Document:

<PAGE>

                                                                    Exhibit 10.9

*** Confidential treatment has been granted for certain portions of this
document. The portions of this exhibit marked by brackets ("[ ]") have been
omitted pursuant to the confidential treatment order. The omitted portions have
been filed separately with the Securities and Exchange Commission.***

               SECOND AMENDED AND RESTATED DISTRIBUTION AGREEMENT

          THIS AGREEMENT, made as of the 28th day of January, 2003, to be
effective as of the Effective Date, is by and among OnStar Corporation
("OnStar"), a Delaware corporation that is a wholly owned subsidiary of General
Motors Corporation, a Delaware corporation ("Distributor"), XM Satellite Radio
Holdings Inc., a Delaware corporation ("Holdings"), and XM Satellite Radio Inc.,
a Delaware corporation ("XM") and a wholly owned subsidiary of Holdings, amends
and restates that certain Amended and Restated Distribution Agreement dated as
of June 3, 2002 by and between Distributor and XM.

                                    RECITALS:

          A.   XM has developed and/or obtained licenses for the technology and
intellectual property rights necessary to provide an S-band Satellite Digital
Audio Radio Service in the Territory pursuant to a license from the FCC.

          B.   Distributor provides high-technology value-added services for
automobile applications, including GPS systems, emergency call systems, and
others.

          C.   XM desires that Distributor include XM Receivers in GM Vehicles.

          D.   Distributor desires to install XM Receivers in GM Vehicles and to
distribute the XM Service exclusively during the Term.

                                   AGREEMENT:

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

1. DEFINITIONS:

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

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

     "Authorized XM Manufacturer(s)" means a manufacturer(s) licensed from time
to time by XM to produce XM Receivers for the OEM vehicle radio market.

<PAGE>

     "Bandwidth Extension Year" means each calendar year ending after the Term
during which Distributor installs a number of XM Receivers in GM Vehicles not
less than the average annual number of XM Receivers installed by Distributor in
GM Vehicles under this Agreement through the end of the preceding calendar year.

     "Base Subscription Service" means the combination of music and talk
channels referred to by XM as the basic subscription package; from the
Commencement Date through the date first listed above, the basic subscription
package has been available for a monthly subscription fee of $9.99.

     "Class A Common Stock" means the Class A common stock, par value $.01 per
share, of Holdings.

     "Commencement Date" means September 25, 2001, the date on which XM
commenced commercial operations and billed the first subscriber to the XM
Service, not including any test periods that preceded the commencement of
commercial operations.

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

     "Distributor" has the meaning set forth in the preamble of this Agreement.

     "Effective Date" has the meaning set forth in Section 13(m).

     "Enabled GM Vehicle" means a new or used GM Vehicle with an XM Receiver
installed by or for GM, including, without limitation, by authorized GM dealers
through their association with the Service Parts Operations.

     "FCC" means the U.S. Federal Communications Commission (or any successor
agency).

     "GM" means General Motors Corporation, its subsidiaries and affiliates in
which General Motors Corporation has a controlling interest.

     "GM Affiliates" means the entities set forth on Attachment 3 hereto and any
vehicle manufacturers that would be considered an affiliate of GM under the U.S.
Securities Act of 1933, as amended.

     "GM Affiliate Vehicle" means a vehicle manufactured by or for a GM
Affiliate and sold in the Territory under one of the brands of any GM Affiliate.

                                       -2-

<PAGE>

     "GM Vehicle" means a vehicle manufactured by or for GM and sold in the
Territory under one of the GM brands. The term "GM Vehicle" includes GM
Affiliate Vehicles unless expressly indicated to the contrary.

     "GM/XM Subscriber" means a subscriber to the XM Service who subscribes to
receive the XM Service on an Enabled GM Vehicle.

     "Holdings" has the meaning set forth in the preamble of this Agreement.

     "Initial Purchase" means first sale to a non-GM Fleet customer with a
purchase date equal to consumer delivery date, (i.e. Avis is considered a non-GM
Fleet).

     "Installation Commission" has the meaning set forth in Section 4(b).

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

     "New Enabled GM Vehicle" means all GM Vehicles (other than GM Affiliate
Vehicles) with an XM Receiver installed by or for GM, including, without
limitation, by authorized GM dealers through their authorized association with
the Service Parts Operations, which have not had an owner other than the
manufacturer and/or a dealer, including, but not limited to, GM Fleet company
owned vehicles.

     "Note Purchase Agreement" means that certain Note Purchase Agreement, dated
as of December 21, 2002, by and among Holdings, XM and OnStar.

     "OEM Commencement Date" means the later of (x) the Commencement Date, or
(y) provided that Distributor has fulfilled its obligations of timely XM
Receiver ordering and issuance of specifications under Section 2(b), the date
six (6) months following the date on which an Authorized XM Manufacturer
initially delivers a Validated XM Receiver to Distributor.

     "Party (ies)" means Holdings, XM and/or Distributor as the context
requires.

     "Purchase" means the purchase or lease of a new Enabled GM Vehicle.

     "Purchaser(s)" means the individual(s) or entity(ies) purchasing or leasing
an Enabled GM Vehicle.

     "Regulatory Force Majeure Event" means any action taken by the FCC to
require receivers capable of receiving the transmission signal of the XM Service
to be interoperable with receivers capable of receiving the transmission signal
of Sirius Satellite Radio Inc. (or any successor thereto) such that it shall
become impermissible

                                       -3-

<PAGE>

for Distributor to install XM Receivers that are exclusively able to receive the
signal of the XM Service.

     "SDARS" means S-Band Satellite Digital Audio Radio Service.

     "Stock Fair Market Value" means the average, calculated to two decimal
places, of the weighted average daily trading prices of the Class A Common Stock
over the ten business day period ending on the business day prior to calculation
thereof as reported on Bloomberg. If at any time the Class A Common Stock is not
listed on any national securities exchange or quoted on the Nasdaq Stock Market
or the over-the-counter market, the Stock Fair Market Value shall be the fair
value thereof as determined by the board of directors of Holdings in good faith.

     "Subscriber Bounty" has the meaning set forth in Section 4(c).

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

     "Territory" means the continental United States (and Alaska and Hawaii,
when and if the XM Service is transmitted by XM to such States) and the District
of Columbia.

     "Trigger Date" means November 12, 2001.

     "Used Enabled Vehicle" means a vehicle that has had an owner other than the
manufacturer and/or a dealer, in which an XM receiver is installed by an
authorized GM dealer utilizing parts supplied through the GM Service Parts
Operations. (Vehicles are not limited to GM brands).

     "Validated XM Receiver" means an XM Receiver that conforms to Distributor's
manufacturing specifications.

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

     "XM Receivers" means receivers that are capable of receiving the XM Service
and that are manufactured by Authorized XM Manufacturers and produced for the
OEM vehicle radio market.

     "XM Service" means the service provided using the XM System.

     "XM System" means XM's SDARS transmission system including associated
terrestrial transmissions.

                                       -4-

<PAGE>

2. EXCLUSIVITY OBLIGATIONS:

     (a) During the Term, Distributor agrees on behalf of itself and GM (i) to
install and market XM Receivers in certain GM Vehicles, and (ii) to distribute
the XM Service to the exclusion of any other SDARS. In addition, Distributor
agrees that during the Term neither Distributor nor GM will install any radios
or receivers in GM Vehicles capable of receiving Sirius Satellite Radio signals
as the only SDARS service.

     (b) XM agrees that, during the nine (9)-month period commencing July 1,
2001, XM shall only activate for commercial sale XM Receivers in Enabled GM
Vehicles to the exclusion of any other vehicle manufacturers (the "Exclusive
Period"); provided, however, that if the OEM Commencement Date is delayed such
that XM Receivers cannot be installed in GM Vehicles prior to January 1, 2002,
then the Exclusive Period shall commence on the later of (i) July 1, 2002, or
(ii) the OEM Commencement Date (the later of the dates referred to in clauses
(i) and (ii) hereinafter the "Exclusive Period Start Date") and shall expire six
(6) months from the Exclusive Period Start Date unless Distributor, at its
option, elects to shorten or eliminate the Exclusive Period. However, if, as of
July 1, 2002 (or as of any six (6)-month anniversary of such date thereafter),
Distributor, in its reasonable discretion, determines that the Commencement Date
will be delayed by six (6) months beyond such date and there is, at such time, a
mobile SDARS provider in the Territory commercially distributing a SDARS in the
OEM market, then Distributor, at its option, may be relieved from its
exclusivity obligations in Section 2(a). Distributor agrees that except for
delays caused by the actions or inaction of XM, Distributor shall order XM
Receivers (and issue required manufacturing specifications to the Authorized XM
Manufacturer(s)) sufficiently in advance for Distributor to receive, absent bona
fide delays caused by Authorized XM Manufacturer(s), Validated XM Receivers no
later than January 1, 2001.

     (c) XM shall have a non-exclusive right to arrange for the installation of
XM Receivers included in OnStar systems in non-GM Vehicles sold for use in the
Territory. The Parties shall mutually agree on the compensation to be paid to XM
for arranging the sale of such OnStar systems (excluding the XM Service).

3. TERM:

     (a) Unless earlier terminated pursuant to the terms of this Agreement, the
"Term" of this Agreement shall commence as of the date hereof and shall expire
twelve (12) years from the Commencement Date.

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

                                       -5-

<PAGE>

          (i)   Distributor-Triggered Renegotiation. Distributor shall be
                relieved from its exclusivity obligations set forth in Section
                2(a) if four (4) years following the Commencement Date, or if
                across any successive two (2)-year period during the Term
                thereafter, XM's share of mobile aftermarket SDARS subscribers
                is less than forty percent (40%) assuming only two (2) mobile
                aftermarket SDARS providers and less than thirty-three percent
                (33%) assuming that there are three (3) mobile aftermarket SDARS
                providers. XM's share of mobile aftermarket SDARS subscribers
                shall be based on a mutually agreed upon source, such as the 10Q
                and 10k filings of XM and Sirius, and shall be based on the most
                recent figures available at the time of measurement.

          (ii)  Installation-Triggered Renegotiation. XM may initially trigger a
                renegotiation of this Agreement four (4) years following the
                Trigger Date if the number of Enabled GM Vehicles by that time
                is less than 1.24 million units and every two (2) years during
                the Term thereafter, if the number of Enabled GM Vehicles during
                the prior two (2) years is inconsistent with the OEM market
                demand for SDARS radios. Evidence of consistency with OEM market
                demand shall be based upon the concept that GM SDARS radio
                penetration in new GM Vehicles (expressed as a percent of new GM
                Vehicles produced for the U.S. market in a given Model Year or
                across a measurement period) is consistent with SDARS radio
                penetration in new vehicles from the balance of non-GM OEMs
                (expressed as a percent of non-GM new vehicles produced for the
                U.S. market in a given Model Year or across a measurement
                period). However, if XM's share of the mobile SDARS aftermarket
                is below [   ] percent ([  %]) across the applicable two
                (2)-year period, then the percent install target in new GM
                Vehicles shall be adjusted proportionately in accordance with
                the following table:

                ----------------------------------------------------------
                                             Multiplier (times install
                                            target % of new GM Vehicles
                    XM Share of Mobile        across the measurement
                     SDARS aftermarket                period)
                ----------------------------------------------------------
                             [   ]                    [   ]
                ----------------------------------------------------------
                             [   ]                    [   ]
                ----------------------------------------------------------
                             [   ]                    [   ]
                ----------------------------------------------------------
                             [   ]                    [   ]
                ----------------------------------------------------------
                             [   ]                    [   ]
                ----------------------------------------------------------

          (iii) For example, if [   ] ([ ]%) of non-GM OEM vehicles were
                installed with satellite capable radios in a given Model Year
                and XM's share of the mobile SDARS aftermarket were [   ]
                percent ([ ]%), then Distributor, for purposes of determining
                consistency with OEM

                                       -6-

<PAGE>

                market demand, would need to install ([      ]%), or [     ]
                percent ([  ]%), of GM Vehicles with XM Receivers. For purposes
                of this clause (ii), Distributor's new GM Vehicle install
                requirement shall be deemed to be satisfied if Distributor
                installs the lesser of (A) the number of Enabled GM Vehicles
                required by this clause (ii), or (B) 600,000 XM Receivers per
                year for each of the two (2) years in the measurement period.

          (iv)  Automatic Renegotiation.

          (A)   Upon the occurrence of a Regulatory Force Majeure Event, XM and
          Distributor agree to renegotiate mutually acceptable terms in light of
          the changed landscape arising from such Regulatory Force Majeure
          Event.

          (B)   XM may trigger a renegotiation of the terms of this Agreement at
          any time during the term if Distributor elects to install
          interoperable radios (i.e., radios capable of receiving both the XM
          Service and the Sirius Satellite Radio service, or other SDARS
          signals) in the absence of any regulatory requirement.

     (c) Upon at least thirty (30) days' prior notice either Party shall have
the right to terminate this Agreement if the other Party has breached any of its
material obligations under this Agreement; provided, however, that if such
breach is of the type that is curable, then termination shall not be effective,
and the notifying Party shall not exercise any of its other rights at law or in
equity, unless the notified Party has failed to cure such material breach fully
and to demonstrate to the notifying Party that such material breach has been
cured within the thirty (30)-day period following the notice described in this
Section 3(c).

     (d) If the FCC revokes XM's SDARS license as a result of the action(s) or
inaction(s) of XM, then Distributor, at its option, shall have the right to
declare XM in material breach of this Agreement, and such revocation shall not
constitute a force majeure event under Section 10.

4. PAYMENTS TO DISTRIBUTOR:

     (a) Guaranteed Payments. In consideration of Distributor installing
quantities of XM Receivers in GM Vehicles consistent with the market demand
throughout the Term and distributing (unless Distributor is otherwise expressly
excused from its exclusivity obligations in Section 2(a)) only the XM Service
during the Term, for each of the calendar years set forth in the following table
that this Agreement is in effect, XM agrees to pay to Distributor the amount set
forth opposite each pertinent calendar year:

                                       -7-

<PAGE>

      ------------------------------------------------------------------
                                                Amount Payable
               Calendar Year:*                 (in thousands):
      ------------------------------------------------------------------
                     2001                         [        ]
      ------------------------------------------------------------------
                     2002                         [        ]
      ------------------------------------------------------------------
                     2003                         [        ]
      ------------------------------------------------------------------
                     2004                         [        ]
      ------------------------------------------------------------------
                     2005                         $   33,533
      ------------------------------------------------------------------
                     2006                         [        ]
      ------------------------------------------------------------------
                     2007                         [        ]
      ------------------------------------------------------------------
                     2008                         [        ]
      ------------------------------------------------------------------
                     2009                         $  132,889
      ------------------------------------------------------------------

* If Distributor is unable (for reasons not attributable to XM's delay in
launching services) to install XM Receivers beginning with Model Year 2002, then
the payments set forth in the table above shall be delayed and shall commence in
the calendar quarter immediately following the calendar quarter in which
Distributor first installs reasonable quantities of XM Receivers in GM Vehicles.

