Document:

Loan Restructring Agreement dated September 30, 2003

 Exhibit 10.2 
  
 Pages where confidential treatment has been requested are stamped “Confidential Treatment Requested.” The redacted materials have
been separately filed with the SEC; the appropriate section has been marked at the appropriate place with a “*.” 

  
 LOAN RESTRUCTURING AGREEMENT 
  

among 
  
 STONEHOUSE CAPITAL LTD. 
  
 WORLDSPACE, INC. 
  
 WORLDSPACE INTERNATIONAL NETWORK INC. 
  
 and

  
 WORLDSPACE SATELLITE COMPANY LTD. 
  
 Dated as of September 30, 2003 
  

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE 1
	  	 DEFINITIONS AND INTERPRETATION
	  	2
			
	 Section 1.01
	  	 General Definitions
	  	2
			
	 Section 1.02
	  	 Interpretation
	  	4
			
	 ARTICLE 2
	  	 RESTRUCTURING
	  	4
			
	 Section 2.01
	  	 Release of Obligations
	  	4
			
	 Section 2.02
	  	 Outside Date
	  	5
			
	 Section 2.03
	  	 Standstill
	  	5
			
	 ARTICLE 3
	  	 CONDITIONS PRECEDENT
	  	5
			
	 Section 3.01
	  	 Conditions Precedent
	  	5
			
	 ARTICLE 4
	  	 REPRESENTATIONS
	  	8
			
	 Section 4.01
	  	 Representations
	  	8
			
	 Section 4.02
	  	 Representations of Stonehouse
	  	10
			
	 Section 4.03
	  	 Termination of Representations
	  	11
			
	 ARTICLE 5
	  	 COVENANTS
	  	11
			
	 Section 5.01
	  	 Affirmative Covenants
	  	11
			
	 ARTICLE 6
	  	 MISCELLANEOUS
	  	11
			
	 Section 6.01
	  	 Saving of Rights
	  	11
			
	 Section 6.02
	  	 Notices
	  	12
			
	 Section 6.03
	  	 [Intentionally deleted.]
	  	13
			
	 Section 6.04
	  	 [Intentionally deleted.]
	  	13
			
	 Section 6.05
	  	 Applicable Law and Dispute Resolution
	  	13
			
	 Section 6.06
	  	 Successors and Assigns
	  	13
			
	 Section 6.07
	  	 Amendments, Waivers and Consents
	  	13
			
	 Section 6.08
	  	 Joint and Several Liability
	  	13
			
	 Section 6.09
	  	 Severability
	  	13
			
	 Section 6.10
	  	 Counterparts
	  	14
			
	 Section 6.11
	  	 Further Assurances
	  	14
			
	 Section 6.12
	  	 Entire Agreement
	  	14

  

 i 

 TABLE OF CONTENTS 
  
 EXHIBITS 
  

			
		
	Exhibit A	  	Form of Original Agreement Release
		
	Exhibit B	  	Form of Release
		
	Exhibit C	  	Form of Escrow Agreement
		
	Exhibit D	  	Form of Royalty Agreement
		
	Exhibit E	  	New Loan Parameters
		
	Exhibit F	  	Organizational Chart
		
	Exhibit G	  	Required Consents
		
	Exhibit H	  	List of Assets
		
	Exhibit I	  	List of Certain Entities
		
	Exhibit J	  	List of Subordinate Loans and Related Information
		
	Exhibit K	  	List of Persons Entitled to Receive Distributions
		
	Exhibit L	  	Dispute Resolution Procedures
		
	Exhibit M	  	Form of Legal Opinion
		
	Exhibit N	  	List of Certain Shareholder(s)

  

 ii 

 Loan Restructuring Agreement 
  
 LOAN RESTRUCTURING AGREEMENT (this “Agreement”), dated as of September 30, 2003 (the
“Execution Date”), among: 
  
 (1) STONEHOUSE
CAPITAL LTD., a corporation organized and existing under the laws of the Cayman Islands (“Stonehouse”); 
  
 (2) WORLDSPACE, INC., a corporation organized and existing under the laws of the State of Maryland, the United States of America (“WSI”);

  
 (3) WORLDSPACE INTERNATIONAL NETWORK INC., a company organized
and existing under the International Business Companies Act of the British Virgin Islands (“WIN”); and 
  
 (4) WORLDSPACE SATELLITE COMPANY LTD., a company organized and existing under the International Business Companies Act of the British Virgin Islands
(“WSC”). 
  
 RECITALS 
  
 A. The WorldSpace Parties and Stonehouse are parties to that certain Amended
and Restated Loan Agreement and Guarantee, dated as of April 21, 2000, by and among Stonehouse, WorldSpace, WIN and Satellite Company (the “Loan Agreement”). 
  
 B. The obligations of WSI, WIN and WSC under the Loan Agreement are secured by three Security Agreements, each dated as of
April 21, 2000, between Stonehouse and respectively, WSI, WIN, and WSC (each referred to herein as a “Security Agreement” and collectively as the “Security Agreements”). 
  
 C. The WorldSpace Parties have requested that Stonehouse enter into this
Agreement in order to enable the WorldSpace Parties to obtain capital investment to finance the commercial expansion of their business and thereby enhance the prospective return to Stonehouse on its investment in the WorldSpace Enterprise.

  

 1 

 NOW, THEREFORE, in consideration of the foregoing and the agreements set forth herein, and for other good
and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
 ARTICLE 1 
  
 Definitions and Interpretation 
  
 Section 1.01 General Definitions. Wherever used in this Agreement, the following terms have the meanings opposite them: 
  

			
	“Agreement”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“Annual Operating Budget”	  	the annual operating budget (allocated on a monthly basis, for the twelve months immediately following the date of the Restructuring) which is attached as Exhibit E to the Royalty
Agreement;
		
	“Charter Documents”	  	in respect of any company, corporation, partnership, governmental agency, or other enterprise, its founding act, charter, articles of incorporation and by-laws, memorandum and articles of
association, statute or such other constitutional instrument and any amendments thereto;
		
	“Condition Precedent”	  	has the meaning ascribed thereto in Section 3.01 hereof;
		
	“Designated Releases”	  	has the meaning ascribed thereto in Section 3.01(a) hereof;
		
	“Distributions”	  	has the meaning ascribed thereto in the Royalty Agreement;
		
	“Dollars”	  	the lawful currency of the United States of America, also represented herein with the “$” sign;
		
	“Economic Ownership Interest”	  	the percentage ownership interest in an entity (which interest must include the right to receive a proportionate share of dividends, profits and similar amounts distributed by such entity)
held by a Person or Persons, directly or indirectly on a fully diluted basis;
		
	“Escrow Agent”	  	has the meaning ascribed thereto in Section 3.01(a) hereof;
		
	“Escrow Agreement”	  	has the meaning ascribed thereto in Section 3.01(a) hereof;
		
	“Execution Date”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“Financial Model”	  	the financial model (based on mutually agreed assumptions and showing mutually agreed debt coverage and equity return forecasts) which is attached as Exhibit D to the Royalty
Agreement;
		
	“Fiscal Year”	  	the accounting year of each of the WorldSpace Parties commencing each year on January 1 and ending on the following December 31, or such other period as the WorldSpace Parties, with
Stonehouse’s consent, from time to time designate as their accounting year;

  

 2 

			
	“Funding Expenditure Plan”	  	the mutually agreed plan for the use of the New Loan (including, inter alia, a disbursement schedule therefor) which is attached as Exhibit B to the Royalty Agreement;
		
	“Loan Agreement”	  	has the meaning ascribed thereto in the Recitals hereof;
		
	“New Investor”	  	has the meaning ascribed thereto in Section 3.01(c) hereof;
		
	“New Loan”	  	has the meaning ascribed thereto in Section 3.01(c) hereof;
		
	“New Loan Documentation”	  	has the meaning ascribed thereto in Section 3.01(c) hereof;
		
	“New Loan Parameters”	  	has the meaning ascribed thereto in Section 3.01(c) hereof;
		
	“Operating and Marketing Plan”	  	the operating and marketing plan which is attached as Exhibit F to the Royalty Agreement;
		
	“Original Agreement Release”	  	has the meaning ascribed thereto in Section 2.01 hereof;
		
	“Original Agreements”	  	has the meaning ascribed thereto in Section 2.01 hereof;
		
	“Outside Date”	  	has the meaning ascribed thereto in Section 2.02 hereof;
		
	“Person”	  	any natural person, corporation, company, partnership, firm, voluntary association, joint venture, trust, unincorporated organization, authority or any other entity whether acting in an
individual, fiduciary or other capacity;
		
	“Releases”	  	has the meaning ascribed thereto in Section 3.01(a) hereof;
		
	“Restructuring”	  	has the meaning ascribed thereto in Section 3.01 hereof;
		
	“Royalty Agreement”	  	has the meaning ascribed thereto in Section 3.01(b) hereof;
		
	“Security Agreements”	  	has the meaning ascribed thereto in the Recitals hereof;
		
	“Shareholders”	  	has the meaning ascribed thereto in Section 3.01(a) hereof;
		
	“Stonehouse”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“Subordination Agreement”	  	has the meaning ascribed thereto in Section 3.01(k);
		
	“Subordinate Lenders”	  	has the meaning ascribed thereto in Section 3.01(k);
		
	“Subordinate Loans”	  	has the meaning ascribed thereto in Section 3.01(k);
		
	“Transaction Documents”	  	has the meaning ascribed thereto in Section 3.01(j) hereof;

  

 3 

			
	“U.S. GAAP”	  	generally accepted accounting principles in the United States, consistently applied;
		
	“WorldSpace Enterprise”	  	the assets and other resources involved in the broadcast of satellite audio and multimedia content and any investments or other assets owned, whether directly or indirectly, by
WSI;
		
	“WorldSpace Parties”	  	WSI, WIN and WSC, or any of them individually as the context may require;
		
	“WIN”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“WSC”	  	has the meaning ascribed thereto in the Preamble hereof; and
		
	“WSI”	  	has the meaning ascribed thereto in the Preamble hereof.

  
 Section 1.02
Interpretation. In this Agreement, unless the context otherwise requires: 
  
 (a) headings are for convenience only and do not affect the interpretation of this Agreement; 
  
 (b) words importing the singular include the plural and vice
versa; 
  
 (c) a reference to an Exhibit,
Article, party, Schedule or Section is a reference to that Article or Section of, or that Exhibit, party or Schedule to, this Agreement; 
  
 (d) a reference to a document includes an amendment or supplement to, or replacement or novation of, that document but disregarding any
amendment, supplement, replacement or novation made in breach of this Agreement; 
  
 (e) a reference to a party to any document includes that party’s successors and permitted assigns; and 
  
 (f) “including” and “include” shall be
deemed to mean “including, without limitation” and “include, without limitation.” 
  
 ARTICLE 2 
  
 Restructuring 
  
 Section 2.01 Release of
Obligations. 
  
 Upon (but not before) the satisfaction
(or waiver by Stonehouse in its sole and absolute discretion) of each of the Conditions Precedent, Stonehouse shall cancel, release and discharge, by the execution and delivery of a mutual release in the form attached hereto as Exhibit A (the
“Original Agreement Release”) (a) all obligations and liabilities (whether or not accrued and 

  

 4 

 
whenever scheduled to be due and payable) of the WorldSpace Parties arising under the Loan Agreement, and (b) all of its liens and security interests under
the Security Agreements (the Security Agreements and the Loan Agreement collectively referred to herein as the “Original Agreements”). Pursuant to the Original Agreement Release, the WorldSpace Parties shall cancel, release and
discharge all obligations and liabilities (whether or not accrued) of Stonehouse arising under or in connection with the Loan Agreement or any of the other Original Agreements. The Original Agreement Release shall be fully executed, and delivered to
the Escrow Agent, no later than the Execution Date. Until its release from escrow, the Original Agreement Release shall be held by the Escrow Agent pursuant to the Escrow Agreement. For the avoidance of doubt, the Original Agreement Release shall
not become effective unless and until the Restructuring has occurred and the Original Agreement Release is released from escrow. 
  
 Section 2.02 Outside Date. 
  
 If the Restructuring does not occur by the one-year anniversary of the Execution Date or by such later date as may be agreed by Stonehouse and WSI in
writing (the one-year anniversary of the Execution Date or such later date agreed by Stonehouse and WSI referred to herein as the “Outside Date”), then this Agreement will terminate, and each of the Original Agreements will remain
in full force and effect and unmodified hereby (including, without limitation, with respect to the accrual of interest without interruption), as if this Agreement had never been entered into. 
  
 Section 2.03 Standstill. 
  
 At no time prior to the Outside Date shall Stonehouse, WSI, WIN, WSC, or the
owners, shareholders, officers or directors of any of the foregoing initiate any legal proceedings against each other arising out of or in any way related to any of the WorldSpace Parties (or any of their affiliates), the WorldSpace Enterprise,
Stonehouse (or any of its affiliates), or to any of the Original Agreements, with respect to any act, omission or claim taken or arising prior to the Outside Date, it being the intention of the aforesaid parties that there be a standstill
arrangement among them until the aforesaid date in order for the WorldSpace Parties to seek new investors; provided, however, that none of the foregoing is intended to, nor shall, preclude any party hereto from enforcing its rights
under this Agreement. Additionally, and notwithstanding any of the foregoing, in the event that any of the WorldSpace Parties (a) initiates voluntary bankruptcy, insolvency or similar proceedings during such standstill period, or (b) has any
involuntary bankruptcy or similar proceedings initiated against it during such standstill period, or (c) takes any action to reorganize or other action which could adversely impact Stonehouse’s current investment during such standstill period,
then Stonehouse shall be entitled to take any steps it deems appropriate to protect its investment, and in the case of clause (b), the WorldSpace Parties shall be entitled to take any steps they deem appropriate to protect their interest.

  
 ARTICLE 3 
  
 Conditions Precedent 
  
 Section 3.01 Conditions Precedent. The execution and delivery
of the Release (including its release from escrow) by Stonehouse (referred to herein as the “Restructuring”) 

  

 5 

 
shall be expressly conditioned upon the fulfillment, in form and substance reasonably satisfactory to Stonehouse, of each of the following (each referred to
herein as a “Condition Precedent”), or waiver thereof by Stonehouse in its sole and absolute discretion; it being acknowledged that certain of the conditions precedent below may be satisfied simultaneously with (rather than prior
to) the occurrence of the Restructuring so long as such satisfaction is accomplished pursuant to closing logistics acceptable to Stonehouse. 
  
 (a) Stonehouse and each of the related individuals and entities specified in the form of release attached hereto as Exhibit B (the
“Releases”) shall have received Releases, each released from escrow, unconditional and in full force and effect, and fully executed by each of the WorldSpace Parties and their respective shareholders (the
“Shareholders”). All of the Releases shall be fully executed, and delivered to the Escrow Agent, no later than the Execution Date. Until their release from escrow, the Releases shall be held by Tri-State Commercial Closings, Inc. or
such replacement escrow agent as may be agreed between Stonehouse and the WorldSpace Parties (Tri-State Commercial Closings, Inc. or such replacement escrow agent, as applicable, referred to herein as the “Escrow Agent”) pursuant to
an escrow agreement in the form attached hereto as Exhibit C (the “Escrow Agreement”); notwithstanding the foregoing, provided that the WorldSpace Parties have used their best reasonable efforts to obtain Releases from all of
the Shareholders, if the WorldSpace Parties are unable to obtain a Release from that (or those, as applicable) individual Shareholder(s) specified on Exhibit N (the “Designated Releases”), the WorldSpace Parties may, by
written notice to Stonehouse not less than 15 nor more than 30 days prior to the date of the Restructuring, substitute for the Designated Releases an unsecured indemnity, in form and substance satisfactory to Stonehouse, jointly and severally from
Noah Samara and Salah Idris and in favor of Stonehouse and its designees. 
  
 (b) A royalty agreement in the form attached hereto as Exhibit D (the “Royalty Agreement”) shall have been fully executed and delivered, be released from escrow, unconditional and in full force
and effect. The Royalty Agreement shall be fully executed, and delivered to the Escrow Agent, no later than the Execution Date. Until its release from escrow, the Royalty Agreement shall be held by the Escrow Agent pursuant to the Escrow Agreement.

  
 (c) After the Execution Date, WSI (and/or one
or more direct or indirect subsidiaries one hundred percent (100%) of whose revenues are included in WorldSpace EBITDA, as defined in the Royalty Agreement) shall have received total cumulative investment proceeds of at least fifty million Dollars
(US$50,000,000) (whether debt, equity or other form of investment or a combination thereof) (the “New Loan”) from one or more parties who, prior to the Execution Date, are not (nor were at any time previously) shareholders of WSI or
any of its affiliates or subsidiaries and are not affiliates, family members or other relatives of any such shareholders, through one or more transactions including a private placement, a privately negotiated transaction and/or a public offering,
all on terms substantially meeting the parameters described in Exhibit E attached hereto (the “New Loan Parameters”). The parties hereby acknowledge that one such parameter shall be that the investor or lender providing the
New Loan (together with any successor or assignee thereof, the “New Investor”) agrees, pursuant to documentation which is in form and substance satisfactory to Stonehouse, that the Royalty Agreement and payment obligations
thereunder shall follow the assets of the WorldSpace Parties and not be diminished or otherwise impaired upon the New Investor’s exercise of remedies under its loan agreement (or, if applicable, other similar agreement) and related
documentation 

  

 6 

 
(collectively, the “New Loan Documentation”) to foreclose on and/or sell assets following a default by any of the WorldSpace Parties.

  
 (d) WSI shall have paid the success fee of
Stonehouse’s investment bankers, Houlihan, Lokey, Howard and Zukin, not to exceed one million two hundred fifty thousand Dollars ($1,250,000), plus expenses. 
  
 (e) [Intentionally deleted.] 
  
 (f) [Intentionally deleted.] 
  
 (g) [Intentionally deleted.] 
  
 (h) [Intentionally deleted.] 
  
 (i) The factual information contained in the Financial Model, the Funding Expenditure Plan, the Annual
Operating Budget, and the Operating and Marketing Plan shall continue to be true, correct, and complete, and applicable, in all material respects as of the date of the Restructuring; the projections and forecasts contained in the Financial Model,
the Funding Expenditure Plan, the Annual Operating Budget, and the Operating and Marketing Plan shall continue to represent the reasonable business judgment of the WorldSpace Parties and to be based on assumptions which are fair and reasonable as of
the date of the Restructuring; and updated copies of all of the foregoing, showing all changes from the prior versions, shall have been delivered to Stonehouse, together with satisfactory evidence of the New Investor’s approval thereof.

  
 (j) Stonehouse shall have received
satisfactory evidence of each WorldSpace Party’s authority to enter into this Agreement and each of the other documents contemplated hereby (including the Royalty Agreement, the Releases, the Escrow Agreement, the Original Agreement Release,
and the New Loan Documentation) (this Agreement and such other documents referred to herein as the “Transaction Documents”) to be entered into by it. 
  
