   Independence of Covenants ...............................................  22
      11.6   Survival of Representations, Warranties and Agreements ..................  23
</TABLE>

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<TABLE>
      <S>                                                                               <C>
      11.7   No Waiver; Remedies Cumulative ..........................................  23
      11.8   Marshaling; Payments Set Aside ..........................................  23
      11.9   Severability ............................................................  23
      11.10  Headings ................................................................  23
      11.11  Applicable law ..........................................................  23
      11.12  Consent To Jurisdiction .................................................  23
      11.13  Waiver Of Jury Trial ....................................................  23
      11.14  Counterparts ............................................................  23
      11.15  Effectiveness ...........................................................  24
      11.16  Entire Agreement ........................................................  24
      11.17  Trust Indenture Act Controls ............................................  24
</TABLE>

SCHEDULE 1.1 -    FCC LICENSE

SCHEDULE 4.1 -    FINANCING STATEMENTS

SCHEDULE 4.2 -    INTELLECTUAL PROPERTY

SCHEDULE 4.3 -    INVESTMENT PROPERTY

SCHEDULE 4.4(e) - COMMERCIAL TORT CLAIMS

EXHIBIT A - FORM OF SECURITY AGREEMENT SUPPLEMENT

EXHIBIT B - FORM OF JOINDER AGREEMENT

                                       ii

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                               SECURITY AGREEMENT

          This SECURITY AGREEMENT (this "Agreement"), dated as of January __,
2003, made by XM SATELLITE RADIO INC., a Delaware corporation ("Company"), XM
Satellite Radio Holdings Inc., a Delaware corporation, ("Holdings"), XM
Equipment Leasing LLC, a Delaware limited liability company ("XM Leasing
Subsidiary") (the Company, Holdings, and XM Leasing Subsidiary, together with
each subsidiary that may from time to time become a party hereto pursuant to
Section 5.2, the "Grantors") and The Bank of New York, acting as collateral
agent ("Collateral Agent") for the benefit of the Secured Parties (as defined
below).

                                    RECITALS

          A.   The Company and The Bank of New York, as Trustee (in such
capacity, the "New Trustee"), have entered into that certain Indenture dated as
of the date hereof (as amended, restated, supplemented or otherwise modified
from time to time, the "New Indenture"), pursuant to which the Company may issue
up to $474,200,000 aggregate principal amount at maturity of its 14% Senior
Secured Discount Notes due 2009 (the "New Notes").

          B.   The Company, Holdings and certain noteholders (the "Convertible
Notes Noteholders") have entered into that certain Note Purchase Agreement,
dated as of December 21, 2002, pursuant to which the Company and Holdings are
issuing on the date hereof 10% Senior Secured Discount Convertible Notes due
2009 in an aggregate principal amount at maturity of up to $363,400,000.

          C.   Company and Holdings have entered into (a) that certain Credit
Agreement with General Motors Corporation ("General Motors"), dated as of the
date hereof, pursuant to which the Company and Holdings may receive certain
advances in an aggregate principal amount not to exceed $100,000,000, and (b)
that certain Note Purchase Agreement with OnStar Corporation ("OnStar"), dated
as of December 21, 2002, pursuant to which the Company and Holdings are issuing
on the date hereof 10% Series GM Senior Secured Convertible Notes due 2009 in
the aggregate principal amount of $89,042,387.

          D.   From time to time after the date hereof, the Company may, subject
to the terms and conditions of the Secured Agreements (as defined below), incur
additional indebtedness to obligees (the "Additional Creditors") that is pari
passu in right of payment to the obligations described in Paragraphs A through C
above.

          E.   Holdings has guaranteed the obligations of the Company under the
New Indenture and the New Notes, and XM Leasing Subsidiary has guaranteed the
obligations of the Company under each of the agreements described in Paragraphs
A through C above.

          F.   Certain subsidiaries of the Company may from time to time execute
and deliver guaranties in respect of each of the agreements described in
Paragraphs A through D above and become Grantors hereunder.

          G.   The New Trustee, General Motors, OnStar, the Convertible Notes
Noteholders, the Additional Creditors that from time to time become party
thereto and The Bank of New York, as Collateral Agent, have entered into that
certain Intercreditor and Collateral Agency (General Security Agreement), dated
as of the date hereof (as amended, restated, supplemented or otherwise modified
from time to time, the "Intercreditor Agreement"), pursuant to which, among
other things, The Bank of New York was appointed to serve as Collateral Agent
under this Agreement on behalf of the New Trustee,

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General Motors, OnStar, the Convertible Notes Noteholders and the other Persons
from time to time constituting "New Secured Parties" thereunder (collectively,
the "Secured Parties").

          NOW, THEREFORE, in consideration of the premises and the agreements,
provisions and covenants herein contained, each Grantor and Collateral Agent,
for and on behalf of itself and the Secured Parties, agree as follows:

1.   DEFINITIONS.

     1.1 General Definitions. In this Agreement, the following terms shall have
the following meanings:

          "Accounts" shall mean all "accounts" as defined in Article 9 of the
UCC, excluding assets described in the definition of Excluded Collateral.

          "Acting Secured Parties" shall mean, as of any date of determination,
the Secured Parties holding (or, in the case of the New Trustee, acting as
trustee for the New Notes) more than 20% of the sum of (a) the unpaid Accreted
Value of the New Notes, (b) the unpaid Accreted Value of the Convertible Notes,
(c) the unpaid principal amount owing under the GM Convertible Notes, (d) the
unpaid principal amount owing under the GM Loan Agreement, and (e) the unpaid
principal amount owing under the Additional Debt (if any), or, if such debt is
issued at a discount, the unpaid accreted value of such Additional Debt. Any
action so taken by the New Trustee shall constitute an action on behalf of all
of the New Notes without regard to the percentage of the New Holders directing
or authorizing the New Trustee to take such action.

          "Additional Grantors" shall mean those additional Persons that may
become parties to this Agreement as additional Grantors, by executing a Joinder
Agreement.

          "Agreement" shall have the meaning set forth in the preamble.

          "Boeing Credit Agreement" shall mean that certain Customer Credit
Agreement, dated as of December 5, 2001, between Holdings and Boeing Capital
Services Corporation and all other agreements relating thereto, as amended,
restated, supplemented or otherwise modified from time to time.

          "Books" shall mean books and records of Grantors (including all of
their Records indicating, summarizing, or evidencing assets (including the
Collateral) or liabilities, all Records relating to Grantor's business
operations or financial conditions, and all of their goods or General
Intangibles related to such information.

          "Capital Lease Obligations" shall mean a liability in respect of a
capital lease that at the time any determination thereof is to be made would be
required to be capitalized on a balance sheet in accordance with GAAP.

          "Capital Stock" shall mean:

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

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

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

          (4)  any other interest or participation that confers on a Person the
right to receive a share of the profits and losses of, or distributions of
assets of, the issuing Person.

          "Chattel Paper" shall mean all "chattel paper" as defined in Article 9
of the UCC, including, without limitation, "electronic chattel paper" or
"tangible chattel paper", as each term is defined in Article 9 of the UCC,
excluding assets described in the definition of Excluded Collateral.

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          "Collateral" shall have the meaning set forth in Section 2.1.

          "Collateral Agent" shall have the meaning set forth in the preamble.

          "Commercial Tort Claims" shall mean all "commercial tort claims" as
defined in Article 9 of the UCC, including, without limitation, the commercial
tort claims listed on Schedule 4.4(e), excluding assets described in the
definition of Excluded Collateral.

          "Commodities Accounts" shall mean all "commodity accounts" as defined
in Article 9 of the UCC, excluding assets described in the definition of
Excluded Collateral.

          "Communications Act" shall mean the Communications Act of 1934, as
amended, and the rules and regulations of the FCC, as from time to time in
effect.

          "Controlled Foreign Corporation" shall mean "controlled foreign
corporation" as defined in the United States Internal Revenue Code of 1986, as
amended from time to time.

          "Convertible Notes Noteholders" shall have the meaning set forth in
the Recitals.

          "Copyrights" shall mean (i) copyrights and copyright registrations,
including, without limitation, the copyright registrations listed on Schedule
4.2(A) and (A) all renewals thereof, (B) all income, royalties, damages and
payments now and hereafter due or payable under and with respect thereto,
including, without limitation, payments under all licenses entered into in
connection therewith and damages and payments for past or future infringements
or dilutions thereof, (C) the right to sue for past, present and future
infringements and dilutions thereof, (D) the goodwill of any Grantor's business
symbolized by the foregoing and connected therewith, and (E) all of any
Grantor's rights corresponding thereto throughout the world; and (ii) all
proceeds of any and all of the foregoing, including, without limitation,
licensed royalties and proceeds of infringement suits, in each case, excluding
assets described in the definition of Excluded Collateral.

          "Deposit Accounts" shall mean all "deposit accounts" as defined in
Article 9 of the UCC, excluding assets described in the definition of Excluded
Collateral.

          "Document" shall mean "document" as defined in Article 9 of the UCC,
excluding assets described in the definition of Excluded Collateral.

          "Equipment" shall mean all equipment (whether or not any such
equipment is so attached to the real property that it constitutes fixtures),
machinery, machine tools, motors, furniture, satellites, furnishings, vehicles
(including motor vehicles), tools, parts, goods (other than consumer goods, farm
products, or Inventory), wherever located, including all attachments,
accessories, accessions, replacements, substitutions, additions, and
improvements to any of the foregoing, excluding assets described in the
definition of Excluded Collateral.

          "Excluded Collateral" shall mean all of each Grantor's right, title,
and interest in and to each of the following:

          (a)  any licenses issued by the FCC to XM Radio Inc., as more fully
described on Schedule 1.1 to the extent, but only to the extent that the Grantor
is prohibited from granting a security interest therein pursuant to the
Communications Act of 1934, as amended, and the policies and regulations
promulgated thereunder, but the Collateral expressly includes, to the maximum
extent

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permitted by law, all rights incident or appurtenant to such licenses and the
rights to receive all proceeds derived from or in connection with the sale,
assignment or transfer of such licenses;

            (b)   assets securing Purchase Money Obligations or Capital Lease
Obligations permitted to be incurred under the Secured Agreements;

            (c)   assets subject to that certain Amended and Restated Security
Agreement, dated as of the date hereof, by the Company in favor of The Bank of
New York, as collateral agent;

            (d)   any assets, agreements, leases, permits or licenses or other
property that are not permitted to be subjected to a Lien hereunder without the
consent of third parties, which consent has not been obtained, to the extent
that the requirement of such consent is not rendered ineffective (meaning that
such Lien would not create a default with respect to such assets, agreements,
leases, permits or licenses or other property) by Article 9 of the UCC;

            (e)   the outstanding capital stock of a Controlled Foreign
Corporation in excess of 65% of the voting power of all classes of capital stock
of such Controlled Foreign Corporation entitled to vote; provided that
immediately upon the amendment of the United States Internal Revenue Code of
1986, as amended, to allow the pledge of a greater percentage of the voting
power of capital stock in a Controlled Foreign Corporation without adverse tax
consequences, the Collateral shall include, and each Grantor shall be deemed to
have granted a security interest in, such greater percentage of capital stock of
the applicable Controlled Foreign Corporation; and

            (f)   all rights, title and interest of Holdings and the Company in
and to the "Collateral" described in the Boeing Credit Agreement, including,
without limitation, the Ground Spare Satellite Bus described therein and certain
insurance proceeds relating thereto.

            "FCC" shall mean the Federal Communications Commission or any
Governmental Body succeeding to the functions thereof.

            "Financial Asset" shall mean any "financial asset" as defined in
Article 8 of the UCC, excluding assets described in the definition of Excluded
Collateral.

            "GAAP" means generally accepted accounting principles set forth in
the opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as have been approved by a significant segment
of the accounting profession, which are in effect from time to time.

            "General Intangibles" shall mean any "general intangible" as defined
in Article 9 of the UCC, excluding assets described in the definition of
Excluded Collateral.

            "General Motors" shall have the meaning set forth in the Recitals.

            "Governmental Body" shall mean any nation or government, any state
or other political subdivision thereof, any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government and any court or arbitrator.

            "Grantor" shall have the meaning set forth in the preamble hereof.

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            "Instrument" shall mean any "instrument" as defined in Article 9 of
the UCC, excluding assets described in the definition of Excluded Collateral.

            "Intellectual Property" shall mean, collectively, the Copyrights,
the Patents, the Trademarks and the Intellectual Property Licenses.

            "Intellectual Property Licenses" shall mean all rights under or
interest in any Patent, Trademark or Copyright license agreements with any other
party, whether a Grantor is a licensee or licensor under any such license
agreement, excluding assets described in the definition of Excluded Collateral;
provided, however, that Intellectual Property Licenses shall not include any
license agreement in effect as of the date hereof which by its terms prohibits
the grant of the security interest contemplated by this Agreement and which
prohibition is not rendered ineffective (meaning that such Lien would not create
a default under such license agreement) by Article 9 of the UCC, except that
upon the termination of such prohibitions for any reason whatsoever, such
license agreement shall be deemed to be included in Intellectual Property
Licenses.

            "Intercreditor Agreement" shall have the meaning set forth in the
Recitals.

            "Inventory" shall mean any "inventory" as defined in Article 9 of
the UCC, excluding assets described in the definition of Excluded Collateral.

            "Investment Property" shall mean all "investment property" as
defined in Article 9 of the UCC, including all Securities, Securities Accounts
and Commodities Accounts, excluding assets described in the definition of
Excluded Collateral.

            "Joinder Agreement" shall mean any joinder to this Agreement in
substantially the form of Exhibit B.

            "Letter-of-Credit Right" shall mean any "letter-of-credit right" as
defined in Article 9 of the UCC, excluding assets described in the definition of
Excluded Collateral.

            "Lien" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset,
whether or not filed, recorded or otherwise perfected under applicable law,
including any conditional sale or other title retention agreement, any lease in
the nature thereof, any option or other agreement to sell or give a security
interest and any filing of or agreement to give any financing statement, under
the UCC (or equivalent statutes) of any jurisdiction.

            "Material" shall mean, with respect to any subject matter in the
context of any representation, warranty or covenant under this Agreement that
can be expressed in monetary terms, an amount in excess of $5,000,000.

            "Money" shall mean "money" as defined in Article 9 of the UCC,
excluding assets described in the definition of Excluded Collateral.

            "New Holders" shall mean each Person in whose name any New Note is
registered from time to time.

            "New Notes" shall have the meaning set forth in the Recitals hereof.

            "New Trustee" shall have the meaning set forth in the Recitals
hereof.

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            "OnStar" shall have the meaning set forth in the Recitals.

            "Patents" shall mean all (i) patents and patent applications,
including, without limitation, the patents and patent applications listed on
Schedule 4.2(B), and (A) all extensions and adjustments thereof, (B) all income,
royalties, damages and payments now and hereafter due or payable under and with
respect thereto, including, without limitation, payments under all licenses
entered into in connection therewith and damages and payments for past or future
infringements thereof, (C) the right to sue for past, present and future
infringements thereof, and (D) all of Grantor's rights corresponding thereto
throughout the world; and (ii) proceeds of any and all of the foregoing,
including, without limitation, license royalties and proceeds of infringement
suits, excluding assets described in the definition of Excluded Collateral.

            "Permitted Liens" shall mean Liens that constitute "Permitted Liens"
within the meaning of each of the Secured Agreements or are otherwise not
prohibited under any of the Secured Agreements.

            "Purchase Money Obligations" shall mean obligations incurred in
accordance with the Secured Agreements for the purpose of financing all or any
part of the purchase price or cost of acquisition, construction, installation or
improvement of property, plant equipment or other assets used in the business of
any Grantor; provided that the Liens attributable to such obligations cover only
the assets acquired, constructed, installed or improved with such financing.