In the event that this Agreement is terminated other than on the last day of a
calendar year, then the payment set forth in the table above for such calendar
year shall be prorated to reflect the number of days during such calendar year
that this Agreement was in effect. The payments set forth in the table above
with respect to 2001 and 2002 shall be due and payable in two equal installments
during the 2002 calendar year on or before September 30 and December 31, 2002.
Subsequent calendar year payments, shall be due and payable in four equal
installments on or before March 31, June 30, September 30 and December 31 of the
pertinent calendar year. In lieu of making the guaranteed payments for each of
the 2003, 2004, 2005 and 2006 calendar years, XM has entered into that certain
Note Purchase Agreement, dated as of December 21, 2002, by and between XM and
General Motors Corporation, and at the closing thereunder will issue to General
Motors Corporation a senior secured exchangeable note in the amount of
$89,042,387 (the "Note").

     (b) Installation Commission. During the Term, XM agrees to pay Distributor
an Installation commission as set forth below (the "Installation Commission").
Distributor shall invoice XM (on a mutually agreed upon form) at the end of each
calendar month for Installation Commissions earned during such month

         (i)   "New Enabled GM Vehicle", XM agrees to pay Distributor a
         commission of [   ] dollars ($[  ]) for each New Enabled GM Vehicle.
         Each invoice shall include the Vehicle Identification Number ("VIN")
         of each GM Vehicle for which an Installation Commission is payable,
         the XM Receiver identification number for each such GM Vehicle and any
         other information reasonably necessary to compute the Installation
         Commission.

         (ii)  The invoice shall be due and payable within thirty (30) days
         following receipt by XM. Distributor shall not invoice XM for an

                                       -8-

<PAGE>

         Installation Commission covered in section (i) before the Vehicle Ship
         Date.

     (c) Subscriber Bounty. In addition to the Installation Commission and
subject to the following sentence, XM agrees, during the Term, to pay
Distributor a [                ] commission (the "Subscriber Bounty") for each
GM/XM Subscriber (excluding subscriptions to the XM Services in GM Affiliate
Vehicles) who Purchases a "New Enabled GM Vehicle". The subscriber must
subscribe to the XM Service within twelve (12) months of the initial Purchase
(consumer delivery date) of such an Enabled GM Vehicle (a "Qualifying GM/XM
Subscriber"). If a Qualifying GM/XM Subscriber for whom a Subscriber Bounty is
payable fails to pay XM at least [                 ] for receipt of the Base
Subscription Service, then XM shall have the right to credit the difference
between the Subscriber Bounty paid and the amount actually received by XM on
account of such GM/XM Subscriber to future Subscriber Bounty payments. The
Subscriber Bounty shall be paid in two (2) equal installments (Activation and
Loyalty), the first (Activation) of which shall be due and payable no later than
thirty (30) days following the end of the calendar month during which a
Qualifying GM/XM Subscriber initially subscribes to the XM Service. The second
(Loyalty) of which shall be due and payable no later than thirty (30) days
following the end of the calendar month during which such Qualifying GM/XM
Subscriber makes his initial three (3)-month subscriber payment for receipt of
the XM Service. In no event shall the Subscriber Bounty be payable more than one
time with respect to any one XM Receiver. Notwithstanding the foregoing, from
and after January 1, 2003, XM may satisfy its obligation to make cumulative
Subscriber Bounty payments of up to $35,000,000, at its option, by delivery of
shares of Class A Common Stock. If XM elects to make a Subscriber Bounty payment
in shares of Class A Common Stock, such shares of Class A Common Stock shall be
valued at the Stock Fair Market Value as of the last business day of the
calendar month during which such Subscriber Bounty payment is triggered.

     (d) Revenue Share. During the Term, Distributor shall receive a percentage
of the revenue received by XM from GM/XM Subscribers (excluding subscriptions to
the XM Services in GM Affiliate Vehicles) for the Base Subscription Service (the
"Revenue Share"). The percentage shall depend on the number of Enabled GM
Vehicles (including GM Affiliate Vehicles) at the time such revenue is received
as follows:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
  If Number of Enabled GM Vehicles is:   Then Distributor's Revenue Share shall be:
--------------------------------------------------------------------------------------
         <S>                                                <C>
              [ ]                                           [ ]
--------------------------------------------------------------------------------------
              [ ]                                           [ ]
--------------------------------------------------------------------------------------
              [ ]                                           [ ]
--------------------------------------------------------------------------------------
              [ ]                                           [ ]
--------------------------------------------------------------------------------------
              [ ]                                           [ ]
--------------------------------------------------------------------------------------
</TABLE>

     The Revenue Share percentages set forth in the table above shall apply to a
Base Subscription Service price between $[  ] and $9.95 per month. If, in
response

                                       -9-

<PAGE>

to competitive pressures, the Base Subscription Service price falls below $[  ]
per month, then the Parties shall negotiate in good faith to modify the Revenue
Share in an equitable manner to reflect the realities of the market. If XM
fundamentally changes its business model (e.g., employs a more aggressive
advertising model), and, as a result of such change, the Base Subscription
Service price falls below $[  ] per month, then the Revenue Share payable to
Distributor shall be determined as if the Base Subscription Service price were
$9.95 per month. Likewise, if the Base Subscription Service price is more than
$9.95 per month, then the Revenue Share shall be determined as if the Base
Subscription Service price were $9.95 per month.

     The Revenue Share shall be due and payable no later than thirty (30) days
after the end of each calendar month during the Term based upon subscriber
revenues collected during such month; provided, however, that from and after
January 1, 2003, XM may make Revenue Share payments of up to an aggregate amount
of $50,000,000 through periodic draws pursuant to the terms of that certain
Senior Secured Credit Facility, dated as of January 28, 2003, by and between XM
and GM. In the event that the applicable Revenue Share percentage changes in
the middle of a calendar month, XM shall make payments to GM using the Revenue
Share percentage previously in effect, and, promptly after making such payment,
XM and GM shall cooperatively analyze the applicable data and, as appropriate,
XM shall make a follow-up adjusting payment to GM reflecting the Revenue Share
percentage then in effect in accordance with this Section 4(d).

     (e) Revenue Share (or other Compensation) for GM Affiliate Vehicles.
Revenue share, if any, (or other compensation, if any) payable with respect to
subscribers to the XM Service in GM Affiliate Vehicles that are enabled to
receive the XM Service shall be as may be agreed from time to time by XM and the
applicable GM Affiliate.

5. ADVERTISING AND PROMOTIONAL COMPONENTS:

     (a) Advertising Availability. During each of the calendar years set forth
in the table below that this Agreement is in effect, XM agrees to make available
to Distributor a number of advertising spots (the "Spots") on XM channels
comprising the XM Service representing the following dollar amounts (expressed
in thousands):

Spot dollars are to be re-distributed between calendar years in the event both
parties, XM and the Distributor, mutually agree on the revised allocation. In
the event that spot dollars are re-distributed, formal documentation of the
mutual decision is required including, but not limited to, the dollar value
re-distributed.

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
Year:            2001       2002         2003       2004        2005        2006        2007        2008       2009
----------------------------------------------------------------------------------------------------------------------
<S>              <C>        <C>         <C>        <C>        <C>         <C>         <C>         <C>        <C>
Dollar
Value:           [  ]       [   ]       [   ]      [     ]    [     ]     [     ]     [     ]     [     ]    [     ]
----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -10-

<PAGE>

------------------------------------------------
Year:             2010       2011        2012
------------------------------------------------
Dollar
Value:          [     ]    [     ]     [     ]
------------------------------------------------

     (b) The Spots shall only be used by Distributor to advertise and promote GM
products and services. Except as set forth above, if Distributor does not use
all of the Spots made available to Distributor during any calendar year,
Distributor may not carry such unused Spots forward into any subsequent calendar
year during the Term. Distributor, at its expense, shall create, produce and
deliver the Spots to the location(s) specified by XM. The Spots shall not be
adverse to, or competitive with, XM's business(es) or require XM to make any
payments to a third party or obtain any consents to insert the Spots on the XM
Service. Distributor will indemnify the XM Indemnitees as provided herein in
connection with Distributor's use of the Spots (including, without limitation,
the content thereof), and the Spots cannot be resold by Distributor to a third
party. The dollar value of the Spots will be priced based on the then-current
CPM rate sheets. Placement of the Spots shall be mutually agreed upon by the
Parties.

     (c) Market Support Funds. XM agrees that for each calendar year during the
period commencing January 1, 2001, and ending December 31, 2009, XM shall
allocate $ [  ] per year, and during the period commencing January 1, 2010 and
ending December 31, 2012, XM shall allocate $ [  ] per year, of its annual
advertising budget to Distributor to be placed through a mutually agreed agency,
provided that such support funds pertain to the XM Service and are consistent
with XM's positioning and branding of the XM Service. The annual budget will be
utilized for, but is not limited to, mutually agreed upon advertising
opportunities, dealer promotions, on-site activities, training, and vehicle
literature. Before initiating agency work, both parties will mutually agree to
the initiative(s) and term(s).

          (i)    Market Support dollars are to be re-distributed between
               calendar years in the event both parties, XM and the Distributor,
               mutually agree on the revised allocation. In the event that
               Market Support funds are re-distributed, formal documentation of
               the mutual decision is required including, but not limited to,
               the dollar value re-distributed.

          (ii)   Distributor agrees to monthly reporting of the XM value
               realized through GM brand and field activities. XM agrees to
               monthly reporting of GM Market Support fund activities, monies
               spent, committed and forecast.

     (d) Initial Free Service. Distributor shall use reasonable efforts to have
all GM Vehicle Purchasers of Enabled GM Vehicles subscribe to the XM Service. As
an incentive to increase subscriptions to the XM Service by Purchasers of new
Enabled GM Vehicles, Distributor is authorized to offer Purchasers of new
Enabled GM

                                      -11-

<PAGE>

Vehicles (excluding GM Affiliate Vehicles) up to [       ] months of free trial
service to the Base Subscription Service. If Distributor elects to offer a free
trial service to Purchasers of new GM Vehicles, then, within a reasonable period
of time following receipt of the report described in Section 7(a), XM will
activate the XM Receiver in the new GM Vehicles identified in such report.

     (e) XM and Distributor shall mutually agree on the implementation of a
marketing plan to attract additional subscribers to the XM Service by targeting
Purchasers of Enabled GM Vehicles (excluding GM Affiliate Vehicles) who have not
subscribed to the XM Service. XM agrees to pay Distributor a Revenue Share for
subscribers who initially subscribe to the XM Service after twelve (12) months
from the initial Purchase of an Enabled GM Vehicle; in consideration therefor,
Distributor agrees to pay a portion of the marketing costs associated with
targeting such subscribers, with such portion to be equal to the then-applicable
Revenue Share percentage.

6. BANDWIDTH USAGE; STUDIO ACCESS; AUDIO CONTENT:

     (a) During the Term and for each Bandwidth Extension Year, XM agrees to
allocate for use by Distributor [                     ] of the bandwidth on the
XM System for audio and/or data transmissions by Distributor to GM/XM
Subscribers. Use of such bandwidth shall be subject to compliance with
applicable law, including without limitation, rules and regulations of the FCC
("FCC Rules"). If requested by Distributor and permitted under applicable law,
including, without limitation, FCC Rules, XM will make this bandwidth available
for transmissions by Distributor to all owners of Enabled GM Vehicles regardless
of whether they are GM/XM Subscribers. In such event, Distributor shall provide
XM with all information reasonably necessary to activate and/or to deactivate
the XM Receivers by Distributor's customers that are not GM/XM Subscribers.

     (b) Distributor agrees to give XM at least ninety (90) days' prior notice
of its intent to utilize the bandwidth allocated to Distributor hereunder. Such
notice shall set forth the amount of bandwidth to be utilized as well as the
proposed use of such bandwidth. Until actually utilized by Distributor, XM shall
be entitled to use the bandwidth allocated to Distributor hereunder.

     (c) To the extent Distributor elects to utilize any or all of the bandwidth
allocated to it hereunder, Distributor, at its expense, shall deliver to a
location in the Territory designated by XM a complete audio signal and/or data
transmission, as the case may be, by transmitting such signal and/or data via a
mutually acceptable means and in a form that will not require XM to modify the
signal and/or data in order to receive or to transmit such signal and/or data
over the XM System. XM, at its expense, shall furnish all other facilities
necessary for the receipt of Distributor's transmission and for the
retransmission of such signals and/or data to subscribers authorized to receive
such signals and/or data.

                                      -12-

<PAGE>

     (d) Distributor agrees that the technical quality of each audio signal
and/or data transmission transmitted by Distributor to XM shall be at least
equal to the technical quality of the audio signals and/or data transmissions
delivered to XM by any third party distributor of audio services and/or data
transmissions, respectively.

     (e) Distributor shall not use the bandwidth allocated to it hereunder to
create or transmit music or entertainment radio services that compete with, or
otherwise use such bandwidth in a manner that could reasonably be expected to
adversely interfere with, the XM business(es). XM shall not use the remainder of
the bandwidth to create a service targeting new GM Vehicle Purchasers that
packages together the essential features of the current OnStar features as
described in Attachment 1 attached hereto.

     (f) Without limiting the provisions of Section 9(c), Distributor shall
indemnify and hold harmless the XM Indemnitees from and against any and all
Costs arising out of Distributor's use of such bandwidth, including, without
limitation, the content of any of Distributor's transmissions via such bandwidth
or the sale or marketing of any products or services via such bandwidth.

     (g) During the Term, XM shall provide to Distributor reasonable access to
and exclusive use of a radio programming studio (the actual studio used may
vary) in XM's radio programming studio facilities for up to 100 hours during any
calendar month, and up to an aggregate of 500 hours during any calendar year, at
no cost to Distributor. Distributor shall make any request for access at least
30 days prior to the date it wishes to have access to and use of a radio
programming studio in XM's radio programming studio facilities; provided that
such notice has been given, XM shall not unreasonably deny timely access. XM
shall not be responsible for providing staffing or production support to
Distributor in connection with Distributor's use of any XM radio programming
studio.