 (k) Stonehouse shall have received a subordination and standstill agreement, in form and substance
satisfactory to Stonehouse (referred to herein as a “Subordination Agreement”), from the makers or providers of any loan or other debt (other than the New Loan and the loan under the Loan Agreement) which is existing (or with
respect to which any contingent or other obligations or liabilities shall exist) as of the date of the Restructuring (the aforesaid makers or providers referred to herein collectively as the “Subordinate Lenders”; and the aforesaid
loans or other debt referred to herein collectively as the “Subordinate Loans”), and Stonehouse also shall have received copies of all documentation entered into in connection with, or otherwise evidencing, the Subordinate Loans.

  
 (l) Stonehouse shall have received an updated
organizational chart certified by WSI listing all subsidiaries and other affiliates of WSI which is consistent with Exhibit F. 
  
 (m) The evidence offered by the WorldSpace Parties to Stonehouse prior to the Execution Date as to the anticipated tax consequences of the
transactions contemplated hereunder (including those in connection with any “forgiveness of debt”) shall have been 

  

 7 

 
provided to Stonehouse, without any changes that reasonably cause Stonehouse to be dissatisfied therewith. 
  
 (n) No misrepresentation or (unless cured) breach or other
default hereunder by any of the WorldSpace Parties shall have occurred. 
  
 (o) Stonehouse shall have received a legal opinion, in the form attached hereto as Exhibit M, from counsel to the WorldSpace Parties. 
  
 ARTICLE 4 
  
 Representations 
  
 Section 4.01 Representations. Each of the WorldSpace Parties represents, warrants, and covenants, jointly and severally, to Stonehouse that
as of the Execution Date and as of the date of the Restructuring: 
  
 (a) Such WorldSpace Party is a legal entity duly organized and validly existing under the laws of the jurisdiction in which it is organized, and has the power and authority to carry on its business and to own its
properties and assets and to execute, deliver and perform this Agreement and each of the other Transaction Documents; 
  
 (b) This Agreement has been duly and validly authorized, executed and delivered by it and constitutes its valid and legally binding
obligation, enforceable in accordance with its terms (except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the rights of creditors generally and by general
principles of equity); 
  
 (c) The execution,
delivery and performance by it of this Agreement and each of the other Transaction Documents does not conflict with or result in a breach of any of the terms, conditions or provisions of, or constitute a default or require any consent under, any
indenture, mortgage, agreement or other instrument or arrangement to which such WorldSpace Party is a party or by which it is bound, or any judgment, decree or order of any law, statute, rule or regulation applicable to it, or violate any of the
terms or provisions of its Charter Documents; 
  
 (d) Except as disclosed and attached hereto as Exhibit G, it is not required to obtain any material consent, authorization, registration, filing, agreement, notarization, certificate, license, approval, permit, authority or exemption
in connection with the execution, delivery, performance, validity or enforceability of this Agreement, the other Transaction Documents; 
  
 (e) All Charter Documents, financial reports and other documents required to be delivered to Stonehouse pursuant to the terms of the
Transaction Documents prior to (and including) the date of the Restructuring are true, complete and accurate copies thereof; 
  
 (f) There are no outstanding liens on any of its assets, and no contracts or arrangements, conditional or unconditional, exist for the
creation by it of any lien (other than existing liens in favor of Stonehouse, liens to secure all or part of the New Loan, and liens 

  

 8 

 
arising by operation of law); provided, however, that if a lien arises after the Execution Date and prior to (and including) the date of the
Restructuring (other than a lien in favor of Stonehouse, a lien to secure all or part of the New Loan or a lien arising by operation of law), beginning on the date such lien arises the WorldSpace Parties shall have thirty (30) days (or if shorter,
until five (5) days before the date of the Restructuring) to remove such lien (and cure any adverse effects which may have arisen therefrom); 
  
 (g) Such WorldSpace Party is not in violation of any applicable statute, regulation or other law applicable to it; provided,
however, that if such a violation occurs after the Execution Date and prior to (and including) the date of the Restructuring, beginning on the date such violation occurs the WorldSpace Parties shall have thirty (30) days (or if shorter, until
five (5) days before the date of the Restructuring) to cure such violation (and any adverse effects which may have arisen therefrom); 
  
 (h) Such WorldSpace Party is not engaged in or threatened by any litigation, arbitration, investigation, administrative proceedings or
other similar types of action; provided, however, that if any such action referenced in this subparagraph (h) occurs after the Execution Date and prior to (and including) the date of the Restructuring, beginning on the date such action
occurs the WorldSpace Parties shall have thirty (30) days (or if shorter, until five (5) days before the date of the Restructuring) to have such action terminated (and cure any adverse effects which may have arisen therefrom); 
  
 (i) All material authorizations, licenses and permits
required for the operation of the WorldSpace Enterprise have been obtained, and are current, valid and in full force and effect; provided, however, that if any such authorizations, licenses or permits become invalid after the Execution
Date and prior to (and including) the date of the Restructuring, beginning on the date such authorizations, licenses or permits become invalid the WorldSpace Parties shall have thirty (30) days (or if shorter, until five (5) days before the date of
the Restructuring) to have such authorizations, licenses or permits restored (and cure any adverse effects which may have arisen therefrom); 
  
 (j) The Financial Model, the Funding Expenditure Plan, the Annual Operating Budget and the Operating and Marketing Plan, which are subject
to the assumptions and qualifications set forth therein, have been prepared by the WorldSpace Parties in good faith and do not contain any statement of present or historical fact that is not true and correct in all material respects; 
  
 (k) All tax returns and reports required by law to be filed
by such WorldSpace Party have been duly filed, and taxes, obligations, fees and other governmental charges upon it, or its properties, or its income or assets, which are due and payable or to be withheld, have been paid or withheld, other than those
presently payable without penalty or interest and those subject to contest diligently pursued and conducted in good faith by appropriate proceedings so long as it has set aside adequate reserves with respect thereto in accordance with U.S. GAAP;
provided, however, that if the WorldSpace Parties inadvertently breach the terms of this subparagraph (k) after the Execution Date and prior to (and including) the date of the Restructuring, beginning on the date of such breach the
WorldSpace Parties shall have thirty (30) days (or if shorter, until five 

  

 9 

 
(5) days before the date of the Restructuring) to cure such breach (and any adverse effects which may have arisen therefrom); 
  
 (l) All assets material to the WorldSpace Enterprise
(including intangible assets, such as licenses, material contracts, and leases of property containing operational assets) including all material assets owned by each of the WorldSpace Parties, as well as the identification of the owner of each such
asset, are included on the list set forth as Exhibit H, and Exhibit H is true and complete in all material respects, and each of the WorldSpace Parties agrees that, until (and including) the date of the Restructuring, it shall
immediately notify Stonehouse if there is any material change after the date hereof to any of the information described on Exhibit H; 
  
 (m) Exhibit I is an accurate and complete list of entities whose earnings are included in WSI’s consolidated income statement,
as well as any other entities in which WSI has any Economic Ownership Interest as of the Execution Date, including the percentage ownership interest of WSI in each listed entity, and each of the WorldSpace Parties agrees that, until (and including)
the date of the Restructuring, it shall immediately notify Stonehouse if there is any material change after the Execution Date to any of the information described on Exhibit I; 
  
 (n) Exhibit J is an accurate and complete list of the Subordinate Lenders and the Subordinate Loans
(together with the documentation entered into in connection with, or otherwise evidencing, the same), existing as of the Execution Date, and each of the WorldSpace Parties agrees that, until (and including) the date of the Restructuring, it shall
immediately notify Stonehouse if there is any change after the Execution Date to any of the information described on Exhibit J; and 
  
 (o) Exhibit K is an accurate and complete list of each of the Persons who, on or after the date of the Restructuring, may be
entitled to receive Distributions (as defined in the Royalty Agreement) (together with the documentation entered into in connection with, or otherwise evidencing, the rights to receive such Distributions), and each of the WorldSpace Parties agrees
that, until (and including) the date of the Restructuring, it shall immediately notify Stonehouse if there is any change after the date hereof to any of the information described on Exhibit K, and each of the WorldSpace Parties also agrees
that if, prior to (and including) the date of the Restructuring, any Person who has not previously executed and delivered a Subordination Agreement becomes entitled to receive (or to potentially receive) Distributions (other than with respect to
dividends which, pursuant to the terms of the Royalty Agreement, may be distributed to shareholders of WSI), such Person shall immediately execute and deliver a Subordination Agreement. 
  
 Section 4.02 Representations of Stonehouse. Stonehouse represents and warrants that, as of the Execution Date
and as of the date of the Restructuring: 
  
 (a)
It is a legal entity duly organized and validly existing under the laws of the jurisdiction in which it is organized, and has the power and authority to execute, deliver and perform this Agreement and the Original Agreement Release; and 

 

 10 

 (b) This Agreement and (as of the date of the Restructuring) the Original Agreement
Release has been duly and validly authorized, executed and delivered by it and constitutes its valid and legally binding obligation, enforceable in accordance with its terms (except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, or similar laws affecting the rights of creditors generally and by general principles of equity). 
  
 Section 4.03 Termination of Representations. The representations, warranties and covenants set forth in Sections 4.01 and 4.02 shall
terminate upon and shall not survive the occurrence of the Restructuring. 
  
 ARTICLE 5 
  
 Covenants

  
 Section 5.01 Affirmative Covenants. Unless
Stonehouse otherwise agrees, prior to (and including) the date of the Restructuring the WorldSpace Parties shall: 
  
 (a) As soon as available but in any event within one hundred twenty (120) days after the end of each Fiscal Year, deliver to Stonehouse a
copy of the WorldSpace Parties’ audited consolidated financial statement as of the end of such Fiscal Year, prepared in accordance with U.S. GAAP; and 
  
 (b) Use the proceeds comprising the New Loan only in accordance with (or substantially in accordance with) the Funding Expenditure
Plan. 
  
 ARTICLE 6 
  
 Miscellaneous 
  
 Section 6.01 Saving of Rights. 
  
 (a) The rights and remedies of Stonehouse in relation to any
misrepresentation or breach of warranty on the part of any of the WorldSpace Parties shall not be prejudiced by any investigation by or on behalf of Stonehouse into the affairs of any of the WorldSpace Parties, by the execution or the performance of
this Agreement or by any other act or thing which may be done by or on behalf of Stonehouse in connection with this Agreement and which might, apart from this Section, prejudice such rights or remedies. 
  
 (b) No course of dealing or waiver by Stonehouse in
connection with any condition or payment to be made under this Agreement shall impair any right, power or remedy of Stonehouse with respect to any other condition or payments, or be construed to be a waiver thereof; nor shall the action of
Stonehouse with respect to any condition or payment affect or impair any right, power or remedy of Stonehouse with respect to any other condition or payment. 
  

 11 

 (c) No course of dealing and no failure or delay by Stonehouse in exercising, in whole or
in part, any power, remedy, discretion, authority or other right under this Agreement or any other agreement shall waive or impair, or be construed to be a waiver of or an acquiescence in, such or any other power, remedy, discretion, authority or
right under this Agreement, or in any manner preclude its additional or future exercise; nor shall the action of Stonehouse with respect to any default, or any acquiescence by it therein, affect or impair any right, power or remedy of Stonehouse
with respect to any other default. 
  
 Section 6.02
Notices. Any and all notices or other communications or deliveries required or permitted to be given pursuant to any of the provisions of this Agreement will be deemed to have been duly given for all purposes if sent both (a) by
telefax and (b) by certified or registered mail, return receipt requested and postage prepaid, by hand delivery, or by an internationally recognized overnight courier, in any case to the telefax number and the address of such party listed below or
to such other telefax number or address as any party may specify by notice given to the other party in accordance with this Section 6.02. 
  
 For the WorldSpace Parties: 
  
 Noah A. Samara 
 Chairman and Chief Executive
Officer 
 WorldSpace International Network Inc. 
 2400 N Street, N.W. 
 Washington, D.C. 20037 
 Telefax: 202-969-6004 
  
 with a copy to: 
  
 Donald J. Frickel, Esq. 
 WorldSpace
International Network Inc. 
 2400 N Street, N.W. 
 Washington, D.C. 20037 
 Telefax: 202-969-6560 
  
 For Stonehouse: 
  
 Stonehouse Capital Ltd. 
 c/o Al-Murjan
Organization 
 PO Box 52558 
 Jeddah 21573 
 Saudi Arabia 
 Attention: Cherif Sedky 
 Telefax: 011-9662-694-3466 
  
 with a copy to: 
  
 Jeffrey H. Goodman, Esq. 
 Fulbright &
Jaworski L.L.P. 
 801 Pennsylvania Avenue, N.W. 
 Washington, D.C. 20004-2623 
 Telefax: 202-662-4643 
  

 12 

 The date of giving of any such notice will be: (a) in the case of delivery by hand or courier, the date
of delivery at the appropriate address specified in or pursuant to this Section 6.02, provided that the notice has also been sent by telefax to the appropriate telefax number specified in or pursuant to this Section 6.02; or (b) in the case of
delivery by mail, five (5) days following the posting of the mail addressed to the appropriate address specified in or pursuant to this Section 6.02, if posted in the same country as the country of the address, and twelve (12) days following the
posting of the mail addressed to the appropriate address specified in or pursuant to this Section 6.02, if posted in a different country than the country of the address, provided that the notice has also been sent by telefax to the appropriate
telefax number specified in or pursuant to this Section 6.02. 
  
 Section 6.03 [Intentionally deleted.] 
  
 Section 6.04
[Intentionally deleted.] 
  
 Section 6.05 Applicable Law and
Dispute Resolution. This Agreement shall be deemed to be a contract made under, and shall be governed by, and shall be construed and interpreted in accordance with, the laws of the State of New York, United States of America, without regard
to the conflict of laws provisions thereof (other than Section 5-1401 and 5-1402 of the General Obligations Laws of the State of New York). The parties hereto agree to submit any dispute based on any matter arising out of or relating to this
Agreement or the transactions contemplated hereby to arbitration in accordance with the terms set forth on Exhibit L attached hereto. 
  
 Section 6.06 Successors and Assigns. This Agreement binds and benefits the respective successors and assigns of the parties;
provided, however, that none of the WorldSpace Parties may assign or delegate any of their respective rights or obligations under this Agreement without the prior consent of Stonehouse. 
  
 Section 6.07 Amendments, Waivers and Consents. No failure or
delay by any party at any time to enforce one or more of the terms, conditions or obligations of this Agreement will constitute a waiver of such terms, conditions or obligations or will preclude such party from requiring performance by the other
party at any time. No waiver of the provisions hereof, or any consent given hereunder, will be effective unless in writing and signed by the party to be charged with such waiver or consent. No waiver will be deemed a continuing waiver or waiver in
respect of any subsequent breach or default, either of similar or different nature, unless expressly so stated in writing. This Agreement may only be amended by a written instrument signed by all of the parties hereto. 
  
 Section 6.08 Joint and Several Liability. Each of the
WorldSpace Parties hereby agrees that it shall be jointly and severally liable for the obligations of each of the WorldSpace Parties hereunder. 
  
 Section 6.09 Severability. All the provisions of this Agreement will be considered as separate terms and conditions. In the event any of the
provisions hereof is determined to be 

  

 13 

 
invalid, prohibited or unenforceable by a court or other body of competent jurisdiction, this Agreement will be construed as if such invalid, prohibited or
unenforceable provision has been more narrowly drawn so as not to be invalid, prohibited or unenforceable, unless such construction would be unreasonable. Notwithstanding the foregoing sentence, in the event that any provision contained in this
Agreement should be determined to be invalid, prohibited or unenforceable, the validity, legality and enforceability of the remaining provisions contained in this Agreement will not in any way be affected or impaired thereby, unless such
construction would be unreasonable. 
  
 Section 6.10
Counterparts. This Agreement may be executed in several counterparts, each of which is an original, but all of which together constitute one and the same agreement. 
  
 Section 6.11 Further Assurances. The WorldSpace Parties will, at their cost, execute and deliver promptly such
additional documents, assignments, certificates and instruments as Stonehouse may reasonably request in order to effectuate the provisions of, and the transactions provided for in, this Agreement. Stonehouse will, at the cost of the WorldSpace
Parties, execute and delivery promptly such additional documents, assignments, certificates and instruments as any for the WorldSpace Parties may reasonably request in order to effectuate the provisions of, and the transactions provided for in, this
Agreement (including, without limitation, the release of the liens pursuant to the Security Agreements). 
  
 Section 6.12 Entire Agreement. Subject to Section 2.02 hereof, this Agreement supersedes any prior agreement (including that certain Term
Sheet executed by the parties hereto and dated as of March 1, 2003), understanding, representation or warranty between the parties as to the subject matter of this Agreement, which prior agreements, understandings, representations and warranties
shall be of no continuing effect except to the extent otherwise provided herein. 
  
 *         *         * 
  

 14 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be signed in their respective names as of
the date first above written. 
  

			
	WORLDSPACE, INC.
		
	By:	 	/S/    NOAH A. SAMARA
	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

	
	WORLDSPACE INTERNATIONAL NETWORK INC.
		
	By:	 	/S/    NOAH A. SAMARA
	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

	
	WORLDSPACE SATELLITE COMPANY LTD.
		
	By:	 	/S/    NOAH A. SAMARA
	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

	
	STONEHOUSE CAPITAL LTD.
		
	By:	 	/S/    ABDULRAHMAN BIN MAHFOUZ
	 	 	Abdulrahman Bin Mahfouz
		
	By:	 	/S/    SULTAN BIN MAHFOUZ
	 	 	 Sultan Bin Mahfouz

  

 15 

 EXHIBIT A 
  
 FORM OF ORIGINAL AGREEMENT RELEASE 
  
 ORIGINAL AGREEMENT RELEASE 
  
 ORIGINAL AGREEMENT RELEASE (this “Release”), made as of this          day of September,
2003, by (1) WORLDSPACE, INC., a corporation organized and existing under the laws of the State of Maryland, the United States of America (“WSI”); (2) WORLDSPACE INTERNATIONAL NETWORK INC., a company organized and existing under the
International Business Companies Act of the British Virgin Islands (“WIN”); and (3) WORLDSPACE SATELLITE COMPANY LTD., a company organized and existing under the International Business Companies Act of the British Virgin Islands
(“WSC”) (WSI, WIN and WSC together, the “WorldSpace Parties”); and (4) STONEHOUSE CAPITAL LTD., a corporation organized under Cayman Islands law (“Stonehouse”). 
  
 WITNESSETH: 
  
 WHEREAS, the WorldSpace Parties and Stonehouse are parties to that certain Amended and Restated Loan Agreement and
Guarantee, dated as of April 21, 2000, by and among Stonehouse, WSI, WIN and WSC (the “Loan Agreement”). 
  