            "Record" shall mean information that is inscribed on a tangible
medium or that is stored in an electronic or other medium and is retrievable in
perceivable form.

            "Secured Agreements" shall have the meaning set forth in Section 1
of the Intercreditor Agreement.

            "Secured Obligations" shall have the meaning specified in Section
3.1.

            "Secured Parties" shall have the meaning set forth in the recitals.

            "Securities Accounts" shall mean all "securities accounts" as
defined in Article 8 of the UCC, excluding assets described in the definition of
Excluded Collateral.

            "Security" shall mean any "security" as defined in Article 8 of the
UCC, excluding assets described in the definition of Excluded Collateral.

            "Security Agreement Supplement" shall mean any supplement to this
agreement in substantially the form of Exhibit A.

            "Subsidiary" shall have the meaning set forth in the Indenture.

            "Supporting Obligation" shall mean any "supporting obligation" as
defined in Article 9 of the UCC, excluding assets described in the definition of
Excluded Collateral.

            "Trademarks" shall mean (i) all trademarks, trade names, registered
trademarks, trademark applications, service marks, registered service marks and
service mark applications, including, without limitation, the trade names,
registered trademarks, trademark applications, registered service marks and
service mark applications listed on Schedule 4.2(C), and (A) all renewals
thereof, (B) all income, royalties, damages and payments now and hereafter due
or payable under and with respect

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thereto, including, without limitation, payments under all licenses entered into
in connection therewith and damages and payments for past or future
infringements or dilutions thereof, (C) the right to sue for past, present and
future infringements and dilutions thereof, (D) the goodwill of any Grantor's
business symbolized by the foregoing and connected therewith, and (E) all of any
Grantor's rights corresponding thereto throughout the world; and (ii) all
proceeds of any and all of the foregoing, including, without limitation, license
royalties and proceeds of infringement suits, in each case, excluding assets
described in the definition of Excluded Collateral.

            "Trustee" shall have the meaning set forth in the Recitals.

            "UCC" shall mean the Uniform Commercial Code as in effect from time
to time in the State of New York or, when the context requires, the Uniform
Commercial Code as in effect from time to time in any other applicable
jurisdiction.

     1.2 Definitions; Interpretation. All capitalized terms used herein
(including the preamble and recitals hereto) and not otherwise defined herein
shall have the meanings ascribed thereto in the Intercreditor Agreement or, if
not defined therein, in the UCC. References to "Sections," "Exhibits" and
"Schedules" shall be to Sections, Exhibits and Schedules, as the case may be, of
this Agreement unless otherwise specifically provided. Any of the terms defined
herein may, unless the context otherwise requires, be used in the singular or
the plural, depending on the reference. The use herein of the word "include" or
"including", when following any general statement, term or matter, shall not be
construed to limit such statement, term or matter to the specific items or
matters set forth immediately following such word or to similar items or
matters, whether or not nonlimiting language (such as "without limitation" or
"but not limited to" or words of similar import) is used with reference thereto,
but rather shall be deemed to refer to all other items or matters that fall
within the broadest possible scope of such general statement, term or matter.
All references herein to provisions of the UCC shall include all successor
provisions under any subsequent version or amendment to any Article of the UCC.

2.   GRANT OF SECURITY.

     2.1 Grant of Security. Each Grantor hereby grants to Collateral Agent for
its benefit and the benefit of the Secured Parties, a first priority security
interest and continuing lien on all of such Grantor's right, title and interest
in, to and under all property of such Grantor including, but not limited to the
following, in each case whether now owned or existing or hereafter acquired or
arising and wherever located (collectively, "Collateral"):

                    (A)  Accounts;

                    (B)  Books;

                    (C)  Chattel Paper;

                    (D)  Commercial Tort Claims;

                    (E)  Deposit Accounts;

                    (F)  Documents;

                    (G)  Equipment;

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                    (H)  Financial Assets;

                    (I)  General Intangibles;

                    (J)  Intellectual Property;

                    (K)  Inventory;

                    (L)  Investment Property;

                    (M)  Instruments;

                    (N)  Letter-of-Credit Rights;

                    (O)  Money;

                    (P)  Cash Equivalent Investments, or other assets of any
                         Grantor that now or hereafter come into the possession,
                         custody, or control of Collateral Agent;

                    (Q)  to the extent not otherwise included above, all
                         Supporting Obligations relating to any of the
                         foregoing;

                    (R)  to the extent not otherwise included above, all other
                         personal property of the Grantors of any kind or
                         description; and

                    (S)  to the extent not otherwise included above, all of the
                         proceeds and products, whether tangible or intangible,
                         of any of the foregoing, including proceeds of
                         insurance covering any or all of the foregoing;

provided, however, notwithstanding anything herein to the contrary, in no event
shall the Collateral include any Excluded Collateral.

     2.2 Intercreditor Agreement. Notwithstanding anything herein to the
contrary, the rights and remedies of Collateral Agent hereunder shall be subject
to and governed by the terms of the Intercreditor Agreement.

3.   SECURITY FOR OBLIGATIONS.

     3.1 Security for Obligations. With respect to each Grantor, this Agreement
secures, and the Collateral granted by such Grantor is collateral security for,
the prompt and complete payment or performance in full when due, whether at
stated maturity, by required prepayment, declaration, acceleration, demand or
otherwise (including the payment of amounts that would become due but for the
operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11
U.S.C. ss.362(a) (and any successor provision thereof)), of all obligations of
such Grantor hereunder and under the Secured Agreements to which such Grantor is
a party, and for all Secured Obligations (as defined in the Intercreditor
Agreement) (the "Secured Obligations").

     3.2 Obligations Remain. Anything contained herein to the contrary
notwithstanding (a) each Grantor shall remain liable under any partnership
agreement or limited liability company agreement

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relating to any partnership interest or limited liability company interest
included in the Collateral and any other contracts and agreements included in
the Collateral, to the extent set forth therein, to perform all of its duties
and obligations thereunder to the same extent as if this Agreement had not been
executed; and (b) Collateral Agent shall not have any obligation or liability
under any partnership agreement or limited liability company agreement relating
to any partnership interest or limited liability company interest included in
the Collateral and any other contracts and agreements included in the Collateral
by reason of this Agreement, nor shall Collateral Agent, be obligated to perform
any of the obligations or duties of any Grantor thereunder or to take any action
to collect or enforce any claim for payment assigned hereunder.

4.   REPRESENTATIONS AND WARRANTIES AND COVENANTS.

4.1  Generally.

         (a) Representations and Warranties. Each Grantor hereby represents and
warrants on the date hereof that:

                    (A)  it is the sole legal and beneficial owner of the
                         Collateral with respect to which it is granting a
                         security interest hereunder free and clear of all Liens
                         other than Permitted Liens;

                    (B)  upon the filing of all UCC financing statements naming
                         such Grantor as "Grantor" and Collateral Agent as
                         "Secured Party" and describing the Collateral, in the
                         filing offices set forth opposite such Grantor's name
                         on Schedule 4.1 hereof and, to the extent not subject
                         to Article 9 of the UCC, upon the recordation of the
                         security interest granted hereunder in Patents,
                         Trademarks and Copyrights in the applicable patent,
                         trademark and copyright registries (including the
                         United States Patent and Trademark Office and the
                         United States Copyright Office), the security interests
                         granted to Collateral Agent hereunder will constitute
                         valid and, to the extent that a security interest in
                         such Collateral (other than any Collateral constituting
                         fixtures) can be perfected by the filing of financing
                         statements under the UCC, perfected first priority
                         Liens (subject in the case of priority only to
                         Permitted Liens);

                    (C)  no authorization, approval or other action by, and no
                         notice to or filing with, any Governmental Body is
                         required for either (i) the pledge or grant by any
                         Grantor of the Liens purported to be created in favor
                         of Collateral Agent hereunder or (ii) the exercise by
                         Collateral Agent of any rights or remedies in respect
                         of any Collateral (whether specifically granted or
                         created hereunder or created or provided for by
                         applicable law), except (A) for the filings
                         contemplated by Section 4.1(a)(ii) above, (B) as may be
                         required, in connection with the disposition of any
                         Investment Property, by laws generally affecting the
                         offering and sale of Securities and (C) to the extent
                         any consents or approvals are required under the
                         Assignment of Claims Act of 1940 or the Communications
                         Act; and

                    (D)  in the case of Material Instruments and Material
                         Investment Property consisting of certificated
                         securities, upon delivery of such instruments and the
                         certificates representing such certificated securities
                         (in the case

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                         of such certificated securities, duly endorsed or
                         accompanied by duly executed instruments of assignment
                         of transfer in blank) Collateral Agent will have a
                         first priority perfected security interest in such
                         Instruments and Investment Property (subject in the
                         case of priority only to Permitted Liens).

              (b) Covenants and Agreements. Each Grantor hereby covenants and
agrees that:

                    (A)  except for the security interest created by this
                         Agreement, it shall not create or suffer to exist any
                         Lien upon or with respect to any of the Collateral,
                         except Permitted Liens, and such Grantor shall (A)
                         defend the Collateral against all Persons at any time
                         claiming any interest therein and (B) file such
                         financing or continuation statements, or amendments
                         thereto, as may be requested by the Collateral Agent to
                         preserve the perfection of the security interests
                         granted hereunder (other than any security interests in
                         Collateral constituting fixtures);

                    (B)  it shall not use or permit any Collateral to be used
                         unlawfully or in violation of any provision of this
                         Agreement or any applicable statute, regulation or
                         ordinance or any policy of insurance covering the
                         Collateral;

                    (C)  it shall not change Grantor's name or jurisdiction of
                         organization unless it shall have (a) notified
                         Collateral Agent in writing, by executing and
                         delivering to Collateral Agent a completed Security
                         Agreement Supplement, substantially in the form of
                         Exhibit A attached hereto, together with a supplement
                         to Schedule 4.1, at least thirty (30) days prior to any
                         such change, identifying such new proposed name or
                         jurisdiction of organization and (b) taken all actions
                         necessary to maintain the continuous validity and
                         perfection of Collateral Agent's security interest in
                         the Collateral intended to be granted hereby;

                    (D)  it shall make payment of (i) all taxes, assessments,
                         license fees, levies and other charges of Governmental
                         Bodies imposed upon it which if unpaid, would be
                         reasonably likely to become a Lien on the Collateral
                         that is not a Permitted Lien, (ii) all claims
                         (including, without limitation, claims for labor,
                         services, materials and supplies) for sums which have
                         become due and payable and which by law have or are
                         reasonably likely to become a Lien upon any of the
                         Collateral other than a Permitted Lien;

                    (E)  upon such Grantor or any officer of such Grantor
                         obtaining knowledge thereof, it shall promptly notify
                         Collateral Agent in writing of the levy of any legal
                         process against the Collateral or any portion thereof;
                         and

                    (F)  if reasonably requested by the Collateral Agent at the
                         written direction of the Acting Secured Parties, it
                         shall provide to Collateral Agent a report identifying
                         any new Collateral acquired by such Grantor and not
                         previously disclosed hereunder and shall (i) provide
                         such other information and take such other actions in
                         connection therewith as Collateral Agent at the written
                         direction of the Acting Secured Parties may reasonably
                         request and (ii) to the extent not inconsistent with
                         any other applicable provisions of this Agreement
                         (including, without limitation, Sections 4.4 and 5.1),
                         take all actions necessary to establish and maintain
                         the validity and perfection of Collateral Agent's
                         security interest in such Collateral intended to be
                         granted hereby.

     4.2 Intellectual Property.

              (a) Representations and Warranties. Except with respect to any
patents that have expired or been abandoned on the date hereof, each Grantor
hereby represents and warrants, on the date hereof, that Schedule 4.2 sets forth
a true and complete list of all United States federal registrations of and

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<PAGE>

applications for Patents, Trademarks, and registered Copyrights owned by such
Grantor and material to the business of such Grantor.

              (b)   Covenants and Agreements. Each Grantor hereby covenants and
agrees as follows:

                    (A)  except as permitted under the Secured Agreements, it
                         shall not do any act or omit to do any act whereby any
                         of the Intellectual Property which is material to the
                         business of such Grantor may lapse, or become
                         abandoned, dedicated to the public, or unenforceable,
                         or which would adversely affect the validity, grant, or
                         enforceability of the security interest granted therein
                         or herein;

                    (B)  it shall take all reasonable steps in the United States
                         Patent and Trademark Office and the United States
                         Copyright Office, to pursue any application and
                         maintain any registration of each Trademark, Patent,
                         and Copyright owned by such Grantor and material to its
                         business which is now or shall become included in the
                         Collateral constituting Intellectual Property (except
                         for such works with respect to which such Grantor has
                         determined in the exercise of its commercially
                         reasonable judgment that it shall not seek
                         registration) including, but not limited to, those
                         items on Schedule 4.2(A), (B) and (C);

                    (C)  reasonably promptly following each anniversary of the
                         date hereof or at any time upon the request of the
                         Collateral Agent (at the written direction of the
                         Acting Secured Parties), it shall report to Collateral
                         Agent (i) the filing of any new application to register
                         any Intellectual Property with the United States Patent
                         and Trademark Office or the United States Copyright
                         Office (whether such application is filed by such
                         Grantor or through any agent, employee, licensee, or
                         designee thereof) and (ii) any new registration of any
                         Intellectual Property by any such office, in each case
                         by executing and delivering to Collateral Agent a
                         completed Security Agreement Supplement, substantially
                         in the form of Exhibit A attached hereto, together with
                         a supplement to Schedule 4.2; provided that in the case
                                                       --------
                         of any Intellectual Property that is the subject of any
                         proposed filing described in the preceding clause (i)
                         that is reasonably expected at the time of such filing
                         to be material to the operation of such Grantor's
                         business, such Grantor shall also provide, within ten
                         (10) days prior to filing, notice of such filing to
                         Collateral Agent; and

                    (D)  if requested by the Collateral Agent (at the written
                         direction of the Acting Secured Parties) in connection
                         with the actions required pursuant to Section
                         4.2(b)(C), it shall promptly execute and deliver to
                         Collateral Agent any document required to acknowledge,
                         confirm, register, record, or perfect Collateral
                         Agent's interest in any part of the new Intellectual
                         Property, whether now owned or hereafter acquired.

     4.3 Investment Property.

              (a) Representations and Warranties. Each Grantor hereby represents
and warrants, that on the date hereof:

                    (A)  Schedule 4.3 sets forth under the headings "Pledged
                         Stock," "Pledged LLC Interests," and "Pledged
                         Partnership Interests", all equity interests of
                         Subsidiaries and all other Material equity interests
                         owned by any

                                       11

<PAGE>

                         Grantor included in the Collateral and such equity
                         interests constitute the percentage of issued and
                         outstanding shares of stock, percentage of membership
                         interests, percentage of partnership interests or
                         percentage of beneficial interest of the respective
                         Companies thereof to the extent indicated on such
                         Schedule;

                    (B)  it is the record and beneficial owner of the equity
                         interests included in the Collateral free of all Liens,
                         rights or claims of other Persons other than Permitted
                         Liens; and

                    (C)  Schedule 4.3 sets forth under the heading "Pledged
                         Debt" all of the Material issued and outstanding
                         Indebtedness evidenced by an instrument or certificated
                         security of the respective issuers thereof owing to
                         such Grantor.