     (h) During the Term, XM will make available to Distributor, for
prepackaging and distribution on Distributor's "Virtual Advisor," at no cost to
Distributor (except as provided in the last sentence of this paragraph), XM
audio content. XM and Distributor shall jointly agree on the specific content to
be repackaged for distribution. Such audio content shall not be made available
by XM to any telematics competitor of Distributor. The repackaged programming
shall not exceed 5 minutes per day in any one category of content. It shall be
branded on-air as XM content and include promotions of the XM Service and
referrals to the XM Service for similar content. Distributor shall promote
availability of XM Service programming in marketing communications associated
with any distribution of such audio content. XM and Distributor shall work
cooperatively to identify information or content that each can make available to
the other on reasonable terms and conditions. Distributor will bear the cost of
repackaging and transmitting such audio content from XM's facilities to
Distributor's facilities.

                                      -13-

<PAGE>

7. CUSTOMER RELATIONSHIP:

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

     (b) [ ] shall be prepared to handle calls for customer care as it pertains
to the XM Service for GM/XM Subscribers who are also OnStar customers; provided,
however, that [                                              ]; it being
understood, however, that such reimbursable costs shall not include fixed costs,
including, without limitation, overhead.

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

     (d) [ ], at its expense, shall be responsible for the billing of the XM
Service purchased by GM/XM Subscribers.

8. INSTALLATION; TECHNICAL SPECIFICATIONS; TRADEMARKS:

     (a) To assist XM with its business planning, Distributor agrees to meet
with representatives from XM on at least a quarterly basis to discuss its
projections for installations of XM Receivers in new GM Vehicles over the
following twelve (12) months, including (i) Distributor's forecast as to the
number of XM Receivers it plans to install in new GM Vehicles over the following
twelve (12) months, (ii) the makes and models in which Distributor is installing
or proposing to install XM Receivers, and (iii) the types of packages in which
the XM Service may be included. XM acknowledges that nothing contained in this
Agreement shall be construed as obligating Distributor to fulfill any of the
projections or plans discussed with XM at such meetings, provided that the
provisions of Section 3(b)(ii) shall continue to apply. In addition, from June
1, 1999 through May 30, 2000, XM will provide Distributor monthly reports and
hold quarterly meetings to inform Distributor fully about XM's progress toward
the Commencement Date. From June 1, 2000 through June 30, 2001, XM and
Distributor shall hold monthly meetings and include any suppliers,

                                      -14-

<PAGE>

marketing representatives or other necessary parties to facilitate the timely
commencement of XM's commercial operations.

     (b) Distributor and XM shall meet on a quarterly basis to review the
installation rates of XM Receivers in GM Vehicles, the manner in which XM
Receivers are packaged with various GM vehicles and the percentage of purchasers
of such Enabled GM Vehicles who become GM/XM Subscribers. In the event that
fewer than 70% of the purchasers of Enabled GM Vehicles over any six-month
period become GM/XM Subscribers in connection with the purchase of such Enabled
GM Vehicles, then (i) Distributor may, in its sole discretion, redirect the
moneys payable by XM to Distributor hereunder to advertising and/or marketing
efforts intended to increase the percentage of such purchasers of Enabled GM
Vehicles who become GM/XM Subscribers, and (ii) XM and Distributor shall meet to
review installation forecasts and marketing plans relating to XM Receivers and
the XM System, with the purpose of making adjustments intended to increase the
percentage of such purchasers of Enabled GM Vehicles who become GM/XM
Subscribers.

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

     (d) Distributor acknowledges that XM does not manufacture the XM Receivers
and cannot guarantee availability or delivery thereof on any specific date. In
addition, Distributor acknowledges that XM shall have no liability for any use,
property, ad valorem, value added, stamp or other taxes, charges or withholdings
arising out of the XM Receivers or the delivery thereof by Authorized XM
Manufacturers to Distributor.

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

     (f) XM and Distributor acknowledge and represent that each party owns
certain names, trademarks, service marks, copyrights and other intellectual
property, and owns or has obtained certain rights in and to the trademarks,
tradenames, copyrights, rights to publicity and other such rights of third
parties ("Marks"). It is understood that in promoting XM, XM and Distributor may
make various references to and may display the Marks of XM and Distributor. Each
party hereto grants to the other a nonexclusive, nontransferable license to use
its Marks during the term of this

                                      -15-

<PAGE>

Agreement and subject to the terms and conditions hereinafter set forth, solely
in connection with advertising and promoting XM and the joint activities of
Distributor and XM.

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

     Neither party will impugn, challenge or assist in any challenge to the
validity of the other party's Marks, any registrations thereof, or the ownership
thereof. Each party will be solely responsible for taking such actions as it
deems appropriate to obtain trademark, service mark or copyright registration
for its respective Marks. All uses of or references to the Marks shall inure to
the benefit of the respective owner, and all rights with respect to the Marks
not specifically granted in this Agreement shall be and are hereby reserved to
the respective owner.

     Neither party is granted any right or license under this Agreement to sell,
or otherwise distribute for sale, any of the promotional or advertising
materials, or items related thereto. If a party desires to sell, or distribute
for sale, any of such materials or other merchandising or novelty items bearing
the names, trademarks, copyrights or other intellectual property of the other
party, then it shall request permission to do so from the other party, and if
granted, the parties shall negotiate in good faith a separate licensing
agreement covering such materials or items before they may be sold or
distributed for sale.

9. WARRANTIES AND INDEMNITIES:

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

                                      -16-

<PAGE>

     (b) XM IS NOT THE MANUFACTURER OF THE XM RECEIVERS AND XM MAKES NO
REPRESENTATIONS OR WARRANTIES OF ANY KIND, NATURE OR DESCRIPTION, EXPRESS OR
IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR
FITNESS OF ANY OF THE XM RECEIVERS FOR ANY PARTICULAR PURPOSE, OR ANY OTHER
WARRANTY REGARDING THE DESIGN, CONDITION, CAPABILITY OR PERFORMANCE OF THE XM
RECEIVERS, AND XM HEREBY DISCLAIMS THE SAME. XM shall not be responsible for any
loss or damage resulting from any defect of or in the XM Receivers, latent or
otherwise, or resulting from any failure of the XM Receivers to operate or
faulty operation of the XM Receivers, nor for any direct, indirect,
consequential, incidental or other similar damage (including lost profits)
resulting from the transportation, installation, service, operation or use of
the XM Receivers, and shall not be responsible for any such loss or damage
resulting from the maintenance or repair of the XM Receivers. Rather, warranty
claims relating to XM Receivers installed in GM Vehicles shall be handled by the
Authorized XM Manufacturers, in accordance with Distributor's standard practices
with suppliers. In addition, XM shall not be responsible for any breach of any
Authorized XM Manufacturer's warranties, indemnities or supply agreements, and
no breach thereof shall affect the limitation on liabilities, rights and
obligations of the Parties set forth in this Agreement.

     (c) XM and Distributor shall each indemnify, defend and forever hold
harmless the other, the other's affiliated companies and each of the other's
(and the other's affiliated companies') respective present and former officers,
shareholders, directors, employees, partners and agents ("Distributor
Indemnitees" and "XM Indemnitees," respectively), against and from any and all
losses, liabilities, claims, costs, damages and expenses, including, without
limitation, fines, forfeitures, attorneys' fees, disbursements and court or
administrative costs (collectively, "Costs"), arising out of any breach of any
term of this Agreement or any warranty, covenant or representation contained
herein.

     (d) XM Indemnification.

          (i)    If any Distributor Indemnitee is charged with infringement of a
               third party's intellectual property rights, including patent,
               trademark, copyright, industrial design right, or other
               proprietary right, or misuse or misappropriation of trade secret
               rights, as a result of the installation, use, sale, offer for
               sale or import of XM Receivers in or for use in GM Vehicles, and
               if such alleged infringement arises in any way from an aspect or
               function of the XM Receiver that meets a requirement or
               specification of XM for receipt of the XM Service by the XM
               Receiver, XM will, at no expense to Distributor: (i) defend, hold
               harmless and indemnify the Distributor Indemnitees against any
               Costs relating to such charge or claim, including, but not
               limited to, Costs for past infringement; and (ii) to the extent
               appropriate,

                                      -17-

<PAGE>

               either, (A) procure for Distributor the right to continue the
               installation, use, sale, offer for sale or import of XM Receivers
               in GM Vehicles, or (B) procure for Distributor the availability
               of XM Receivers with a modified design such that XM Receivers no
               longer infringe, provided that such modification can be done
               without substantially impairing its functionality or performance.

          (ii)   With respect to claims arising under this Section 9(d),
               Distributor will promptly notify XM in writing of any claim of
               infringement or indemnification and will provide XM with the
               authority, information and assistance necessary to defend or
               settle such claim; provided, however, that Distributor will have
               the right to participate in such defense and to approve any
               proposed settlement in advance. Distributor will have the right
               to take over from XM the defense of a claim at any time, provided
               that Distributor releases XM in writing from any further
               obligation of defense or indemnification in connection with such
               claim unless otherwise mutually agreed.

          (iii)  The obligations of XM and Distributor under this Section 9(d)
               will survive termination of this Agreement with respect to XM
               Receivers installed in GM Vehicles.

     (e) A Party claiming indemnity under this Section 9 must give the
indemnifying party prompt notice of any claim, and the indemnifying party shall
have the right to assume the full defense of any claims to which its indemnity
applies. The indemnified party, at the indemnifying party's cost, will cooperate
fully with the indemnifying party in such defense of any such claim. If the
indemnified party compromises or settles any such claim without the prior
written consent of the indemnifying party, then the indemnifying party shall be
released from its indemnity obligations with respect to the claim so settled.

     (f) The representations, warranties and indemnities contained in this
Section 9 shall continue throughout the Term and the indemnities shall survive
the termination of this Agreement, regardless of the reason for such
termination.

10. FORCE MAJEURE:

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

                                      -18-

<PAGE>

11. NOTICES:

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

        To  Holdings or XM:  XM Satellite Radio
                             1500 Eckington Place N.E.
                             Washington, D.C. 20002
                             Facsimile Number: 202.380.4521
                             Attention:  President & CEO
                             cc: General Counsel

         To Distributor:     OnStar Corporation
                             1400 Stephenson Highway
                             Troy, MI  48083-1189
                             Facsimile Number:  248.588.7250
                             Attention: Vice President and Executive Director,
                                        Satellite Radio Services
                             cc: General Counsel

          Notice or report given by hand delivery shall be deemed received on
delivery. Notice or report given by mail shall be deemed received on the earlier
to occur of actual receipt or on the fifth day following mailing if sent in
accordance with the notice requirements of this Section 11. Notice or report
given by Federal Express or similar overnight delivery service shall be deemed
received on the next business day following delivery of the notice or report to
such service with instructions for overnight delivery. Notice or report given by
facsimile transmission shall be deemed received when there is personal
confirmation of receipt by the person to whom such notice or report is sent.

12. CONFIDENTIALITY:

          Neither XM nor Distributor shall disclose (whether orally or in
writing, or by press release or otherwise) to any third party any information
with respect to the terms and provisions of this Agreement or any information
contained in any data or report required or delivered hereunder or any materials
related thereto, except (a) disclosure as may be required by law, regulation,
court or government agency of competent jurisdiction (redacted to the greatest
extent possible); (b) disclosure to each Party's respective officers, directors,
employees and attorneys, in their capacity as such; provided, however, that the
disclosing Party agrees to be responsible for any

                                      -19-

<PAGE>

breach of the provisions of this Section 12 by such officers, directors,
employees or attorneys; (c) disclosure by XM in connection with its bona fide
financing activities, (d) disclosure by XM of the provisions relating to XM's
exclusive obligations to Distributor to other automobile manufacturers, (e) in
the event that XM becomes subject to the information reporting requirements of
the Securities Exchange Act of 1934, as amended, this Agreement may be made
publicly available by XM to investors in accordance with the rules and
regulations of the Securities and Exchange Commission; (f) disclosure in the
form of a public statement or press release approved by the other Party hereto
in advance of such statement or release; (g) general marketing information
releases describing the nature of this Agreement in general terms; and (h) as
mutually agreed upon, in writing, by XM and Distributor in advance of such
disclosure. This confidentiality provision shall survive the termination of this
Agreement.

13. MISCELLANEOUS:

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

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

     (c) Regulated Entity. It is understood by the Parties that the business of
XM is regulated by the FCC and that nothing set forth in this Agreement shall be
construed (i) to require XM to act in a manner inconsistent with FCC Rules, or
the informal interpretations thereof communicated from time to time by the FCC
staff, or (ii) to prevent XM from taking positions on issues relating to its FCC
license or other rules and regulations applicable to XM, or the appropriate
interpretation thereof.

                                      -20-

<PAGE>

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

     (e) Governing Law. This Agreement and all matters or issues collateral
thereto shall be governed by the laws of the State of New York, without regard
to its choice of law rules.

     (f) Disputes and Interpretation. In the event of any dispute or question of
interpretation under this Agreement, each of the parties agrees that prior to
commencing any legal action in any court of competent jurisdiction, it shall
first refer the matter for review and consideration by the parties' respective
operating executives, who shall initially be (i) on behalf of Distributor, the
OnStar Vice President and Executive Director, Satellite Radio Services or his or
her delegate and (ii) on behalf of XM, the Executive Vice President of Sales,
Marketing and Customer Service or his or her delegate. In the event that such
operating executives fail to resolve the dispute or question of interpretation
within 30 days' of the matter being referred to them, then the parties shall be
free to pursue judicial action in a court of competent jurisdiction.

     (g) Relationship. Neither Party shall be, or hold itself out as, the agent
of the other or as joint venturers under this Agreement.

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

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

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

                                      -21-

<PAGE>

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

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

     (m) Effective Date. This Agreement became effective, in its original
version, on July 7, 1999, in accordance with the terms and conditions contained
therein (the "Effective Date"), and was amended and restated as of June 3, 2002.
This Agreement shall be further amended and restated with effect at the closing
under the Note Purchase Agreement.

                            [signature page follows]

                                      -22-

<PAGE>

     The Parties hereto have executed this Agreement as of the date first above
written.