 WHEREAS, the obligations of WSI, WIN and WSC under the Loan Agreement are secured by three Security Agreements, each dated as of April 21, 2000, between
Stonehouse and respectively, WSI, WIN, and WSC (each referred to herein as a “Security Agreement” and collectively as the “Security Agreements”) (the Loan Agreement and the Security Agreements together, the
“Original Agreements”). 
  
 WHEREAS, Stonehouse and the
WorldSpace Parties have entered into a Loan Restructuring Agreement dated as of September     , 2003 (the “Restructuring Agreement”) pursuant to which, among other things, upon satisfaction (or waiver by
Stonehouse) of the conditions precedent specified therein, the debt under the Loan Agreement shall be extinguished and, in exchange therefor, the WorldSpace Parties shall, pursuant to a separate Royalty Agreement dated as of September
    , 2003, become obligated to, among other things, pay to Stonehouse certain amounts based on a measure of the WorldSpace Parties’ income over a period of years. 

 NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration the
receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 
  
 ARTICLE 1 
  
 STONEHOUSE RELEASE 
  
 Section 1.1 Release by
Stonehouse. Stonehouse hereby permanently and irrevocably cancels, releases and forever discharges (i) the WorldSpace Parties from all obligations and liabilities (whether or not accrued and whenever scheduled to be due and payable) arising
under the Loan Agreement, and (ii) all of Stonehouse’s liens and security interests under the Security Agreements. 
  
 ARTICLE 2 
  
 WORLDSPACE RELEASE 
  
 Section 2.1 Release by the WorldSpace Parties. The WorldSpace Parties hereby permanently and irrevocably cancel, release and forever discharge Stonehouse from any and all obligations and liabilities (whether or not accrued) arising
under or in connection with the Loan Agreement or any of the other Original Agreements. 
  
 ARTICLE 3 
  
 MISCELLANEOUS

  
 Section 3.1 Notices. Any and all notices or other
communications or deliveries required or permitted to be given pursuant to any of the provisions of this Release will be deemed to have been duly given for all purposes if sent by telefax, by certified or registered mail, return receipt requested
and postage prepaid, hand delivered, or by a nationally recognized overnight courier, in each case to the address listed below or at such other address as any party may specify by notice given to the other party in accordance with this Section 3.1.

  
 For Stonehouse: 
  
 Stonehouse Capital Ltd. 
 c/o Al-Murjan Organization 
 PO Box 52558

 Jeddah 21573 
 Saudi Arabia

 Attention: Cherif Sedky 
 Telefax: 011-9662-694-3466 

 with a copy to: 
  

Jeffrey H. Goodman, Esq. 
 Fulbright &
Jaworski L.L.P. 
 801 Pennsylvania Avenue, N.W. 
 Washington, D.C. 20004-2623 
 Telefax: 202-662-4643 
  
 For the WorldSpace Parties: 
  
 Noah A. Samara 
 Chairman and Chief Executive Officer 
 WorldSpace International Network Inc. 
 2400 N Street, N.W. 
 Washington, D.C. 20037 
 Telefax: 202-969-6004

  
 with a copy to: 
  
 Donald J. Frickel, Esq. 
 WorldSpace International Network Inc. 
 2400 N
Street, N.W. 
 Washington, D.C. 20037 
 Telefax: 202-969-6560 
  
 The date of giving of any such
notice will be: (a) in the case of delivery by hand, by courier or by telefax, the date of delivery at the appropriate address specified in or pursuant to this Section 3.1, or (b) in the case of delivery by mail, three calendar days following the
posting of the mail addressed to the appropriate address specified in or pursuant to this Section 3.1. 
  
 Section 3.2 Amendment and Waiver. This Release may be amended, modified, discharged or terminated only by an instrument in writing signed by the
WorldSpace Parties and Stonehouse. No failure or delay by any individual or entity (each referred to herein as a “Person”) at any time to enforce one or more of the terms, conditions or obligations of this Release will constitute a
waiver of such terms, conditions or obligations or will preclude such Person from requiring performance by any other Person at any time. No waiver of the provisions hereof will be effective unless in writing and signed by the Person to be charged
with such waiver. No waiver will be deemed a continuing waiver or waiver in respect of any subsequent breach or default, either of similar or different nature, unless expressly so stated in writing. 
  
 Section 3.3 GOVERNING LAW. THIS RELEASE WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISIONS THEREOF. 

 Section 3.4 Parties In Interest. This Release will be binding upon and shall inure to the benefit
of the parties hereto and their respective successors and assigns. 
  
 Section 3.5 Severability. All the provisions of this Release will be considered as separate terms and conditions. In the event any of the provisions hereof is determined to be invalid, prohibited or unenforceable by a court or other
body of competent jurisdiction, this Release will be construed as if such invalid, prohibited or unenforceable provision has been more narrowly drawn so as not to be invalid, prohibited or unenforceable, unless such construction would be
unreasonable. Notwithstanding the foregoing sentence, in the event that any provision contained in this Release should be determined to be invalid, prohibited or unenforceable, the validity, legality and enforceability of the remaining provisions
contained in this Release will not in any way be affected or impaired thereby, unless such construction would be unreasonable. 
  
 Section 3.6 Headings. The headings used herein are for reference purposes only and will not in any way affect the meaning or interpretation of this
Release. 
  
 Section 3.7 Effectiveness. Notwithstanding
anything which may be contained herein or elsewhere to the contrary, this Release shall not become effective unless and until the Restructuring (as defined in the Restructuring Agreement) has occurred and this Release is released from escrow. If the
Restructuring (as defined in the Restructuring Agreement) does not occur by the Outside Date (as defined in the Restructuring Agreement), then this Release will automatically be null and void and of no force and effect, as if it had never been
entered into. Additionally, and notwithstanding anything which may be contained herein or elsewhere to the contrary, this Release is in no way intended to supersede, nullify or diminish in any way any of the Releases (as defined in the Restructuring
Agreement) executed pursuant to Section 3.01 (a) of the Restructuring Agreement, including without limitation such Releases executed by the WorldSpace Parties. 

 IN WITNESS WHEREOF, the WorldSpace Parties and Stonehouse duly executed this Release as of the day and
year first above written. 
  

			
	 STONEHOUSE CAPITAL LTD.

		
	 By:
	 	 
		
	 Name:
	 	 Abdulrahman bin Mahfouz

	 Title:
	 	 
		
	 By:
	 	 
		
	 Name:
	 	 Sultan bin Mahfouz

	 Title:
	 	 
	
	 WORLDSPACE, INC.

		
	 By:
	 	 
		
	 Name:
	 	 
	 Title:
	 	 
	
	 WORLDSPACE INTERNATIONAL
 NETWORK
INC.

		
	 By:
	 	 
		
	 Name:
	 	 
	 Title:
	 	 
	
	WORLDSPACE SATELLITE COMPANY LTD.
		
	 By:
	 	 
		
	 Name:
	 	 
	 Title:
	 	 

 EXHIBIT B 
  
 FORM OF RELEASE 
  
 RELEASE 
  
 RELEASE (this “Release”), made this      day of,                     , 2003, by (1) the
undersigned shareholder (the “Shareholder”) of WorldSpace, Inc., a corporation organized under Maryland law (“WSI”) to and for the benefit of (2) Stonehouse Capital Limited, a corporation organized under Cayman Islands law
(“Stonehouse”), Sheikh Khalid Bin Mahfouz (“KBM”), Abdulrahman Khalid Bin Mahfouz (“AR”), and Sultan Khalid Bin Mahfouz (“SBM”; Stonehouse, KBM, AR and SBM are hereinafter referred to collectively as the
“Stonehouse Parties”). 
  
 WITNESSETH: 

 
 WHEREAS, the Shareholder is a shareholder of WSI, which owns WorldSpace
International Network Inc., a corporation organized under the International Business Companies Act of the British Virgin Islands (“WIN”), which in turn owns WorldSpace Satellite Company Ltd., a corporation organized under the International
Business Companies Act of the British Virgin Islands (“Satellite Company;” WSI, WIN and Satellite Company are hereinafter referred to collectively as “WorldSpace”); 
  
 WHEREAS, Stonehouse holds secured debt of WIN, which debt is guaranteed by WSI and Satellite Company, in an amount
(including accrued interest as of December 31, 2002), of approximately $1.82 billion (the “Debt”); 
  
 WHEREAS, Stonehouse and WorldSpace are negotiating a transaction under which the Debt would be extinguished and, in exchange therefor, WorldSpace would
enter into a contract which, among other things, would obligate WorldSpace to pay to Stonehouse certain amounts based on a measure of WorldSpace’s income over a period of years (the “Debt Restructuring Transaction”); 
  
 WHEREAS, Stonehouse has requested that the Shareholder enter into this
Release as a condition to the Debt Restructuring Transaction, and the Shareholder is willing to enter into this Release in order to induce the Stonehouse Parties to enter into the Debt Restructuring Transaction; and 
  
 WHEREAS, AR and SBM are the owners of Stonehouse and the sons of KBM.

 NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration the
receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 
  
 ARTICLE 1 
  
 RELEASES 
  
 1.1 Release by the
Shareholder. (a) The Shareholder, for himself and his heirs, executors, administrators, predecessors, spouse and other family members, successors and assigns, and each of their respective current and former [employees, advisors,
attorneys and agents] [Note: preceding list in brackets to be expanded where releasing entity is not an individual; for example, such list would also then include subsidiaries and other affiliates, directors, officers, shareholders,
optionholders, warrantholders and creditors] (collectively, the “Releasing Parties”) (exclusive, in all cases, of Mohammed Hussein Al Amoudi and Edmond Tavernier), hereby permanently, irrevocably and unconditionally releases and
forever discharges the Stonehouse Parties, each of their present and former subsidiaries, each of their respective heirs, executors, administrators, predecessors, successors, assigns and controlled affiliates, and each of their respective current
and former shareholders, optionholders, warrantholders, officers, directors, employees, advisors, attorneys or agents, and each of the respective heirs, executors and administrators of each of the foregoing (hereinafter collectively termed the
“Stonehouse Releasees”) from any and all manner of claims, demands, damages, actions, causes of action, contracts, agreements, charges, sums of money, claims for attorneys’ fees and lawsuits of every kind and description whatsoever,
in law or equity, whether known or unknown, now existing or which may hereafter arise against the Stonehouse Releasees, or any of them, under the laws of the United States, any State thereof, or any other jurisdiction, for or by reason of any
matter, cause, or thing whatsoever prior to and including the date of the closing of the Debt Restructuring Transaction (collectively, the “Shareholder Released Claims”). 
  
 (b) In the event that any of the Shareholder Released Claims are asserted, or this Release is otherwise violated, at any
time in the future by or on behalf of any of the Releasing Parties, the Shareholder hereby irrevocably, absolutely and unconditionally agrees to indemnify, save and hold harmless the Stonehouse Releasees, at any time or from time to time, from and
against all costs, claims, charges, expenses (including without limitation legal costs and expenses), losses, liabilities, demands and proceedings of whatsoever nature which the Stonehouse Releasees may suffer or incur as a result of any assertions
of the Shareholder Released Claims, or other violations of this Release, by or on behalf of any of the Releasing Parties. 
  
 (c) Notwithstanding any other provision of this Release, the Stonehouse Releasees will not include Mohammed Hussein Al Amoudi or Edmond Tavernier. The
Shareholder expressly reserves all rights, claims, causes of action and damages that he has or may have against all parties who are not Stonehouse Releasees. 
  
 1.2 Effectiveness. Notwithstanding any other provision of this Release, (a) Section 1.1 above will be effective only from and after the date of the
closing of the Debt Restructuring Transaction (which date, for purposes of the effectiveness of this Release, shall be conclusively presumed to be the date of the delivery of this Release to any of the Stonehouse Releasees, it being acknowledged
that until such delivery this Release shall be held in escrow pursuant to an escrow agreement to be entered into among WorldSpace, Stonehouse, and the escrow agent 

  

 2 

 
named therein); and (b) this Release will be null and void if the date of the closing of the Debt Restructuring Transaction does not occur on or before
September 30, 2004. 
  
 ARTICLE 2 
  
 MISCELLANEOUS 
  
 2.1 Further Assurances. The Shareholder will execute and deliver
promptly such additional documents and instruments as any of the Stonehouse Parties may reasonably request in order to effectuate the provisions of this Release and the releases provided for herein. Notwithstanding the foregoing, the failure by the
Shareholder to execute and deliver any document or instrument will not in any way affect the effectiveness or enforceability of this Release. 
  
 2.2 Non-Assignment. The Shareholder represents, warrants and covenants to the Stonehouse Releasees that (a) he has not assigned or transferred to
any other person or entity any claim he has or may have arising out of or by reason of any matter, cause or thing whatsoever occurring prior to the date hereof against any of the Stonehouse Releasees, and (b) he will not assign or transfer to any
other person or entity any claim he has or may have now or at any other time arising out of or by reason of any matter, cause or thing whatsoever occurring at any time against any of the Stonehouse Releasees. 
  
 2.3 Notices. Any and all notices or other communications or deliveries
required or permitted to be given pursuant to any of the provisions of this Release will be deemed to have been duly given for all purposes if sent by telefax, by certified or registered mail, return receipt requested and postage prepaid, hand
delivered, or by a nationally recognized overnight courier, in each case to the address listed below or at such other address as any party may specify by notice given to the other party in accordance with this Section 2. 
  
 Notices to any or all of the Stonehouse Parties will be sent to: 
  
 The Private Office of Abdulrahman and Sultan Khalid Bin Mahfouz 

P.O. Box 52558 
 Jeddah 21573 

Saudi Arabia 
 Telefax: 966-2-663-6161

  
 with a copy to: 
  
 Jeffrey H. Goodman, Esq. 
 Fulbright & Jaworski L.L.P. 
 801 Pennsylvania Avenue, N.W. 
 Washington, D.C. 20004-2623 
 Telefax: 202-662-4643 
  
 Notices to the Shareholder will be sent to the address set forth beneath the Shareholder’s signature below. 
  

 3 

 The date of giving of any such notice will be: (a) in the case of delivery by hand, by courier or by telefax, the date of
delivery at the appropriate address specified in or pursuant to this Section 2.3, or (b) in the case of delivery by mail, three calendar days following the posting of the mail addressed to the appropriate address specified in or pursuant to this
Section 2.3. 
  
 2.4 Amendment and Waiver. This Release may
be amended, modified, discharged or terminated only by an instrument in writing signed by the Shareholder and all of the Stonehouse Parties. No failure or delay by any individual or entity (each referred to herein as a “Person”) at any
time to enforce one or more of the terms, conditions or obligations of this Release will constitute a waiver of such terms, conditions or obligations or will preclude such Person from requiring performance by any other Person at any time. No waiver
of the provisions hereof will be effective unless in writing and signed by the Person to be charged with such waiver. No waiver will be deemed a continuing waiver or waiver in respect of any subsequent breach or default, either of similar or
different nature, unless expressly so stated in writing. 
  
 2.5
GOVERNING LAW. THIS RELEASE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISIONS THEREOF. 
  
 2.6 Parties In Interest. This Release will be binding upon and shall
inure to the benefit of the Shareholder, the Stonehouse Parties, and the other Stonehouse Releasees, and their respective successors and assigns. 
  
 2.7 Severability. All the provisions of this Release will be considered as separate terms and conditions. In the event any of the provisions hereof
is determined to be invalid, prohibited or unenforceable by a court or other body of competent jurisdiction, this Release will be construed as if such invalid, prohibited or unenforceable provision has been more narrowly drawn so as not to be
invalid, prohibited or unenforceable, unless such construction would be unreasonable. Notwithstanding the foregoing sentence, in the event that any provision contained in this Release should be determined to be invalid, prohibited or unenforceable,
the validity, legality and enforceability of the remaining provisions contained in this Release will not in any way be affected or impaired thereby, unless such construction would be unreasonable. 
  
 2.8 Headings. The headings used herein are for reference purposes only
and will not in any way affect the meaning or interpretation of this Release. 
  

 4 

 IN WITNESS WHEREOF, the Shareholder has duly executed this Release as of the day and year first above
written. 
  

									
	 WITNESS
	 	 	 	 SHAREHOLDER

			
	 	 	 	 	 
					
	 	 	 	 	 	 	 Name:
	 	 
					
	 	 	 	 	 	 	 Address:
	 	 
					
	 	 	 	 	 	 	 	 	 

  

 5 

 EXHIBIT C 
  
 ESCROW AGREEMENT 
  
 AMONG 
  
 STONEHOUSE CAPITAL LIMITED 
  
 WORLDSPACE, INC. 
  
 WORLDSPACE INTERNATIONAL NETWORK INC. 
  
 WORLDSPACE SATELLITE COMPANY, LTD. 
  
 AND

  
 [ESCROW AGENT] 
  
 DATED AS OF
                                 , 2003 

 TABLE OF CONTENTS 
  

					
	 ARTICLE 1         DEFINITIONS AND INTERPRETATION
	  	1
			
	 Section 1.01
	  	General Definitions	  	1
			
	 Section 1.02
	  	Interpretation	  	2
		
	 ARTICLE 2         ESCROW
	  	3
			
	 Section 2.01
	  	Establishment of the Escrow	  	3
			
	 Section 2.02
	  	Effective Date	  	3
			
	 Section 2.03
	  	Actions on the Effective Date	  	3
			
	 Section 2.04
	  	Actions following the Outside Date	  	4
			
	 Section 2.05
	  	Fees	  	4
			
	 Section 2.06
	  	Provisions Regarding Escrow Agent	  	4
		
	 ARTICLE 3         MISCELLANEOUS
	  	5
			
	 Section 3.01
	  	Notices	  	5
			
	 Section 3.02
	  	Successors and Assigns	  	6
			
	 Section 3.03
	  	Governing Law	  	6
			
	 Section 3.04
	  	Severability	  	6
			
	 Section 3.05
	  	Counterparts	  	6
			
	 Section 3.06
	  	Parties	  	6
			
	 Section 3.07
	  	Amendments	  	6

  

 -i- 

 ESCROW AGREEMENT 
  
 This Escrow Agreement (this “Agreement”) dated as of
                    , 2003 is by and among STONEHOUSE CAPITAL LIMITED, a corporation organized and existing under the laws of the Cayman
Islands (“Stonehouse”); WORLDSPACE, INC., a corporation organized and existing under the laws of the State of Maryland, the United States of America (“WSI”); WORLDSPACE INTERNATIONAL NETWORK INC., a company
organized and existing under the International Business Companies Act of the British Virgin Islands (“WIN”); and WORLDSPACE SATELLITE COMPANY, LTD., a company organized and existing under the International Business Companies Act of
the British Virgin Islands (“WSC”) (WSI, WIN and WSC are collectively referred to herein as the “WorldSpace Parties”); and
                            , a
                            , as escrow agent hereunder (“Escrow Agent”). 