           (b) Covenants and Agreements. Each Grantor hereby covenants and
agrees that:

                    (A)  it shall not vote to enable or take any other action
                         to: (a) amend or terminate any partnership agreement,
                         limited liability company agreement, certificate of
                         incorporation, by-laws or other organizational
                         documents in any way that adversely affects the
                         validity, perfection or priority of Collateral Agent's
                         security interest, (b) permit any of its Subsidiaries
                         to dispose of all or a material portion of their assets
                         in a manner which would be prohibited under the Secured
                         Agreements or (c) cause any issuer of any partnership
                         interests or limited liability company interests
                         included in the Collateral which are not securities
                         (for purposes of the UCC) on the date hereof to elect
                         or otherwise take any action to cause such partnership
                         interests or limited liability company interests to be
                         treated as securities for purposes of the UCC unless
                         such Grantor shall take all steps necessary to
                         establish Collateral Agent's "control" thereof;

                    (B)  it shall report to the Collateral Agent the acquisition
                         of any new Material Investment Property not previously
                         disclosed hereunder promptly following the acquisition
                         thereof by delivering to Collateral Agent a completed
                         Security Agreement Supplement, substantially in the
                         form of Exhibit A attached hereto, together with a
                         supplement to Schedule 4.3, reflecting such new
                         Investment Property. To the extent that any Investment
                         Property specified on such Schedule 4.3 constitutes
                         certificated Capital Stock of a Subsidiary or Material
                         certificated Securities, such Grantor shall deliver
                         such certificates to the Collateral Agent, together
                         with undated stock powers executed in blank.
                         Notwithstanding the foregoing, it is understood and
                         agreed that the security interest of Collateral Agent
                         shall attach to all Investment Property immediately
                         upon any Grantor's acquisition of rights therein and
                         shall not be affected by the failure of any Grantor to
                         deliver a supplement to Schedule 4.3 as required
                         hereby;

                    (C)  in the event such Grantor receives any dividends,
                         interest, distributions or any securities or other
                         property on account of any Collateral, then

                                       12

<PAGE>

                         such dividends, interest, distributions, securities and
                         other property shall be included in the definition of
                         Collateral without further action; and

                    (D)  each Grantor consents to the grant by any other Grantor
                         of a security interest in all Investment Property to
                         Collateral Agent.

            (c) Voting and Distributions.

                    (A)  So long as no Event of Default shall have occurred and
                         be continuing, subject to applicable laws:

                         (A)  each Grantor shall be entitled to exercise or
                              refrain from exercising any and all voting and
                              other consensual rights pertaining to the
                              Investment Property or any part thereof for any
                              purpose not inconsistent with the terms of this
                              Agreement or any Secured Agreement; and

                         (B)  Collateral Agent shall promptly execute and
                              deliver (or cause to be executed and delivered) to
                              each Grantor all proxies and other instruments as
                              such Grantor may from time to time reasonably
                              request for the purpose of enabling such Grantor
                              to exercise the voting and other consensual rights
                              it is entitled to exercise pursuant to clause (A)
                              above.

                    (B)  Upon the occurrence and during the continuation of an
                         Event of Default, subject to applicable laws and the
                         terms of the Secured Agreements and the Intercreditor
                         Agreement:

                         (A)  all rights of each Grantor to exercise or refrain
                              from exercising the voting and other consensual
                              rights which it would otherwise be entitled to
                              exercise pursuant hereto shall cease and all such
                              rights shall thereupon become vested in Collateral
                              Agent who shall thereupon have the sole right to
                              exercise such voting and other consensual rights;
                              and

                         (B)  in order to permit Collateral Agent to exercise
                              the voting and other consensual rights which it
                              may be entitled to exercise pursuant hereto and to
                              receive all dividends and other distributions
                              which it may be entitled to receive hereunder: (1)
                              each Grantor shall promptly execute and deliver
                              (or cause to be executed and delivered) to
                              Collateral Agent all proxies, dividend payment
                              orders and other instruments as necessary or as
                              Collateral Agent (at the written direction of the
                              Acting Secured Parties) may from time to time
                              reasonably request and (2) each Grantor
                              acknowledges that Collateral Agent may utilize the
                              power of attorney set forth in Section 6.

     4.4 Documents, Chattel Paper, Instruments and Deposit Accounts

            (a) If requested by the Collateral Agent in writing (such request to
be given at the written direction of the Acting Secured Parties), each
Grantor shall deliver to the Collateral Agent all Collateral

                                       13

<PAGE>

consisting of Material Documents, Material Chattel Paper, Material promissory
notes and Material Instruments (in each case, accompanied by stock powers,
allonges or other instruments of transfer executed in blank, as applicable)
promptly after such Grantor receives the same.

            (b) If requested by the Collateral Agent in writing (such request to
be given at the written direction of the Acting Secured Parties), each Grantor
shall use commercially reasonable efforts (which shall be deemed to not include
any obligation to pay money to any third party other than reasonable attorney's
fees and expenses of the third party or other de minimus payments) to obtain
authenticated control agreements from each issuer of uncertificated Securities,
securities intermediary, or commodities intermediary issuing or holding any
Material Financial Assets for the account of such Grantor.

            (c) If requested by the Collateral Agent in writing (such request to
be given at the written direction of the Acting Secured Parties), each Grantor
shall use commercially reasonable efforts (which shall include customary fees
charged by third parties that act as intermediaries but shall not be deemed to
include any obligation to pay money to any third party other than reasonable
attorney's fees and expenses of the third party or other de minimus payments) to
obtain a control agreement with each bank or financial institution holding a
Material Deposit Account for such Grantor, which agreement shall be in form and
substance reasonably satisfactory to the Collateral Agent.

            (d) Each Grantor shall take all steps necessary to grant the
Collateral Agent control of all Material electronic chattel paper in accordance
with the UCC.

            (e) Each Grantor hereby represents and warrants, on the date hereof,
that Schedule 4.4(e) sets forth all Material Commercial Tort Claims held by such
Grantor against third parties. If requested by the Collateral Agent in writing,
each Grantor shall identify any new Material Commercial Tort Claims held by it
at such time and shall deliver a completed Security Agreement Supplement,
substantially in the form of Exhibit A attached hereto, together with a
supplement to Schedule 4.4(e) identifying such new Commercial Tort Claims.

Upon the occurrence and during the continuance of an Event of Default, each
Grantor shall not, without the Collateral Agent's prior written consent (such
consent to be given at the written direction of the Required Secured Parties),
grant any extension of the time of payment for any of the Accounts, compromise,
compound or settle the same for less than the full amount thereof, release,
wholly or partly, any Person liable for the payment thereof or allow any credit
or discount whosoever thereon, other than extensions, credit, discounts,
compromises or settlements granted or made in the ordinary course of business
and consistent with its current practices and in accordance with prudent and
standard practices used in the industry in which such Grantor is engaged.

5.   FURTHER ASSURANCES; ADDITIONAL GRANTORS.

     5.1    Further Assurances

            (a) Each Grantor agrees that from time to time, at the expense of
such Grantor, it shall promptly execute and deliver all further instruments and
documents, and take all further action, that may be necessary or reasonably
requested by Collateral Agent (at the written direction of the Acting Secured
Parties) in order to create and/or maintain the validity, perfection or priority
of and protect or enforce any security interest granted or purported to be
granted hereby or to enable Collateral Agent to exercise and enforce its rights
and remedies hereunder with respect to any Collateral; provided, however, that
(i) so long as no Default of Event of Default shall have occurred and be
continuing, such Grantor shall not be required to take any actions to perfect or
protect the security interest granted hereunder or enable the

                                       14

<PAGE>

Collateral Agent to exercise and enforce its rights and remedies with respect to
the Collateral other than as is expressly required pursuant to Sections 4.1,
4.2, 4.3 and 4.4 hereof and (ii) in no event shall such Grantor be obligated to
perfect security interests in fixtures or obtain consents, waivers,
acknowledgment or access agreements from any landlord, bailee or other similar
party. Without limiting the generality of the foregoing, each Grantor shall:

                    (A)  at any reasonable time and upon reasonable notice by
                         Collateral Agent, exhibit the Collateral to and allow
                         inspection of the Collateral by Collateral Agent, or
                         persons designated by Collateral Agent; and

                    (B)  appear in and defend any action or proceeding that may
                         affect Grantor's title to or Collateral Agent's
                         security interest in all or any part of the Collateral.

            (b) Each Grantor hereby authorizes Collateral Agent to file a Record
or Records, including, without limitation, financing or continuation statements,
and amendments thereto, in all jurisdictions and with all filing offices as are
necessary or advisable to perfect the security interest granted to Collateral
Agent herein. Such financing statements may describe the Collateral in the same
manner as described herein or may contain an indication or description of
collateral that describes such property in any other manner as is necessary,
advisable or customary to ensure the perfection of the security interest in the
Collateral granted to Collateral Agent herein. Each Grantor shall, promptly upon
request by Collateral Agent (at the written direction of the Acting Secured
Parties), furnish to Collateral Agent statements and schedules further
identifying and describing the Collateral, all in reasonable detail.

            (c) Each Grantor hereby authorizes Collateral Agent to modify this
Agreement after obtaining such Grantor's approval of or signature to such
modification by amending Schedule 4.3 to include reference to any right, title
or interest in any existing Intellectual Property or any Intellectual Property
acquired or developed by any Grantor after the execution hereof or to delete any
reference to any right, title or interest in any Intellectual Property in which
any Grantor no longer has or claims any right, title or interest; provided such
approval or signature of Grantor shall not be required so long as an Event of
Default exists.

     5.2 Additional Grantors. From time to time subsequent to the date hereof,
additional Persons may become Additional Grantors, by executing a Joinder
Agreement substantially in the form attached hereto as Exhibit B. Upon delivery
of any such Joinder Agreement to Collateral Agent, notice of which is hereby
waived by Grantors, (a) each Additional Grantor shall be a Grantor and shall be
as fully a party hereto as if such Additional Grantor were an original signatory
hereto and (b) the supplemental schedules thereto shall be incorporated into and
become a part of and supplement the respective schedules to this Agreement; and
each reference to such Schedules shall mean and be a reference to such Schedules
as supplemented pursuant to such Joinder Agreement. Each Grantor expressly
agrees that its obligations arising hereunder shall not be affected or
diminished by the addition or release of any other Grantor hereunder. This
Agreement shall be fully effective as to any Grantor that is or becomes a party
hereto regardless of whether any other Person becomes or fails to become or
ceases to be a Grantor hereunder.

6.   ATTORNEY-IN-FACT.

     6.1 Power of Attorney. Each Grantor hereby irrevocably appoints Collateral
Agent (such appointment being coupled with an interest) as such Grantor's
attorney-in-fact, with full authority in the place and stead of such Grantor and
in the name of such Grantor then in effect, from time to time in its discretion
to take any action permitted under this Agreement and consistent with the
relevant provisions

                                       15

<PAGE>

of the Intercreditor Agreement and to execute any instrument that it may deem
reasonably necessary or advisable to accomplish the purposes of this Agreement
and the Intercreditor Agreement, including, without limitation, the following:

            (a) upon the occurrence and during the continuance of any Event of
Default, to obtain and adjust insurance required to be maintained by Grantors
pursuant to the Secured Agreements;

            (b) upon the occurrence and during the continuance of any Event of
Default, to ask for, demand, collect, sue for, recover, compound, receive and
give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral;

            (c) upon the occurrence and during the continuance of any Event of
Default, to receive, endorse and collect any drafts or other instruments,
documents and chattel paper in connection with clause (b) above, subject in all
respects to the rights of any lender under the Credit Agreement to receive,
endorse and collect the same;

            (d) upon the occurrence and during the continuance of any Event of
Default, to file any claims or take any action or institute any proceedings
necessary or desirable for the collection of any of the Collateral or otherwise
to enforce the rights of Collateral Agent with respect to any of the Collateral;

            (e) to prepare and file any UCC financing statements against such
Grantor as debtor;

            (f) to prepare, sign, and file for recordation in any intellectual
property registry, appropriate evidence of the lien and security interest
granted herein in the Intellectual Property in the name of such Grantor as
assignor;

            (g) to take or cause to be taken all actions necessary to perform or
comply or cause performance or compliance with the terms of this Agreement,
including, without limitation, access to pay or discharge taxes or Liens (other
than Permitted Liens) levied or placed upon or threatened against the
Collateral, the legality or validity thereof and the amounts necessary to
discharge the same, any such payments made by Collateral Agent to become
obligations of such Grantor to Collateral Agent, due and payable immediately
without demand; and

            (h) upon the occurrence and during the continuance of any Event of
Default and subject to the provisions of the UCC, generally to sell, transfer,
pledge, make any agreement with respect to or otherwise deal with any of the
Collateral as fully and completely as though Collateral Agent were the absolute
owner thereof for all purposes, and to do, at Collateral Agent's option and such
Grantor's expense, at any time or from time to time, all acts and things
necessary to protect, preserve or realize upon the Collateral and Collateral
Agent's security interest therein in order to effect the intent of this
Agreement, all as fully and effectively as such Grantor might do.

     6.2 No Duty on the Part of Collateral Agent. The powers conferred on
Collateral Agent hereunder are solely to protect the interests of Collateral
Agent in the Collateral and shall not impose any duty upon Collateral Agent to
exercise any such powers. Collateral Agent shall be accountable only for
amounts that it actually receives as a result of the exercise of such powers,
and neither it nor any of its officers, directors, employees or agents shall be
responsible to any Grantor for any act or failure to act hereunder, except for
their own gross negligence or willful misconduct. No provision of this Agreement
shall require Collateral Agent to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder,
or in the exercise of any of its rights or powers, if it

                                       16

<PAGE>

shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it.

7.   REMEDIES.

     7.1 Generally.

         (a) Upon the occurrence and during the continuation of any Event of
Default, Collateral Agent may, subject to the requirements of the Intercreditor
Agreement and applicable law, including regulatory requirements, exercise any
and all remedies and other rights provided under this Agreement and by
applicable law, including, without limitation, the following:

               (A) require Grantors to, and Grantors hereby agree that they
                   shall at their expense and promptly upon request of
                   Collateral Agent forthwith, assemble all or part of the
                   Collateral as directed by Collateral Agent and make it
                   available to Collateral Agent at a place to be designated by
                   Collateral Agent that is reasonably convenient to all
                   parties;

               (B) enter onto the property where any Collateral is located and
                   take possession thereof with or without judicial process if
                   such may be done without a breach of the peace; and

               (C) prior to the disposition of the Collateral, store, process,
                   repair or recondition the Collateral or otherwise prepare the
                   Collateral for disposition in any manner to the extent
                   Collateral Agent may deem commercially reasonable.

         (b) The Collateral Agent may exercise in respect of the Collateral, in
addition to other rights and remedies provided for herein or otherwise available
to it, all the rights and remedies of a secured party upon default under the UCC
or any other applicable laws and also may without notice, except as specified
below, sell, lease, assign, grant an option or options to purchase or otherwise
dispose of the Collateral or any part thereof in one or more parcels at public
or private sale, at any exchange, broker's board or at any of Collateral Agent's
offices or elsewhere, for cash, on credit or for future delivery, and upon such
other terms as Collateral Agent may deem commercially reasonable. Each Grantor
agrees that, to the extent notice of sale shall be required by law, at least ten
days' notice to the each Grantor of the time and place of any public sale or the
time after which any private sale is to be made shall constitute reasonable
notification. The Collateral Agent shall not be obligated to make any sale of
Collateral regardless of notice of sale having been given. The Collateral Agent
may adjourn any public or private sale from time to time by announcement at the
time and place fixed therefor, and such sale may, without further notice, be
made at the time and place to which it was so adjourned.