XM SATELLITE RADIO INC.:                     ONSTAR CORPORATION:

By: /s/ Joseph M. Titlebaum                 By: /s/ Kenneth D. Enborg
    --------------------------------           ------------------------

Name: Joseph M. Titlebaum                    Name:  Kenneth D. Enborg
      -------------------                          --------------------

Title: Senior Vice President, General        Title: Vice President and General
       -----------------------------               ---------------------------
Counsel and Secretary                               Counsel
---------------------                              --------

Date: January 28, 2003                       Date: January 28, 2003
      ----------------                             ----------------

XM SATELLITE RADIO HOLDINGS INC.:

By: /s/ Joseph M. Titlebaum
    --------------------------------

Name: Joseph M. Titlebaum
      -------------------

Title: Senior Vice President, General
       ------------------------------
Counsel and Secretary
---------------------

Date: January 28, 2003
      ----------------

      Signature Page to Second Amended and Restated Distribution Agreement

<PAGE>

                              ATTACHMENT 1,2 and 3

       to Second Amended and Restated Distribution Agreement by and among

                        XM Satellite Radio Holdings Inc.,

                             XM Satellite Radio Inc.

                                       and

               OnStar, a subsidiary of General Motors Corporation

                                  See Attached.

<PAGE>

          Attachment 3, GM Affiliates (As of 4/18/02)

Affiliates with US distribution
    1.   Saab/1/
    2.   Subaru
    3.   Isuzu
    4.   Suzuki
    5.   Fiat Auto (including, without limitation, Fiat, Alfa Romeo, and Lancia
         branded vehicles)
    6.   Daewoo Automotive Technology

----------
/1/  The parties understand that Saab is a wholly-owned subsidiary of GM and a
     GM brand, but is being treated as a GM Affiliate solely for purposes of
     this Agreement.<PAGE>

                                                                   Exhibit 10.10

================================================================================

                                CREDIT AGREEMENT

                                      among

                            XM SATELLITE RADIO INC.,

                                  as a Borrower

                                       and

                        XM SATELLITE RADIO HOLDINGS INC.,

                                  as a Borrower

                                       and

                           GENERAL MOTORS CORPORATION,

                                    as Lender

                          Dated as of January 28, 2003

================================================================================

<PAGE>

                                TABLE OF CONTENTS

1.    DEFINITIONS............................................................  1
      1.1.     Certain Definitions...........................................  1
      1.2.     Other Definitional Provisions.................................  6

2.    LOAN AND TERMS OF PAYMENT..............................................  6
      2.1.     Loan Commitment...............................................  6
      2.2.     Manner of Borrowing...........................................  6
      2.3.     Interest......................................................  7
      2.4.     Payments and Notes............................................  7
      2.5.     Payment at Maturity...........................................  8
      2.6.     Prepayment....................................................  8

3.    COLLATERAL.............................................................  8
      3.1.     Security Agreements...........................................  8
      3.2.     Release of Collateral.........................................  9
      3.3.     Termination of Security Interest..............................  9

4.    CONDITIONS PRECEDENT...................................................  9
      4.1.     Conditions to Initial Advance.................................  9
      4.2.     Conditions to Each Advance.................................... 10

5.    REPRESENTATIONS AND WARRANTIES OF THE LENDER........................... 11
      5.1.     Risks of Investment........................................... 11
      5.2.     Investment Experience......................................... 11
      5.3.     Ability to Bear Risk.......................................... 11
      5.4.     Receipt and Review of Documentation........................... 11
      5.5.     Acquisition for Own Account................................... 11
      5.6.     No Public Market; Rule 144.................................... 11
      5.7.     Organization, Good Standing, Corporate Authority.............. 12
      5.8.     Due Authorization............................................. 12
      5.9.     Qualified Institutional Buyer or Accredited Investor.......... 12

6.    RESTRICTIONS ON TRANSFER............................................... 12
      6.1.     Restrictions; Restrictive Legend.............................. 12

7.    REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF THE BORROWERS............ 13
      7.1.     Incorporation, Standing, etc.................................. 13
      7.2.     Authorization of Agreement and Notes.......................... 13
      7.3.     Absence of Defaults and Conflicts............................. 13
      7.4.     Governmental Consents......................................... 14

8.    DEFAULTS AND REMEDIES.................................................. 14
      8.1.     Events of Default............................................. 14
      8.2.     Acceleration.................................................. 15
      8.3.     Other Remedies................................................ 16
      8.4.     Waiver of Past Defaults....................................... 16

<PAGE>

9.    PRIORITY OF OBLIGATIONS................................................ 16

10.   EXPENSES............................................................... 16

11.   SURVIVAL............................................................... 16

12.   AMENDMENTS AND WAIVERS................................................. 16

13.   GUARANTEES............................................................. 17
      13.1.    Execution and Delivery of Agreement Guarantees................ 17
      13.2.    Subsidiary Guarantors may Consolidate, Etc. on Certain Terms.. 17
      13.3.    Releases Following Sale of Assets............................. 17
      13.4.    Application of Certain Terms and Provisions
                to the Subsidiary Guarantors................................. 17
      13.5.    Addition of Subsidiary Guarantors............................. 17

14.   NOTICES................................................................ 18

15.   EXECUTION IN COUNTERPARTS.............................................. 18

16.   BINDING EFFECT......................................................... 18

17.   GOVERNING LAW; CHOICE OF FORUM; JURY TRIAL WAIVER...................... 18

18.   MISCELLANEOUS.......................................................... 19
      18.1.    Severability.................................................. 19
      18.2.    No Waiver..................................................... 19
      18.3.    Further Assurances............................................ 19
      18.4     Joint and Several Liability................................... 19
      18.5.    Construction.................................................. 20

                                       ii

<PAGE>

Exhibit A      Form of Second Amended and Restated Distribution Agreement

Exhibit B      Form of Request for Advance

Exhibit C      Form of Warrant

Exhibit D      Form of FCC License Subsidiary Pledge Agreement

Exhibit E      Form of General Security Agreement

Exhibit F      Form of Agreement Guarantee

                                       iii

<PAGE>

                                CREDIT AGREEMENT

               CREDIT AGREEMENT (this "Agreement"), dated as of January 28,
2003, by and among XM SATELLITE RADIO INC., a Delaware corporation (the
"Company"), XM SATELLITE RADIO HOLDINGS INC., a Delaware corporation ("Holdings"
and together with the Company, the "Borrowers"), and GENERAL MOTORS CORPORATION,
a Delaware corporation (the "Lender") (collectively, the "Parties," and each, a
"Party").

                                   WITNESSETH

               WHEREAS, the Borrowers, with certain of their Subsidiaries
(collectively, "XM"), are engaged in the development of a satellite digital
audio radio service in the United States;

               WHEREAS, XM requires significant incremental capital to fund its
operations and is in the process of attempting to restructure certain of its
obligations under its outstanding securities and other contractual obligations;

               WHEREAS, as part of XM's refinancing efforts, among other things,
(i) the Lender has agreed to finance payment obligations (the "Contractual
Obligations") from time to time owing by the Borrowers in cash to the Lender or
OnStar Corporation ("OnStar"), a subsidiary of the Lender, by allowing the
Borrowers to make periodic draws in an aggregate amount of up to $100,000,000
and (ii) OnStar has entered into that certain Note Purchase Agreement dated as
of December 20, 2002 (as such agreement may be amended, modified or supplemented
from time to time, the "Note Purchase Agreement"), by and among OnStar and the
Borrowers;

               WHEREAS, to induce the Lender to agree to finance such
Contractual Obligations, the Borrowers have agreed to enter into that certain
the Second Amended and Restated Distribution Agreement, dated as of a date on or
about the date hereof (as such agreement may be amended, modified or
supplemented from time to time, the "Second Amended Distribution Agreement"), by
and among OnStar and the Borrowers, substantially in the form attached hereto as
Exhibit A; and

               WHEREAS, the Parties desire to set forth the terms and conditions
of such financing.

               NOW THEREFORE, for good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Parties hereby agree as
follows:

1.   DEFINITIONS

     1.1.      CERTAIN DEFINITIONS

               The following terms when used in this Agreement, including its
preamble and recitals, shall, except where the context otherwise requires, have
the following meanings:

               "Advance" has the meaning set forth in Section 2.1 of this
Agreement.

               "Affiliate" of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition,
"control," as used with respect to any Person, shall mean the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise; provided that beneficial ownership of 10%
or more of the Voting Stock of a Person shall be deemed to be control. For
purposes of this definition, the terms "controlling," "controlled by" and "under
common control with" shall have correlative meanings.

               "Agreement" means this Loan Agreement (including any Schedules
and Exhibits hereto), as it may from time to time be amended, supplemented or
modified in accordance with its terms.

<PAGE>

               "Agreement Guarantee" means (1) the Agreement Guarantee, dated as
of the Closing Date, entered into by XM Leasing Subsidiary in favor of the
Lender and (2) any other guarantee entered into in favor of the Lender pursuant
to Section 13.5 hereof.

               "Applicable Margin" means a rate per annum equal to 10%.

               "Bankruptcy Law" means Title 11, U.S. Code or any similar federal
or state law for the relief of debtors.

               "Borrowers" has the meaning set forth in the recitals to this
Agreement.

               "Business Day" means any day other than a Legal Holiday.

               "Class A Common Stock" means the Class A Common Stock, par value
$0.01 per share, of Holdings.

               "Closing" means the consummation of the transactions contemplated
by this Agreement.

               "Closing Date" means the date of the Closing.

               "Collateral" means (1) the Collateral (as defined in the General
Security Agreement), and (2) the Collateral (as defined in the FCC License
Subsidiary Pledge Agreement).

               "Collateral Agent" means the collateral agent under the
applicable Intercreditor Agreement.

               "Commitment Period" shall mean the period commencing on the date
hereof, and ending upon the earlier of (i) termination of the Second Amended
Distribution Agreement or (ii) December 31, 2009.

               "Concurrent Financing Transactions" means (1) the issuance to
OnStar pursuant to the Note Purchase Agreement of the Company's and Holdings'
Series GM Senior Secured Convertible Notes due 2009 (the "GM Notes") in the
principal amount of $89,042,387 in lieu of certain guaranteed payments due to
Lender during the period from 2003 to 2006 under the Company's Distribution
Agreement with the Lender, (2) the amendment of the Distribution Agreement to
provide for, among other things, the issuance of the GM Notes and the payment of
up to $35,000,000 in subscriber bounty payments in the form of Class A Common
Stock, (3) the issuance of the Company's and Holdings'10% Senior Secured
Convertible Discount Notes due 2009 to certain investors, (4) the issuance of a
warrant to the Lender to purchase 10,000,000 shares of Class A Common Stock, (5)
the issuance of the Company's 14% Senior Secured Discount Notes due 2009,
warrants to purchase Holdings' Class A Common Stock and cash in exchange for
some or all of the Company's outstanding 14% Senior Secured Notes due 2010, (6)
the issuance and sale on or before the date hereof, to the extent determined to
be desirable by Holdings, of Class A Common Stock, in accordance with Section
4(2) of the Securities Act or pursuant to a registration statement under the
Securities Act, including the proposed sale of 5,555,556 shares of Class A
Common Stock to U.S. Trust Company and warrants to purchase 900,000 shares of
Class A Common Stock, and (7) the execution, delivery and performance of all
agreements, documents and instruments, including the Noteholders Agreement and
Registration Rights Agreement, evidencing the transactions described in clauses
(1) through (6) above and all arrangements contemplated thereby.

               "Contractual Obligations" shall have the meaning set forth in the
recitals hereof.

               "Default" means any event that is, or with the passage of time or
the giving of notice or both would be, an Event of Default.

               "Excess Cash" means, for any fiscal year, the excess, if any, of
(a) the sum, without duplication, of (i) consolidated net income of Holdings and
its subsidiaries for such fiscal year, as reported in Holdings' reports filed
with the Securities and Exchange Commission, (ii) an amount equal to the amount
of all non-cash charges (including depreciation and amortization) deducted in
arriving at such consolidated net income, (iii) decreases in

                                        2

<PAGE>

consolidated working capital of Holdings and its subsidiaries for such fiscal
year, (iv) an amount equal to the aggregate net non-cash loss on the disposition
of property by Holdings and its subsidiaries during such fiscal year (other than
sales of inventory in the ordinary course of business), to the extent deducted
in arriving at such consolidated net income and (v) the net increase during such
fiscal year (if any) in deferred tax accounts of Holdings and its subsidiaries
over (b) the sum, without duplication, of (i) an amount equal to the amount of
all non-cash credits included in arriving at such consolidated net income, (ii)
the aggregate amount actually paid by Holdings and its subsidiaries in cash
during such fiscal year on account of capital expenditures, (iii) the aggregate
amount of all prepayments of all amounts owing to the Lender, whether under this
Agreement, the Second Amended Distribution Agreement or any obligations arising
out of the Concurrent Financing Transactions during such fiscal year, (iv) the
aggregate amount of all regularly scheduled principal payments of obligations
made during such fiscal year with respect to borrowed money outstanding on the
date hereof, under this Agreement, or arising out of the Concurrent Financing
Transactions, (v) increases in consolidated working capital of Holdings and its
subsidiaries for such fiscal year, (vi) an amount equal to the aggregate net
non-cash gain on the disposition of property by Holdings and its subsidiaries
during such fiscal year (other than sales of inventory in the ordinary course of
business), to the extent included in arriving at such consolidated net income,
(vii) the net decrease during such fiscal year (if any) in deferred tax accounts
of Holdings and its subsidiaries, (viii) $10 million, and (ix) an amount equal
to the amount of all funds set aside during such fiscal year solely for
financing or paying the cost of (A) one or more replacement satellites, (B)
other expenditures relating to infrastructure, back-office, user equipment and
subscriber acquisition, and (C) research and development activities.

               "Event of Default" has the meaning set forth in Section 8.1 of
this Agreement.

               "Fair Market Value" means, with respect to the Class A Common
Stock on any Interest Payment Date, the average, calculated to two decimal
places, of the weighted average daily trading prices of such stock over the ten
(10) Trading Day period ending on the Trading Day prior such Interest Payment
Date as reported on Bloomberg. If at any time the Class A Common Stock is not
listed on any national securities exchange or quoted on the Nasdaq Stock Market
or the over-the-counter market, the Fair Market Value of the Class A Common
Stock shall be the fair value thereof as determined by the Board of Directors of
Holdings in good faith.

               "FCC License Subsidiary" means XM Radio Inc., a Delaware
corporation, and any and all successors thereto.