 
 A. Stonehouse and the WorldSpace Parties are parties to that certain
Amended and Restated Loan Agreement and Guarantee, dated April 21, 2000, by and among Stonehouse, WorldSpace, WIN and WSI. 
  
 B. Stonehouse and the WorldSpace Parties entered into that certain Loan Restructuring Agreement dated as of
                        , 2003 (the “Restructuring Agreement”). 
  
 C. The parties desire that certain documents be held in escrow in accordance
with the terms and conditions of this Agreement, and the parties have selected Escrow Agent to serve as escrow agent to hold said documents in escrow. 
  
 NOW, THEREFORE, in consideration of the foregoing and the agreements set forth herein, and for other good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
 ARTICLE 1 
  
 DEFINITIONS
AND INTERPRETATION 
  
 Section 1.01 General
Definitions. Wherever used in this Agreement, the following terms have the meanings opposite them: 
  

			
	 “Agreement”
	  	has the meaning ascribed thereto in the Preamble hereof;
		
	 “Business Day”
	  	every day other than (i) Saturday, (ii) Sunday, and (iii) any day on which national banks in New York are closed;
		
	 “Conditions Precedent”
	  	has the meaning ascribed thereto in the Restructuring Agreement;
		
	 “Documents”
	  	has the meaning ascribed thereto in Section 2.01 hereof;
		
	 “Effective Date”
	  	has the meaning ascribed thereto in Section 2.02 hereof;

  

 1 

			
	 “Escrow Agent”
	  	has the meaning ascribed thereto in the Preamble hereof;
		
	 “New Loan”
	  	has the meaning ascribed thereto in the Restructuring Agreement;
		
	 “Outside Date”
	  	means                         , 2004; provided, that by written
notice delivered by both Stonehouse and WSI to the Escrow Agent, the Outside Date may be changed to a later date;
		
	 “Releases”
	  	has the meaning ascribed thereto in Section 2.01(a) hereof;
		
	 “Restructuring Agreement”
	  	has the meaning ascribed thereto in the Preamble hereof;
		
	 “Royalty Agreement”
	  	has the meaning ascribed thereto in Section 2.01(b) hereof;
		
	 “Stonehouse”
	  	has the meaning ascribed thereto in the Preamble hereof;
		
	 “WIN”
	  	has the meaning ascribed thereto in the Preamble hereof;
		
	 “WorldSpace Parties”
	  	has the meaning ascribed thereto in the Preamble hereof;
		
	 “WSC”
	  	has the meaning ascribed thereto in the Preamble hereof; and
		
	 “WSI”
	  	has the meaning ascribed thereto in the Preamble hereof.

  
 Section 1.02
Interpretation. In this Agreement, unless the context otherwise requires: 
  
 (a) headings are for convenience only and do not affect the interpretation of this Agreement; 
  
 (b) words importing the singular include the plural and vice
versa; 
  
 (c) a reference to an Exhibit,
Article, party, Schedule or Section is a reference to that Article or Section of, or that Exhibit, party or Schedule to, this Agreement; 
  
 (d) a reference to a document includes an amendment or supplement to, or replacement or novation of, that document but disregarding any
amendment, supplement, replacement or novation made in breach of this Agreement; 
  
 (e) a reference to a party to any document includes that party’s successors and permitted assigns; and 
  
 (f) “including” and “include” shall be
deemed to mean “including, without limitation” and “include, without limitation.” 
  

 2 

 ARTICLE 2 
  

ESCROW 
  
 Section 2.01 Establishment of the Escrow. The following documents shall be delivered to the Escrow Agent contemporaneously with the
execution hereof: 
  
 (a)
                         (    ) unconditional releases, as set forth in Section 3.01(a) of the
Restructuring Agreement (“Releases”), fully executed by each of the WorldSpace Parties and their respective shareholders; 
  
 (b) four counterparts of a royalty agreement as set forth in Section 3.01(b) of the Restructuring Agreement (the “Royalty
Agreement”), fully executed by the WorldSpace Parties and Stonehouse; and 
  
 (c) four counterparts of a mutual release as set forth in Section 2.01 of the Restructuring Agreement (the “Original Agreement
Release”), fully executed by the WorldSpace Parties and Stonehouse. 
  
 The Releases, the Royalty Agreement, and the Original Agreement Release are collectively referred to herein as the “Documents.” 
  
 Section 2.02 Effective Date. As used herein, the term “Effective Date” shall mean the date of
a notice from Stonehouse to the Escrow Agent (with a copy to the WorldSpace Parties) specifying that, subject to the release (and resulting effectiveness) of the Documents from escrow hereunder, the Conditions Precedent have been satisfied or
waived. Provided such Conditions Precedent have been satisfied or waived, Stonehouse, at the request of WSI, shall cooperate in good faith to provide the aforesaid notice approximately simultaneously with the closing of the New Loan. 
  
 Section 2.03 Actions on the Effective Date. If the Effective
Date occurs on or before the Outside Date, then upon the Effective Date: 
  
 (a) each of the Documents shall immediately and automatically become fully effective, valid, binding and enforceable in accordance with its respective terms; 
  
 (b) the Escrow Agent shall promptly deliver to Stonehouse
each of the Releases, with such delivery being made to Stonehouse c/o Fulbright & Jaworski L.L.P., 801 Pennsylvania Avenue, N.W., Washington, D.C., 20004-2623, Attention: Jeffrey H. Goodman, Esq.; and 
  
 (c) the Escrow Agent shall deliver one (1) fully-executed
counterpart of each of the Royalty Agreement and the Original Agreement Release to, respectively, Stonehouse, WSI, WIN, and WSC, with (i) the delivery to Stonehouse being made c/o Fulbright & Jaworski L.L.P., 801 Pennsylvania Avenue, N.W.,
Washington, D.C., 20004-2623, Attention: Jeffrey H. 

  

 3 

 
Goodman, Esq., and (ii) the delivery to each of WSI, WIN, and WSC being made by hand delivery on the Effective Date to Kenneth J. Ayres, Esq., Jones, Day, 51
Louisiana Avenue, N.W., Washington, D.C., 20001-2113. 
  
 Section
2.04 Actions following the Outside Date. If the Effective Date does not occur on or before the Outside Date, then (a) none of the Documents shall become effective, each Document automatically being null and void, and (b) on the first
Business Day following the Outside Date the Escrow Agent shall mark each counterpart of each of the Documents “VOID” and shall deliver (i) each of the Releases (each marked “VOID”) to WSI, with such delivery being made c/o Jones,
Day, 51 Louisiana Avenue, N.W., Washington, D.C., 20001-2113, Attention: Kenneth J. Ayres, Esq. and (ii) two (2) counterparts of each of the Royalty Agreement and the Original Agreement Release (each marked “VOID”) to (A) Stonehouse c/o
Fulbright & Jaworski L.L.P., 801 Pennsylvania Avenue, N.W., Washington, D.C., 20004-2623, Attention: Jeffrey H. Goodman, Esq., and (B) WSI c/o Jones, Day, 51 Louisiana Avenue, N.W., Washington, D.C., 20001-2113, Attention: Kenneth J. Ayres, Esq.

  
 Section 2.05 Fees. The fees of the Escrow Agent
for the performance of its functions and duties as required by this Agreement shall be                  Dollars
($            ). All fees of the Escrow Agent shall be paid by, and shall be the sole and exclusive responsibility of, the WorldSpace Parties, and Stonehouse shall have no
liabilities or obligations whatsoever in connection therewith. 
  
 Section 2.06 Provisions Regarding Escrow Agent. 
  
 (a) The Escrow Agent shall be obligated to act only as provided for in this Agreement or as otherwise provided in a writing signed by both Stonehouse and the WorldSpace Parties. The Escrow Agent is authorized to
comply with any orders, judgments or decrees of any court of competent jurisdiction. 
  
 (b) Stonehouse and the WorldSpace Parties hereby waive any suit, claim, demand or cause of action which it or they may have or may assert
against the Escrow Agent arising out of or relating to the execution and performance by the Escrow Agent of this Agreement, unless such suit, claim, demand or cause of action is based upon the willful misconduct, negligence or bad faith of, or
breach of this Agreement by, the Escrow Agent. The WorldSpace Parties agree to indemnify the Escrow Agent against and from any and all claims, demands, costs, liabilities and expenses, including counsel fees, which may be asserted against the Escrow
Agent or which the Escrow Agent may incur by reason of the execution or performance by the Escrow Agent of this Agreement, except those claims, demands, costs, liabilities, expenses and fees resulting from the willful misconduct, negligence or bad
faith of, or breach of this Agreement by, the Escrow Agent. 
  

 4 

 ARTICLE 3 
  

MISCELLANEOUS 
  
 Section 3.01 Notices. Any and all notices or other communications or deliveries required or permitted to be given pursuant to any of the
provisions of this Agreement will be deemed to have been duly given for all purposes if sent both (a) by telefax and (b) by certified or registered mail, return receipt requested and postage prepaid, by hand delivery, or by an internationally
recognized overnight courier, in any case to the telefax number and the address of such party listed below or to such other telefax number or address as any party may specify by notice given to the other party in accordance with this Section 3.01.

  
 For Stonehouse: 
  
 Stonehouse Capital Limited 
 c/o Al-Murjan Organization 
 PO Box 52558

 Jeddah 21573 
 Saudi Arabia

 Attention: Cherif Sedky 
 Telefax: 011-9662-694-3466 
  
 with a copy to:

  
 Jeffrey H. Goodman, Esq. 
 Fulbright & Jaworski L.L.P. 
 801
Pennsylvania Avenue, N.W. 
 Washington, D.C. 20004-2623 
 Telefax: 202-662-4643 
  
 For the
WorldSpace Parties: 
  
 Noah A. Samara 
 Chairman and Chief Executive Officer 
 WorldSpace International Network Inc. 
 2400 N Street, N.W. 
 Washington, D.C. 20037 
 Telefax: 202-969-6004

  
 with a copy to: 
  
 Donald J. Frickel, Esq. 
 WorldSpace International Network Inc. 
 2400 N
Street, N.W. 
 Washington, D.C. 20037 
 Telefax: 202-969-6560 
  
 The date of giving of any such
notice will be: (a) in the case of delivery by hand or courier, the date of delivery at the appropriate address specified in or pursuant to this Section 3.01, provided that the notice has also been sent by telefax to the appropriate telefax number

  

 5 

 
specified in or pursuant to this Section 3.01; or (b) in the case of delivery by mail, five (5) days following the posting of the mail addressed to the
appropriate address specified in or pursuant to this Section 3.01, if posted in the same country as the country of the address, and twelve (12) days following the posting of the mail addressed to the appropriate address specified in or pursuant to
this Section 3.01, if posted in a different country than the country of the address, provided that the notice has also been sent by telefax to the appropriate telefax number specified in or pursuant to this Section 3.01. 
  
 Section 3.02 Successors and Assigns. This Agreement binds and
benefits the respective successors and assigns of the parties; provided, however, that none of the WorldSpace Parties nor the Escrow Agent may assign or delegate any of their respective rights or obligations under this Agreement without the prior
consent of Stonehouse. 
  
 Section 3.03 Governing
Law. This Agreement shall be deemed to be a contract made under, and shall be governed by, and shall be construed and interpreted in accordance with, the laws of the State of New York, United States of America, without regard to the conflict
of laws provisions thereof (other than Section 5-1401 and 5-1402 of the General Obligations Laws of the State of New York). 
  
 Section 3.04 Severability. All the provisions of this Agreement will be considered as separate terms and conditions. In the event any of the
provisions hereof is determined to be invalid, prohibited or unenforceable by a court or other body of competent jurisdiction, this Agreement will be construed as if such invalid, prohibited or unenforceable provision has been more narrowly drawn so
as not to be invalid, prohibited or unenforceable, unless such construction would be unreasonable. Notwithstanding the foregoing sentence, in the event that any provision contained in this Agreement should be determined to be invalid, prohibited or
unenforceable, the validity, legality and enforceability of the remaining provisions contained in this Agreement will not in any way be affected or impaired thereby, unless such construction would be unreasonable. 
  
 Section 3.05 Counterparts. This Agreement may be executed in
multiple counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
  
 Section 3.06 Parties. Nothing expressed or implied in this Agreement is intended, or shall be construed to confer upon, or give any person,
other than the parties hereto and their respective successors and assigns, any benefits, rights or remedies under or by reason of this Agreement. 
  
 Section 3.07 Amendments. This Agreement may not be amended, waived or otherwise modified except in a writing executed by Stonehouse and the
WorldSpace Parties and, if the duties or liabilities of the Escrow Agent are adversely affected thereby, by the Escrow Agent. 
  
 *     *     * 
  

 6 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be signed in their respective names as of
the date first above written. 
  

			
	 STONEHOUSE CAPITAL LIMITED

		
	 By:
	 	 
	 Name:
	 	 Abdulrahman Bin Mahfouz

	 Title:
	 	 
		
	 By:
	 	 
	 Name:
	 	 Sultan Bin Mahfouz

	 Title:
	 	 
	
	 WORLDSPACE, INC.

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 WORLDSPACE INTERNATIONAL NETWORK
 INC.

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 WORLDSPACE SATELLITE COMPANY, LTD.

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 [ESCROW AGENT]

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 7 

 EXHIBIT D 
  

  
 ROYALTY AGREEMENT 
  
 among 
  
 STONEHOUSE CAPITAL LTD. 
  
 WORLDSPACE, INC. 
  
 WORLDSPACE INTERNATIONAL NETWORK INC. 
  
 AND 
  
 WORLDSPACE SATELLITE COMPANY LTD. 
  
 Dated as of September     , 2003 
  

  

  
 TABLE OF CONTENTS

  

					
	 	  	 	  	Page

	 ARTICLE I
	  	 DEFINITIONS AND INTERPRETATION
	  	1
			
	 Section 1.01
	  	 General Definitions
	  	1
			
	 Section 1.02
	  	 Interpretation
	  	6
			
	 ARTICLE II
	  	 PAYMENTS
	  	7
			
	 Section 2.01
	  	 Royalty Payments
	  	7
			
	 Section 2.02
	  	 Scale-Down Fee
	  	8
			
	 Section 2.03
	  	 Equalization Payment
	  	8
			
	 Section 2.04
	  	 Effectiveness
	  	8
			
	 ARTICLE III
	  	 REPRESENTATIONS
	  	9
			
	 Section 3.01
	  	 Representations of the WorldSpace Parties
	  	9
			
	 Section 3.02
	  	 Representations of Stonehouse
	  	9
			
	 ARTICLE IV
	  	 COVENANTS
	  	10
			
	 Section 4.01
	  	 Reporting
	  	10
			
	 Section 4.02
	  	 Audit
	  	10
			
	 Section 4.03
	  	 Distributions
	  	10
			
	 Section 4.04
	  	 Sale of Assets
	  	11
			
	 Section 4.05
	  	 Funding Expenditure Plan
	  	11
			
	 Section 4.06
	  	 Confidentiality
	  	11
			
	 Section 4.07
	  	 Subordination
	  	12
			
	 ARTICLE V
	  	 MISCELLANEOUS
	  	12
			
	 Section 5.01
	  	 Saving of Rights
	  	12
			
	 Section 5.02
	  	 Notices
	  	13
			
	 Section 5.03
	  	 Overdue Payments
	  	14
			
	 Section 5.04
	  	 Payment Location
	  	14
			
	 Section 5.05
	  	 Termination
	  	14
			
	 Section 5.06
	  	 Applicable Law and Dispute Resolution
	  	14
			
	 Section 5.07
	  	 Successors and Assigns
	  	14
			
	 Section 5.08
	  	 Waivers and Consents; Amendments
	  	14
			
	 Section 5.09
	  	 Joint and Several Liability
	  	15
			
	 Section 5.10
	  	 Severability
	  	15
			
	 Section 5.11
	  	 Counterparts
	  	15
			
	 Section 5.12
	  	 Further Assurances
	  	15

  

 i 

  
 TABLE OF CONTENTS

  

					
	 Section 5.13
	  	 Entire Agreement
	  	15
	 Section 5.14
	  	 Additional Exhibits
	  	15
	 Section 5.15
	  	 Tax Disclosure
	  	16

  
 EXHIBITS 
  

			
		
	Exhibit A	  	Form of Control Agreement
		
	Exhibit B	  	Funding Expenditure Plan
		
	Exhibit C	  	Dispute Resolution Procedures
		
	Exhibit D	  	Financial Model
		
	Exhibit E	  	Annual Operating Budget
		
	Exhibit F	  	Operating and Marketing Plan
		
	Exhibit G	  	Restructuring Agreement

  

 - ii - 

  
 ROYALTY AGREEMENT 

 
 THIS ROYALTY AGREEMENT (this “Agreement”) dated as of
September     , 2003 (the “Execution Date”), is by and between (1) Stonehouse Capital Ltd., a Cayman Islands corporation (“Stonehouse”), and (2) WorldSpace, Inc., a Maryland corporation
(“WSI”), WorldSpace International Network Inc., a company organized under the International Business Companies Act of the British Virgin Islands (“WIN”), WorldSpace Satellite Company Ltd., a company organized under
the International Business Companies Act of the British Virgin Islands (“WSC”). WSI, WIN and WSC are collectively referred to as the “WorldSpace Parties.” 
  
 RECITALS 
  
 A. The parties are parties to a Restructuring Agreement of even date herewith, a copy of which is attached hereto as
Exhibit G (the “Restructuring Agreement”) pursuant to which Stonehouse is releasing and discharging the obligations of the WorldSpace Parties under that certain Amended and Restated Loan Agreement and Guarantee dated as of
April 21, 2000, simultaneously with the execution and delivery of this Agreement. 
  