         (c) All amounts and proceeds (including checks and other instruments)
received by any Grantor in respect of amounts due to such Grantor in respect of
the Collateral or any portion thereof following the occurrence and during the
continuance of an Event of Default shall be received in trust for the benefit of
Collateral Agent, shall be segregated from other funds of such Grantor and shall
be forthwith paid over or delivered to Collateral Agent in the same form as so
received (with any necessary endorsement) to be held as cash Collateral and
applied as provided by Section 7.2 following the occurrence and during the
continuance of an Event of Default. Upon demand from Collateral Agent, Grantors
shall not adjust, settle or compromise the amount or payment of any such amount
or release wholly or partly any obligor with respect thereto or allow any credit
or discount thereon.

                                       17

<PAGE>

         (d) Each Grantor hereby expressly waives and covenants not to assert
any appraisement, valuation, extension, redemption or similar laws, now or at
any time hereafter in force, which might delay, prevent or otherwise impede the
performance or enforcement of this Agreement.

     7.2 Application of Proceeds. Any cash held by Collateral Agent as
Collateral and all cash proceeds received by Collateral Agent in respect of any
sale of, collection from or other realization upon all or any part of the
Collateral shall be held by Collateral Agent as Collateral for, and then or at
any time thereafter applied (after the payment of any amounts payable to
Collateral Agent pursuant to Section 11.2 hereof) in whole or in part by
Collateral Agent for the benefit of the Secured Parties against the Secured
Obligations in such order of application as is required by the Intercreditor
Agreement. Any surplus of such cash or cash proceeds held by Collateral Agent
and remaining after payment of all of the Secured Obligations shall be paid over
to the Grantors or to whomsoever may be lawfully entitled to receive such
surplus.

     7.3 Investment Property. Each Grantor acknowledges and agrees that
Collateral Agent may elect, with respect to the offer or sale of any or all of
the Collateral constituting Investment Property or Securities, to conduct such
offer and sale in such a manner as to avoid the need for registration or
qualification of the Collateral or the offer and sale thereof under any federal
or state securities laws and that Collateral Agent is authorized to comply with
any limitation or restriction in connection with such sale as counsel may advise
Collateral Agent is necessary in order to avoid any violation of applicable law
or avoid obtaining approval of the sale or of the purchaser by any Governmental
Body, including, without limitation, compliance with such procedures as may
restrict the number of prospective bidders and purchasers, requiring that such
prospective bidders and purchasers have certain qualifications, and restricting
such prospective bidders and purchasers to Persons who will represent and agree
that they are purchasing for their own account for investment and not with a
view to the distribution or resale of such Collateral. Each Grantor further
acknowledges and agrees that any such transaction may be at prices and on terms
less favorable than those which may be obtained through a public sale and not
subject to such restrictions and agrees that, notwithstanding the foregoing,
Collateral Agent is under no obligation to conduct any such public sale and may
elect to impose any or all of the foregoing restrictions, or any other
restrictions which may be necessary or desirable in order to avoid any such
registration or qualification, at its sole discretion or with the consent or
direction of the parties entitled to give direction pursuant to the
Intercreditor Agreement.

     7.4 Intellectual Property.

         (a) Anything contained herein to the contrary notwithstanding, upon the
occurrence and during the continuation of an Event of Default, subject to the
Intercreditor Agreement:

               (A) Collateral Agent shall have the right (but not the
                   obligation) to bring suit or otherwise commence any action or
                   proceeding in the name of any Grantor, Collateral Agent or
                   otherwise, in Collateral Agent's sole discretion, to enforce
                   any Intellectual Property which is material to such Grantor's
                   business, in which event such Grantor shall, at the request
                   of Collateral Agent, do any and all lawful acts and execute
                   any and all documents required by Collateral Agent in aid of
                   such enforcement and such Grantor shall promptly, upon
                   demand, reimburse and indemnify Collateral Agent as provided
                   in Section 10 hereof in connection with the exercise of its
                   rights under this Section, and, to the extent that Collateral
                   Agent shall elect not to bring suit to enforce any
                   Intellectual Property which is material to such Grantor's
                   business as provided in this Section,

                                       18

<PAGE>

                   such Grantor agrees to use all reasonable measures, whether
                   by action, suit, proceeding or otherwise, to prevent the
                   infringement of any such Intellectual Property by others and
                   for that purpose agrees to diligently maintain any action,
                   suit or proceeding against any Person so infringing as shall
                   be necessary to prevent such infringement;

               (B) upon written demand from Collateral Agent, each Grantor shall
                   grant, assign, convey or otherwise transfer to Collateral
                   Agent all of such Grantor's right, title and interest in and
                   to the Intellectual Property and shall execute and deliver to
                   Collateral Agent such documents as are necessary or
                   appropriate to carry out the intent and purposes of this
                   Agreement;

               (C) each Grantor agrees that such an assignment and/or recording
                   shall be applied to reduce the Secured Obligations
                   outstanding only to the extent that Collateral Agent receives
                   cash proceeds in respect of the sale of, or other realization
                   upon, the Intellectual Property; and

               (D) Collateral Agent shall have the right to notify, or require
                   each Grantor to notify, any obligors with respect to amounts
                   due or to become due to such Grantor in respect of the
                   Intellectual Property, of the existence of the security
                   interest created herein, to direct such obligors to make
                   payment of all such amounts directly to Collateral Agent,
                   and, upon such notification and at the expense of such
                   Grantor, to enforce collection of any such amounts and to
                   adjust, settle or compromise the amount or payment thereof,
                   in the same manner and to the same extent as such Grantor
                   might have done.

         (b) If (i) an Event of Default shall have occurred and no longer be
continuing, (ii) no other Event of Default shall have occurred and be
continuing, (iii) an assignment or other transfer to Collateral Agent of any
rights, title and interests in and to the Intellectual Property shall have been
previously made and shall have become absolute and effective, and (iv) the
Secured Obligations shall not have become immediately due and payable, upon the
written request of any Grantor, Collateral Agent shall promptly execute and
deliver to such Grantor, at such Grantor's sole cost and expense, such
assignments or other transfers as may be necessary to reassign to such Grantor
any such rights, title and interests as may have been assigned to Collateral
Agent as aforesaid, subject to any disposition thereof that may have been made
by Collateral Agent; provided, after giving effect to such reassignment,
Collateral Agent's security interest granted pursuant hereto, as well as all
other rights and remedies of Collateral Agent granted hereunder, shall continue
to be in full force and effect; and provided further, the rights, title and
interests so reassigned shall be free and clear of any Liens granted by or on
behalf of Collateral Agent.

         (c) Solely for the purpose of enabling Collateral Agent to exercise
rights and remedies under this Section 7 and at such time as Collateral Agent
shall be lawfully entitled to exercise such rights and remedies, each Grantor
hereby grants to Collateral Agent, to the extent it has the right to do so an
irrevocable, nonexclusive license (exercisable without payment of royalty or
other compensation to such Grantor), subject, in the case of Trademarks, to
sufficient rights to quality control and inspection in favor of such Grantor to
avoid the risk of invalidation of said Trademarks, to use, operate under,
license, or sublicense any Intellectual Property now owned or hereafter acquired
by such Grantor, and wherever the same may be located.

                                       19

<PAGE>

     7.5 FCC Licenses.

         Notwithstanding anything to the contrary contained in this Agreement,
the Intercreditor Agreement, the Secured Agreements or in any other agreement,
instrument or document executed by any Grantor in connection with the Secured
Agreements, to the extent that any FCC license is included in the Collateral,
the Collateral Agent will not take any action pursuant to any document referred
to above which would constitute or result in any assignment of any FCC license
or any change of control (whether de jure or de facto) of any Grantor or
subsidiary of any Grantor if such assignment of any FCC license or change of
control would require, under then existing law, the prior approval of the FCC
without first obtaining such prior approval of the FCC. Upon the occurrence of
an Event of Default or at any time thereafter during the continuance thereof,
subject to terms and conditions of this Agreement, each Grantor agrees to take
any action that Collateral Agent may reasonably request in order to obtain from
the FCC such approval as may be necessary to enable Collateral Agent to exercise
and enjoy the full rights and benefits granted to Collateral Agent by this
Agreement and the other documents referred to above, including specifically, at
the cost and expense of each Grantor, the use of its best efforts to assist in
obtaining approval of the FCC for any action or transaction contemplated by this
Agreement for which such approval is or shall be required by law, and
specifically, without limitation, upon request, to prepare, sign and file with
the FCC the assignor's or transferor's portion of any application or
applications for consent to the assignment of license or transfer of control
necessary or appropriate under the FCC's rules and regulations for approval of
(i) any sale or other disposition of the Collateral by or on behalf of
Collateral Agent, or (ii) any assumption by Collateral Agent of voting rights in
the Collateral effected in accordance with the terms of this Agreement. It is
understood and agreed that all foreclosure and related actions will be made in
accordance with the Communications Act and other applicable FCC regulations and
published policies and decisions.

8.   CONTINUING SECURITY INTEREST; TERMINATION AND RELEASE.

         (a) This Agreement shall create a continuing security interest in the
Collateral and shall (i) remain in full force and effect until the payment in
full of all of the Secured Obligations, (ii) be binding upon the each Grantor,
its successors and assigns and (iii) inure, together with the rights and
remedies of Collateral Agent hereunder, to the benefit of Collateral Agent, the
Secured Parties and their respective successors, transferees and assigns.

         (b) Subject to Section 314(d) of the Trust Indenture Act of 1939,
notwithstanding anything to the contrary in this Section 8, (i) the security
interests created under this Agreement shall terminate upon the termination of
the Intercreditor Agreement pursuant to Section 8.10 thereof or, if later,
payment in full of the Secured Obligations, and (ii) the security interests
created under this Agreement with respect to any Collateral that is permitted to
be released pursuant to Section 6.8 of the Intercreditor Agreement shall
automatically be released and, in each case, the Collateral Agent shall, at the
request and expense of any Grantor (and, if requested by the Collateral Agent,
upon the delivery of an officer's certificate by the Company certifying that
such release is permitted under the Secured Agreements), cause to be assigned,
transferred and delivered, against receipt but without recourse, warranty or
representation whatsoever, all Collateral subject to such termination or
release, as applicable, to or on the order of such Grantor, and shall execute
and deliver to such Grantor at Grantor's expense such documents and instruments
as such Grantor may reasonably request to evidence the release of such
Collateral from the Lien of this Agreement, including, without limitation, any
UCC termination statements and any filings with the United States Patent and
Trademark Office or the United States Copyright Office.

                                       20

<PAGE>

9.   STANDARD OF CARE; SECURED PARTY MAY PERFORM.

         The powers conferred on Collateral Agent hereunder are solely to
protect its interest in the Collateral and shall not impose any duty upon it to
exercise any such powers. Except for the exercise of reasonable care in the
custody of any Collateral in its possession and the accounting for moneys
actually received by it hereunder, Collateral Agent shall have no duty as to any
Collateral or as to the taking of any necessary steps to preserve rights against
prior parties or any other rights pertaining to any Collateral. The Collateral
Agent shall be deemed to have exercised reasonable care in the custody and
preservation of Collateral in its possession if such Collateral is accorded
treatment substantially equal to that which Collateral Agent accords its own
similar property. None of the Collateral Agent, any Secured Party or any of
their respective directors, officers, employees or agents shall be liable for
failure to demand, collect or realize upon all or any part of the Collateral or
for any delay in doing so or shall be under any obligation to sell or otherwise
dispose of any Collateral upon the request of any Grantor or otherwise. If any
Grantor fails to perform any agreement contained herein, Collateral Agent may
itself perform, or cause performance of, such agreement, and the expenses of
Collateral Agent incurred in connection therewith shall be payable by each
Grantor under Section 11.2 hereof. The Collateral Agent may execute any of the
trusts or powers hereunder or perform any duties hereunder either directly or by
or through agents or attorneys and the Trustee shall not be responsible for any
misconduct or negligence on the part of any agent or attorney appointed with due
care by it hereunder.

10.  INDEMNITY.

         (a) Each Grantor agrees to jointly and severally indemnify and hold
harmless Collateral Agent and the Secured Parties, the respective affiliates of
Collateral Agent and the Secured Parties, and the respective officers,
directors, employees, agents (including, without limitation each of their
counsel), and controlling persons of Collateral Agent and the Secured Parties,
and each such affiliate (each, an "Indemnified Party") from and against any and
all claims, actions and suits whether groundless or otherwise, and from and
against any and all liabilities, losses, damages and costs and expenses
(including, without limitation, the reasonable fees and disbursements of counsel
and with respect to Collateral Agent, reasonably allocated costs and expenses of
in-house counsel and legal staff) of every nature and character arising out of
or in connection with any actual or threatened claim, litigation, investigation
or proceeding relating to this Agreement or the Secured Agreements or the
transactions contemplated hereby or thereby (other than any such actions or
expenses resulting, as determined by a final order of a court of competent
jurisdiction, from the gross negligence or willful misconduct of the Indemnified
Party seeking indemnification hereunder), in each case including, without
limitation, the reasonable fees and disbursements of counsel and allocated costs
of in-house counsel and legal staff incurred in connection with any such claim
investigation, litigation or other proceeding whether or not such Indemnified
Party is a party thereto, and each Grantor agrees to reimburse each Indemnified
Party, upon demand, for all out-of-pocket costs and expenses (including, without
limitation, the reasonable fees and disbursements of counsel and with respect to
Collateral Agent and the Secured Parties, reasonably allocated costs and
expenses of in-house counsel and legal staff) incurred in connection with any of
the foregoing. In litigation, or the preparation therefor, Indemnified Parties
shall each be entitled to select their own counsel and, in addition to the
foregoing indemnity, each Grantor agrees to pay promptly the reasonable fees and
expenses of such counsel. If, and to the extent that the obligations of any
Grantor under this Section 10 are unenforceable for any reason, such Grantor
hereby agrees to make the maximum contribution to the payment in satisfaction of
such obligations which is permissible under applicable law.

         (b) No Grantor shall make any claim against any Indemnified Party for
any special, indirect or consequential damages in respect of any breach or
wrongful conduct (whether the claim therefor is based in contract, tort or duty
imposed by law) in connection with, arising out of or in any way

                                       21

<PAGE>

related to the transactions contemplated by, and the relationship established by
the Secured Agreements, or any act, omission or event occurring in connection
therewith, and hereby waives, releases and agrees not to sue upon any such claim
for any such damages, whether or not accrued and whether or not known or
suspected to exist in such Grantor's favor.

         (c) The covenants contained in this Section 10 shall survive payment or
satisfaction in full of all other of the Secured Obligations.

11.  MISCELLANEOUS.

     11.1 Notices. Unless otherwise specifically provided herein, any notice or
other communication herein required or permitted to be given to a Grantor or
Collateral Agent shall be sent to such Person's address as set forth in the
Intercreditor Agreement. All such notices and other communications shall, when
mailed or telecopied, be effective when deposited in the mails or transmitted by
telecopier, respectively.

     11.2 Expenses. Each Grantor will upon demand make payment to Collateral
Agent of any and all reasonable out-of-pocket sums, costs and expenses, which
Collateral Agent may pay or incur pursuant to the provisions of this Agreement
or in perfecting, defending, protecting or enforcing this Agreement or the
security interests granted herein or in enforcing payment of all of the Secured
Obligations or otherwise in connection with the provisions hereof, including,
but not limited to court costs, reasonable collection charges, reasonable travel
expenses, and reasonable attorneys' fees and expenses (including with respect to
Collateral Agent, the reasonable allocated costs and expenses of in-house
counsel and legal staff) all of which together with interest at the highest rate
then payable under the Indenture, shall be part of the Secured Obligations. The
covenants in this Section 11.2 shall survive payment or satisfaction in full of
all other of the Secured Obligations.