               "FCC License Subsidiary Pledge Agreement" means the Amended and
Restated Security Agreement, dated as of the Closing Date, between the Company
and the Collateral Agent, providing for the pledge of the stock of the FCC
License Subsidiary as security for the obligations of the Company under the
Prior Indenture and the Concurrent Financing Transactions as such agreement may
be amended, restated, supplemented or otherwise modified from time to time.

               "FCC License Subsidiary Pledge Intercreditor Agreement" means the
Intercreditor and Collateral Agency Agreement, dated as of the Closing Date,
pursuant to which the collateral agent named therein will be appointed on behalf
of the various secured creditor parties to serve as collateral agent under the
FCC License Subsidiary Pledge Agreement.

               "Funding Date" shall mean each date upon which an Advance is made
hereunder.

               "General Security Agreement" means the Security Agreement, dated
as of the Closing Date, among the Borrowers, XM Leasing Subsidiary, the
Collateral Agent and the other parties thereto.

               "General Intercreditor Agreement" means the Intercreditor and
Collateral Agency Agreement, dated as of the Closing Date, pursuant to which the
collateral agent named therein will be appointed on behalf of the various
secured creditor parties to serve as collateral agent under the General Security
Agreement.

               "GM Revenues" means all revenues attributable to XM Receivers
installed in Enabled GM Vehicles (as such terms are defined in the Second
Amended Distribution Agreement).

                                        3

<PAGE>

               "GM Subscribers" means all Subscribers whose subscriptions are
attributable to XM Receivers installed in Enabled GM Vehicles (as such terms are
defined in the Second Amended Distribution Agreement).

               "Holdings" has the meaning set forth in the recitals to this
Agreement.

               "Intercreditor Agreements" means the General Intercreditor
Agreement and the FCC License Subsidiary Pledge Agreement.

               "Interest Payment Date" means the 30th day of June and the 31st
day of December of each year; provided, that if any Interest Payment Date is not
a Business Day, the Interest Payment Date will be deferred until the next
succeeding Business Day.

               "Interest Rate" means, for any day during a Quarterly Period, a
rate per annum equal to the LIBOR Rate in effect for such Quarterly Period plus
the Applicable Margin.

               "Internal Revenue Code" means the Internal Revenue Code of 1986,
as amended.

               "Lender" has the meaning set forth in the recitals to this
Agreement.

               "Legal Holiday" means a Saturday, a Sunday or a day on which
banking institutions in the City of New York or at a place of payment are
authorized by law, regulation or executive order to remain closed.

               "LIBOR Rate" means, for any Quarterly Period, the rate that is
reported on the Quarterly Date on which such Quarterly Period commences as the
6-month London Interbank Offered Rate in The Wall Street Journal's listing of
Money Rates, or if such newspaper shall have ceased publishing, then in any
successor publication designated by the Lender.

               "Loan Commitment" shall mean the obligation of the Lender to make
Advances to the Borrowers in the maximum aggregate principal amount of
$100,000,000 for the purpose of making payments in respect of the Contractual
Obligations.

               "Material Subsidiary" shall have the meaning set forth in the
Note Purchase Agreement.

               "Maturity Date" means December 31, 2009.

               "Note Purchase Agreement" has the meaning set forth in the
recitals hereto.

               "Noteholders Agreement" means the Second Amended and Restated
Shareholder and Noteholders Agreement, dated as of the Closing Date, by and
among the Borrowers and the other parties named on the signature pages thereof,
as such agreement may be amended, modified or supplemented from time to time.

               "Obligations" means any principal, interest, penalties,
indemnifications, reimbursements, damages and other liabilities payable
hereunder.

               "Officer" means, with respect to any Person, the Chairman of the
Board, the Chief Executive Officer, the President, the Chief Operating Officer,
the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the
Controller, the Secretary or any Vice-President of such Person.

               "OnStar" has the meaning set forth in the recitals hereto.

               "Parent Company Merger" means (a) a merger or consolidation of
the Company with or into Holdings or a merger or consolidation of Holdings with
or into the Company, provided that the holders of Voting Stock of Holdings
immediately prior to such transaction own substantially all of the Voting Stock
of the surviving entity immediately after such transaction or (b) any
assignment, transfer, conveyance or other disposition of all or substantially
all of the properties or assets of the Company to Holdings or of Holdings to the
Company.

                                       4

<PAGE>

               "Pari Passu Indebtedness" means, with respect to a Borrower,
Indebtedness of such Borrowers that is pari passu in right of payment to the
Indebtedness under this Agreement.

               "Person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization,
limited liability company or government or other entity.

               "Pre-Marketing Cash Flow" means earnings before interest income
and expense, other income, taxes, depreciation (including amounts related to
research and development) and amortization ("EBITDA"), calculated in the same
manner as in consolidated financial statements contained in the reports of
Holdings filed with the Securities and Exchange Commission, but excluding from
such calculation all marketing, advertising, subscriber acquisition and
distribution expenses and also excluding all GM Revenues.

               "Prior Indenture" means the Indenture, dated as of March 15,
2000, between the Company and U.S. Trust Company of New York, as Trustee, as
amended or supplemented from time to time.

               "Quarterly Date" means the 31st day of March, the 30th day June,
the 30th day of September and the 31st day of December of each year; provided
that (i) if any Quarterly Date is not a Business Day, the Quarterly Date will be
deferred to the next following Business Day, and (ii) if any Quarterly Date
would occur after the Maturity Date, such Quarterly Date shall be the Maturity
Date.

               "Quarterly Period" means each period commencing on and including
a Quarterly Date through, but not including, the next following Quarterly Date.

               "Registration Rights Agreement" means the Second Amended and
Restated Registration Rights Agreement, dated as of the Closing Date, by and
among Holdings and the other parties named on the signature pages thereof, as
such agreement may be amended, modified or supplemented from time to time.

               "Revenue Share" has the meaning set forth in the Second Amended
Distribution Agreement.

               "Revenue Share Note" shall have the meaning set forth in Section
2.4 (c).

               "Request for Advance" has the meaning set forth in Section
2.2(a).

               "Second Amended Distribution Agreement" has the meaning set forth
in the recitals to this Agreement.

               "Securities Act" means the Securities Act of 1933, as amended.

               "Security Agreements" means the FCC License Subsidiary Pledge
Agreement and the General Security Agreement.

               "Significant Subsidiary" means any Subsidiary that would be a
"significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act, as such Regulation is in effect on
the date hereof.

               "Subscriber" means a subscriber in good standing to the XM Radio
Service that has paid subscription fees for at least one month of such service
and whose subscription payments are not delinquent.

               "Subsidiary" means, with respect to any specified Person:

               (1)  any corporation, association or other business entity of
which more than 50% of the total voting power of shares of Voting Stock is at
the time owned or controlled, directly or indirectly, by such Person or one or
more of the other Subsidiaries of that Person (or a combination thereof); and

                                       5

<PAGE>

               (2)  any partnership (a) the sole general partner or the managing
general partner of which is such Person or a Subsidiary of such Person or (b)
the only general partners of which are such Person or one or more Subsidiaries
of such Person (or any combination thereof).

               "Subsidiary Guarantor" means any entity that enters into an
Agreement Guarantee pursuant to Section 13.5 hereof. As of the date hereof, XM
Leasing Subsidiary is the only Subsidiary Guarantor.

               "Trading Day" means any day on which the Class A Common Stock is
traded on the Nasdaq National Market or such other primary national securities
exchange on which the Class A Common Stock is then listed or quoted.

               "Transaction Documents" means all documents delivered in
connection with the transactions contemplated by this Agreement, including the
Agreement Guarantees, the Note Purchase Agreement, the Security Agreements, the
Noteholders Agreement, the Intercreditor Agreements, the Registration Rights
Agreement and the Second Amended Distribution Agreement.

               "Voting Stock" has the meaning set forth in the Note Purchase
Agreement.

               "XM" has the meaning set forth in the recitals to this Agreement.

               "XM Leasing Subsidiary" means XM Equipment Leasing LLC, a
Delaware limited liability company, and any and all successors thereto.

               "XM Radio Service" means digital radio programming transmitted by
satellites and terrestrial repeating stations to vehicle, home and portable
radios in the United States.

     1.2.      OTHER DEFINITIONAL PROVISIONS

               Capitalized terms used in this Agreement but not defined in
Section 1.1 hereof shall have the meanings ascribed to them in the Note Purchase
Agreement. The words "hereof," "herein," and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement. Defined terms in the singular
shall include the plural and vice versa.

2.   LOAN AND TERMS OF PAYMENT

     2.1.      LOAN COMMITMENT.

               (a)  Advances. Subject to the terms of this Agreement, the Lender
agrees to make advances (each, an "Advance", collectively, the "Advances") to
the Borrowers during the Commitment Period in an aggregate principal amount not
to exceed the Loan Commitment.

               (b)  Purpose. The Borrowers shall use the Advances solely to pay
the Contractual Obligations owed to Lender or OnStar.

     2.2.      MANNER OF BORROWING

               (a)  Request for Advance. Either Borrower may request an Advance
by delivering Lender a completed Request for Advance in the form attached hereto
as Exhibit B (a "Request for Advance") not later than 3:00 p.m., New York City
time on the date such Advance is to be funded. Such Request for Advance shall be
signed by an authorized officer of such Borrower and shall indicate the amount
of the requested Advance, a description of the Contractual Obligations for which
such Advance is being requested, and the date for such Advance, which shall be
the date on which the Contractual Obligations being funded by such Advance
become due

                                       6

<PAGE>

and owing (the "Funding Date"). Each Request for Advance shall be irrevocable
and effective only upon receipt by the Lender.

               (b)  Funding. The Lender shall make each Advance on the date
requested by making a notation on its books of account (or, if applicable, the
books of account of OnStar) that the Contractual Obligations due and owing by
the applicable Borrower on the date of the Advance have been paid in an amount
equal to the amount of the Advance.

     2.3.      INTEREST

               (a)  Interest Accrual. Interest shall accrue at the Interest Rate
on a daily basis during each Quarterly Period on the unpaid principal amount of
all Advances and shall be payable in arrears on each Interest Payment Date for
the most recent two Quarterly Periods then ended.

               (b)  Default Interest. In the event the Borrowers shall fail to
make any payment of the principal or interest when due, after giving effect to
any applicable grace period provided for in this Agreement, the Borrowers shall
pay interest on such unpaid amount, payable from time to time on demand, from
the date such amount shall have become due to the date of payment thereof (after
as well as before judgment), accruing on a daily basis, at a per annum rate
equal to the sum of the Interest Rate in effect at such time plus one percent
(1.0%).

     2.4.      PAYMENTS AND NOTES

               (a)  Form of Payment. Each payment of principal or interest will
be made to the Lender by certified or bank cashier's check or wire transfer of
immediately available funds, at such address or to such account as the Lender
specifies in writing to the Borrowers at least five (5) Business Days before
such payment is to be made, except that the Borrowers may, at their option and
subject to the provisions of the last sentence of this Section 2.4, make any
interest payment with shares of Class A Common Stock having an aggregate Fair
Market Value as calculated on the applicable Interest Payment Date equal to the
amount of the interest due. If the Borrowers elect to pay interest in Class A
Common Stock, the number of shares to be issued to the Lender shall be
calculated by dividing the amount of interest due by the Fair Market Value of a
share of Class A Common Stock on the applicable Interest Payment Date; provided,
however, that with respect to any resulting fraction of a share of Class A
Common Stock, the Borrowers may, at their option, either (a) round up such
fraction to the nearest whole share, or (b) pay an amount in cash equal to the
product of (i) such fraction, multiplied by (ii) the Fair Market Value of a
share of Class A Common Stock on such Interest Payment Date, computed to the
nearest whole cent, in lieu of issuing a fractional share. Section 9.3 of the
Note Purchase Agreement shall govern the procedures for the issuance of
certificates upon any such payment of interest in Class A Common Stock. The
ability of the Borrowers to pay interest in Class A Common Stock shall be
expressly conditioned on such issuance not requiring a stockholder approval
(which has not been obtained) under, or otherwise being in violation of, any
applicable law or regulation, or of any requirements of the Nasdaq Stock Market
or any domestic securities exchange or other public trading market upon which
the Class A Common Stock may be listed or quoted.

               (b)  Application of Insufficient Payments. If at any time
insufficient funds are received by and available to the Lender to pay fully all
amounts of principal and interest, due hereunder, such funds shall be applied
(i) first, to pay interest due hereunder, and (ii) second, to pay principal then
due hereunder.

               (c)  Promissory Note. The Lender may request that the Advances be
evidenced by a promissory note (the "Revenue Share Note"). In such event, the
Borrowers shall prepare, execute and deliver to the Lender a promissory note
payable to the Lender and in a form approved by the Lender. In the event that a
Revenue Share Note is issued, the Borrowers will pay all sums becoming due
hereunder for interest or principal, without the presentation or surrender of
the Revenue Share Note or the making of any notation thereon, except that if the
Revenue Share Note is paid in full, following such payment, the Revenue Share
Note shall be surrendered to the Borrowers for cancellation.

                                       7

<PAGE>

     2.5.      PAYMENT AT MATURITY

               The outstanding principal amount of all Advances, together with
any accrued interest thereon, shall be due and payable in full in immediately
available U.S. Dollars on the earlier of: (i) the Maturity Date, or (ii) such
earlier date as the Advances become due and payable pursuant to this Agreement.

     2.6.      PREPAYMENT

               (a)  Optional Prepayment. The Advances, including all accrued
interest thereon, may be prepaid only in whole and not in part at any time,
without premium or penalty; provided that the Borrowers shall give the Lender
not less than one (1) Business Day's written notice prior to making such
prepayment, specifying the amount to be prepaid and the date of prepayment. Each
such notice of prepayment shall be irrevocable upon receipt by the Lender.

               (b)  Mandatory Prepayments.

                   (i)    Commencing January 1, 2005, the Borrowers shall, on or
               before March 31st of each calendar year, prepay all or part of
               the amount of any outstanding Advances, including all accrued
               interest thereon, without premium or penalty, in an amount equal
               to the lesser of (x) fifty percent (50%) of Excess Cash for the
               fiscal year most recently then ended, and (y) the amount
               necessary to prepay the Obligations in full.