 B. The Restructuring Agreement provides for the execution and delivery of this Agreement. 
  
 NOW, THEREFORE, in consideration of the foregoing and the agreements set forth herein, and for other good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS AND
INTERPRETATION 
  
 Section 1.01 General Definitions.
Wherever used in this Agreement, the following terms have the meanings opposite them: 
  

			
	“Affiliate”	  	with respect to any entity, any entity that controls, is controlled by, or is under common control with the entity in question. For purposes of this definition, “control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of voting securities or otherwise;
		
	“Agreement”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“Annual Operating Budget”	  	has the meaning ascribed thereto in Section 5.14(b) hereof;
		
	“Code”	  	has the meaning ascribed thereto in Section 2.01(b) hereof;
		
	“Current Shareholders”	  	the parties who, at any time prior to the Effective Date, were shareholders of WSI or any of its Affiliates or

  

 1 

			
	 	  	subsidiaries or who are Affiliates, family members or other relatives of any parties who were shareholders of WSI or any of its Affiliates or subsidiaries on or prior to the Effective Date;
provided, that “Current Shareholders” does not include any of the WorldSpace Parties or any direct or indirect wholly-owned subsidiaries thereof;
		
	“Distribution Calculation Year”	  	has the meaning ascribed thereto in Section 4.03(a) hereof;
		
	“Distribution Payment Year”	  	has the meaning ascribed thereto in Section 4.03(a) hereof;
		
	“Distributions”	  	dividends or similar distributions, return of capital, payments with respect to loans by or to, or other payments (other than reasonable salaries or similar compensation for services) made by
any of the WorldSpace Parties to any Current Shareholders or any successors, transferees or assignees thereof (whether made in respect of shares or loans acquired or made by any Current Shareholders prior or subsequent to the Effective Date) or any
other payments of any kind by any of the WorldSpace Parties with respect to Subordinate Loans; provided, that “Distributions” will not include any dividends, similar distributions or return of capital paid in respect of any shares
acquired by any Current Shareholders in a Qualifying Public Offering pursuant to the prospectus used in such Qualifying Public Offering or acquired by any Current Shareholders in the open market at any time after the Qualifying Public Offering,
unless such shares were acquired pursuant to options, warrants or similar rights awarded to any Current Shareholders prior to such Qualifying Public Offering or unless such shares were acquired, directly or indirectly, in substitution or exchange
for shares held by any of the Current Shareholders prior to such Qualifying Public Offering;
		
	“Dollars”	  	the lawful currency of the United States of America, also represented herein with the “$” sign;
		
	“Effective Date”	  	the date of the Restructuring (as defined in the Restructuring Agreement);
		
	“EBITDA”	  	earnings before interest, taxes, depreciation and amortization (including, without limitation, the amortization of goodwill and other intangibles) and before any extraordinary losses or
writedowns of assets, and without reduction for loss carryovers from prior periods;

  

 - 2 - 

			
	“Eliminated WorldSpace Party”	  	has the meaning ascribed thereto in Section 2.02(a) hereof;
		
	“Excess Funds”	  	with respect to any Royalty Calculation Year, those funds which have been earned by WSI in such Royalty Calculation Year and, as of the last day of such Royalty Calculation Year, have not
been spent by WSI, minus the amount of the Royalty Payment which will be owed to Stonehouse with respect to such Royalty Calculation Year (and to be paid by the Second Payment Date following such Royalty Calculation Year), it being acknowledged and
agreed that the determination of the amount of Excess Funds applicable to a Royalty Calculation Year will be made from the consolidated audited financial statements of WSI no later than one hundred twenty (120) calendar days following the end of
such Royalty Calculation Year;
		
	“Execution Date”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“Financial Model”	  	has the meaning ascribed thereto in Section 5.14(a) hereof;
		
	“First Payment Date”	  	for any Royalty Calculation Year, the date that is sixty (60) calendar days after the end of such Royalty Calculation Year;
		
	“Interim Payment”	  	for any Royalty Calculation Year, an amount equal to eighty percent (80%) of the Royalty Payment for such Royalty Calculation Year, as estimated in good faith by WSI on the basis of the best
information reasonably available thirty (30) calendar days after the end of such Royalty Calculation Year;
		
	“LIBOR”	  	British Bankers’ Association interbank offered rate for deposits in the loan currency;
		
	“New Investment”	  	all of the investment (whether debt, equity or other form of investment, or a combination thereof) made in WSI (and/or one or more direct or indirect subsidiaries one hundred percent (100%)
of whose revenues are included in WorldSpace EBITDA as of the Effective Date) subsequent to the Execution Date to and including the Effective Date, from any party or parties who, prior to the Execution Date, are not shareholders of WSI or any of its
Affiliates or subsidiaries and are not Affiliates, family members or other relatives of any such shareholders;
		
	“New Loan Documentation”	  	has the meaning ascribed thereto in the Restructuring Agreement;

  

 - 3 - 

			
	“Operating and Marketing Plan”	  	has the meaning ascribed thereto in Section 5.14(c) hereof;
		
	“Permitted Investments”	  	investments with maturities of six (6) months or less from the date of acquisition which are:
		
	 	  	(i) Dollar denominated securities issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof (provided that the full faith and
credit of the United States of America is pledged in support thereof); or
		
	 	  	(ii) time deposits and certificates of deposit of any commercial bank having capital and surplus in excess of five hundred million Dollars ($500,000,000) or its equivalent and having a rating
on its commercial paper of at least A-1 or the equivalent thereof by Standard & Poor’s Corporation or at least P-1 or the equivalent thereof by Moody’s Investors Service, Inc.;
		
	“Person”	  	any natural person, corporation, company, partnership, firm, voluntary association, joint venture, trust, unincorporated organization, authority or any other entity whether acting in an
individual, fiduciary or other capacity;
		
	“Proceeds Portion”	  	in any Scale-Down Transaction, the portion of the proceeds (whether cash or property) of the sale or liquidation constituting such Scale-Down Transaction that is to be included in any
Distributions;
		
	“Qualifying Public Offering”	  	a firm commitment underwritten public offering of common stock, pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission, which results
in (i) gross proceeds (before underwriting discounts and commissions) to WSI of at least $50,000,000 from purchasers thereunder which are not Affiliates of WSI, and (ii) an aggregate valuation of all the outstanding shares of WSI’s common stock
on a fully-diluted basis immediately prior to consummation of the offering of at least $100,000,000;
		
	“Reference Date”	  	December 31, 2002;
		
	“Restructuring Agreement”	  	has the meaning ascribed thereto in the Recitals hereof;
		
	“Royalty Calculation Year”	  	each calendar year during the Term;

  

 - 4 - 

			
	“Royalty Payment”	  	for any Royalty Calculation Year, an amount equal to ten percent (10%) of WorldSpace EBITDA for such Royalty Calculation Year;
		
	“Royalty Reserve Account”	  	has the meaning ascribed thereto in Section 2.01(b) hereof;
		
	“Royalty Reserve Annual Account”	  	has the meaning ascribed thereto in Section 2.01(b) hereof;
		
	“Scale-Down Fee”	  	has the meaning ascribed thereto in Section 2.02(a) hereof;
		
	“Scale-Down Transaction”	  	has the meaning ascribed thereto in Section 2.02(a) hereof;
		
	“Second Payment Date”	  	for any Royalty Calculation Year, the date that is one hundred eighty (180) calendar days after the end of such Royalty Calculation Year;
		
	“Stonehouse”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“Subordinate Loans”	  	has the meaning ascribed thereto in the Restructuring Agreement;
		
	“Subordination Agreement”	  	has the meaning ascribed thereto in the Restructuring Agreement;
		
	“Term”	  	January 1, 2003 to December 31, 2015, inclusive;
		
	“Transaction Documents”	  	has the meaning ascribed thereto in the Restructuring Agreement;
		
	“U.S. GAAP”	  	generally accepted accounting principles in the United States;
		
	“WIN”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“WorldSpace Enterprise”	  	has the meaning ascribed thereto in the Restructuring Agreement;
		
	“WorldSpace Parties”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“WorldSpace EBITDA”	  	the amount of EBITDA shown on WSI’s audited consolidated income statement for each year, prepared in accordance with U.S. GAAP, consistently applied, adjusted so that:
		
	 	  	(a) WorldSpace EBITDA includes, with respect to any entities in which WSI has an ownership interest, directly or indirectly, of greater than fifty percent (50%) but less than one hundred
percent (100%), only WSI’s pro rata portion of the EBITDA of such entities;

  

 - 5 - 

			
	 	  	(b) WorldSpace EBITDA includes, with respect to any entities in which WSI has an ownership interest, directly or indirectly, of fifty percent (50%) or less, only amounts actually distributed
to WSI in cash or property as dividends or similar distributions, return of capital, payments with respect to loans, or other payments (other than reasonable compensation for services); and
		
	 	  	(c) WorldSpace EBITDA does not include, with respect to any WorldSpace Party that becomes an Eliminated WorldSpace Party, the EBITDA of such WorldSpace Party for any period after the date of
the Scale-Down Transaction in connection with which such WorldSpace Party became an Eliminated WorldSpace Party;
		
	“WSC”	  	has the meaning ascribed thereto in the Preamble hereof; and
		
	“WSI”	  	has the meaning ascribed thereto in the Preamble hereof.

  
 Section 1.02
Interpretation. Unless otherwise indicated in this Agreement: 
  
 (a) headings are for convenience only and do not affect the interpretation of this Agreement; 
  
 (b) words importing the singular include the plural and vice versa; 
  
 (c) a reference to an Exhibit, Article, party, Schedule or Section is a reference to that Article or Section
of, or that Exhibit, party or Schedule to, this Agreement; 
  
 (d) a reference to a document includes an amendment or supplement to, or replacement or novation of, that document but disregarding any amendment, supplement, replacement or novation made in breach of this Agreement;

  
 (e) a reference to a party to any document
includes that party’s successors and permitted assigns; and 
  
 (f) “including” and “include” shall be deemed to mean “including, without limitation” and “include, without limitation.” 
  
 For the avoidance of any doubt, in the event of any sale or transfer of assets to any party,
including, without limitation, sales of less than all or substantially all of the assets of the WorldSpace Parties and sales of ownership interests in any entities, U.S. GAAP will govern whether and the extent to which the sale proceeds are taken
into account in calculating WorldSpace EBITDA in the accounting period of such sale or transfer. 
  

 - 6 - 

  
 ARTICLE II 
  
 PAYMENTS 
  
 Section 2.01 Royalty Payments. (a) WSI will pay to Stonehouse the Royalty Payment for each Royalty Calculation
Year, as follows: (i) the Interim Payment will be due and payable to Stonehouse not later than the First Payment Date for such Royalty Calculation Year; and (ii) the full amount of the Royalty Payment, less the amount of the Interim Payment
previously paid to Stonehouse, will be due and payable to Stonehouse on the Second Payment Date for such Royalty Calculation Year. 
  
 (b) WSI will establish and maintain a segregated reserve account (the “Royalty Reserve Account”) with a subaccount for
each Royalty Calculation Year (each such subaccount a “Royalty Reserve Annual Account”). Within forty-five (45) days after the beginning of each quarter during each Royalty Calculation Year, WSI will deposit into the Royalty Reserve
Annual Account for such Royalty Calculation Year an amount equal to twenty-five percent (25%) of the Royalty Payment for such Royalty Calculation Year, as estimated in good faith by WSI on the basis of the best information then reasonably available;
provided, that WSI will use its good faith and reasonable efforts to obtain, and provide to Stonehouse, information of detail and scope sufficient to make a meaningful estimate. If the estimated Royalty Payment for a Royalty Calculation Year
changes from one quarter to the next, then the amount that WSI will deposit into the Royalty Reserve Annual Account during the quarter in which such estimate is changed will be adjusted to make up for the shortage (in the case of an increase in the
estimate) or excess (in the case of a decrease in the estimate) in the amount or amounts deposited in such Royalty Reserve Annual Account in prior quarters of such Royalty Calculation Year. The amounts deposited in the Royalty Reserve Annual Account
for any Royalty Calculation Year, together with the amount of any interest thereon, shall be applied toward the payment of WSI’s obligations under Section 2.01(a) due on the First Payment Date and/or the Second Payment Date for such Royalty
Calculation Year, and (subject to the next sentence) the amounts contained in the Royalty Reserve Account or the Royalty Reserve Annual Account shall not be used for any other purpose without the prior written consent of Stonehouse (which consent
shall be in the sole and absolute discretion of Stonehouse). Any balance remaining in the Royalty Reserve Annual Account for any Royalty Calculation Year after the Royalty Payment for such Royalty Calculation Year has been paid in full may be
removed from the Royalty Reserve Account and applied as WSI determines to be appropriate, provided that, until the Term has ended, such application is in full compliance with all of the applicable terms and conditions of this Agreement (including,
without limitation, Section 4.03 hereof). The Royalty Reserve Account and the Royalty Reserve Annual Account each constitute “Deposit Accounts” within the meaning of the Uniform Commercial Code as may be in effect in New York from time to
time (the “Code”). Each Deposit Account is subject to the “control” (as set forth in the Code) of Stonehouse for the Term, as such “control” has been agreed to by the WorldSpace Parties, Stonehouse, and the bank
with which the Royalty Reserve Account and the Royalty Reserve Annual Account are maintained, in an authenticated record in the form attached hereto as Exhibit A. Except to the extent Stonehouse may otherwise agree, funds in the
Royalty Reserve Annual Account may only be invested in Permitted Investments. 
  

 - 7 - 

 Section 2.02 Scale-Down Fee. (a) If, during the Term, there is a transaction by an entity
within the WorldSpace Enterprise that results in a sale of all or substantially all of the WorldSpace Parties’ assets (as they are reflected on the consolidated balance sheet of WSI at the Reference Date) or there is a liquidation of any of the
WorldSpace Parties, and as a result of such transaction or liquidation subsequent Royalty Payments pursuant to Section 2.01 (or any other payments contemplated hereunder) are likely to be substantially reduced in the aggregate or terminated (a
“Scale-Down Transaction”), then Stonehouse will be entitled, at its option, to receive a fee (the “Scale-Down Fee”) in lieu of future payments hereunder with respect to each of the WorldSpace Parties all or
substantially all of the assets of which are being sold or which are being liquidated in such Scale-Down Transaction (each such WorldSpace Party with respect to which Stonehouse makes such an election is referred to herein as an “Eliminated
WorldSpace Party”). 
  
 (b) In the event
that Stonehouse elects to receive a Scale-Down Fee with respect to a Scale-Down Transaction, then WSI will pay to Stonehouse a Scale-Down Fee equal to sixty (60%) percent of the Proceeds Portion in such Scale-Down Transaction; provided,
however, that such percentage will be reduced by ten (10%) percent thereof (i.e., from sixty percent (60%) to fifty-four percent (54%), then from fifty-four percent (54%) to forty-eight percent (48%), etc.) for each $50 million
in payments actually made to Stonehouse theretofore under Section 2.01 and this Section 2.02. The receipt by Stonehouse of the Scale-Down Fee will not affect Stonehouse’s right to receive a Royalty Payment for the Royalty Calculation Year in
which the Scale-Down Transaction occurs, and such Royalty Payment will be based upon a calculation of WorldSpace EBITDA that takes such Scale-Down Transaction into account in accordance with the definition of “WorldSpace EBITDA” in
Section 1.01. 
  
 Section 2.03 Equalization Payment.
Upon a sale or liquidation of the WorldSpace Enterprise at any time during the Term (whether by virtue of (a) sale of WorldSpace Parties and/or their Affiliates or (b) a sale of all or substantially all of the WSI assets, or (c) a bankruptcy or
liquidation of WorldSpace Parties and/or their Affiliates or (d) a foreclosure on the WSI assets or the WorldSpace Parties by a WSI creditor), then to the extent that the total cumulative amount of Distributions received (including any Distributions
received or to be received with respect to such sale or liquidation event) by Noah Samara (or any of his Affiliates or family members or other related parties) exceeds the cumulative amounts received (including amounts received or to be received
with respect to such sale or liquidation event by Stonehouse under Sections 2.01 and 2.02 above), then Noah Samara will immediately pay Stonehouse a cash payment equal to one-half of such excess amount. 
  
 Section 2.04 Effectiveness. Notwithstanding any other provision
of this Agreement, none of the WorldSpace Parties will have any obligation pursuant to Sections 2.01 or 2.02 or Article IV, and Noah Samara will have no obligation pursuant to Section 2.03, and Stonehouse will have no rights under any of those
provisions, unless and until the Effective Date occurs. Immediately upon the occurrence of the Effective Date, the WorldSpace Parties will make any and all payments and deposits that would have theretofore been required under Sections 2.01 and 2.02
and Article IV but for this Section 2.04. 
  

 - 8 - 

  
 ARTICLE III 
  
 REPRESENTATIONS 
  
 Section 3.01 Representations of the WorldSpace Parties. Each of the WorldSpace Parties represents, warrants,
and covenants, jointly and severally, to Stonehouse that as of the date of this Agreement and as of the Effective Date: 
  
 (a) Such WorldSpace Party is a legal entity duly organized and validly existing under the laws of the jurisdiction in which it is
organized, and has the power and authority to carry on its business and to own its properties and assets and to execute, deliver and perform this Agreement; 
  
 (b) This Agreement has been duly and validly authorized, executed and delivered by it and constitutes its valid and legally binding
obligation, enforceable in accordance with its terms (except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the rights of creditors generally and by general
principles of equity); 
  
 (c) Each of the
representations and warranties made by the WorldSpace Parties (or any of them) in the Restructuring Agreement is incorporated herein by reference, without regard to Section 4.03 of the Restructuring Agreement, and is true and correct as of the
Execution Date and as of the Effective Date; and 
  
 (d) All Charter Documents, financial reports and other documents required to be delivered to Stonehouse pursuant to the terms of the Transaction Documents are true, complete and accurate copies thereof. 
  
 Section 3.02 Representations of Stonehouse. Stonehouse
represents, warrants, and covenants to the WorldSpace Parties that as of the date of this Agreement and as of the Effective Date: 
  
 (a) It is a legal entity duly organized and validly existing under the laws of the jurisdiction in which it is organized, and has the
power and authority to carry on its business and to own its properties and assets and to execute, deliver and perform this Agreement; 
  
 (b) This Agreement has been duly and validly authorized, executed and delivered by it and constitutes its valid and legally binding
obligation; and 
  
 (c) Each of the
representations and warranties made by Stonehouse in Section 4.02 of the Restructuring Agreement is incorporated herein by reference, without regard to Section 4.03 of the Restructuring Agreement, and is true and correct as of the Execution Date and
as of the Effective Date. 
  

 - 9 - 

  
 ARTICLE IV 
  
 COVENANTS 
  
 Section 4.01 Reporting. (a) On or prior to the First Payment Date for each Royalty Calculation Year, WSI will
use its good faith and reasonable efforts to obtain, and provide to Stonehouse, information of detail and scope sufficient to make a meaningful estimate of the Royalty Payment for such Royalty Calculation Year. 
  
 (b) Not later than one hundred twenty (120) days after the
end of each Royalty Calculation Year, WSI will deliver to Stonehouse a copy of its audited consolidated financial statement as of the end of such fiscal year and for the year then ending, prepared in accordance with U.S. GAAP, consistently applied.

  
 Section 4.02 Audit. Stonehouse will have the
right to audit the books and accounts of the WorldSpace Parties at any time during the Term, but not more frequently than once per year, upon reasonable advance notice in order to determine or confirm any calculation of WorldSpace EBITDA (or for
purposes related thereto), and the WorldSpace Parties agree to fully cooperate with Stonehouse in connection therewith. 
  
 Section 4.03 Distributions. (a) The WorldSpace Parties agree that Distributions may be paid only (i) with Excess Funds available at the end
of a given Royalty Calculation Year (such given Royalty Calculation Year referred to herein as the “Distribution Calculation Year”, and the Royalty Calculation Year following the Distribution Calculation Year referred to herein as
the “Distribution Payment Year”), (ii) on or after the Second Payment Date of the applicable Distribution Payment Year, and (iii) after the Royalty Payment due and payable on such Second Payment Date has been paid in full to
Stonehouse. 
  