     11.3 Amendments and Waivers. Subject to the requirements of Section 6.6 and
6.7 of the Intercreditor Agreement, any consent or approval required or
permitted by this Agreement to be given by Collateral Agent may be given, and
any term of this Agreement, may be amended, and the performance or observance by
the Grantors of any terms of this Agreement, or the continuance of any Default
or Event of Default may be waived (either generally or in a particular instance
and either retroactively or prospectively) with, but only with, the written
consent of the Grantors and the written consent of Collateral Agent. No waiver
shall extend to or affect any obligation not expressly waived or impair any
right consequent thereon. No course of dealing or delay or omission on the part
of Collateral Agent or any Secured Party in exercising any right shall operate
as a waiver thereof or otherwise be prejudicial thereto. No notice to or demand
upon the Grantors shall entitle the Grantors to other or further notice or
demand in similar or other circumstances.

     11.4 Successors and Assigns. This Agreement shall be binding upon the
parties hereto and their respective successors and assigns including all persons
who become bound as Grantor to this Agreement. No Grantor shall, except as
permitted under the Secured Agreements, assign any right, duty or obligation
hereunder.

     11.5 Independence of Covenants. All covenants hereunder shall be given
independent effect so that if a particular action or condition is not permitted
by any of such covenants, the fact that it would be permitted by an exception
to, or would otherwise be within the limitations of, another covenant shall not
avoid the occurrence of a Default or an Event of Default if such action is taken
or condition exists.

                                       22

<PAGE>

     11.6  Survival of Representations, Warranties and Agreements. All
representations, warranties and agreements made herein shall survive the
execution and delivery hereof. Notwithstanding anything herein or implied by law
to the contrary, the agreements of Grantors set forth in Sections 10 and 11.2
shall survive the payment of the Secured Obligations under the Indenture and the
termination hereof.

     11.7  No Waiver; Remedies Cumulative. No failure or delay on the part of
Collateral Agent in the exercise of any power, right or privilege hereunder or
under any Secured Agreement shall impair such power, right or privilege or be
construed to be a waiver of any default or acquiescence therein, nor shall any
single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other power, right or privilege. All
rights, powers and remedies existing under this Agreement and the Secured
Agreements are cumulative, and not exclusive of, any rights or remedies
otherwise available. Any forbearance or failure to exercise, and any delay in
exercising, any right, power or remedy hereunder shall not impair any such
right, power or remedy or be construed to be a waiver thereof, nor shall it
preclude the further exercise of any such right, power or remedy.

     11.8  Marshaling; Payments Set Aside. The Collateral Agent shall not be
under any obligation to marshal any assets in favor of any Grantor or any other
Person or against or in payment of any or all of the Secured Obligations.

     11.9  Severability. In case any provision in or obligation hereunder shall
be invalid, illegal or unenforceable in any jurisdiction, the validity, legality
and enforceability of the remaining provisions or obligations, or of such
provision or obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.

     11.10 Headings. Section headings herein are included herein for convenience
of reference only and shall not constitute a part hereof for any other purpose
or be given any substantive effect.

     11.11 Applicable law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York, without giving effect to any
conflicts of laws principles thereof other than New York General Obligations Law
Sections 5-1401 and 5-1402.

     11.12 Consent To Jurisdiction. Each Grantor hereby appoints
[_______________] (the "Process Agent") at [________, New York _____], as its
legally authorized process agent to accept service on behalf of such Grantor.
Each Grantor agrees that any suit for the enforcement of this Agreement may be
brought in the courts of the State of New York or any federal court sitting
therein and consents to the nonexclusive jurisdiction of such court and service
of process in any such suit being made upon such Grantor by mail to the Process
Agent at the address specified above. Each Grantor hereby waives any objection
that it may now or hereafter have to the venue of any such suit or any such
court or that such suit is brought in an inconvenient court.

     11.13 Waiver Of Jury Trial. Each Grantor hereby waives its right to a jury
trial with respect to any action or claim arising out of any dispute in
connection with this Agreement, or any of the Secured Agreements, any rights or
obligations hereunder or thereunder or the performance of such rights and
obligations.

     11.14 Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument.

                                       23

<PAGE>

         11.15 Effectiveness. This Agreement shall become effective upon the
execution of a counterpart hereof by each of the parties hereto and receipt by
Collateral Agent of written or telephonic notification of such execution and
authorization of delivery thereof.

         11.16 Entire Agreement. This Agreement and the Intercreditor Agreement
embody the entire agreement and understanding between Grantors and Collateral
Agent and supersede all prior agreements and understandings between such parties
relating to the subject matter hereof and thereof. There are no unwritten oral
agreements between the parties.

         11.17 Trust Indenture Act Controls. If any provision of this Agreement
limits, qualifies or conflicts with the duties imposed by the Trust Indenture
Act of 1939 as in effect on the date of this Agreement, the imposed duties shall
control.

      [Remainder of page intentionally left blank; signature page follows.]

                                       24

<PAGE>

         IN WITNESS WHEREOF, Grantors and Collateral Agent have caused this
Agreement to be duly executed and delivered by their respective officers
thereunto duly authorized as of the date first written above.

                                            XM SATELLITE RADIO INC.

                                            By: ________________________________
                                                     Name:
                                                     Title:

                                            XM SATELLITE RADIO HOLDINGS INC.

                                            By: ________________________________
                                                     Name:
                                                     Title:

                                            XM EQUIPMENT LEASING LLC

                                            By: ________________________________
                                                     Name:
                                                     Title:

                                            THE BANK OF NEW YORK,
                                            as Collateral Agent

                                            By: ________________________________
                                                     Name:
                                                     Title:

<PAGE>

                                                                       EXHIBIT A
                                                           TO SECURITY AGREEMENT

                     FORM OF SECURITY AGREEMENT SUPPLEMENT

         This SECURITY AGREEMENT SUPPLEMENT, dated [mm/dd/yy] (the
"Supplement"), is delivered pursuant to the Security Agreement, dated as of
January __, 2003 (as it may be from time to time amended, restated, modified or
supplemented, the "Security Agreement"), among XM Satellite Radio Holdings Inc.,
certain of its Subsidiaries party thereto and The Bank of New York, as
Collateral Agent. Capitalized terms used herein not otherwise defined herein
shall have the meanings ascribed thereto in the Security Agreement. This
Supplement is being delivered pursuant to Section [__]/1/ of the Security
Agreement.

         Grantor hereby confirms, as of the date first written above, the grant
to Collateral Agent set forth in the Security Agreement of, does hereby grant to
Collateral Agent, for the benefit of itself and the Secured Parties, a security
interest in all of Grantor's right, title and interest in and to all Collateral
to secure the Secured Obligations, in each case whether now or hereafter
existing or in which Grantor now has or hereafter acquires an interest and
wherever the same may be located and hereby agrees, as of the date first above
written, to continue to be bound as a Grantor by all of the terms and provisions
of the Security Agreement, as supplemented by this Security Agreement
Supplement. Grantor hereby represents and warrants that the attached Supplements
to Schedules accurately and completely set forth all additional information with
respect to the Grantor currently required pursuant to the Security Agreement and
hereby agrees that such Supplements to Schedules shall constitute part of the
Schedules to the Security Agreement.

               IN WITNESS WHEREOF, Grantor has caused this Security Agreement
Supplement to be duly executed and delivered by its duly authorized officer as
of [mm/dd/yy].

                                            [NAME OF GRANTOR]

                                            By: _______________________________
                                                Name:
                                                Title:

-------------------------
/1/ Insert Section 4.1(b)(iii), 4.2(b)(iii), 4.3(b)(ii), 4.4(e), as applicable.

<PAGE>

                                                      SUPPLEMENT TO SCHEDULE 4.1
                                                           TO SECURITY AGREEMENT

Additional Information:

Financing Statements:

Name of Grantor                                        Filing Jurisdiction(s)
---------------                                        ----------------------

<PAGE>

                                                      SUPPLEMENT TO SCHEDULE 4.2
                                                           TO SECURITY AGREEMENT

Additional Information:

(A)    Copyrights:

(B)    Patents:

(C)    Trademarks:

<PAGE>

                                                      SUPPLEMENT TO SCHEDULE 4.3
                                                           TO SECURITY AGREEMENT

                          MATERIAL INVESTMENT PROPERTY

<PAGE>

                                                      SUPPLEMENT TO SCHEDULE 4.4
                                                           TO SECURITY AGREEMENT

                             COMMERCIAL TORT CLAIMS

<PAGE>

                                                                       EXHIBIT B
                                                           TO SECURITY AGREEMENT

                            FORM OF JOINDER AGREEMENT

         This JOINDER AGREEMENT, dated [mm/dd/yy], is delivered pursuant to the
Security Agreement, dated as of January __, 2003 (as it may be from time to time
amended, restated, modified or supplemented, the "Security Agreement"), among XM
Satellite Radio Holdings Inc., certain of its Subsidiaries party thereto and The
Bank of New York, as Collateral Agent. Capitalized terms used herein not
otherwise defined herein shall have the meanings ascribed thereto

         Section 1. Grant of Security Interest. The undersigned hereby grants to
Collateral Agent for the benefit of itself and the Secured Parties, a security
interest and continuing lien on all of its right, title and interest in, to and
under all personal property of the undersigned that may be perfected by the
filing of UCC financing statements in the appropriate jurisdictions, including
without limitation, the property and assets of the undersigned set forth on the
attached supplemental schedules to the Schedules to the Security Agreement, in
each case whether now owned or existing or hereafter acquired or arising and
wherever located (the undersigned's "Collateral"), subject to the same limited
exclusions set forth in the Security Agreement.

         Section 2. Security For Obligations. The grant of security interest and
continuing lien under this Joinder Agreement secures, and the Collateral is
collateral security for, the prompt and complete payment or performance in full
when due, whether at stated maturity, by required prepayment, declaration,
acceleration, demand or otherwise (including the payment of amounts that would
become due but for the operation of the automatic stay under Section 362(a) of
the Bankruptcy Code, 11 U.S.C. ss.362(a) (and any successor provision thereof)),
of all obligations of Grantor hereunder and under the Secured Agreements to
which Grantor is a party, and for all Secured Obligations (as defined in the
Intercreditor Agreement).

         Section 3. Supplements to Security Agreement Schedules. The undersigned
has attached hereto supplemental Schedules 4.1, 4.2, 4.3, and 4.4(e) to
Schedules 4.1, 4.2, 4.3, and 4.4(e) respectively, to the Security Agreement, and
the undersigned hereby certifies, as of the date first above written, that such
supplemental schedules have been prepared by the undersigned in substantially
the form of the equivalent Schedules to the Security Agreement and are complete
and correct in all material respects.

         Section 4. Representations and Warrants and Covenants. As of the date
hereof, the undersigned hereby makes each representation and warranty and
covenant set forth in Section 4 of the Security Agreement (as supplemented by
the attached supplemental schedules) to the same extent as each other Grantor.

         Section 5. Obligations Under the Security Agreement. The undersigned
hereby agrees, as of the date first above written, to be bound as a Grantor by
all of the terms and provisions of the Security Agreement to the same extent as
Grantor. The undersigned further agrees, as of the date first above written,
that each reference in the Security Agreement to an "Additional Grantor" or a
"Grantor" shall also mean and be a reference to the undersigned.

         The terms of Sections 11.11, 11.12, 11.13 and 11.14 of the Security
Agreement are hereby incorporated by reference.

<PAGE>

         IN WITNESS WHEREOF, the undersigned has caused this Joinder Agreement
to be duly executed and delivered by its duly authorized officer as of
[mm/dd/yy].

                                            [NAME OF ADDITIONAL GRANTOR]

                                            By:______________________
                                               Name:
                                               Title:

<PAGE>

                                                      SUPPLEMENT TO SCHEDULE 4.1
                                                           TO SECURITY AGREEMENT

Additional Information:

Financing Statements Filing Offices:

Name of Grantor                         Filing Jurisdiction(s)
---------------                         ----------------------

<PAGE>

                                                      SUPPLEMENT TO SCHEDULE 4.2
                                                           TO SECURITY AGREEMENT

Additional Information:

(A)      Copyrights

(B)      Patents

(C)      Trademarks

<PAGE>

                                                      SUPPLEMENT TO SCHEDULE 4.3
                                                           TO SECURITY AGREEMENT

Additional Information:

Pledged Stock:

Pledged Partnership Interests:

Pledged LLC Interests:

Pledged Debt:

<PAGE>

                                                   SUPPLEMENT TO SCHEDULE 4.4(e)
                                                           TO SECURITY AGREEMENT

                             COMMERCIAL TORT CLAIMS<PAGE>

                              AMENDED AND RESTATED
                               SECURITY AGREEMENT

                          Dated as of January __, 2003

                                      from

                            XM SATELLITE RADIO INC.,

                                   as Pledgor

                                       to

                              THE BANK OF NEW YORK,

                               as Collateral Agent

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                          Page
                                                                                                          ----
<S>                                                                                                       <C>
1.       Definitions.................................................................................        2

2.       Grant of Security Interest..................................................................        2

3.       Security for Obligations....................................................................        3

4.       Delivery of Collateral......................................................................        4

5.       Representations and Warranties..............................................................        5

6.       As to the Collateral........................................................................        6

7.       Additional Shares...........................................................................        7

8.       Payment of Taxes and Claims.................................................................        8

9.       Covenants and Agreements....................................................................        9

10.      The Collateral Agent Appointed Attorney-in-Fact.............................................       10

11.      The Collateral Agent May Perform............................................................       11

12.      The Collateral Agent's Duties...............................................................       11

13.      Notice of Event of Default..................................................................       11

14.      Remedies....................................................................................       11

15.      Expenses....................................................................................       13

16.      Repayment in Bankruptcy, etc................................................................       13

17.      No Segregation of Moneys; No Interest.......................................................       13

18.      Continuing Security Interest; Termination...................................................       13

19.      Notices.....................................................................................       14

20.      Margin Regulations..........................................................................       14

21.      Other Provisions............................................................................       14
</TABLE>

                                       i

<PAGE>

                     AMENDED AND RESTATED SECURITY AGREEMENT

                  AMENDED AND RESTATED SECURITY AGREEMENT (this "Agreement"),
dated as of January __, 2003, made by XM Satellite Radio Inc., a Delaware
corporation (the "Pledgor"), to The Bank of New York, as collateral agent (the
"Collateral Agent") for the Secured Parties (as defined herein).

                                    RECITALS

                  A.   The Pledgor and The Bank of New York, as Trustee (in such
capacity, the "Original Trustee"), have entered into that certain Indenture
dated as of March 15, 2000 (as amended, restated, supplemented or otherwise
modified from time to time, the "Original Indenture"), pursuant to which the
Pledgor (a) issued $325,000,000 aggregate principal amount at maturity of its
14% Senior Secured Notes due 2010 (the "Original Notes"), and (b) executed and
delivered a Security Agreement, dated as of March 15, 2000 (the "Original
Security Agreement"), to The Bank of New York, as Collateral Agent for the
benefit of the holders under the Original Indenture.

                  B.   The Pledgor and The Bank of New York, as Trustee (in such
capacity, the "New Trustee"), have entered into that certain Indenture, dated as
of the date hereof, pursuant to which the Pledgor may issue up to $474,200,000
aggregate principal amount at maturity of its 14% Senior Secured Discount Notes
due 2009 (the "New Notes").

                  C.   The Pledgor, XM Satellite Radio Holdings Inc., a Delaware
corporation ("Holdings"), and certain noteholders (the "Convertible Notes
Noteholders") have entered into that certain Note Purchase Agreement, dated as
of December 21, 2002, pursuant to which the Pledgor and Holdings are issuing 10%
Senior Secured Discount Convertible Notes due 2009 in an aggregate principal
amount at maturity of up to $363,400,000.