                   (ii)   In the event that a Borrower shall, without the
               Lender's prior written consent, directly or indirectly,
               consolidate or merge with or into another entity (whether or not
               such Borrower is the surviving corporation), or sell, assign,
               transfer, convey or otherwise dispose of all or substantially all
               of its properties or assets, in any such case, other than in
               connection with a Parent Company Merger or a consolidation or
               merger permitted under Section 13.2 hereof or under any Agreement
               Guarantee, then the Advances shall be immediately prepaid in
               whole, including all interest thereon, without premium or
               penalty.

               (c)  Loan Commitment Termination. Any amounts prepaid pursuant to
this Section 2.6 may not be reborrowed and any prepayment in whole of the
Advances shall constitute a termination of the Loan Commitment.

3.   COLLATERAL

     3.1.      SECURITY AGREEMENTS

               The due and punctual payment of the principal and interest on the
Advances when and as the same shall be due and payable, whether on an Interest
Payment Date, at maturity, by acceleration, prepayment or otherwise, and
interest on any overdue principal and interest and performance of all other
obligations of the Borrowers to the Lender under this Agreement, according to
the terms hereunder, shall be secured as provided in the Security Agreements and
the Intercreditor Agreements. In the event that any Subsidiary of Holdings
becomes required to become a Subsidiary Guarantor pursuant to Section 13 hereof,
such Subsidiary shall, as promptly as practicable following such occurrence,
become party to the General Security Agreement in accordance with the provisions
of Section 5.2 thereof. The Lender, by its acceptance hereof, consents and
agrees to the terms of the Security Agreements and the Intercreditor Agreements
(including, without limitation, the provisions providing for foreclosure and
release of Collateral), as the same may be in effect or may be amended from time
to time in accordance with its terms, and authorizes and directs the Collateral
Agent named in the Intercreditor Agreements to enter into the Security
Agreements and to perform its obligations and exercise its rights thereunder in
accordance therewith. In furtherance of the foregoing, the Lender is entering
into the Intercreditor Agreements concurrently with the execution hereof. The
Borrowers shall do or cause to be done all such acts and things as may be
required by the provisions of the Security Agreements, to assure and confirm to
the Lender and the Collateral Agent the

                                       8

<PAGE>

security interests in the Collateral contemplated hereby and thereby, as from
time to time constituted, so as to render the same available for the security
and benefit of this Agreement, according to the intent and purposes herein and
therein expressed.

     3.2.      RELEASE OF COLLATERAL.

               (a)  Collateral may be released only in accordance with the terms
of the Intercreditor Agreements and the Security Agreements.

               (b)  At any time when a Default or Event of Default shall have
occurred and be continuing and the Obligations shall have been accelerated
(whether by declaration or otherwise) and the Lender shall have delivered a
notice of acceleration to the Collateral Agent, no release of Collateral
pursuant to the provisions of the Intercreditor Agreements or the Security
Agreements shall be effective as against the Lender.

     3.3.      TERMINATION OF SECURITY INTEREST.

               Upon the payment in full of all Obligations of the Borrowers
under this Agreement, the Lender shall, at the request of either Borrower,
promptly deliver a certificate to the Collateral Agent stating that such
Obligations have been paid in full, and instruct the Collateral Agent to release
all rights and interests of the Lender with respect to the Liens under the
Security Agreements.

4.   CONDITIONS PRECEDENT

     4.1.      CONDITIONS TO INITIAL ADVANCE

               The obligation of the Lender to make the initial Advance is
subject to the receipt of each of the following, in form and substance
reasonably satisfactory to the Lender, and to the Lender's determination that
the following conditions precedent have been satisfied on or prior to the
Closing Date:

               (a)  Each of the Borrowers shall have duly executed and delivered
this Agreement.

               (b)  The Second Amended Distribution Agreement shall be in full
force and effect and no defaults (or events which, with the giving of notice or
lapse of time or both would result in a default) on the part of the Borrowers,
and to the knowledge of the Borrowers, on the part of the Lender, shall have
occurred and be continuing thereunder.

               (c)  The Note Purchase Agreement shall be in full force and
effect.

               (d)  Holdings shall have issued warrants to the Lender,
substantially in the form of Exhibit C attached hereto, to purchase 10,000,000
shares of Class A Common Stock with an exercise term of 5 years.

               (e)  The representations and warranties made by the Borrowers in
Section 6 hereof shall be true and correct in all material respects when made,
and shall be true and correct in all material respects at the Closing Date with
the same force and effect as if they had been made on and as of said date, and
shall be so certified by an Officer of the Borrowers.

               (f)  All covenants, agreements and conditions contained in this
Agreement and the other Transaction Documents to which a Borrower is a party
shall have been performed or complied with in all material respects.

               (g)  There shall not then be in effect any legal or other order
enjoining or restraining the transactions contemplated by this Agreement and the
other Transaction Documents to which a Borrower is party.

                                       9

<PAGE>

               (h)  The Concurrent Financing Transactions shall close prior to
or substantially concurrently with the execution and delivery of this Agreement,
each in the manner contemplated in the agreements governing such transactions
with all of the conditions therein satisfied.

               (i)  Each of the Lender and each Borrower shall have entered into
the other Transaction Documents to which it is a party.

               (j)  The Lender shall have received a completely executed copy of
each of the Transaction Documents to which it is a party.

     4.2.      CONDITIONS TO EACH ADVANCE

               The obligation of the Lender to make each Advance, including the
initial Advance, is subject to the receipt of each of the following, in form and
substance reasonably satisfactory to the Lender, and to the Lender's reasonable
determination that the following conditions precedent have been satisfied on or
prior to the Funding Date with respect to such Advance:

               (a)  Either Borrower shall have delivered to the Lender a Request
for Advance satisfying the requirements set forth in Section 2.2(a).

               (b)  Lender shall have received a certificate of the Chief
Financial Officer, the Treasurer or any Assistant Treasurer of the Borrowers,
dated the date of the Funding Date, certifying satisfaction of the following
conditions:

                    (i)   Minimum Subscribers. The Borrowers shall have
Subscribers, excluding all GM Subscribers, of not less than the number of
Subscribers set forth below opposite the fiscal year in which such Funding Date
occurs:

     ------------------------------------------------------------------
               Fiscal Year                     Number of Subscribers
     ------------------------------------------------------------------
                   2003                               537,500
     ------------------------------------------------------------------
                   2004                               975,000
     ------------------------------------------------------------------
                   2005                              1,525,000
     ------------------------------------------------------------------
           2006 and thereafter                       2,175,000
     ------------------------------------------------------------------

                    (ii)  Pre-marketing Cash Flow. Holdings shall have
Pre-marketing Cash Flow of not less than the amount set forth below opposite the
fiscal year most recently then ended prior to the Funding Date for which
Holdings shall have filed its report on Form 10-K with the SEC:

               ------------------------------------------
                   Fiscal Year    Pre-Marketing Cash Flow
               ------------------------------------------
                      2003        $       (150,000,000)
               ------------------------------------------
                      2004                 (70,000,000)
               ------------------------------------------
                      2005                  75,000,000
               ------------------------------------------
                      2006                 225,000,000
               ------------------------------------------
                      2007                 375,000,000
               ------------------------------- ----------

               (c)  No Default or Event of Default shall have occurred and be
continuing on such Funding Date.

                                       10

<PAGE>

5.   REPRESENTATIONS AND WARRANTIES OF THE LENDER

               The Lender represents and warrants to and agrees with each
Borrower that as of the date hereof:

     5.1.      RISKS OF INVESTMENT

               Its management recognizes that the purchase of the Class A Common
Stock which may be issued in payment of interest on the Advances involves a high
degree of risk including, but not limited to, the following: (i) an investment
in the Borrowers is highly speculative, and only investors who can afford the
loss of their entire investment should consider investing in the Borrowers and
accepting the Class A Common Stock; (ii) the Lender may not be able to liquidate
its investment; (iii) transferability of the Class A Common Stock is restricted;
(iv) in the event of a disposition of the Class A Common Stock, the Lender could
sustain the loss of its entire investment and (v) the Borrowers do not
anticipate the payment of dividends in the foreseeable future.

     5.2.      INVESTMENT EXPERIENCE

               Its management has prior investment experience, including
investment in securities which are non-listed, unregistered and/or not traded on
the Nasdaq National or SmallCap Market, a national or other stock exchange or on
the automated quotation system of the National Association of Securities
Dealers, Inc., for actively traded stocks. To the extent necessary, the Lender
has retained, at its own expense, and relied upon appropriate professional
advice regarding the investment, tax and legal merits and consequences of this
Agreement and its purchase of the Class A Common Stock hereunder.

     5.3.      ABILITY TO BEAR RISK

               By reason of its management's business or financial experience
the Lender has the capacity to protect its own interests in connection with the
transaction contemplated hereby, and is able to bear the economic risk which it
hereby assumes.

     5.4.      RECEIPT AND REVIEW OF DOCUMENTATION

               Its management has been furnished by the Borrowers during the
course of this transaction with information regarding the Borrowers which such
Lender's management has requested, has been afforded the opportunity to ask
questions of and receive answers from duly authorized officers or other
representatives of the Borrowers concerning the terms and conditions of the
Class A Common Stock, and has received any additional information which it's
management has requested.

     5.5.      ACQUISITION FOR OWN ACCOUNT.

               The Lender is accepting the Class A Common Stock for its own
account for investment only, and not with a view towards their distribution in
violation of applicable securities laws.

     5.6.      NO PUBLIC MARKET; RULE 144

               (a)  Its management understands and hereby acknowledges that
Holdings is under no obligation to register the Class A Common Stock under the
Securities Act or any state securities or "blue sky" laws.

               (b)  The Lender's management acknowledges and agrees that the
shares of Class A Common Stock the Lender may receive in payment of interest
must be held indefinitely unless such shares are subsequently registered under
the Securities Act or an exemption from such registration is available. The
Lender has been advised or is aware of the provisions of Rule 144 promulgated
under the Securities Act, which permits limited resale of shares purchased in a
private placement subject to the satisfaction of certain conditions, including,
among other

                                       11

<PAGE>

things: the availability of certain current public information about the FCC
License Subsidiary, the resale occurring not less than one year after a party
has purchased and paid for the security to be sold, the sale being through an
unsolicited "broker's transaction" or in transactions directly with a market
maker (as said term is defined under the Exchange Act) and the number of shares
being sold during any three-month period not exceeding specified limitations.

     5.7.      ORGANIZATION, GOOD STANDING, CORPORATE AUTHORITY

               It is duly organized and validly existing as a corporation and in
good standing under the laws of the State of Delaware, with requisite power and
authority (corporate and other) to own its properties and conduct its business.

     5.8.      DUE AUTHORIZATION

               The execution and delivery of, and the performance by the Lender
of its obligations under this Agreement has been duly and validly authorized
and, upon execution and delivery thereof, this Agreement will constitute a
legal, valid, binding obligation of Lender, enforceable against Lender in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting creditors' rights
generally, and subject, as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at
law).

     5.9.      QUALIFIED INSTITUTIONAL BUYER OR ACCREDITED INVESTOR

               It is:

               (a)  a Qualified Institutional Buyer and an institutional
Accredited Investor; and

               (b)  aware that the transfer of Class A Common Stock to it is
being made in reliance on the exemption from the registration requirements
provided by Section 4(2) of the Securities Act and the regulations promulgated
thereunder.

6.   RESTRICTIONS ON TRANSFER

     6.1.      RESTRICTIONS; RESTRICTIVE LEGEND

               The Lender agrees and each subsequent holder of the Class A
Common Stock by its acceptance thereof will agree to offer, sell or otherwise
transfer such Class A Common Stock only in compliance with the terms and
conditions set forth in the Noteholders Agreement. The Lender acknowledges that
each certificate representing Class A Common Stock will contain a legend
substantially to the following effect:

               THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
               REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
               "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NEITHER THESE
               SECURITIES NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
               RE-OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
               OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION UNLESS
               SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION
               UNDER THE SECURITIES ACT.

               Certificates evidencing Securities shall not be required to
contain such legend (i) following any sale of such Securities pursuant to an
effective registration statement covering the resale of such Securities under
the Securities Act, (ii) following any sale of such Securities pursuant to Rule
144 under the Securities Act, (iii) if such

                                       12

<PAGE>

Securities are eligible for sale under Rule 144(k), or (iv) if such legend is
not, in the opinion of counsel to Holdings, required in the circumstances under
applicable requirements of the Securities Act (including judicial
interpretations and pronouncements issued by the Staff of the SEC).

               (b)  In addition, the Investor acknowledges that each certificate
representing Securities will contain a legend substantially to the following
effect:

               THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE THE SUBJECT OF
               A CERTAIN SHAREHOLDERS AND NOTEHOLDERS AGREEMENT WHICH, AMONG
               OTHER THINGS, CONTAINS RESTRICTIONS ON THE TRANSFER OF SUCH
               SECURITIES. A COPY OF THE SHAREHOLDERS AND NOTEHOLDERS AGREEMENT
               IS AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF XM
               SATELLITE RADIO INC. AND XM SATELLITE RADIO HOLDINGS INC.

               Upon termination of the Noteholders Agreement, the Borrowers
shall remove the applicable legend(s) from the certificate(s) representing such
shares promptly upon request of the holder thereof and shall promptly deliver
replacement certificate(s) to such holder.

7.   REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF THE BORROWERS

               The Borrowers hereby represent, warrant and agree with the Lender
that as of the date hereof:

     7.1.      INCORPORATION, STANDING, ETC.

               Each of the Borrowers and the Material Subsidiaries is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware and has all requisite corporate power and authority to
own and operate its properties, to carry on its business as now conducted and as
presently proposed to be conducted, to enter into this Agreement and the other
Transaction Documents to which each is a party and to perform its obligations
hereunder and thereunder. Each of the Borrowers and the Subsidiary Guarantor
has, by all necessary corporate action, duly authorized the execution and
delivery of this Agreement and the other Transaction Documents to which each is
a party and the performance of its obligations hereunder and thereunder.

     7.2.      AUTHORIZATION OF AGREEMENT AND NOTES

               Each of this Agreement and the other Transaction Documents to
which a Borrower or the Subsidiary Guarantor is a party has been duly, executed
and delivered by such Borrower or Subsidiary Guarantor, as applicable, and each
such agreement constitutes a valid, binding and enforceable obligation of such
Borrower or Subsidiary Guarantor, as applicable, subject to applicable
bankruptcy, insolvency, reorganization, moratorium and similar laws affecting
creditors' rights generally, and subject, as to enforceability, to general
principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law).