 (b) Additionally, in no event
shall any Distribution be paid unless on the date of such payment, each of the following requirements has been satisfied: 
  
 i) no breach in any material respect of a representation or warranty in the New Loan Documentation (or in any respect if a materiality
standard is not provided for such representation or warranty in the New Loan Documentation), default (or event which, with the giving of notice or the passage of time, would become a default) under this Agreement or under any New Loan Documentation,
has occurred and is continuing; 
  
 ii) all
reserves required under any Transaction Document or New Loan Documentation are in place and at the required levels; 
  
 iii) the WorldSpace Parties are current on all expenses and other amounts owed to any Person, and the contemplated payment of the
Distribution will not result in any reasonably foreseeable or likely shortfall in funds available to meet future expenses and other amounts which will become due to any Person during the subsequent twelve-month period; 
  
 iv) the payment of the Distribution is made only from
earnings from the applicable Distribution Calculation Year; and 
  

 - 10 - 

 v) the payment of the Distribution is in all respects permitted under applicable law.

  
 Section 4.04 Sale of Assets. (a) For a period of
three (3) years from the Effective Date, none of the WorldSpace Parties will voluntarily sell all or substantially all of its assets, or voluntarily liquidate, without the prior written consent of Stonehouse, which consent will not be unreasonably
withheld. 
  
 (b) The WorldSpace Parties will not
sell any of their ownership position in any of the entities listed in Exhibit I to the Restructuring Agreement (which exhibit is incorporated herein by reference) or any of their assets listed in Exhibit H of the Restructuring Agreement (which
exhibit is incorporated herein by reference) for less than fair value. For purposes of this Section 4.04(b), fair value may be conclusively established by an opinion of an internationally recognized investment banking firm engaged by WSI;
provided, that in the absence of such an opinion other evidence may be used to establish fair value; and provided further, that any sale of assets by any WorldSpace Parties to an unaffiliated third party in the ordinary course
of business will be presumed to be for fair value absent clear evidence to the contrary. Notwithstanding the foregoing, this Section 4.04(b) will not restrict the WorldSpace Parties from placing assets into wholly or partially owned direct or
indirect subsidiaries or from entering into joint venture or financing arrangements; provided, that none of the WorldSpace Parties will sell or transfer assets to affiliates or joint ventures in which the collective ownership interests of the
WorldSpace Parties is less than one hundred percent (100%) unless such sale or transfer is made for fair value (which may include, without limitation, an equity interest in the transferee) and is consistent with Section 4.04(c) hereof; and
provided further, that if any of the WorldSpace Parties makes such a sale or transfer of assets to any affiliate or joint venture in which the collective ownership interests of the WorldSpace Parties is less than one hundred percent
(100%), then the WorldSpace Parties will be required hereby to dedicate the consideration received in exchange for such sale or transfer to the ongoing business of the WorldSpace Enterprise which may include, without limitation, holding any equity
interest in the transferee that may be part of such consideration; 
  
 (c) Notwithstanding anything which may be contained to the contrary in this Section 4.04, in Section 2.02 or elsewhere, no sale or transfer of assets of the WorldSpace Enterprise is intended to be permitted hereunder
to the extent such sale or transfer would be reasonably likely, as assessed at or immediately prior to the time of such sale of transfer, to materially diminish the overall return to Stonehouse (whether through Royalty Payments, Scale-Down Fees or
other fees, or any combination of the same) under this Royalty Agreement during the Term. 
  
 Section 4.05 Funding Expenditure Plan. WSI will apply the proceeds of the New Investment substantially in accordance with the Funding Expenditure Plan set forth as Exhibit B. 
  
 Section 4.06 Confidentiality. All information disclosed to any
party pursuant to this Agreement will be kept confidential by such party, and will not be used by such party other than in connection with this Agreement, except to the extent such information was known by such party prior to the time it was
provided to the party hereunder or is or has become lawfully obtainable from other sources, or to the extent such duty as to confidentiality and non-use is 

  

 - 11 - 

 
waived by the parties in writing, or except as may be required by order of any court or governmental agency. This Section 4.06 shall not apply to disclosures
of information obtained hereunder by any party hereto made to such party’s legal counsel, to such party’s consultants, or to any other such Persons whose services such party may require throughout the Term. The foregoing obligation of
confidentiality and non-use will survive any termination of this Agreement. 
  
 Each of the WorldSpace Parties agrees that it shall immediately notify Stonehouse if there is any change after the date hereof to any of the information described on Exhibit K to the Restructuring Agreement, and each
of the WorldSpace Parties also agrees that if any Person who has not previously executed and delivered a Subordination Agreement becomes entitled to receive (or to potentially receive) Distributions (other than with respect to dividends which,
pursuant to the terms hereof, may be distributed to shareholders of WSI), such Person shall immediately execute and deliver a Subordination Agreement. 
  
 Section 4.07 Subordination. Each of the WorldSpace Parties agrees that it shall immediately notify Stonehouse if there is any change after
the date hereof to any of the information described on Exhibit K to the Restructuring Agreement (which exhibit is incorporated herein by reference), and each of the WorldSpace Parties also agrees that if any Person who has not previously executed
and delivered a Subordination Agreement becomes entitled to receive (or to potentially receive) Distributions (other than with respect to dividends which, pursuant to the terms hereof, may be distributed to shareholders of WSI), such Person shall
immediately execute and deliver a Subordination Agreement. 
  
 ARTICLE V 
  
 MISCELLANEOUS 
  
 Section 5.01 Saving of Rights. 
  
 (a) The rights and remedies of Stonehouse in relation to any
misrepresentation or breach of warranty on the part of any of the WorldSpace Parties shall not be prejudiced by any investigation by or on behalf of Stonehouse into the affairs of any of the WorldSpace Parties, by the execution or the performance of
this Agreement or by any other act or thing which may be done by or on behalf of Stonehouse in connection with this Agreement and which might, apart from this Section, prejudice such rights or remedies. 
  
 (b) No course of dealing or waiver by Stonehouse in
connection with any condition or payment to be made under this Agreement shall impair any right, power or remedy of Stonehouse with respect to any other condition or payments, or be construed to be a waiver thereof; nor shall the action of
Stonehouse with respect to any condition or payment affect or impair any right, power or remedy of Stonehouse with respect to any other condition or payment. 
  

(c) No course of dealing and no failure or delay by Stonehouse in exercising, in whole or in part, any power, remedy, discretion,
authority or other right under this Agreement or any other agreement shall waive or impair, or be construed to be a waiver of or an acquiescence in, such or any other power, remedy, discretion, authority or right under this 

  

 - 12 - 

 
Agreement, or in any manner preclude its additional or future exercise; nor shall the action of Stonehouse with respect to any default, or any acquiescence
by it therein, affect or impair any right, power or remedy of Stonehouse with respect to any other default. 
  
 Section 5.02 Notices. Any and all notices or other communications or deliveries required or permitted to be given pursuant to any of the
provisions of this Agreement will be deemed to have been duly given for all purposes if sent both (a) by telefax and (b) by certified or registered mail, return receipt requested and postage prepaid, by hand delivery, or by an internationally
recognized overnight courier, in any case to the telefax number and the address of such party listed below or to such other telefax number or address as any party may specify by notice given to the other party in accordance with this Section 5.02.

  
 Notices to Stonehouse will be sent to: 
  
 Stonehouse Capital Ltd. 
 c/o Al-Murjan Organization 
 PO Box 52558

 Jeddah 21573 
 Saudi Arabia

 Attention: Cherif Sedky 
 Telefax: 011-9662-694-3466 
  
 with a copy to: 
  
 Jeffrey H. Goodman, Esq. 
 Fulbright & Jaworski L.L.P. 
 801
Pennsylvania Avenue, N.W. 
 Washington, D.C. 20004-2623 
 Telefax: 202-662-4643 
  
 Notices to the
WorldSpace Parties will be sent to: 
  
 Noah A. Samara

 Chairman and Chief Executive Officer 
 WorldSpace International Network Inc. 
 2400 N Street, N.W. 
 Washington, D.C. 20037 
 Telefax: 202-969-6004

  
 with a copy to: 
  
 Donald J. Frickel, Esq. 
 WorldSpace International Network Inc. 
 2400 N Street, N.W. 
 Washington, D.C. 20037 
 Telefax: 202-969-6560

  

 - 13 - 

 The date of giving of any such notice will be: (a) in the case of delivery by hand or courier, the date of delivery at
the appropriate address specified in or pursuant to this Section 5.02, provided that the notice has also been sent by telefax to the appropriate telefax number specified in or pursuant to this Section 5.02; or (b) in the case of delivery by mail,
five (5) days following the posting of the mail addressed to the appropriate address specified in or pursuant to this Section 5.02, if posted in the same country as the country of the address, and twelve (12) days following the posting of the mail
addressed to the appropriate address specified in or pursuant to this Section 5.02, if posted in a different country than the country of the address, provided that the notice has also been sent by telefax to the appropriate telefax number specified
in or pursuant to this Section 5.02. 
  
 Section 5.03
Overdue Payments. All overdue amounts payable pursuant to the terms of this Agreement shall accrue interest from the date on which payment of the relevant amount became due until the date of actual payment at a rate of LIBOR plus five
percent (5%) per annum. 
  
 Section 5.04 Payment
Location. All payments to Stonehouse pursuant to this Agreement shall be made by wire transfer to Account Number              at
             (ABA Number             ), or to such other account, or in accordance with such other instruction, as
Stonehouse may notify the WorldSpace Parties from time to time. 
  
 Section 5.05 Termination. This Agreement will automatically terminate if the Effective Date has not occurred on or before September     , 2004. 
  
 Section 5.06 Applicable Law and Dispute Resolution. This Agreement
shall be deemed to be a contract made under, and shall be governed by, and shall be construed and interpreted in accordance with, the laws of the State of New York, United States of America, without regard to the conflict of laws provisions thereof
(other than Section 5-1401 and 5-1402 of the General Obligations Laws of the State of New York). The parties hereto agree to submit any dispute based on any matter arising out of or relating to this Agreement or the transactions contemplated hereby
to arbitration in accordance with the terms set forth on Exhibit C attached hereto. 
  
 Section 5.07 Successors and Assigns. This Agreement binds and benefits the respective successors and assigns of the parties; provided, however, that none of the WorldSpace Parties may
assign or delegate any of their respective rights or obligations under this Agreement without the prior consent of Stonehouse. 
  
 Section 5.08 Waivers and Consents; Amendments. No failure or delay by any party at any time to enforce one or more of the terms, conditions
or obligations of this Agreement will constitute a waiver of such terms, conditions or obligations or will preclude such party from requiring performance by the other party at any time. No waiver of the provisions hereof, or any consent given
hereunder, will be effective unless in writing and signed by the party to be charged with such waiver or consent. No waiver will be deemed a continuing waiver or waiver in respect of any subsequent breach or default, either of similar or different
nature, unless expressly so stated in writing. This Agreement may only be amended by a written instrument signed by all of the parties hereto. 
  

 - 14 - 

 Section 5.09 Joint and Several Liability. Each of the WorldSpace Parties hereby agrees that
it shall be jointly and severally liable for the obligations of each of the WorldSpace Parties hereunder. 
  
 Section 5.10 Severability. All the provisions of this Agreement will be considered as separate terms and conditions. In the event any of the
provisions hereof is determined to be invalid, prohibited or unenforceable by a court or other body of competent jurisdiction, this Agreement will be construed as if such invalid, prohibited or unenforceable provision has been more narrowly drawn so
as not to be invalid, prohibited or unenforceable, unless such construction would be unreasonable. Notwithstanding the foregoing sentence, in the event that any provision contained in this Agreement should be determined to be invalid, prohibited or
unenforceable, the validity, legality and enforceability of the remaining provisions contained in this Agreement will not in any way be affected or impaired thereby, unless such construction would be unreasonable. 
  
 Section 5.11 Counterparts. This Agreement may be executed in
two or more counterparts, each of which will be deemed an original but all of which, taken together, will constitute one and the same instrument. 
  
 Section 5.12 Further Assurances. The WorldSpace Parties, at their expense, will execute and deliver promptly such additional documents,
assignments, certificates and instruments as Stonehouse may reasonably request in order to effectuate the provisions of, and the transactions provided for in, this Agreement. Stonehouse, at the expense of the WorldSpace Parties, will execute and
deliver promptly such additional documents, assignments, certificates and instruments as any of the WorldSpace Parties may reasonably request in order to effectuate the provisions of, and the transactions provided for in, this Agreement. 

 
 Section 5.13 Entire Agreement. This Agreement contains the
entire understanding of the parties hereto with respect to the subject matter contained herein. This Agreement supersedes all prior agreements and understandings between or among the parties with respect to such subject matter hereof (including,
upon the Effective Date, the Restructuring Agreement; provided, however, that the foregoing is not intended to diminish the continuing validity and effectiveness of any definitions or other terms that are defined or otherwise
incorporated herein by cross-reference to the Restructuring Agreement in Sections 1.01, 3.01(c), 3.02, 4.04(b), and 4.07). 
  
 Section 5.14 Additional Exhibits. The parties hereto acknowledge and agree to the following: 
  
 (a) the financial model of the WorldSpace Enterprise (based
on mutually agreed assumptions and showing mutually agreed debt coverage and equity return forecasts), current as of the Execution Date, is attached hereto as Exhibit D (the “Financial Model”); 
  
 (b) the annual operating budget of the WorldSpace Enterprise
(allocated on a monthly basis, for the twelve months immediately following the date of the Restructuring), current as of the Execution Date, is attached hereto as Exhibit E (the “Annual Operating Budget”); 
  

 - 15 - 

 (c) the operating and marketing plan of the WorldSpace Enterprise, current as of the
Execution Date, is attached hereto as Exhibit F (the “Operating and Marketing Plan”); and 
  
 (d) until (and including) the Effective Date, the WorldSpace Parties shall promptly notify Stonehouse in writing of any changes occurring
after the Execution Date with respect to the Financial Model, the Annual Operating Budget, the Operating and Marketing Plan and/or the Funding Expenditure Plan. 
  

Section 5.15 Tax Disclosure. Notwithstanding anything herein to the contrary, but only to the extent permitted under applicable
securities laws, each party to the transactions contemplated by this Agreement (and each employee, representative and other agent thereof) is authorized to disclose to any and all persons, without limitation of any kind, the tax treatment and tax
structure of such transactions and all materials of any kind (including opinions or other tax analyses) insofar as they relate to the tax treatment and tax structure of such transactions; provided, that this authorization does not extend to
disclosure of any other information, including without limitation (a) the identity of any party to such transactions (or any affiliate thereof), (b) the existence or status of any negotiations or (c) any financial, business, legal or personal
information of or regarding any party (or any of its affiliates) to the extent not related to the tax treatment or tax structure of such transactions. 
  
 *         *         * 
  

 - 16 - 

 The parties hereto have duly executed this Agreement as of September     ,
2003. 
  

			
	 WORLDSPACE, INC.

		
	By:	 	 
	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

	
	 WORLDSPACE INTERNATIONAL NETWORK INC.

		
	By:	 	 
	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

	
	 WORLDSPACE SATELLITE COMPANY LTD.

		
	By:	 	 
	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

	
	 STONEHOUSE CAPITAL LTD.

		
	By:	 	 
	 	 	 Abdulrahman Bin Mahfouz

		
	By:	 	 
	 	 	 Sultan Bin Mahfouz

  
 The undersigned,
Noah A. Samara, agrees to Section 2.03 of the foregoing Agreement. 
  

	
	
	 
	 Noah A. Samara

  

 - 17 - 

  
 EXHIBIT E 
  
 NEW LOAN PARAMETERS 
  

  
 [Logo] 
  
 WorldSpace, Inc. 
  
 Financing Parameters 
  
 Financing Parameters, June, 2003 
  

 Capital Raise Parameters 
  

	 	•	 	Financing of US$50 million as part of the total Net Cash Required of up to “*” to take WorldSpace to break-even 

  

	 	•	 	Single investment or a package containing various forms of financing - with initial tranche equal to or exceeding US$50 million in cash 

  

	 	•	 	A package may contain 

  

	 	•	 	Equity investment in WorldSpace Parent Co. 

  

	 	•	 	Equity investment in any WorldSpace Current/New subsidiaries or a New Joint Venture—to the extent that such investment is to qualify for US$50 minimum trigger for
restructure only the WorldSpace prorata ownership share shall apply 

  

	 	•	 	Loans, or any form of indebtedness, to WorldSpace, Inc. 

  

	 	•	 	Loans, or any form of indebtedness, to any of WorldSpace subsidiaries 

  

	 	•	 	Convertible or equity-linked securities 

  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  
 Proprietary & Confidential 
  

 Equity Investments 
  

	 	•	 	Entity/Entities: WorldSpace Parent Co. OR Current/New subsidiary OR a New Joint Venture 

  

	 	•	 	Common stock 

  

	 	•	 	Different Class from current equity 

  

	 	•	 	Preferred stock: May be structured with following specific features or any combination thereof 

  

	 	•	 	Non-convertible 

  

	 	•	 	Convertible to Common stock prior to or at IPO of WorldSpace Parent Co. orally Current/New Subsidiary OR a New Joint Venture 

  

	 	•	 	Redeemable 

  

	 	•	 	Cumulative 

  

	 	•	 	Detachable Warrants, Options, Swaps, Rights in WorldSpace Parent Co. or any Current/New Subsidiary OR a New Joint Venture 

  

	 	•	 	Financial, Strategic investor 

  

	 	•	 	Cash 

  

	 	•	 	In-kind equity contributions - may qualify for part of US$50 million trigger for restructuring depending upon their nature and mutual agreement 

  

	 	•	 	Valuation negotiated with investor on a case-by-case basis 

  

	 	•	 	Investor may get substantial equity, board representation, operational role 

  
 Proprietary & Confidential 
  

 Debt or Loan or Other Obligations 
  

	 	•	 	Entity/Entities: WorldSpace Parent Co. OR Current/New subsidiary OR a New Joint Venture 

  

	 	•	 	Long Term, Medium/Short Term with following specific features or any combination thereof: 

  

	 	•	 	Long-term capital or Working capital 

  

	 	•	 	Straight debt 

  

	 	•	 	Convertible to Common or Preferred stock prior to or at IPO, of WorldSpace Parent Co. or any Current/New Subsidiary OR a New Joint Venture 

  

	 	•	 	Equity-linked securities and structures with equity-like/other features 

  

	 	•	 	Detachable Warrants, Options, Swaps, Rights in WorldSpace Parent Co. or any Current/New Subsidiary OR a New Joint Venture 

  

	 	•	 	Letters of credit, guarantees that secure working capital requirements—maximum US$10 million and agreement on terms 

  

	 	•	 	Secured by satellite, other assets, receivables and contracts of WorldSpace or entities in which WorldSpace has a majority stake 

  

	 	•	 	Stonehouse royalty contract to follow assets on foreclosure of loan for WorldSpace default 

  

	 	•	 	Cash or in-kind contributions - subject to comment in “Equity Investment” 

  
 Proprietary & Confidential 
  

 EXHIBIT F 
  
 ORGANIZATIONAL CHART 

 [chart of organizational structure of WorldSpace companies] 

 EXHIBIT G 
  
 REQUIRED CONSENTS 
  
 None. 