                  D.   The Pledgor and Holdings have entered into (a) that
certain Credit Agreement with General Motors Corporation ("General Motors"),
dated as of the date hereof, pursuant to which the Pledgor and Holdings may
receive certain advances in an aggregate principal amount not to exceed
$100,000,000, and (b) that certain Note Purchase Agreement, with OnStar
Corporation ("OnStar") dated as of December 21, 2002, pursuant to which the
Pledgor and Holdings are issuing 10% Series GM Senior Secured Convertible Notes
due 2009 in the aggregate principal amount of $89,042,387.

                  E.   From time to time after the date hereof, the Pledgor may,
subject to the terms and conditions of the agreements described in Paragraphs A
through D above, incur additional indebtedness to obligees (the "Additional
Creditors") that is pari passu in right of payment to the obligations of the
Pledgor under such agreements.

                  F.   The Original Trustee, the New Trustee, General Motors,
OnStar, the Convertible Notes Noteholders, the Additional Creditors that may
from time to time become party thereto and The Bank of New York, as Collateral
Agent, have entered into that certain Intercreditor and Collateral Agency
Agreement (FCC Licence Subsidiary Pledge Agreement), dated as of the date hereof
(as amended, restated, supplemented or otherwise modified from time to time, the
"Intercreditor Agreement"), pursuant to which, among other things, The Bank of

<PAGE>

New York was appointed to serve as Collateral Agent under this Agreement on
behalf of the Original Trustee, the New Trustee, the Convertible Notes
Noteholders, General Motors, OnStar and the Additional Creditors (the Original
Trustee, the New Trustee, the Convertible Notes Noteholders, General Motors,
OnStar and the Additional Creditors are hereinafter referred to collectively as
the "Secured Parties").

                  G.   The Pledgor is the owner of the issued and outstanding
capital stock described in Schedule I hereto (the "Pledged Shares") representing
100% of the issued and outstanding capital stock of XM Radio Inc., a Delaware
corporation (the "FCC License Subsidiary"), and there are (i) no outstanding or
existing options, warrants or other securities exercisable for, or exchangeable
for, or convertible into, capital stock of the FCC License Subsidiary and (ii)
no agreements with respect to the issuance or sale of any of the foregoing.

                  H.   The Pledgor and the Collateral Agent have agreed to
amend and restate the Original Security Agreement to grant to the Collateral
Agent, for the benefit of the Secured Parties, the pledge and assignment
contemplated by this Agreement.

                  In consideration of the premises, the agreements herein
contained and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Pledgor hereby covenants and agrees with
the Collateral Agent for the benefit of the Secured Parties, to amend and
restate the Original Security Agreement in its entirety so that on and after the
date hereof the Original Security Agreement shall read in its entirety as
follows:

1.       Definitions.

                  All capitalized terms used but not otherwise defined herein
have the meanings given to them in the Intercreditor Agreement.

2.       Grant of Security Interest.

         (a)      The Pledgor hereby unconditionally assigns, pledges and grants
to the Collateral Agent for its benefit and the benefit of the Secured Parties,
a first priority security interest in and to all of the Pledgor's right, title
and interest in and to the following, whether now owned or existing or hereafter
arising or acquired and wheresoever located (collectively, the "Collateral"):

                  (i)  the Pledged Shares and the certificates representing the
         Pledged Shares, and all dividends, cash, instruments and other property
         from time to time received, receivable or otherwise distributed in
         respect of or in exchange for any or all of the Pledged Shares;

                  (ii) all additional shares of issued and outstanding shares,
         interests, participations, warrants or other equivalents (however
         designated) of corporate stock ("Stock") of the FCC License Subsidiary
         from time to time acquired by the Pledgor in any manner, and the
         certificates representing such additional shares, and all dividends,
         cash, instruments and other property from time to time received,
         receivable or otherwise distributed in respect of or in exchange for
         any or all of such shares; and

                                       2

<PAGE>

              (iii)  all Proceeds (as defined herein) of any and all of the
        foregoing Collateral (including, without limitation, proceeds that
        constitute property of the types described in clauses (i) and (ii)
        above).

        (b)   As used herein, the term "Proceeds" shall have the meaning
assigned to such term under Article 9 of the Uniform Commercial Code from time
to time in effect in the State of New York (the "UCC"; provided that in the
event that, by reason of mandatory provisions of law, any or all of the
attachment, perfection or priority of the Collateral Agent's security interest
in any Collateral is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than the State of New York, the term "UCC" shall mean the
Uniform Commercial Code as in effect in such other jurisdiction for purposes of
the provisions hereof relating to such attachment, perfection or priority and
for purposes of definitions related to such provisions) and, to the extent not
otherwise included, shall include, but not be limited to, (i) any stock dividend
or distribution in connection with any increase or reduction of capital,
reclassification, merger, consolidation, sale of assets, combination of shares,
stock split, spin-off or split-off; (ii) any option or other right, whether as
an addition to, in substitution of or in exchange for any Pledged Shares or
otherwise; (iii) distributions payable in property (whether real, personal,
tangible, intangible, or mixed property; collectively "Property"); (iv)
dividends or distributions on dissolution, or in partial or total liquidation,
or from capital, capital surplus or paid-in surplus; (v) any and all payments
(in any form whatsoever) made or due and payable to the Pledgor from time to
time in connection with any requisition, confiscation, condemnation, seizure or
forfeiture of all or any part of the Collateral by any nation or government, any
state or other political subdivision thereof, any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government and any court or arbitrator (a "Governmental Body"); and (vi) any
and all other amounts from time to time paid or payable under or in connection
with the Collateral.

3.      Security for Obligations.

              This Agreement secures the payment of all of the obligations and
liabilities of any kind of the Pledgor under this Agreement and the Secured
Agreements, now or hereafter existing in each case, whether liquidated,
unliquidated, direct, indirect, fixed, contingent, matured, unmatured, disputed,
undisputed, legal, equitable, secured or unsecured, and whether for principal,
interest, fees, costs, expenses or otherwise (whether arising or accruing before
or after the occurrence of any "Event of Default" as defined in any Secured
Agreement (each, an "Event of Default") and whether discharged, stayed or
otherwise affected or allowed as a claim in any bankruptcy proceeding of the FCC
License Subsidiary), and all costs, fees and expenses of the Collateral Agent,
the Secured Parties, the Original Holders or the New Holders (including
reasonable attorneys' fees and expenses and with respect to the Collateral Agent
and reasonable allocated costs and expenses of in-house counsel and legal staff)
incurred in enforcing, preserving and protecting its rights against the Pledgor,
whether or not suit is instituted, as the foregoing obligations and liabilities
may be amended, increased, modified, renewed, refinanced, refunded or extended
from time to time (collectively, the "Secured Obligations").

              Without limiting the generality of the foregoing, this Agreement
secures the payment of all amounts that constitute part of the Secured
Obligations and would be owed by the Pledgor to the Collateral Agent or the
Secured Parties, the Original Holders or the New Holders

                                       3

<PAGE>

under this Agreement or the Secured Agreements, as the case may be, but for the
fact that they are unenforceable or not allowable due to the existence of a
bankruptcy, reorganization or similar proceeding involving the Pledgor.

         The parties hereto intend to maintain the validity, effectiveness,
enforceability, perfection and priority of the Original Security Agreement and
this Agreement is intended, inter alia, to continue, increase and modify the
obligations and indebtedness secured by the security interests and pledges
created under the Original Security Agreement. Except as specifically provided
herein and in the Intercreditor Agreement, this Agreement shall not have the
effect of terminating, limiting, modifying or otherwise affecting the validity,
effectiveness, enforceability, perfection and priority of the security interests
or the pledges created under the Original Security Agreement, which is hereby
ratified and confirmed, as set forth herein.

4.   Delivery of Collateral.

     (a) All certificates and other instruments at any time owned or acquired by
the Pledgor representing or evidencing the Pledged Shares or any other
Collateral shall be delivered to and held by or on behalf of the Collateral
Agent pursuant hereto and shall be in suitable form for transfer by delivery, or
shall be accompanied by duly executed instruments of transfer or assignment in
blank, all in form and substance satisfactory to the Collateral Agent. Upon the
occurrence and during the continuance of an Event of Default, the Collateral
Agent shall have the right, subject to the requirements of the Intercreditor
Agreement, without notice to the Pledgor, to transfer to or to register in the
name of the Collateral Agent or any of its nominees any or all of the
Collateral. In addition, upon the occurrence and during the continuance of an
Event of Default, the Collateral Agent shall have the right at any time to
exchange certificates or instruments representing or evidencing Collateral for
certificates or instruments of smaller or larger denominations.

     (b) If there shall occur a change in applicable law or regulations
regarding (i) the steps necessary to obtain and maintain a perfected security
interest in any Collateral or (ii) the ability to obtain a security interest
directly in any license granted by the Federal Communications Commission or
Governmental Body succeeding to the functions thereof (the "FCC"), or if there
is Collateral for which the foregoing procedures are not effective to perfect a
security interest, the Pledgor will immediately upon its becoming aware thereof
so notify the Collateral Agent and will deliver to the Collateral Agent an
opinion of counsel setting forth the steps necessary for the Collateral Agent to
obtain and maintain such a perfected security interest in the Collateral
affected by such change or for which the foregoing procedures are not effective
to perfect a security interest, and the Collateral Agent, instead of the actions
specified in this Section 4, shall take such other action, as specified in such
opinion of counsel, as will create and maintain such perfected security
interest.

     (c) Upon the execution and delivery of this Agreement, the Pledgor will
file proper financing statements, initial financing statements in lieu of
continuation statements, or amendments to financing statements with the
appropriate office or offices under the Uniform Commercial Code, covering the
Collateral described in this Agreement and, thereafter, such renewals,
amendments or continuations thereof or such additional financing statements in
such

                                       4

<PAGE>

additional offices in such jurisdictions or in the appropriate filing offices in
such additional jurisdictions as shall be required from time to time under the
UCC in order to perfect and to continue the perfection of the security interest
in the Collateral.

5.   Representations and Warranties.

         The Pledgor hereby represents and warrants to the Collateral Agent as
follows:

     (a) Organization; Good Standing. The Pledgor is duly organized, validly
existing and in good standing under the laws of the State of Delaware and is
duly qualified and in good standing in every other jurisdiction where it is
doing business, except where the failure to be so qualified or maintain good
standing would not have a Material Adverse Effect. The chief place of business
and chief executive office of the Pledgor are located at 1500 Eckington Place,
N.E., Washington, D.C. 20037.

     (b) Corporate Power; Authorization. The execution, delivery and performance
by the Pledgor of this Agreement, and the performance and consummation of the
transactions contemplated hereby, (i) are within the Pledgor's corporate
authority; (ii) have been duly authorized by all necessary or proper corporate
action; (iii) are not in contravention of any provision of the Pledgor's by-laws
or charter; (iv) will not violate any law or regulation, or any order or decree
of any court or governmental instrumentality to which the Pledgor or its
property is subject; and (v) will not conflict with or result in the breach or
termination of, constitute a default under, or accelerate any performance
required by, any indenture, mortgage, deed of trust, lease, agreement or other
instrument to which the Pledgor is a party or by which the Pledgor or any of its
property is bound (except for such conflict, breach, termination, default or
acceleration as could not reasonably be expected to have a Material Adverse
Effect). Subject to Section 21(f) hereof, no authorization, approval or action
by, or notice to, or filing with, any governmental authority or regulatory body
is required under existing laws and regulations on the date hereof (i) for the
grant or perfection of the security interests contemplated hereby or for the
execution, delivery or performance of this Agreement by the Pledgor, except as
may be set forth in Section 4 with respect to actions to be taken by the
Collateral Agent, or a financial intermediary holding Collateral and except for
the filings referred to in Section 4(b) and 4(c) that may be required in the
future, or (ii) for the exercise by the Collateral Agent of the voting or other
rights provided for in this Agreement or its rights and remedies in respect of
the Collateral pursuant to this Agreement, except (A) as may be required in
connection with the disposition of Collateral by laws affecting the offering and
sale of securities, generally, and (B) with respect to Pledged Shares, for
authorizations, approvals, notices and filings that may be required pursuant to
regulations of the FCC (as defined herein), or any successor laws or
regulations.

     (c) Enforceability. This Agreement is the legal, valid and binding
obligation of the Pledgor enforceable against it in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or
similar law affecting creditors' rights or insolvent corporations generally, and
except to the extent that availability of the remedy of specific performance or
injunctive relief is subject to the discretion of the court before which any
proceeding therefor may be brought.

                                       5

<PAGE>

     (d) Absence of Liens. It is the sole legal and beneficial owner of the
Collateral free and clear of all Liens other than the security interest created
by this Agreement. No effective financing statement or other instrument similar
in effect covering all or any part of the Collateral is on file in any recording
office, except such as may have been filed in favor of the Collateral Agent
under this Agreement.

     (e) Collateral. The Pledged Shares have been duly authorized and validly
issued and are fully paid and non-assessable. The Pledged Shares represent one
hundred percent (100%) of the total number of shares of the FCC License
Subsidiary which are issued and outstanding. There are (i) no outstanding or
existing options, warrants or other securities exercisable for, or exchangeable
for, or convertible into, capital stock of the FCC License Subsidiary and (ii)
no agreements with respect to the issuance or sale of any of the foregoing.

     (f) Security Interest. This Agreement and the pledge of the Collateral
pursuant hereto create a valid and perfected first priority security interest in
the Collateral in favor of the Collateral Agent, securing the payment of all of
the Secured Obligations, and all filings and other actions necessary or
desirable as may be required by the Collateral Agent or the Secured Parties to
perfect and protect such security interest have been duly taken.

6.   As to the Collateral.

     (a) So long as no event or circumstance which constitutes a Default shall
have occurred and be continuing:

         (i)   The Pledgor shall be entitled to exercise any and all voting and
     other consensual rights pertaining to the Collateral or any part thereof
     for any purpose not inconsistent with the terms of this Agreement or the
     Secured Agreements; provided, however, that the Pledgor shall not exercise
     or refrain from exercising any such right without the consent of the
     Collateral Agent if, in the Collateral Agent's judgment, such action or
     inaction would have a Material Adverse Effect.

         (ii)  Any and all dividends and other distributions (whether or not in
     cash) paid or payable, and certificates, instruments and other Property
     received, receivable or otherwise distributed in respect of, or in exchange
     for, Collateral, shall be forthwith delivered to the Collateral Agent to be
     held as Collateral and shall, if received by the Pledgor, be received in
     trust for the benefit of the Collateral Agent and the Secured Parties, be
     segregated from the other Property of the Pledgor, and be forthwith
     delivered to the Collateral Agent, as Collateral in the same form as so
     received (with any necessary endorsement). Any cash dividends or
     distributions delivered to or otherwise held by the Collateral Agent
     pursuant to this Section 6, and any other cash constituting Collateral
     delivered to the Collateral Agent, shall be invested, at the written
     direction of the Pledgor (such direction to specify the particular
     investment to be made), by the Collateral Agent in Cash Equivalents.

         (iii) The Collateral Agent shall execute and deliver (or cause to be
     executed and delivered) to the Pledgor all such proxies and other
     instruments as the Pledgor may

                                       6

<PAGE>

     reasonably request for the purpose of enabling the Pledgor to exercise the
     voting and other rights which it is entitled to exercise pursuant to
     subsection (i) or (ii) above.