     7.3.      ABSENCE OF DEFAULTS AND CONFLICTS

               The execution, delivery and performance of this Agreement and the
Transaction Documents by the Borrowers and the Material Subsidiaries party
thereto in connection with the transactions contemplated hereby and thereby, and
the consummation of the transactions contemplated herein or therein and
compliance by the Borrowers and the Material Subsidiaries with their respective
obligations hereunder and thereunder, do not and will not, whether with or
without the giving of notice or passage of time or both, conflict with or
constitute a breach of, or default (or an event that with notice or lapse of
time or both would become a default) under, require the Obligors to conduct an
offer to repurchase any outstanding Obligations in accordance with the documents
establishing the terms under which such Obligations were incurred, give any
others rights of termination, amendment, acceleration or cancellation (with or
without notice, lapse of time, or both), or result in the creation or imposition
of any lien, charge or encumbrance upon any property or assets of either of the
Borrowers or any Material Subsidiary pursuant to any material contract,
indenture, mortgage, note lease or other instrument to which it is party, nor
will such action result

                                       13

<PAGE>

in any violation of the provisions of the certificate of incorporation, bylaws
or other charter documents of either of the Borrowers or any Material Subsidiary
or any applicable law, statute, rule, regulation, judgment, order, writ or
decree of any government, government instrumentality, stock exchange or Nasdaq
stock market or court, domestic or foreign, having jurisdiction over either of
the Borrowers or any Material Subsidiary or any of their assets or properties.

     7.4.      GOVERNMENTAL CONSENTS

               Except as may be required to be obtained or made under the
Securities Act and applicable state securities laws in connection with the
exercise of any registration rights of a Holder provided for in the Registration
Rights Agreement or any registration rights granted to purchasers in the
offerings contemplated by clause (6) of the definition of Concurrent Financing
Transactions, neither Borrower nor its Material Subsidiaries are required to
procure, make or file any consent, approval or authorization of, or any notice
to, of filing, registration or qualification with, any court or administrative
or governmental body in order to execute and deliver this Agreement and to
perform its obligations hereunder and under any and. all Transaction Documents.

8.   DEFAULTS AND REMEDIES

     8.1.      EVENTS OF DEFAULT.

               An "Event of Default" occurs if:

               (a)  the Borrowers default in the payment when due of interest on
any Advance and such default continues for a period of 30 days;

               (b)  the Borrowers default in the payment when due of principal
of any Advance when the same becomes due and payable at maturity or pursuant to
Section 2.6 hereof;

               (c)  the Borrowers fail to observe or perform any other covenant
or other agreement in this Agreement for 60 days after notice to the Borrowers
by the Lender;

               (d)  a default occurs and is continuing under any mortgage,
indenture or instrument under which there may be issued or by which there may be
secured or evidenced any Indebtedness for money borrowed by a Borrower or any of
its Material Subsidiaries (or the payment of which is guaranteed by a Borrower
or any of its Material Subsidiaries), whether such Indebtedness or guarantee now
exists, or is created after the date hereof, which default results in the
acceleration of such Indebtedness prior to its express maturity or is caused by
a failure to pay principal of, or interest or premium, if any, on such
Indebtedness prior to the expiration of the grace period provided in such
Indebtedness on the date of such default (a "Payment Default") and, in each
case, either (i) the principal amount of such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a
Payment Default or the maturity of which has been so accelerated, aggregates
$10,000,000 or more or (ii) such Indebtedness constitutes Indebtedness under the
Note Purchase Agreement;

               (e)  a final nonappealable judgment or final nonappealable
judgments for the payment of money are entered by a court or courts of competent
jurisdiction against a Borrower or any of its Material Subsidiaries and such
judgment or judgments remain undischarged for a period (during which execution
shall not be effectively stayed) of 60 days, provided that the aggregate of all
such undischarged judgments exceeds $10,000,000 (net of any amounts with respect
to which a reputable and creditworthy insurance company has acknowledged
liability in writing);

               (f)  a Borrower or any of its Significant Subsidiaries or any
group of Subsidiaries that, taken as a whole, would constitute a Significant
Subsidiary pursuant to or within the meaning of Bankruptcy Law:

                    (i)   commences a voluntary case,

                                       14

<PAGE>

                    (ii)  consents to the entry of an order for relief against
               it in an involuntary case,

                    (iii) consents to the appointment of a custodian of it or
               for all or substantially all of its property,

                    (iv)  makes a general assignment for the benefit of its
               creditors, or

                    (v)   generally can not pay its debts as they become due;

               (g)  a court of competent jurisdiction enters an order or decree
under any Bankruptcy Law that:

                    (i)   is for relief against a Borrower or any of its
               Significant Subsidiaries or any group of Subsidiaries that, taken
               as a whole, would constitute a Significant Subsidiary in an
               involuntary case;

                    (ii)  appoints a custodian of a Borrower or any of its
               Significant Subsidiaries or any group of Subsidiaries that, taken
               as a whole, would constitute a Significant Subsidiary or for all
               or substantially all of the property of a Borrower or any of its
               Significant Subsidiaries or any group of Subsidiaries that, taken
               as a whole, would constitute a Significant Subsidiary; or

                    (iii) orders the liquidation of a Borrower or any of its
               Significant Subsidiaries or any group of Subsidiaries that, taken
               as a whole, would constitute a Significant Subsidiary;

               and the order or decree remains unstayed and in effect for 60
               consecutive days;

               (h)  a Borrower or any Material Subsidiary shall breach any
material representation, warranty or agreement set forth in either of the
Security Agreements or shall repudiate any of its obligations under either of
the Security Agreements or either of the Security Agreements shall be held in
any judicial proceeding to be unenforceable or invalid or shall cease for any
reason to be in full force and effect; or

               (i)  any Agreement Guarantee shall be held in a judicial
proceeding to be unenforceable or invalid or shall cease for any reason to be in
full force and effect (except pursuant to its terms), or any Guarantor shall
deny or disaffirm its obligations under its Agreement Guarantee.

     8.2.      ACCELERATION.

               If (i) any Event of Default (other than an Event of Default
specified in clause (f) or (g) of Section 8.1 hereof with respect to a Borrower,
any Significant Subsidiary or any group of Significant Subsidiaries that, taken
as a whole, would constitute a Significant Subsidiary) occurs and is continuing
and (ii) the Indebtedness under the Note Purchase Agreement shall have been
accelerated pursuant to Section 8.2 thereof, the Lender may declare the
Obligations to be due and payable immediately. Upon any such declaration, the
principal amount of the Advances, together with all interest accrued thereon,
shall become due and payable immediately. Notwithstanding the foregoing, if an
Event of Default specified in clause (f) or (g) of Section 8.1 hereof occurs
with respect to a Borrower, any of its Significant Subsidiaries or any group of
Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary,
the outstanding principal amount of the Advances shall be due and payable
immediately without further action or notice. The Lender may rescind an
acceleration and its consequences if the rescission would not conflict with any
judgment or decree. and if all existing Events of Default (except nonpayment of
principal amount, interest or premium that has become due solely because of the
acceleration) have been cured or waived.

                                       15

<PAGE>

     8.3.      OTHER REMEDIES.

               If an Event of Default occurs and is continuing, the Lender may
pursue any available remedy to collect the payment of the principal and interest
on the Advances or to enforce the performance of any provision of this
Agreement, the Agreement Guarantees, and the Security Agreements (subject to the
Intercreditor Agreements).

               A delay or omission by the Lender in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

     8.4.      WAIVER OF PAST DEFAULTS.

               Lender may waive an existing Default or Event of Default and its
consequences hereunder. Upon any such waiver, such Default shall cease to exist,
and any Event of Default arising therefrom shall be deemed to have been cured
for every purpose of this Agreement; but no such waiver shall extend to any
subsequent or other Default or impair any right consequent thereon. Any waiver
of a Default or Event of Default under the Note Purchase Agreement shall
automatically constitute a waiver of all Defaults or Event of Defaults hereunder
that arise out of the same event or occurrence.

9.   PRIORITY OF OBLIGATIONS

               The Obligations shall rank equal to all Indebtedness incurred
pursuant to the Concurrent Financing Transactions and all Indebtedness under the
Prior Indenture.

10.  EXPENSES

               The Borrowers will pay at Closing all reasonable expenses
relating to this Agreement, including the reasonable fees and disbursements of
outside counsel for the Lender.

11.  SURVIVAL

               All express representations and warranties contained in this
Agreement or made in writing by or on behalf of a Borrower or its Subsidiaries
in connection with the transactions contemplated by this Agreement shall survive
the execution and delivery of this Agreement, any investigation at any time made
by the Lender or on the Lender's behalf and any disposition or payment.

12.  AMENDMENTS AND WAIVERS

               Any term of this Agreement may be amended, and the observance of
any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively) only with the written
consent of the Parties hereto. Any amendment or waiver effected in accordance
with this Section 12 shall be binding upon the Lender and the Borrowers.

                                       16

<PAGE>

13.  GUARANTEES

     13.1.     EXECUTION AND DELIVERY OF AGREEMENT GUARANTEES

               The Borrowers shall cause XM Leasing Subsidiary to execute and
deliver at the Closing to the Lender an Agreement Guarantee substantially in the
form included in Exhibit F hereto, duly executed on behalf of XM Leasing
Subsidiary by an Officer thereof.

     13.2.     SUBSIDIARY GUARANTORS MAY CONSOLIDATE, ETC. ON CERTAIN TERMS

     (a)       Nothing contained in this Agreement or in any Agreement Guarantee
shall prevent any consolidation or merger of a Subsidiary Guarantor with or into
a Borrower or another Subsidiary Guarantor, or shall prevent the transfer of all
or substantially all of the assets of a Subsidiary Guarantor to a Borrower or
another Subsidiary Guarantor. Upon any such consolidation, merger, transfer or
sale, the Agreement Guarantee of the Subsidiary Guarantor being consolidated or
merged or into a Borrower or such other Subsidiary Guarantor (or the assets of
which are being so transferred) shall no longer have any force or effect.

     (b)       Nothing contained in this Agreement shall prevent any
consolidation or merger of a Subsidiary Guarantor with or into a corporation or
corporations other than a Borrower or another Subsidiary Guarantor (whether or
not affiliated with the Subsidiary Guarantor), or successive consolidations or
mergers in which a Subsidiary Guarantor or its successor or successors shall be
a party or parties, or shall prevent the transfer of all or substantially all of
the assets of a Subsidiary Guarantor, to a corporation other than a Borrower or
another Subsidiary Guarantor (whether or not affiliated with the Subsidiary
Guarantor) authorized to acquire and operate the same in the event that such
consolidation, merger or transfer complies with the terms and conditions of this
Agreement and all Agreement Guarantees.

     13.3.     RELEASES FOLLOWING SALE OF ASSETS

     Concurrently with any sale or other disposition of assets all or
substantially all of the assets of any Subsidiary Guarantor or all of the
Capital Stock of any Subsidiary Guarantor, in each case, in compliance with the
terms hereof, then such Subsidiary Guarantor (in the event of a sale or other
disposition of all of the Capital Stock of such Subsidiary Guarantor) or the
corporation acquiring the property (in the event of a sale or other disposition
of all or substantially all of the assets of a Subsidiary Guarantor) shall be
released from and relieved of its obligations under its Agreement Guarantee and
under this Section 13. Any Subsidiary Guarantor not released from its
obligations under its Agreement Guarantee shall remain liable for the full
amount of principal of and interest on the Advances and for the other
obligations of any Subsidiary Guarantor under the Agreement Guarantee as
provided in this Section 13.

     13.4.     APPLICATION OF CERTAIN TERMS AND PROVISIONS TO THE SUBSIDIARY
GUARANTORS

     Any notice or demand which by any provision of this Agreement is required
or permitted to be given or served by the Lender to or on any Subsidiary
Guarantor may be given or served as described in this Agreement as if references
herein to the Borrowers were references to such Subsidiary Guarantor.

     13.5.     ADDITION OF SUBSIDIARY GUARANTORS

     If at any time a Subsidiary of the Holdings guarantees any Indebtedness
represented by clauses (1) and (3) of the definition of "Concurrent Financing
Transactions", Holdings promptly shall cause such Subsidiary to issue an
Agreement Guarantee by causing such Subsidiary to execute and deliver to the
Lender an Agreement Guarantee substantially in the form of Exhibit F hereto. The
Agreement Guarantee so issued shall in all respects have the same legal rank and
benefit under this Agreement as the Agreement Guarantees theretofore and
thereafter issued in accordance with the terms of this Agreement as though such
Agreement Guarantee had been issued at the date of the execution hereof.

                                       17

<PAGE>

14.  NOTICES

               Except as otherwise provided in this Agreement, notices and other
communications under this Agreement shall be in writing and shall be deemed
properly served if: (i) mailed by registered or certified mail, return receipt
requested, (ii) delivered by a recognized overnight courier service, (iii)
delivered personally, or (iv) sent by facsimile transmission, addressed to the
General Counsel for each Party at the address set forth below for such party or
at such other address or to the attention of such other officers as such Party
shall have furnished in writing pursuant to this Section 14. Such notice shall
be deemed to have been received: (i) three (3) days after the date of mailing if
sent by certified or registered mail, (ii) one (1) day after the date of
delivery if sent by overnight courier, (iii) the date of delivery if personally
delivered, or (iv) the next succeeding business day after transmission by
facsimile.

               If to either Borrower:

               XM SATELLITE RADIO HOLDINGS INC.
               1500 Eckington Place, NE
               Washington, D.C. 20002-2194
               Fax No.: (202) 380-4500
               Attention: General Counsel

               If to the Lender:

               GENERAL MOTORS CORPORATION
               100 Renaissance Center
               Detroit, MI 48265-1000
               Fax No.: 313-665-4978
               Attention: General Counsel

15.  EXECUTION IN COUNTERPARTS

               This Agreement may be executed in any number of counterparts and
by different Parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

16.  BINDING EFFECT

               This Agreement shall be binding upon and inure to the benefit of
the Parties and their respective successors and assigns, except that the
Borrowers shall not have the right to assign their respective rights or
obligations hereunder, other than to an Affiliate, or any interest herein
without the prior written consent of the Lender which may be withheld for any
reason.

17.  GOVERNING LAW; CHOICE OF FORUM; JURY TRIAL WAIVER

               (a)  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK OR THE CORPORATE LAWS OF THE
STATE OF DELAWARE, AS APPLICABLE, WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW
PROVISIONS THEREOF OTHER THAN NEW YORK GENERAL OBLIGATIONS LAW SECTIONS 5-1401
AND 5-1402.