 EXHIBIT H 
  
 LIST OF ASSETS 
  

 Exhibit H 
  
 List of Assets 
  

	1)	Fixed Assets by entity owner (see attached listing) 

  

	2)	WorldSpace Trademarks (see attached listing) 

  

	3)	WorldSpace Leaseholds (see attached listing) 

  

	4)	WorldSpace Patents (see attached listing) 

  

	5)	WorldSpace Subsidiaries – see Organization Chart (Exhibit F) 

  
 The corporate entity that corresponds to the locations listed on the fixed assets list are: 
  

					
	 Australia
	  	-	  	 AsiaSpace Ltd.

	 China
	  	-	  	 WorldSpace China

	 India
	  	-	  	 WorldSpace India Private Ltd.

	 Kenya
	  	-	  	 AfriSpace (Kenya) Ltd.

	 London
	  	-	  	 WorldSpace U.K. Ltd.

	 South Africa
	  	-	  	 WorldSpace Southern Africa Pty. Ltd.

	 Singapore
	  	-	  	 WorldSpace Asia Pte Ltd.

	 Dubai
	  	-	  	 WorldSpace U.K. Ltd.

	 France
	  	-	  	 WorldSpace France EURL

	 Germany
	  	-	  	 WorldSpace, Inc.

	 Indonesia
	  	-	  	 PT WorldSpace Indonesia

	 Trinidad
	  	-	  	 WorldSpace Caribbean Ltd.

  

 2 

 WorldSpace Corporation 
  
 Fixed Assets 
 Period: 06-03    As of: 07/23/2003 
  

									
	 Account

	  	Subaccount

	  	Location

	  	 Description

	  	Ending Balance

	 17001
	  	Satellite Company	  	US	  	Satellite #1 - AfriStar	  	239,050,816.31
	 17002
	  	Satellite Company	  	US	  	Satellite #2 – AsiaStar	  	232,920,914.00
	 17000
	  	Satellite Company	  	US	  	SATELLITE – CIP (Satellite 3 & 4)	  	158,018,543.66
	 17050
	  	Satellite Company	  	US	  	Satellite – Investor Cap Int (Satellite 3 & 4)	  	30,137,661.12
	 17612
	  	Satellite Company	  	US	  	Ground Segment #2 - AsiaStar	  	26,588,340.00
	 17611
	  	Satellite Company	  	US	  	Ground Segment #1 - AfriStar	  	26,524,185.00
	 17625
	  	WorldSpace Corp	  	US	  	Feederlink Stations in Service	  	18,871,332.80
	 16850
	  	WorldSpace Corp	  	US	  	N. Street Leaseholds	  	13,000,178.26
	 16400
	  	WorldSpace Corp	  	US	  	Machines & Equipment	  	5,644,280.14
	 17650
	  	WorldSpace Corp	  	US	  	Feederlink Stations – CIP	  	4,404,393.21
	 17841
	  	WorldSpace Corp	  	US	  	WS Business System in Service	  	4,053,292.08
	 16300
	  	WorldSpace Corp	  	US	  	Furniture & Fixtures	  	3,362,147.27
	 16860
	  	WorldSpace Corp	  	US	  	London Leaseholds	  	3,178,220.16
	 16700
	  	WorldSpace Corp	  	US	  	Office Equipment	  	3,072,739.13
	 17660
	  	WorldSpace Corp	  	US	  	Feederlink Stat. Cap. Int	  	2,234,787.90
	 17830
	  	WorldSpace Corp	  	US	  	Multimedia in Service	  	1,926,294.39
	 17665
	  	WorldSpace Corp	  	US	  	TCR Host Stations in service	  	1,694,548.00
	 16870
	  	WorldSpace Corp	  	US	  	Studios	  	1,576,336.31
	 16800
	  	WorldSpace Corp	  	US	  	Leaseholds	  	1,068,640.69
	 17840
	  	WorldSpace Corp	  	US	  	WS Business System CIP	  	726,350.04
	 16451
	  	WorldSpace Corp	  	US	  	Software Purchases	  	673,697.51
	 17850
	  	WorldSpace Corp	  	US	  	Silense Detection Systems/ARMS	  	435,841.76
	 17810
	  	Satellite Company	  	US	  	Toulousse Contract Mgnt	  	362,365.50
	 16350
	  	WorldSpace Corp	  	US	  	Exhibit Booth	  	341,782.81
	 16450
	  	WorldSpace Corp	  	US	  	Computers	  	336,365.60
	 16550
	  	WorldSpace Corp	  	US	  	Multi Media Van	  	330,372.41
	 16500
	  	WorldSpace Corp	  	US	  	Automobiles	  	132,986.89
	 16455
	  	WorldSpace Corp	  	US	  	Computers – Leased	  	49,775.00
	 16300
	  	AfriSpace	  	US	  	Furniture & Fixtures	  	24,414.00
	 16450
	  	WorldSpace Corp	  	US	  	Computers	  	19,517.45
	 16450
	  	WorldSpace Corp	  	US	  	Computers	  	18,655.15
	 16400
	  	WorldSpace Corp	  	US	  	Machines & Equipment	  	4,874.93
	 17625
	  	WorldSpace Corp	  	US	  	Feederlink Stations in Service	  	4,320.00
	 16450
	  	WorldSpace Corp	  	US	  	Computers	  	4,229.99
	 16400
	  	AfriSpace	  	US	  	Machines & Equipment	  	2,420.00
	 16450
	  	WorldSpace Corp	  	US	  	Computers	  	2,008.18
	 16400
	  	WorldSpace Corp	  	US	  	Machines & Equipments	  	1,449.00
	 16450
	  	WorldSpace Corp	  	US	  	Computers	  	1,378.00
	 16451
	  	WorldSpace Corp	  	US	  	Software Purchases	  	434.44
	 17650
	  	WorldSpace Corp	  	US	  	Feederlink Stations – CIP	  	325.00
	 16450
	  	WorldSpace Corp	  	US	  	Computers	  	-605.00
	 	  	 	  	 	  	 	  	

	 	  	 	  	 	  	 	  	780,800,609.09
	 	  	 	  	 	  	 	  	

  

 3 

 WorldSpace Corporation 
  
 Fixed Assets 
 Period: 06-03     As of: 7/23/2003 
  

									
	 Account

	  	Subaccount

	  	Location

	  	 Description

	  	Ending Balance

	 16300
	  	09-000-000	  	Australia	  	Furniture & Fixtures	  	56,579.22
	 16400
	  	09-000-000	  	Australia	  	Machines & Equipment	  	1,825,569.02
	 16450
	  	09-000-000	  	Australia	  	Computers	  	218,243.70
	 16700
	  	09-000-000	  	Australia	  	Office Equipment	  	15,984.23
	 16800
	  	09-000-000	  	Australia	  	Leaseholds	  	1,240,954.65
	 	  	 	  	 	  	 	  	3,357,330.82
	 16300
	  	19-000-000	  	China	  	Furniture & Fixtures	  	250,659.12
	 16450
	  	19-000-000	  	China	  	Computers	  	135,665.92
	 16800
	  	19-000-000	  	China	  	Leaseholds	  	397,745.73
	 	  	 	  	 	  	 	  	784,070.77
	 16300
	  	21-000-000	  	India	  	Furniture & Fixtures	  	38,447.32
	 16400
	  	21-000-000	  	India	  	Machines & Equipment	  	23,920.00
	 16450
	  	21-000-000	  	India	  	Computers	  	261,953.15
	 16500
	  	21-000-000	  	India	  	Automobiles	  	30,680.00
	 16700
	  	21-000-000	  	India	  	Office Equipment	  	53,533.79
	 16800
	  	21-000-000	  	India	  	Leaseholds	  	205,311.39
	 	  	 	  	 	  	 	  	613,845.65
	 16300
	  	10-000-000	  	Kenya	  	Furniture & Fixtures	  	86,740.44
	 16400
	  	10-000-000	  	Kenya	  	Machines & Equipment	  	922,807.63
	 16450
	  	10-000-000	  	Kenya	  	Computers	  	208,827.91
	 16500
	  	10-000-000	  	Kenya	  	Automobiles	  	24,432.40
	 16700
	  	10-000-000	  	Kenya	  	Office Equipment	  	49,213.42
	 16800
	  	10-000-000	  	Kenya	  	Leaseholds	  	372,005.22
	 	  	 	  	 	  	 	  	1,664,027.02
	 16300
	  	23-000-000	  	London	  	Furniture & Fixtures	  	482,109.22
	 16400
	  	23-000-000	  	London	  	Machines & Equipment	  	218,374.28
	 16450
	  	23-000-000	  	London	  	Computers	  	3,172.49
	 16700
	  	23-000-000	  	London	  	Office Equipment	  	75,806.08
	 	  	 	  	 	  	 	  	779,462.07
	 16300
	  	16-000-000	  	S Africa	  	Furniture & Fixtures	  	36,109.62
	 16400
	  	16-000-000	  	S Africa	  	Machines & Equipment	  	48,388.44
	 16450
	  	16-000-000	  	S Africa	  	Computers	  	-18,310.60
	 16500
	  	16-000-000	  	S Africa	  	Automobiles	  	23,315.74
	 16700
	  	16-000-000	  	S Africa	  	Office Equipment	  	17,892.07
	 16800
	  	16-000-000	  	S Africa	  	Leaseholds	  	374,261.95
	 	  	 	  	 	  	 	  	911,657.19
	 16300
	  	18-000-000	  	Singapore	  	Furniture & Fixtures	  	91,405.88
	 16400
	  	18-000-000	  	Singapore	  	Machines & Equipment	  	39,655.49
	 16450
	  	18-000-000	  	Singapore	  	Computers	  	202,086.84
	 16700
	  	18-000-000	  	Singapore	  	Office Equipment	  	35,369.23
	 16800
	  	18-000-000	  	Singapore	  	Leaseholds	  	9,990.90
	 16870
	  	18-000-000	  	Singapore	  	Studios	  	40,909.09
	 	  	 	  	 	  	 	  	

	 16300
	  	24-000-000	  	Dubai	  	Furniture Fixtures	  	419,417.43
	 	  	 	  	 	  	 	  	

	 	  	 	  	 	  	 	  	37,806.95

  

 4 

 WORLDSPACE CORPORATION 
  
 Fixed Assets 
 Period: 06-03 As of: 07/23/2003 
  

									
	 Account

	  	Subaccount

	  	Location

	  	 Description

	  	Ending Balance

	 16450
	  	24-000-000	  	Dubai	  	Computers	  	38,607.51
	 16700
	  	24-000-000	  	Dubai	  	Office Equipment	  	12,378.50
	 16800
	  	24-000-000	  	Dubai	  	Leaseholds	  	39,835.04
	 16300
	  	04-000-000	  	France	  	Furniture & Fixtures	  	14,736.88
	 16400
	  	04-000-000	  	France	  	Machines & Equipment	  	109,063.59
	 16450
	  	04-100-030	  	France	  	Computers	  	3,047.05
	 16450
	  	31-000-000	  	France	  	Computers	  	7,842.99
	 16700
	  	04-000-000	  	France	  	Office Equipment	  	85,282.85
	 16800
	  	04-000-000	  	France	  	Leaseholds	  	100,041.06
	 17810
	  	04-000-000	  	France	  	Toulousse Contract Mgnt	  	80,883.35
	 16300
	  	26-000-000	  	Germany	  	Furniture & Fixtures	  	1,600.11
	 16700
	  	26-000-000	  	Germany	  	Office Equipment	  	76,562.27
	 16300
	  	30-000-000	  	Indonesia	  	Furniture & Fixtures	  	16,606.70
	 16450
	  	30-000-000	  	Indonesia	  	Computers	  	15,370.19
	 16500
	  	30-000-000	  	Indonesia	  	Automobiles	  	33,825.00
	 16700
	  	30-000-000	  	Indonesia	  	Office Equipment	  	36,385.14
	 16800
	  	30-000-000	  	Indonesia	  	Leaseholds	  	11,530.20
	 16300
	  	08-000-000	  	Trinidad	  	Furniture & Fixtures	  	183,962.01
	 16400
	  	08-000-000	  	Trinidad	  	Machines & Equipment	  	7,428.00
	 16450
	  	08-000-000	  	Trinidad	  	Computers	  	20,964.04
	 16700
	  	08-000-000	  	Trinidad	  	Office Equipment	  	12,558.90
	 	  	 	  	 	  	 	  	

	 	  	 	  	 	  	 	  	946,318.33
	 	  	 	  	 	  	 	  	

	 Total Per 6/30/03 Financial Statement
	  	790,276,738.37
	 	  	 	  	 	  	 	  	

  
  

 5 

 WorldSpace Trademarks 
  

																			
	 MARK

	 	 COUNTRY

	 	 OWNER

	 	APP #

	 	FILED

	 	REG #

	 	REG’D

	 	 ACTION

	 	DUE

	 	FINAL

	 Afrispace
	 	UNITED STATES	 	World Space, Inc.	 	75/030,601	 	12/11/95	 	2700607	 	3/25/03	 	Affidavit w/renewal	 	3/25/13	 	9/25/13
	 Afristar
	 	SOUTH AFRICA	 	WorldSpace Corporation	 	1998-13778	 	8/5/98	 	 	 	 	 	Renewal Due	 	8/5/08	 	8/5/08
	 Afristar
	 	SOUTH AFRICA	 	WorldSpace Corporation	 	98/13779	 	8/5/98	 	 	 	 	 	Renewal Due	 	8/5/08	 	8/5/08
	 Afristar
	 	UNITED STATES	 	World Space, Inc.	 	75/030,610	 	12/11/95	 	2455576	 	5/29/01	 	Affidavit w/renewal	 	5/29/11	 	11/29/11
	 ARABSPACE
	 	EGYPT	 	WorldSpace U.K., Ltd.	 	119762	 	11/29/98	 	 	 	 	 	Renewal Due	 	11/29/08	 	2/28/09
	 ARABSPACE
	 	ISRAEL	 	WorldSpace U.K., Ltd.	 	124228	 	11/27/98	 	124228	 	12/5/99	 	Renewal Due	 	11/27/05	 	5/27/06
	 ARABSPACE
	 	JORDAN	 	WorldSpace U.K., Ltd.	 	52359	 	2/2/99	 	52359	 	1/5/00	 	Renewal Due	 	2/2/06	 	2/2/06
	 ARABSPACE
	 	JORDAN	 	WorldSpace U.K., Ltd.	 	59601	 	12/8/99	 	59601	 	3/5/02	 	Renewal Due	 	12/8/09	 	12/8/08
	 ARABSPACE
	 	SAUDI ARABIA	 	WorldSpace U.K., Ltd.	 	47819	 	2/7/99	 	545/96	 	10/28/00	 	Renewal Due	 	10/7/08	 	10/7/08
	 ARABSPACE
	 	TURKEY	 	WorldSpace U.K., Ltd.	 	18596	 	12/25/98	 	206847	 	12/25/98	 	Renewal Due	 	12/25/08	 	12/8/10
	 ARABSPACE
	 	UNITED ARAB EMR	 	WorldSpace U.K., Ltd.	 	29967	 	2/7/99	 	59601	 	 	 	Renewal Due	 	2/7/09	 	5/7/09
	 CORPORATE LOGO
	 	SOUTH AFRICA	 	WorldSpace Corporation	 	98/13781	 	 	 	 	 	 	 	Status Check	 	9/3/03	 	9/3/03
	 CORPORATE LOGO
	 	SOUTH AFRICA	 	WorldSpace Corporation	 	98/13780	 	8/5/98	 	1998/13780	 	6/30/03	 	Renewal Due	 	8/5/08	 	8/5/08
	 DESIGN (Globe with Orbitals)
	 	CHINA	 	WorldSpace Corporation	 	2000156250	 	10/11/00	 	 	 	 	 	Status Check	 	9/7/03	 	9/3/03
	 Design (Globe with Orbitals)
	 	CHINA	 	WorldSpace Corporation	 	2000156249	 	10/11/00	 	 	 	 	 	Status Check	 	9/7/03	 	9/7/03
	 Design (Globe with Orbitals)
	 	EGYPT	 	WorldSpace Corporation	 	135065	 	8/5/00	 	 	 	 	 	Renewal Due	 	8/5/10	 	11/5/10
	 Design (Globe with Orbitals)
	 	EGYPT	 	WorldSpace Corporation	 	135096	 	8/6/00	 	 	 	 	 	Renewal Due	 	8/6/10	 	11/6/10
	 Design (Globe with Orbitals)
	 	SINGAPORE	 	WorldSpace Corporation	 	T00/19415B	 	11/3/00	 	 	 	 	 	Renewal Due	 	11/3/10	 	11/3/10
	 DESIGN (Globe with Orbitals)
	 	SINGAPORE	 	WorldSpace Corporation	 	T00/19416J	 	7/25/00	 	T00/19416J	 	7/25/00	 	Renewal Due	 	7/25/10	 	7/25/10
	 Design (Globe with Orbitals)
	 	SOUTH AFRICA	 	WorldSpace Corporation	 	2000/15291	 	7/28/00	 	 	 	 	 	Renewal Due	 	7/28/10	 	7/28/10
	 Design (Globe with Orbitals)
	 	SOUTH AFRICA	 	WorldSpace Corporation	 	2000/15290	 	7/28/00	 	 	 	 	 	Renewal Due	 	7/28/10	 	7/28/10
	 Design (Globe with Orbitals)
	 	UNITED STATES	 	WorldSpace Corporation	 	76/095, 609	 	7/25/00	 	2709791	 	4/22/03	 	Affidavit w/renewal	 	4/22/13	 	10/22/13
	 GANDHARV
	 	INDIA	 	WorldSpace Corporation	 	994363	 	3/5/01	 	 	 	 	 	Renewal Due	 	3/5/08	 	3/5/08
	 LE JHOOM
	 	INDIA	 	WorldSpace Corporation	 	994362	 	3/5/01	 	 	 	 	 	Renewal Due	 	3/5/08	 	3/5/08
	 Miscellaneous Design
	 	MALAYSIA	 	WorldSpace Corporation	 	15622/97	 	10/31/97	 	97015622	 	7/6/01	 	Renewal Due	 	10/31/04	 	10/31/04
	 MISC Design (globe with orbitals)
	 	NIGERIA	 	WorldSpace Corporation	 	46235	 	8/28/00	 	 	 	 	 	Renewal Due	 	8/28/07	 	8/28/07
	 MISC Design (globe with orbitals)
	 	NIGERIA	 	WorldSpace Corporation	 	46468	 	9/14/00	 	 	 	 	 	Renewal Due	 	9/14/07	 	9/14/07
	 NGOMA
	 	KENYA	 	WorldSpace Corporation	 	2509	 	3/23/01	 	 	 	 	 	Renewal Due	 	3/23/08	 	3/23/08
	 STARMAN
	 	CHINA	 	WorldSpace Corporation	 	2000033549	 	3/22/00	 	1582571	 	6/7/01	 	Renewal Due	 	6/6/11	 	12/6/11
	 STARMAN
	 	INDONESIA	 	WorldSpace Corporation	 	02461-2471	 	2/8/01	 	495575	 	12/7/01	 	Renewal Due	 	8/8/10	 	2/8/11
	 STARMAN
	 	NIGERIA	 	WorldSpace Corporation	 	44489	 	5/16/00	 	 	 	 	 	Renewal Due	 	5/16/07	 	5/16/07
	 STARMAN
	 	SOUTH AFRICA	 	WorldSpace Corporation	 	2000/03561	 	3/2/00	 	 	 	 	 	Status Check	 	5/2/04	 	5/2/04
	 STARMAN
	 	SOUTH AFRICA	 	WorldSpace Corporation	 	2000/03561	 	3/2/00	 	 	 	 	 	Renewal Due	 	3/2/10	 	3/2/10
	 STARMAN
	 	UNITED ARAB EMR	 	WorldSpace Corporation	 	39260	 	11/8/00	 	30983	 	2/11/02	 	Renewal Due	 	11/8/10	 	2/8/11
	 STARMAN
	 	UNITED STATES	 	WorldSpace Corporation	 	75/931,692	 	2/29/00	 	2707460	 	4/15/03	 	Affidavit w/renewal	 	4/15/13	 	10/15/13
	 WORLDSPACE
	 	NIGERIA	 	WorldSpace Corporation	 	43551	 	2/22/00	 	 	 	 	 	Renewal Due	 	2/22/07	 	2/22/07
	 WORLDSPACE
	 	CHINA	 	WorldSpace Corporation	 	2000033548	 	3/22/00	 	1683968	 	12/14/01	 	Renewal Due	 	12/14/11	 	6/14/12
	 WORLDSPACE
	 	EGYPT	 	WorldSpace Corporation	 	130702	 	2/19/00	 	 	 	 	 	Renewal Due	 	2/19/10	 	5/19/10
	 WORLDSPACE
	 	EGYPT	 	WorldSpace Corporation	 	110269	 	 	 	 	 	 	 	Status Check	 	9/8/03	 	9/08/03
	 WORLDSPACE
	 	SOUTH AFRICA	 	WorldSpace Corporation	 	98/15297	 	8/28/98	 	98/15297	 	3/4/02	 	Renewal Due	 	8/28/08	 	8/28/08
	 WORLDSPACE
	 	SOUTH AFRICA	 	WorldSpace Corporation	 	98/15296	 	8/28/98	 	98/15296	 	3/4/02	 	Renewal Due	 	8/28/08	 	8/28/08
	 WORLDSPACE
	 	SOUTH AFRICA	 	WorldSpace Corporation	 	98/15295	 	8/28/98	 	98/15295	 	3/4/02	 	Renewal Due	 	8/28/08	 	8/28/08