     (b) Upon the occurrence and during the continuance of a Default (except as
provided below), at the Collateral Agent's option and following written notice
by the Collateral Agent to the Pledgor:

         (i)  all rights of the Pledgor to exercise the voting and other
     consensual rights which it would otherwise be entitled to exercise pursuant
     to Section 6(a)(i) shall cease. Except as provided in the prior sentence,
     after the occurrence and during the continuance of an Event of Default, all
     such voting and other consensual rights shall thereupon become vested in
     the Collateral Agent, who shall thereupon have the sole right to exercise
     such voting and other consensual rights, subject to the satisfaction of any
     regulatory requirements. Effective upon the occurrence and during the
     continuance of an Event of Default, the Pledgor hereby appoints the
     Collateral Agent the Pledgor's true and lawful attorney-in-fact and grants
     to the Collateral Agent an IRREVOCABLE PROXY to vote the Collateral in any
     manner the Collateral Agent deems advisable for or against all matters
     submitted or which may be submitted to a vote of shareholders. The
     power-of-attorney granted hereby is coupled with an interest and shall be
     irrevocable; and

         (ii) the provisions of Section 6(a)(ii) shall continue in full force
     and effect, except that no dividends or distributions may be paid to the
     Pledgor.

         As used in this Agreement, the term "Material Adverse Effect" shall
mean an effect resulting from any circumstance or event of whatever nature
(including any adverse determination in any litigation) which does, or could
reasonably be expected to, materially and adversely (a) impair the validity or
enforceability of the Intercreditor Agreement or any of the Secured Agreements
or the Collateral Agent's or any Secured Party's rights or remedies with respect
thereto; (b) cause a Default; (c) affect the business, property, business
prospects, operations, or financial or other condition of the FCC License
Subsidiary or Pledgor; (d) impair or affect the Collateral or the Collateral
Agent's Liens on the Collateral or the priority of such Liens; or (e) impair or
affect the ability of the Pledgor to perform its obligations hereunder or under
any of the Secured Agreements.

     (c) In the event that all or any part of the securities or instruments
constituting the Collateral are lost, mutilated, destroyed or wrongfully taken
while such securities or instruments are in the possession of the Collateral
Agent, the Pledgor agrees that it will cause the delivery of new securities or
instruments in place of the lost, mutilated, destroyed or wrongfully taken
securities or instruments upon request therefor by the Collateral Agent without
the necessity of any indemnity bond or other security other than the Collateral
Agent's agreement or indemnity therefor customary for security agreements
similar to this Agreement.

7.   Additional Shares.

     (a) The Pledgor agrees that it will cause the FCC License Subsidiary not to
issue any Stock of any kind.

                                       7

<PAGE>

     (b) Without derogating from paragraph (a) of this Section 7, in the event
that, during the term of this Agreement:

         (i)  any stock dividend, stock split, reclassification, readjustment,
     or other change is declared or made in the capital structure of the FCC
     License Subsidiary, all new, substituted, and additional shares, or other
     securities, issued by reason of any such change and received by the Pledgor
     (directly or indirectly) or to which the Pledgor shall be entitled shall be
     promptly delivered or otherwise transferred to the Collateral Agent,
     together with undated stock powers endorsed in blank by the Pledgor, and
     shall thereupon constitute additional Collateral to be held by the
     Collateral Agent under the terms of this Agreement; and

         (ii) any subscriptions, warrants or any other rights or options shall
     be issued in connection with the Pledged Shares, all new stock or other
     securities acquired through such subscriptions, warrants, rights or
     options, and all additional shares of capital stock of the FCC License
     Subsidiary or any successor in interest thereto from time to time acquired
     by the Pledgor (directly or indirectly) in any manner whatsoever
     (including, without limitation, any shares of preferred stock issued by the
     FCC License Subsidiary) together with appropriate stock powers by the
     Pledgor, shall be promptly delivered or otherwise transferred to the
     Collateral Agent and shall thereupon constitute Collateral to be held by
     the Collateral Agent under the terms of this Agreement.

8.   Payment of Taxes and Claims.

         The Pledgor shall make payment of (i) all taxes, assessments, license
fees, levies and other charges of Governmental Bodies imposed upon it which if
unpaid, could reasonably be expected to have a Material Adverse Effect or become
a Lien on the Property of the Pledgor, unless and to the extent only that such
taxes, assessments, charges, license fees, levies and other charges shall be
contested in good faith and by appropriate proceedings diligently conducted by
the Pledgor and the Collateral Agent has received prompt notice of such contest,
(ii) all taxes, assessments, license fees, levies and other charges of
Governmental Bodies on any of the Collateral before any penalty or interest
accrues thereon, unless and to the extent only that such taxes, assessments,
charges, license fees, levies and other charges shall be contested in good faith
and by appropriate proceedings diligently conducted by the Pledgor and the
Collateral Agent has received prompt notice of such contest, before any penalty
or interest accrues thereon, and (iii) all claims (including, without
limitation, claims for labor, services, materials and supplies) for sums
materially adversely affecting the Collateral, which have become due and payable
and which by law have or may become a Lien upon any of the Collateral prior to
the time when any penalty or fine shall be incurred with respect thereto, unless
and to the extent such claim is being contested in good faith and by appropriate
proceedings diligently conducted by the Pledgor, the Collateral Agent has
received prompt notice of such contest, any proceeding to place a lien on the
Collateral or to enforce a lien on the Collateral has been stayed and such
contest is not reasonably expected to have a Material Adverse Effect.

                                       8

<PAGE>

9.   Covenants and Agreements.

            The Pledgor covenants and agrees that on and after the date hereof
until the payment in full of the Secured Obligations and the termination and
discharge of the Secured Agreements, unless the Collateral Agent shall otherwise
consent in writing:

     (a)    At any time and from time to time, upon the request of the
Collateral Agent (at the written direction of the Acting Secured Parties (as
defined below)), and at the sole expense of the Pledgor, the Pledgor shall
promptly do, file, record, execute and deliver any and all such further notices,
instruments and documents and will take such further action as may be necessary
or reasonably desirable to obtain, protect and perfect the security interests
granted hereby and enforce and give effect to the rights, remedies and powers
hereunder, including, without limitation, the recording or filing of all
instruments and documents reasonably necessary to perfect and protect the
perfection of the security interests granted hereby under Articles 8 or 9 of the
Uniform Commercial Code in effect in any applicable jurisdiction. In connection
therewith, the Collateral Agent is hereby irrevocably authorized and empowered
as the Pledgor's attorney-in-fact, solely to make, at the Collateral Agent's
option, all filings and to give all other notices as it shall reasonably deem
necessary with respect to any of the Collateral, all of which may be done with
or without the signature of the Pledgor. The Pledgor agrees that the foregoing
power constitutes a power coupled with an interest which shall survive until the
payment in full of all of the Secured Obligations. The Pledgor agrees to
reimburse the Collateral Agent on demand for any actual and reasonable expenses
(including reasonable attorneys' fees and expenses with respect to the
Collateral Agent, including reasonable allocated costs and expenses of in-house
counsel and legal staff) incurred by the Collateral Agent in connection with
such matters and, until such reimbursement, such expenses shall be a part of the
Secured Obligations. The Pledgor agrees that the Collateral Agent is authorized
and empowered to file financing statements and continuation statements with
respect to the Collateral in such jurisdictions as it deems appropriate. "Acting
Secured Parties" shall mean, as of any date of determination, the Secured
Parties holding (or, in the case of the Original Trustee and the New Trustee,
acting as trustee for the Original Notes or the New Notes, as applicable) more
than 20% of the sum of (a) the unpaid principal amount of the Original Notes,
(b) the unpaid Accreted Value of the New Notes, (c) the unpaid Accreted Value of
the Convertible Notes, (d) the unpaid principal amount owing under the GM
Convertible Notes, (e) the unpaid principal amount owing under the GM Loan
Agreement, and (f) the unpaid principal amount owing under the Additional Debt
(if any), or, if such debt is issued at a discount, the unpaid accreted value of
such Additional Debt. Any action taken by the Original Trustee or the New
Trustee shall constitute an action on behalf of all of the Original Holders or
New Holders, as applicable, without regard to the percentage of the Original
Holders or New Holders directing or authorizing the Original Trustee or the New
Trustee to take such action.

     (b)    The Pledgor shall defend its ownership interest in and to the
Collateral and the Collateral Agent's security interest in and to the Collateral
against all claims and demands of all Persons at any time claiming the same or
any interest therein adverse to the interests of the Collateral Agent.

     (c)    The Pledgor shall, at all times, maintain or cause to be maintained
accurate books and records with respect to the Collateral, and shall promptly
furnish to the Collateral Agent such information concerning such Collateral as
the Collateral Agent may from time to time reasonably request at the written
direction of the Acting Secured Parties. The Collateral Agent and its designees
are hereby given the right, at the Pledgor's expense, to inspect and copy,
following prior notice to the Pledgor and during regular business hours, or the
Pledgor shall furnish the Collateral Agent with copies of, all records and
documents reasonably required by the Collateral Agent relating to the
Collateral.

     (d)    The Pledgor shall not further hypothecate, assign, pledge, encumber,
transfer, sell or otherwise dispose of, or grant any option with respect to, or
create or suffer to exist a security interest in, or a Lien on, the Collateral
or any portion thereof, except for the pledge, assignment and security interest
created by this Agreement in favor of the Collateral Agent. The inclusion of

                                        9

<PAGE>

"Proceeds" of the Collateral under the security interest granted herein shall
not be deemed a consent by the Collateral Agent to any sale or other disposition
of any Collateral except as expressly permitted herein.

     (e)    The Pledgor shall promptly notify the Collateral Agent of any change
occurring in or to the Collateral, of a change in the Pledgor's mailing address,
of any material change in any fact or circumstance warranted or represented by
the Pledgor in this Agreement or furnished to the Collateral Agent, or if any
Event of Default shall have occurred. The Pledgor shall not change its name or
jurisdiction of organization unless it (i) shall have notified the Collateral
Agent in writing, which notice shall identify such new proposed name or
jurisdiction of organization and shall be delivered at least thirty (30) days
prior to any such change and (ii) shall have taken all actions necessary to
maintain the continuous validity and perfection of the Collateral Agent's
security interest in the Collateral intended to be granted hereby.

     (f)    The Pledgor shall not, without the prior written consent of the
Collateral Agent, sign or file or authorize the signing or filing of any
document, financing statement or instrument creating or perfecting, or
purporting to create or perfect, any Lien or other encumbrance on all or any
part of its Collateral except in favor of the Collateral Agent as required
hereby.

     (g)    The security interest granted hereby constitutes and shall at all
times constitute a perfected continuing first priority security interest in the
Collateral.

10.  The Collateral Agent Appointed Attorney-in-Fact.

            Effective upon the occurrence and during the continuance of an
Event of Default, the Pledgor hereby irrevocably appoints the Collateral Agent
its attorney-in-fact, with full authority in the place and stead of the Pledgor
and in the name of the Pledgor or otherwise, from time to time in the Collateral
Agent's discretion, to take any action and to execute any instrument which the
Collateral Agent may deem necessary or advisable to accomplish the purposes of
this Agreement, including, without limitation:

     (a)    to ask, demand, collect, sue for, recover, compromise, receive and
give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral and/or extend the time of payment, arrange for
payment in installments, or otherwise modify the terms of, or release, any
Collateral or obligations, without otherwise discharging or affecting the
Secured Obligations, the Collateral or the security interests granted by this
Agreement,

     (b)    to file any claims or take any action or institute any proceedings
which the Collateral Agent may deem necessary or desirable for the collection of
any of the Collateral or otherwise to enforce the rights of the Collateral Agent
with respect to any of the Collateral, and

     (c)    to receive, indorse and collect any drafts or other instruments and
documents made payable to the Pledgor in connection with clause (a) above or
representing any dividend or other distribution in respect of the Collateral or
any part thereof and to give full discharge for the same.

                                       10

<PAGE>

            The power-of-attorney granted hereby is coupled with an interest and
shall be irrevocable.

11.  The Collateral Agent May Perform.

            If the Pledgor fails to perform any agreement contained herein or
make payment of any amount required hereunder, the Collateral Agent may itself
perform, or cause performance of, or provide payment for the performance
thereof, and the reasonable expenses of the Collateral Agent incurred in
connection therewith shall be payable by the Pledgor under Section 15 of this
Agreement and any such payment made shall be deemed an advance by the Collateral
Agent to the Pledgor, payable on demand together with interest at the interest
rate then payable under the Original Indenture.

12.  The Collateral Agent's Duties.

            The powers conferred on the Collateral Agent hereunder are solely to
protect its interest in the Collateral and shall not impose any duty upon it to
exercise any such powers. Except for the safe custody of any Collateral in its
possession and the accounting for moneys actually received by it hereunder, the
Collateral Agent shall have no duty as to any Collateral, including the filing
of any financing or continuation statements relating to the Collateral. The
Collateral Agent shall be deemed to have exercised reasonable care in the
custody and preservation of the Collateral in its possession if the Collateral
is accorded treatment substantially equal to that which the Collateral Agent
accords its own Property, it being understood that the Collateral Agent shall
not be under any obligation to (a) ascertain or take action with respect to
calls, conversions, exchanges, maturities, tenders or other matters relative to
any Collateral, whether or not the Collateral Agent has or is deemed to have
knowledge of such matters, or (b) take any necessary steps to preserve rights
against prior parties or any other rights pertaining to any Collateral, but may
do so at its option, and all reasonable expenses incurred in connection
therewith shall be for the sole account of the Pledgor, and shall be added to
the Secured Obligations. No provision of this Agreement shall require the
Collateral Agent to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder, or in the
exercise of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it.

13.  Notice of Event of Default.

            The Pledgor agrees to notify the Collateral Agent of the occurrence
of an Event of Default promptly upon its obtaining knowledge thereof.

14.  Remedies.

            Upon the occurrence and during the continuation of an Event of
Default, the Collateral Agent may, subject to the requirements of the
Intercreditor Agreement and regulatory requirements, exercise any and all
remedies and other rights provided under this Agreement and by applicable law,
including, without limitation, the following:

                                       11

<PAGE>

     (a)    The Collateral Agent may exercise in respect of the Collateral, in
addition to other rights and remedies provided for herein or otherwise available
to it, all the rights and remedies of a secured party upon default under the UCC
(whether or not the UCC applies to the affected Collateral) and also may without
notice, except as specified below, sell, lease, assign, grant an option or
options to purchase or otherwise dispose of the Collateral or any part thereof
in one or more parcels at public or private sale, at any exchange, broker's
board or at any of the Collateral Agent's offices or elsewhere, for cash, on
credit or for future delivery, and upon such other terms as the Collateral Agent
may deem commercially reasonable. The Pledgor agrees that, to the extent notice
of sale shall be required by law, at least ten days' notice to the Pledgor of
the time and place of any public sale or the time after which any private sale
is to be made shall constitute reasonable notification. The Collateral Agent
shall not be obligated to make any sale of Collateral regardless of notice of
sale having been given. The Collateral Agent may adjourn any public or private
sale from time to time by announcement at the time and place fixed therefor, and
such sale may, without further notice, be made at the time and place to which it
was so adjourned.

     (b)    Any cash held by the Collateral Agent as Collateral and all cash
proceeds received by the Collateral Agent in respect of any sale of, collection
from or other realization upon all or any part of the Collateral shall be held
by the Collateral Agent as Collateral for, and then or at any time thereafter
applied (after the payment of any amounts payable to the Collateral Agent
pursuant to Section 15 hereof) in whole or in part by the Collateral Agent for
the benefit of the Secured Parties against the Secured Obligations in such order
of application as is required by the Intercreditor Agreement.