               (b)  IN THE EVENT THAT A JUDICIAL PROCEEDING IS NECESSARY, THE
SOLE FORUM FOR RESOLVING DISPUTES ARISING OUT OF OR RELATING TO THIS AGREEMENT
IS THE SUPREME COURT OF THE STATE OF NEW YORK IN AND FOR THE COUNTY OF NEW YORK
OR THE FEDERAL COURTS LOCATED IN SUCH STATE AND COUNTY, AND RELATED APPELLATE
COURTS.

                                       18

<PAGE>

THE PARTIES HEREBY IRREVOCABLY CONSENT TO THE JURISDICTION OF SUCH
COURTS AND AGREE TO SAID VENUE.

               (c)  THE PARTIES HEREBY IRREVOCABLY WAIVE ALL RIGHT TO A TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OTHER DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY.

18.  MISCELLANEOUS

     18.1.     SEVERABILITY

               The holding of any provision of this Agreement to be invalid or
unenforceable by a court of competent jurisdiction shall not affect any other
provision of this Agreement, which shall remain in full force and effect. If any
provision of this Agreement shall be declared by a court of competent
jurisdiction to be invalid, illegal or incapable of being enforced in whole or
in part, such provision shall be interpreted so as to remain enforceable to the
maximum extent permissible consistent with applicable law and the remaining
conditions and provisions or portions thereof shall nevertheless remain in full
force and effect and enforceable to the extent they are valid, legal and
enforceable, and no provisions shall be deemed dependent upon any other covenant
or provision unless so expressed herein.

     18.2.     NO WAIVER

               It is agreed that a waiver by any Party of a breach of any
provision of this Agreement shall not operate, or be construed, as a waiver of
any subsequent breach by the breaching Party.

     18.3.     FURTHER ASSURANCES

               The Parties agree to execute and deliver all such further
documents, agreements and instruments and take such other and further action as
may be necessary or appropriate to carry out the purposes and intent of this
Agreement, including without limitation, entering into the other Transaction
Documents to which each is a party.

     18.4      JOINT AND SEVERAL LIABILITY

               The obligations of the Borrowers hereunder and under the other
Transaction Documents shall be joint and several and, as such, each Borrower
shall be liable for the obligations of the other Borrower under this Agreement
and the other Transaction Documents. The liability of each Borrower for the
obligations of the other Borrower under this Agreement and the other Transaction
Documents shall be absolute, unconditional and irrevocable, irrespective of: (a)
any lack of validity, legality or enforceability of any Transaction Document;
(b) the failure of the Lender (i) to assert any claim or demand or to enforce
any right or remedy against such other Borrower, any Subsidiary Guarantor or any
other Person under the provisions of this Agreement or any other Transaction
Document or (ii) to exercise any right or remedy against any guarantor of, or
collateral securing, any of the Obligations; (c) any change in the time, manner
or place of payment of, or in any other term of, all or any of the Obligations,
or any other extension or renewal of any obligation of such other Borrower or
any Subsidiary Guarantor; (d) any reduction, limitation, impairment or
termination of any of the Obligations for any reason other than the written
agreement of the Lender to terminate the Obligations in full, including any
claim of waiver, release, surrender, alteration or compromise, and shall not be
subject to, and each Borrower hereby waives any right to or claim of, any
defense or setoff, counterclaim, recoupment or termination whatsoever by reason
of the invalidity, illegality, nongenuineness, irregularity, compromise,
unenforceability of, or any other event or occurrence affecting, any Obligations
of the other Borrower, any Subsidiary Guarantor or otherwise; (e) any amendment
to, rescission, waiver, or other modification of, or any consent to departure
from, any of the terms of this Agreement or any Transaction Document; (f) any
addition, exchange, release, surrender or non-perfection of any Collateral, or
any

                                       19

<PAGE>

amendment to or waiver or release or addition of, or consent to departure from,
any guaranty held by the Lender securing any of the Obligations; or (g) any
other circumstance which might otherwise constitute a defense available to, or a
legal or equitable discharge of, such other Borrower or any Subsidiary
Guarantor.

     18.5.     CONSTRUCTION

     The headings herein are for convenience only, do not constitute a part of
this Agreement and shall not be deemed to limit or affect any of the provisions
hereof. The language used in this Agreement will be deemed to be the language
chosen by the parties to express their mutual intent, and no rules of strict
construction will be applied against any party. The word "including" as used
herein shall not be construed so as to exclude any other thing not referred to
or described.

                                       20

<PAGE>

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

                                        XM SATELLITE RADIO INC.

                                               /s/ Joseph M. Titlebaum
                                        ----------------------------------------
                                        Name:  Joseph M. Titlebaum
                                        Title: Senior Vice President,
                                               General Counsel and Secretary

                                        XM SATELLITE RADIO HOLDINGS INC.

                                               /s/ Joseph M. Titlebaum
                                        ----------------------------------------
                                        Name:  Joseph M. Titlebaum
                                        Title: Senior Vice President,
                                               General Counsel and Secretary

                                        GENERAL MOTORS CORPORATION

                                           /s/ R. J. Harries
                                        ----------------------------------------
                                        Name:  R. J. Harries
                                        Title:

                       Signature Page to Credit Agreement

<PAGE>

                                    EXHIBIT A
                      SECOND AMENDED DISTRIBUTION AGREEMENT

                   [Filed separately as Exhibit 10.9 hereto]

<PAGE>

                                    EXHIBIT B
                           FORM OF REQUEST FOR ADVANCE

                                                                          [Date]

General Motors Corporation, as Lender
100 Renaissance Center
Detroit, MI 48265-1000
Fax: 313-665-4978

Attention:  General Counsel

Ladies and Gentlemen:

          The undersigned, [Name of Borrower or Borrowers] (the "Borrower(s)"),
refers to the Credit Agreement, dated as of ____________, 2003 (as amended from
time to time, the "Credit Agreement", the terms defined therein being used
herein as therein defined), among XM Satellite Radio Inc. and XM Satellite Radio
Holdings Inc., as Borrowers, and General Motors Corporation as Lender
("Lender"), hereby gives you, Lender, irrevocable notice, pursuant to Section
2.2(a) of the Credit Agreement, that the undersigned hereby requests an Advance
under the Credit Agreement, and in that connection sets forth below the
information relating to such Advance as required by Section 2.2(a) of the Credit
Agreement:

               (i)   The Business Day of the proposed Borrowing is ___________,
___ (the "Funding Date")/1/

               (ii)  The aggregate amount of the proposed Borrowing is
$__________.

               (iii) The proposed Borrowing is being requested for
[______________]./2/

The undersigned hereby certifies that (A) each of the conditions set forth in
Section 4.2(b) of the Credit Agreement have been satisfied as of the Funding
Date and (B) no Default or Event of Default has occurred and is continuing

                                      Very truly yours,

                                      [NAME OF BORROWER(S)]

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

                                      [Must be signed by an authorized officer.]

----------

/1/ This date shall be the date on which the Contractual Obligation being funded
by such Advance become due and owing in respect of any Contractual Obligation.

/2/ Describe the agreement and payment obligations for which the Advance is
being requested.

<PAGE>

                                    EXHIBIT C
                                 FORM OF WARRANT

                           [See Exhibit 4.12 hereto]

<PAGE>

                                    EXHIBIT D
                 FORM OF FCC LICENSE SUBSIDIARY PLEDGE AGREEMENT

                    [Filed separately as Exhibit 4.5 hereto]

<PAGE>

                                    EXHIBIT E
                       FORM OF GENERAL SECURITY AGREEMENT

                    [Filed separately as Exhibit 4.4 hereto]

<PAGE>

                                    EXHIBIT F
                           FORM OF AGREEMENT GUARANTEE

               This Agreement Guarantee is delivered by the undersigned (the
"Subsidiary Guarantor") pursuant to the Credit Agreement dated as of __________,
2003 among XM Satellite Radio Inc., XM Satellite Radio Holdings Inc. and General
Motors Corporation (the "Credit Agreement"). Capitalized terms used but not
defined herein shall have the meanings ascribed to them in the Credit Agreement.

               For value received, the Subsidiary Guarantor hereby fully and
unconditionally guarantees to the Lender that: (a) the principal amount of, and
premium and interest on, the Advances will be duly and punctually paid in full
when due, whether at maturity, by acceleration or otherwise, and interest on
overdue principal and premium amount and (to the extent permitted by law)
interest on any interest, if any, on the Advances and all other obligations of
the Borrowers to the Lender under the Credit Agreement or the Security
Agreements (including fees, expenses or other) will be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and (b) in case
of any extension of time of payment or renewal of the Advances or any of such
other obligations the same will be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at the
Maturity Date, by acceleration or otherwise.

               The Subsidiary Guarantor, and by its acceptance hereof, the
Lender, hereby confirms that it is the intention of such parties that the
guarantee by such Subsidiary Guarantor pursuant to this Agreement Guarantee not
constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy
Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act
or any similar federal or state law. To effectuate the foregoing intention, the
Lender and the Subsidiary Guarantor hereby irrevocably agree that the
obligations of the Subsidiary Guarantor under this Agreement Guarantee shall be
limited to the minimum extent necessary to ensure that, after giving effect to
all other contingent and fixed liabilities of the Subsidiary Guarantor and after
giving effect to any collections from or payments made by or on behalf of any
other Subsidiary Guarantor in respect of the obligations of such other
Subsidiary Guarantor under this Agreement Guarantee, the obligations of the
Subsidiary Guarantor under this Agreement Guarantee do not constitute a
fraudulent transfer or conveyance under applicable law.

               Failing payment when due of any amount so guaranteed or failing
performance of any other obligation of the Borrowers to the Lender, for whatever
reason, the Subsidiary Guarantor will be obligated to pay or to perform or to
cause the performance of, the same immediately without the necessity of any
action by the Lender. An Event of Default under the Credit Agreement shall
constitute an event of default under this Agreement Guarantee, and shall entitle
the Lender to accelerate the obligations of the Subsidiary Guarantor hereunder
in the same manner and to the same extent as the obligations of the Borrowers.

               The Subsidiary Guarantor hereby agrees that its obligations
hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the Credit Agreement, the absence of any action to enforce the
same, any waiver or consent by the Lender with respect to any thereof, the entry
of any judgment against a Borrower, any action to enforce the same or any other
circumstance which might otherwise constitute a legal or equitable discharge or
defense of the Subsidiary Guarantor.

               The Subsidiary Guarantor hereby waives and relinquishes: (a) any
right to require the Lender to proceed against the Borrowers, any other
Subsidiary Guarantor or any other Person or to proceed against or exhaust any
security held by or on behalf of the Lender at any time or to pursue any other
remedy in any secured party's power before proceeding against the Subsidiary
Guarantor; (b) any defense that may arise by reason of the incapacity, lack of
authority, death or disability of any other Person or Persons or the failure of
the Lender to file or enforce a claim against the estate (in administration,
bankruptcy or any other proceeding) of any other Person or Persons; (c) demand,
protest and notice of any kind, including but not limited to notice of the
existence, creation or incurring of any new or additional Indebtedness or
obligation or of any action or non-action on the part of the Subsidiary
Guarantor, the Borrowers, the Lender, any creditor of the Subsidiary Guarantor
or on the part of any other Person whomsoever in connection with any obligations
the performance of which are hereby guaranteed; (d) any defense based upon an
election of remedies by the Lender, including but not limited to an election to
proceed

<PAGE>

against the Subsidiary Guarantor for reimbursement; (e) any defense
based upon any statute or rule of law which provides that the obligation of a
surety must be neither larger in amount nor in other respects more burdensome
than that of the principal; (f) any defense arising because of the Lender's
election, in any proceeding instituted under the United States Bankruptcy Code
(the "Bankruptcy Code"), of the application of Section 1111 (b)(2) of the
Bankruptcy Code; and (g) any defense based on any borrowing or grant of a
security interest under Section 364 of the Bankruptcy Code.

               The Subsidiary Guarantor hereby covenants that this Agreement
Guarantee will not be discharged except by payment in full of all principal and
interest on the Advances and all other costs provided for under the Credit
Agreement, or as provided in Section 13.3 of the Credit Agreement.

               If the Lender is required by any court or otherwise to return to
either the Borrowers or the Subsidiary Guarantor, or any custodian, trustee, or
similar official acting in relation to the Borrowers or the Subsidiary
Guarantor, any amount paid by the Borrowers or the Subsidiary Guarantor to the
Lender, this Agreement Guarantee, to the extent theretofore discharged, shall be
reinstated in full force and effect. The Subsidiary Guarantor agrees that it
will not be entitled to any right of subrogation in relation to the Lender in
respect of any obligations guaranteed hereby until payment in full of all
obligations guaranteed hereby.

               The Subsidiary Guarantor agrees that, as between it, on the one
hand, and the Lender, on the other hand, (x) the maturity of the obligations
guaranteed hereby may be accelerated as provided in Section 8 of the Credit
Agreement for the purposes hereof, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) in the event of any acceleration of such obligations
as provided in Section 8 of the Credit Agreement, such obligations (whether or
not due and payable) shall forthwith become due and payable by the Subsidiary
Guarantor for the purpose of this Agreement Guarantee.

               The Subsidiary Guarantor hereby acknowledges that it shall not
consolidate or merge with or into a corporation or any other entity other than a
Borrower or another Subsidiary Guarantor (whether or not affiliated with the
Subsidiary Guarantor), or transfer all or substantially all of its assets to a
corporation or any other entity other than a Borrower or another Subsidiary
Guarantor (whether or not affiliated with the Subsidiary Guarantor), unless this
Agreement Guarantee shall be expressly assumed (in the event that the Subsidiary
Guarantor is not the surviving corporation in the merger) or a new Agreement
Guarantee shall be signed by such successor corporation or other entity and
delivered to the Lender. Any Agreement Guarantee so issued shall in all respects
have the same legal rank and benefit under the Credit Agreement as any Agreement
Guarantee theretofore and thereafter issued in accordance with the terms of the
Credit Agreement as though all of such Agreement Guarantees had been issued at
the date of the execution thereof.

               This Agreement Guarantee shall be governed by and construed in
accordance with the laws of the State of New York.

               IN WITNESS WHEREOF, the undersigned Subsidiary Guarantor has
caused this Agreement Guarantee to be duly executed as of __________, 200_.

                                        [Name of Subsidiary Guarantor]

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

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