     (c)    The Pledgor acknowledges and agrees that the Collateral Agent may
elect, with respect to the offer or sale of any or all of the Collateral, to
conduct such offer and sale in such a manner as to avoid the need for
registration or qualification of the Collateral or the offer and sale thereof
under any federal or state securities laws and that the Collateral Agent is
authorized to comply with any limitation or restriction in connection with such
sale as counsel may advise the Collateral Agent is necessary in order to avoid
any violation of applicable law, including, without limitation, compliance with
such procedures as may restrict the number of prospective bidders and
purchasers, require that such prospective bidders and purchasers have certain
qualifications, and restrict such prospective bidders and purchasers to Persons
who will represent and agree that they are purchasing for their own account for
investment and not with a view to the distribution or resale of such Collateral,
or in order to obtain any required approval of the sale or of the purchaser by
any Governmental Body. The Pledgor further acknowledges and agrees that any such
transaction may be at prices and on terms less favorable than those which may be
obtained through a public sale and not subject to such restrictions and agrees
that, notwithstanding the foregoing, the Collateral Agent is under no obligation
to conduct any such public sale and may elect to impose any or all of the
foregoing restrictions, or any other restrictions which may be necessary or
desirable in order to avoid any such registration or qualification, at its sole
discretion or with the consent or direction of the parties entitled to give
direction pursuant to the Intercreditor Agreement, and that any such offer and
sale shall, taking into account the possible restrictions on such offer and sale
described in this subsection (c), be conducted in a commercially reasonable
manner.

                                       12

<PAGE>

     (d)    The Pledgor hereby expressly waives and covenants not to assert any
appraisement, valuation, extension, redemption or similar laws, now or at any
time hereafter in force, which might delay, prevent or otherwise impede the
performance or enforcement of this Agreement.

15.  Expenses.

            The Pledgor will upon demand make payment to the Collateral Agent of
any and all reasonable out-of-pocket sums, costs and expenses, which the
Collateral Agent may pay or incur pursuant to the provisions of this Agreement
or in perfecting, defending, protecting or enforcing this Agreement or the
security interests granted herein or in enforcing payment of all of the Secured
Obligations or otherwise in connection with the provisions hereof, including,
but not limited to court costs, reasonable collection charges, reasonable travel
expenses, and reasonable attorneys' fees and expenses (including with respect to
the Collateral Agent, the reasonable allocated costs and expenses of in-house
counsel and legal staff) all of which together with interest at the highest rate
then payable under the Original Indenture, shall be part of the Secured
Obligations. The covenants contained in this Section 15 shall survive payment or
satisfaction in full of all other of the Secured Obligations.

16.  Repayment in Bankruptcy, etc.

            Notwithstanding anything to the contrary contained in this
Agreement, if, at any time or times subsequent to the payment of all or any part
of the Secured Obligations, the Collateral Agent shall be required to repay any
amounts previously paid by or on behalf of the FCC License Subsidiary or the
Pledgor in reduction thereof by virtue of an order of any court having
jurisdiction thereof, including, without limitation, as a result of an
adjudication that such amounts constituted preferential payments or fraudulent
conveyances, the Pledgor unconditionally agrees to make payment to the
Collateral Agent within 10 days after demand of the amount of such repayment,
together with interest on such amount from the date of such repayment by the
Collateral Agent to the date of payment to the Collateral Agent at the default
interest rate set forth in the Original Indenture.

17.  No Segregation of Moneys; No Interest.

            No moneys or any other property received by the Collateral Agent
hereunder need be segregated in any manner except to the extent required by law,
and any such moneys or other Property may be deposited under such general
conditions as may be prescribed by law applicable to the Collateral Agent, and
the Collateral Agent shall not be liable for any interest thereon.

18.  Continuing Security Interest; Termination.

     (a)    This Agreement shall create a continuing perfected first security
interest in the Collateral and shall (i) remain in full force and effect until
the termination of the Intercreditor Agreement pursuant to Section 8.10 thereof
or, if later, payment in full of the Secured Obligations, (ii) be binding upon
the Pledgor, its successors and assigns and (iii) inure, together with the
rights and remedies of the Collateral Agent hereunder, to the benefit of the
Collateral Agent, the Secured Parties, the Original Holders and the New Holders
and their respective successors, transferees and assigns.

                                       13

<PAGE>

     (b)    Upon termination of this Agreement, the Collateral Agent shall, at
the request and expense of the Pledgor, cause to be assigned, transferred and
delivered, against receipt but without recourse, warranty or representation
whatsoever, any remaining Collateral, to or on the order of the Pledgor, and
shall execute and deliver to the Pledgor an instrument or instruments
acknowledging the release of such Collateral from the Lien of this Agreement.

19.  Notices.

            All notices and other communications provided for hereunder shall be
in writing (including telecopy) and mailed, telecopied or delivered to it, if to
the Pledgor, addressed to it at XM Satellite Radio Inc., 1500 Eckington Place,
N.E., Washington, D.C. 20002, Attention: Chief Executive Officer, if to the
Collateral Agent, at the address of the Collateral Agent specified in the
Intercreditor Agreement, or as to any party at such other address as shall be
designated by such party in a written notice to each other party. All such
notices and other communications shall, when mailed or telecopied, be effective
when deposited in the mails or transmitted by telecopier, respectively.

20.  Margin Regulations.

            The Pledgor shall take such steps as may be necessary so that it
shall comply with Regulations T, U and X (in so far as Regulation X applies to
Regulations T and U) promulgated by the Board of Governors of the Federal
Reserve System, in each case as in effect from time to time and to the extent
such Regulations are at the time applicable to the Notes issued by the Pledgor.

21.  Other Provisions.

     (a)    Except as expressly provided in this Agreement, the Pledgor hereby
waives presentment, demand for payment, notice of default, nonperformance and
dishonor, protest and notice of protest of or in respect of the Secured
Agreements or the Secured Obligations, notice of acceptance of this Agreement
and reliance hereupon by the Collateral Agent and notice of any sale of
collateral security or any default of any sort.

     (b)    The Pledgor waives all errors or omissions of the Collateral Agent
in connection with the administration of the security interests created hereby
and the Collateral, except errors or omissions which constitute gross negligence
or willful misconduct.

     (c)    The Pledgor agrees that the Collateral Agent, any Secured Party, any
Original Holder and any New Holder may at any time, without notice to or consent
of the Pledgor, and without in any manner affecting the liability of the Pledgor
hereunder, amend, modify or waive any term or condition of any Secured Agreement
and any of the other Secured Obligations and any collateral security therefor
and otherwise deal with Pledgor as if this Agreement did not exist.

     (d)    The Pledgor is not relying upon the Collateral Agent to provide to
the Pledgor any information concerning the FCC License Subsidiary, including,
without limitation, information which might have a Material Adverse Effect, and
the Pledgor has made arrangements

                                       14

<PAGE>

satisfactory to the Pledgor to obtain from the FCC License Subsidiary on a
continuing basis such information concerning the FCC License Subsidiary as the
Pledgor may desire.

     (e)   In addition to all other rights it may have at law or otherwise, upon
the occurrence and during the continuance of an Event of Default, the Collateral
Agent is hereby authorized at any time and from time to time, without notice, to
set-off against any and all obligations which the Collateral Agent may owe to
the FCC License Subsidiary or the Pledgor, of any kind or nature, and the
Pledgor shall continue to be liable to the Collateral Agent for any deficiency
with interest at the applicable interest rate forth in the Original Indenture.

     (f)   Notwithstanding anything to the contrary contained in Secured
Agreements or in any other agreement, instrument or document executed by the
Pledgor in connection with the Secured Agreements, the Collateral Agent will not
take any action pursuant to this Agreement or any document referred to above
which would constitute or result in any assignment of any FCC license or any
change of control (whether de jure or de facto) of the Pledgor or the FCC
License Subsidiary if such assignment of any FCC license or change of control
would require, under then existing law, the prior approval of the FCC without
first obtaining such prior approval of the FCC. Upon the occurrence of an Event
of Default or at any time thereafter during the continuance thereof, subject to
terms and conditions of this Agreement, the Pledgor agrees to take any action
that the Collateral Agent may reasonably request in order to obtain from the FCC
such approval as may be necessary to enable the Collateral Agent to exercise and
enjoy, the full rights and benefits granted to the Collateral Agent by this
Agreement and the other documents referred to above, including specifically, at
the cost and expense of the Pledgor, the use of its best efforts to assist in
obtaining approval of the FCC for any action or transaction contemplated by this
Agreement for which such approval is or shall be required by law, and
specifically, without limitation, upon request, to prepare, sign and file with
the FCC the assignor's or transferor's portion of any application or
applications for consent to the assignment of license or transfer of control
necessary or appropriate under the FCC's rules and regulations for approval of
(i) any sale or other disposition of the Collateral by or on behalf of the
Collateral Agent, or (ii) any assumption by the Collateral Agent of voting
rights in the Collateral effected in accordance with the terms of this
Agreement. It is understood and agreed that all foreclosure and related actions
will be made in accordance with the Communications Act of 1934, as amended, and
the rules and regulations promulgated thereunder, as from time to time in effect
(the "Communications Act") and other applicable FCC regulations and published
policies and decisions.

     (g)   The Pledgor agrees to indemnify and hold harmless the Collateral
Agent, the Secured Parties, the Original Holders and the New Holders, the
respective affiliates of the Collateral Agent, the Secured Parties, the Original
Holders and the New Holders, and the respective officers, directors, employees,
agents (including, without limitation each of their counsel), and controlling
persons of the Collateral Agent, the Secured Parties, the Original Holders and
the New Holders, and each such affiliate (each, an "Indemnified Party") from and
against any and all claims, actions and suits whether groundless or otherwise,
and from and against any and all liabilities, losses, damages and costs and
expenses (including, without limitation, the reasonable fees and disbursements
of counsel and with respect to the Collateral Agent, reasonably allocated costs
and expenses of in-house counsel and legal staff) of every nature and character
arising out of or in connection with any actual or threatened claim,

                                       15

<PAGE>

litigation, investigation or proceeding relating to this Agreement or the
Secured Agreements or the transactions contemplated hereby or thereby (other
than any such actions or expenses resulting from the gross negligence or willful
misconduct of the Indemnified Parties seeking indemnity under this Agreement),
in each case including, without limitation, the reasonable fees and
disbursements of counsel and allocated costs of in-house counsel and legal staff
incurred in connection with any such investigation, litigation or other
proceeding whether or not such Indemnified Party is a party thereto, and the
Pledgor agrees to reimburse each Indemnified Party, upon demand, for all
out-of-pocket costs and expenses (including, without limitation, the reasonable
fees and disbursements of counsel and with respect to the Collateral Agent,
reasonably allocated costs and expenses of in-house counsel and legal staff)
incurred in connection with any of the foregoing. In litigation, or the
preparation therefor, the Collateral Agent, the Secured Parties, the Original
Holders and the New Holders shall be entitled to select their own counsel and,
in addition to the foregoing indemnity, the Pledgor agrees to pay promptly the
reasonable fees and expenses of such counsel. If, and to the extent that the
obligations of the Pledgor under this Section 21(g) are unenforceable for any
reason, the Pledgor hereby agrees to make the maximum contribution to the
payment in satisfaction of such obligations which is permissible under
applicable law.

           The Pledgor shall not make any claim against any Indemnified Party
for any special, indirect or consequential damages in respect of any breach or
wrongful conduct (whether the claim therefor is based in contract, tort or duty
imposed by law) in connection with, arising out of or in any way related to the
transactions contemplated by, and the relationship established by the Secured
Agreements or any act, omission or event occurring in connection therewith, and
the Pledgor hereby waives, releases and agrees not to sue upon any such claim
for any such damages, whether or not accrued and whether or not known or
suspected to exist in the Pledgor's favor.

           The covenants contained in this Section 21(g) shall survive payment
or satisfaction in full of all other of the Secured Obligations.

     (h)   The Pledgor hereby appoints [______________________] (the "Process
Agent") located at [________________, New York _______], as its legally
authorized process agent to accept service on behalf of the Pledgor.

     (i)   This Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York, without giving effect to any conflicts
of laws principles other than New York General Obligations Law Sections 5-1401
and 5-1402. The Pledgor agrees that any suit for the enforcement of this
Agreement may be brought in the courts of the State of New York or any federal
court sitting therein and consents to the nonexclusive jurisdiction of such
court and service of process in any such suit being made upon the Pledgor by
mail to the Process Agent at the address specified in Section 21(h). The Pledgor
hereby waives any objection that it may now or hereafter have to the venue of
any such suit or any such court or that such suit is brought in an inconvenient
court.

     (j)   This Agreement and any amendment hereof may be executed in several
counterparts and by each party on a separate counterpart, each of which when so
executed and delivered shall be an original, and all of which together shall
constitute one instrument. In

                                       16

<PAGE>

proving this Agreement it shall not be necessary to produce or account for more
than one such counterpart signed by the party against whom enforcement is
sought.

     (k)   This Agreement and any other documents executed in connection
herewith express the entire understanding of the parties with respect to the
transactions contemplated hereby. Neither this Agreement nor any term hereof may
be changed, waived, discharged or terminated, except as provided in Section
21(m).

     (l)   The Pledgor hereby waives its right to a jury trial with respect to
any action or claim arising out of any dispute in connection with this
Agreement, or any of the other loan documents, any rights or obligations
hereunder or thereunder or the performance of such rights and obligations.

           Except as prohibited by law, the Pledgor hereby waives any right it
may have to claim or recover in any litigation referred to in the preceding
sentence any special, exemplary, punitive or consequential damages or any
damages other than, or in addition to, actual damages. The Pledgor (a) certifies
that no agent or representative of the Collateral Agent, the Secured Parties or
any Holder, has represented, expressly or otherwise, that the Collateral Agent,
any Secured Party or any Holder, as the case may be, would not, in the event of
litigation, seek to enforce the foregoing waivers and (b) acknowledges that the
Collateral Agent, the Secured Parties, the Original Holders and the New Holders
have been induced to enter into this Agreement and Secured Agreements, as
applicable, based on, among other things, the waivers and certifications
contained herein.

     (m)   Any consent or approval required or permitted by this Agreement to be
given by the Collateral Agent may be given, and any term of this Agreement, may
be amended, and the performance or observance by the Pledgor of any terms of
this Agreement, or the continuance of any Default or Event of Default may be
waived (either generally or in a particular instance and either retroactively or
prospectively) with, but only with, the written consent of the Pledgor and the
written consent of the Collateral Agent. No waiver shall extend to or affect any
obligation not expressly waived or impair any right consequent thereon. No
course of dealing or delay or omission on the part of the Collateral Agent or
any Secured Party in exercising any right shall operate as a waiver thereof or
otherwise be prejudicial thereto. No notice to or demand upon the Pledgor shall
entitle the Pledgor to other or further notice or demand in similar or other
circumstances.

     (n)   Notwithstanding the foregoing, this Agreement may be amended, revised
and supplemented only with the consent of the parties hereto and in accordance
with the requirements of Sections 6.6 and 6.7 of the Intercreditor Agreement.

     (o)   The Pledgor hereby waives any and all rights against immunity from
jurisdiction, attachment (both before and after judgment) and execution to which
it might be entitled.

     (p)   The provisions of this Agreement are severable and if any one clause
or provision hereof shall be held invalid or unenforceable in whole or in part
in any jurisdiction, then such invalidity or unenforceability shall affect only
such clause or provision, or part thereof, in such

                                       17

<PAGE>

jurisdiction, and shall not in any manner affect such clause or provision in any
other jurisdiction, or any other clause or provision of this Agreement in any
jurisdiction.

                                       18

<PAGE>

           IN WITNESS WHEREOF, the Pledgor has caused this Agreement to be duly
executed and delivered as of the date hereof.

                                             XM SATELLITE RADIO INC.

                                             By: ______________________________
                                                 Name:
                                                 Title:

Accepted and Agreed to:

THE BANK OF NEW YORK,
as Collateral Agent

By: ________________________
    Name:
    Title:

<PAGE>

                                   Schedule I

                                 Pledged Shares

100 shares of common stock, par value $.01 per share, of XM Radio Inc.

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