  

 6 

 WorldSpace Trademarks 
  

																			
	 WORLDSPACE
	 	ALGERIA	 	WorldSpace Corporation	 	970928	 	7/12/97	 	 	 	 	 	Renewal Due	 	7/12/07	 	1/12/08
	 WORLDSPACE
	 	ARGENTINA	 	WorldSpace Corporation	 	2098556	 	8/19/97	 	1698799	 	10/30/98	 	Renewal & Use Due	 	10/30/08	 	10/30/08
	 WORLDSPACE
	 	ARGENTINA	 	WorldSpace Corporation	 	2098555	 	8/19/97	 	1698801	 	10/30/98	 	Renewal & Use Due	 	10/30/08	 	10/30/08
	 WORLDSPACE
	 	AUSTRALIA	 	WorldSpace Corporation	 	738441	 	7/4/97	 	738441	 	1/16/98	 	Renewal Due	 	7/4/07	 	7/4/08
	 WORLDSPACE
	 	BANGLADESH	 	WorldSpace Corporation	 	51856	 	7/10/97	 	 	 	 	 	Renewal Due	 	7/10/04	 	7/10/04
	 WORLDSPACE
	 	BANGLADESH	 	WorldSpace Corporation	 	52663	 	9/14/97	 	 	 	 	 	Renewal Due	 	9/14/04	 	9/14/04
	 WORLDSPACE
	 	BOLIVIA	 	WorldSpace Corporation	 	13467	 	9/18/97	 	72338-C	 	4/6/99	 	Renewal Due	 	4/6/09	 	10/6/09
	 WORLDSPACE
	 	BOLIVIA	 	WorldSpace Corporation	 	13649	 	9/18/97	 	72723-C	 	5/11/99	 	Renewal Due	 	5/11/09	 	11/11/09
	 WORLDSPACE
	 	BRAZIL	 	WorldSpace Corporation	 	820003450	 	8/8/97	 	820003450	 	10/5/99	 	Renewal Due	 	10/5/09	 	10/5/09
	 WORLDSPACE
	 	BRAZIL	 	WorldSpace Corporation	 	820003468	 	8/8/97	 	820003468	 	7/11/00	 	Renewal Due	 	7/11/10	 	1/11/11
	 WORLDSPACE
	 	BRITISH VIRGIN ISLANDS	 	WorldSpace Corporation	 	1913	 	12/9/97	 	3220	 	6/12/98	 	Renewal Due	 	12/9/11	 	3/9/12
	 WORLDSPACE
	 	CHILE	 	WorldSpace Corporation	 	391686	 	9/25/97	 	510663	 	4/22/98	 	Renewal Due	 	4/22/08	 	4/22/08
	 WORLDSPACE
	 	CHILE	 	WorldSpace Corporation	 	391687	 	9/25/97	 	510664	 	4/22/98	 	Renewal Due	 	4/22/08	 	4/22/08
	 WORLDSPACE
	 	CHINA	 	WorldSpace Corporation	 	970083503	 	8/11/97	 	1243048	 	1/28/99	 	Renewal Due	 	1/28/09	 	7/28/09
	 WORLDSPACE
	 	CHINA	 	WorldSpace Corporation	 	970083502	 	8/11/97	 	1239950	 	1/14/99	 	Renewal Due	 	1/14/09	 	7/14/09
	 WORLDSPACE
	 	COLOMBIA	 	WorldSpace Corporation	 	97074434	 	12/22/97	 	210104	 	7/22/98	 	Renewal Due	 	7/22/08	 	1/22/09
	 WORLDSPACE
	 	COLOMBIA	 	WorldSpace Corporation	 	97074433	 	12/22/97	 	210105	 	7/22/98	 	Renewal Due	 	7/22/08	 	1/22/09
	 WORLDSPACE
	 	COSTA RICA	 	WorldSpace Corporation	 	 	 	 	 	109276	 	10/23/98	 	Renewal Due	 	10/23/08	 	10/23/08
	 WORLDSPACE
	 	COSTA RICA	 	WorldSpace Corporation	 	N/A	 	7/7/97	 	109281	 	10/23/98	 	Renewal Due	 	10/23/08	 	10/23/08
	 WORLDSPACE
	 	DOMINICAN REPUBLIC	 	WorldSpace Corporation	 	35977	 	8/12/97	 	93537	 	11/15/97	 	Renewal Due	 	11/15/17	 	11/15/17
	 WORLDSPACE
	 	DOMINICAN REPUBLIC	 	WorldSpace Corporation	 	35976	 	8/12/97	 	93931	 	11/15/97	 	Renewal Due	 	11/15/17	 	11/15/17
	 WORLDSPACE
	 	ECUADOR	 	WorldSpace Corporation	 	81482	 	9/8/97	 	 	 	 	 	Renewal Due	 	12/28/09	 	6/28/10
	 WORLDSPACE
	 	ECUADOR	 	WorldSpace Corporation	 	81508	 	9/9/97	 	201798	 	12/28/98	 	Renewal Due	 	12/28/08	 	6/28/09
	 WORLDSPACE
	 	EGYPT	 	WorldSpace Corporation	 	110270	 	10/11/97	 	 	 	 	 	Renewal Due	 	10/11/07	 	1/11/08
	 WORLDSPACE
	 	EGYPT	 	WorldSpace Corporation	 	110269	 	10/11/97	 	 	 	 	 	Renewal Due	 	10/11/07	 	1/11/08
	 WORLDSPACE
	 	EUROPEAN UNION (CTM)	 	WorldSpace Corporation	 	600098	 	8/13/97	 	600098	 	1/25/99	 	Renewal Due	 	8/13/07	 	8/13/07
	 WORLDSPACE
	 	GHANA	 	WorldSpace Corporation	 	N/A	 	8/12/97	 	28619	 	8/12/97	 	Renewal Due	 	8/12/04	 	10/12/04
	 WORLDSPACE
	 	GUATEMALA	 	WorldSpace Corporation	 	5892	 	7/22/97	 	94501	 	4/11/99	 	Renewal Due	 	4/11/09	 	4/11/09
	 WORLDSPACE
	 	GUATEMALA	 	WorldSpace Corporation	 	5890	 	7/22/97	 	94977	 	4/8/99	 	Renewal Due	 	4/8/09	 	4/8/09
	 WORLDSPACE
	 	INDIA	 	WorldSpace Corporation	 	764427	 	7/11/97	 	 	 	 	 	Renewal Due	 	7/11/04	 	7/11/04
	 WORLDSPACE
	 	INDONESIA	 	WorldSpace Corporation	 	9716269	 	8/6/97	 	 	 	 	 	Status Check	 	4/16/04	 	4/16/04
	 WORLDSPACE
	 	INDONESIA	 	WorldSpace Corporation	 	9716270	 	8/6/97	 	423702	 	2/19/99	 	Renewal Due	 	4/3/07	 	10/3/07
	 WORLDSPACE
	 	ISRAEL	 	WorldSpace Corporation	 	113441	 	7/7/97	 	113441	 	7/6/98	 	Renewal Due	 	7/7/04	 	1/7/05
	 WORLDSPACE
	 	ISREAL	 	WorldSpace Corporation	 	113442	 	7/7/97	 	113442	 	7/6/98	 	Renewal Due	 	7/7/04	 	1/7/05
	 WORLDSPACE
	 	JAMAICA	 	WorldSpace Corporation	 	92043	 	7/9/97	 	36994	 	7/9/97	 	Renewal Due	 	7/9/04	 	7/9/04
	 WORLDSPACE
	 	JAPAN	 	WorldSpace Corporation	 	1038	 	1/5/98	 	4399949	 	7/14/00	 	Renewal Due	 	7/14/10	 	1/14/11
	 WORLDSPACE
	 	JAPAN	 	WorldSpace Corporation	 	11-63543	 	7/16/99	 	 	 	 	 	Status Check	 	12/5/03	 	12/5/03
	 WORLDSPACE
	 	JORDAN	 	WorldSpace Corporation	 	59613	 	12/8/99	 	59613	 	3/5/02	 	Renewal Due	 	12/8/09	 	12/8/10
	 WORLDSPACE
	 	JORDAN	 	WorldSpace Corporation	 	47299	 	10/18/97	 	47299	 	10/18/97	 	Renewal Due	 	10/18/04	 	10/18/04
	 WORLDSPACE
	 	JORDAN	 	WorldSpace Corporation	 	47298	 	10/18/97	 	47298	 	10/18/97	 	Renewal Due	 	10/18/04	 	10/18/04
	 WORLDSPACE
	 	KENYA	 	WorldSpace Corporation	 	46152	 	8/1/97	 	46152	 	2/18/02	 	Renewal Due	 	8/1/04	 	8/1/04
	 WORLDSPACE
	 	KENYA	 	WorldSpace Corporation	 	1132	 	8/1/97	 	 	 	 	 	Renewal Due	 	8/1/04	 	8/1/04
	 WORLDSPACE
	 	LAOS	 	WorldSpace Corporation	 	5777	 	8/5/97	 	5777	 	8/19/97	 	Renewal Due	 	8/5/07	 	8/5/07

  

 7 

 WorldSpace Trademarks 
  

																			
	 WORLDSPACE
	 	MADAGASCAR	 	WorldSpace Corporation	 	970284	 	7/18/97	 	2634	 	2/11/98	 	Renewal Due	 	7/18/07	 	7/18/07
	 WORLDSPACE
	 	MALAYSIA	 	WorldSpace Corporation	 	1136697	 	8/14/97	 	97018702	 	7/11/01	 	Renewal Due	 	8/14/07	 	8/14/08
	 WORLDSPACE
	 	MALAYSIA	 	WorldSpace Corporation	 	1870297	 	12/1/97	 	 	 	 	 	Renewal Due	 	12/1/07	 	12/1/08
	 WORLDSPACE
	 	MEXICO	 	WorldSpace Corporation	 	301162	 	7/11/97	 	570392	 	2/24/98	 	Renewal & Use Due	 	7/11/07	 	1/11/08
	 WORLDSPACE
	 	MEXICO	 	WorldSpace Corporation	 	301163	 	7/11/97	 	570393	 	2/24/98	 	Renewal & Use Due	 	7/11/07	 	1/11/08
	 WORLDSPACE
	 	MONGOLIA	 	WorldSpace Corporation	 	2399	 	7/8/97	 	2313	 	7/8/97	 	Renewal Due	 	7/8/07	 	1/8/08
	 WORLDSPACE
	 	MOROCCO	 	WorldSpace Corporation	 	83758	 	8/28/97	 	63758	 	8/28/97	 	Renewal Due	 	8/28/17	 	8/28/17
	 WORLDSPACE
	 	NIGERIA	 	WorldSpace Corporation	 	32105	 	7/22/97	 	56148	 	8/5/99	 	Renewal Due	 	7/22/04	 	7/22/04
	 WORLDSPACE
	 	NIGERIA	 	WorldSpace Corporation	 	32714	 	9/1/97	 	56147	 	9/13/99	 	Renewal Due	 	9/1/04	 	9/1/04
	 WORLDSPACE
	 	PAKISTAN	 	WorldSpace Corporation	 	143691	 	9/10/97	 	 	 	 	 	Renewal Due	 	9/10/04	 	9/10/04
	 WORLDSPACE
	 	PAKISTAN	 	WorldSpace Corporation	 	142422	 	7/8/97	 	 	 	 	 	Renewal Due	 	7/8/04	 	7/8/04
	 WORLDSPACE
	 	PANAMA	 	WorldSpace Corporation	 	91274	 	12/2/97	 	91273	 	12/2/97	 	Renewal Due	 	12/2/07	 	12/2/07
	 WORLDSPACE
	 	PANAMA	 	WorldSpace Corporation	 	91273	 	12/2/97	 	91273	 	12/2/97	 	Renewal Due	 	12/2/07	 	6/2/08
	 WORLDSPACE
	 	PARAGUAY	 	WorldSpace Corporation	 	14018	 	7/14/97	 	221075	 	12/28/99	 	Renewal Due	 	12/28/09	 	6/28/10
	 WORLDSPACE
	 	PARAGUAY	 	WorldSpace Corporation	 	14017	 	7/14/97	 	215501	 	7/30/99	 	Renewal Due	 	7/30/09	 	1/30/10
	 WORLDSPACE
	 	PHILIPPINES	 	WorldSpace Corporation	 	123739	 	8/15/97	 	 	 	 	 	Status Check	 	10/4/03	 	10/4/03
	 WORLDSPACE
	 	PHILIPPINES	 	WorldSpace Corporation	 	123738	 	8/15/97	 	 	 	 	 	Status Check	 	3/16/04	 	3/16/04
	 WORLDSPACE
	 	RUSSIAN FEDERATION	 	WorldSpace Corporation	 	97710046	 	7/7/97	 	176514	 	6/24/99	 	Renewal Due	 	7/7/07	 	1/7/08
	 WORLDSPACE
	 	SAUDI ARABIA	 	WorldSpace Corporation	 	42237	 	12/30/97	 	522/26	 	2/27/00	 	Renewal Due	 	8/30/07	 	8/30/07
	 WORLDSPACE
	 	SAUDI ARABIA	 	WorldSpace Corporation	 	42238	 	12/30/97	 	522/27	 	2/27/00	 	Renewal Due	 	8/30/07	 	8/30/07
	 WORLDSPACE
	 	SINGAPORE	 	WorldSpace Corporation	 	935097	 	8/2/97	 	T97/09350Z	 	7/2/97	 	Renewal Due	 	7/2/07	 	7/2/07
	 WORLDSPACE
	 	SINGAPORE	 	WorldSpace Corporation	 	934997	 	8/2/97	 	T97/09349F	 	7/2/97	 	Renewal Due	 	7/2/07	 	7/2/07
	 WORLDSPACE
	 	SOUTH AFRICA	 	WorldSpace Corporation	 	9710047	 	7/4/97	 	 	 	 	 	Renewal Due	 	7/4/07	 	7/4/07
	 WORLDSPACE
	 	SOUTH AFRICA	 	WorldSpace Corporation	 	9710048	 	7/4/97	 	 	 	 	 	Renewal Due	 	7/4/07	 	7/4/07
	 WORLDSPACE
	 	SOUTH KOREA	 	WorldSpace Corporation	 	9745455	 	9/26/97	 	429512	 	11/14/98	 	Renewal & Use Due	 	11/14/08	 	5/14/09
	 WORLDSPACE
	 	SOUTH KOREA	 	WorldSpace Corporation	 	9713513	 	9/26/97	 	53664	 	2/24/99	 	Renewal & Use Due	 	2/24/09	 	8/24/09
	 WORLDSPACE
	 	SWITZERLAND	 	WorldSpace Corporation	 	536497	 	7/4/97	 	468557	 	7/4/97	 	Renewal Due	 	7/4/07	 	1/4/08
	 WORLDSPACE
	 	TAIWAN	 	WorldSpace Corporation	 	86040887	 	8/7/97	 	816578	 	9/16/98	 	Renewal & Use Due	 	9/15/08	 	3/15/09
	 WORLDSPACE
	 	TAIWAN	 	WorldSpace Corporation	 	86040888	 	8/7/97	 	102060	 	8/15/98	 	Renewal & Use Due	 	8/15/08	 	2/15/09
	 WORLDSPACE
	 	TANGIERS	 	WorldSpace Corporation	 	12402	 	9/4/97	 	 	 	 	 	Renewal Due	 	9/4/17	 	9/4/17
	 WORLDSPACE
	 	THAILAND	 	WorldSpace Corporation	 	351335	 	12/24/97	 	 	 	 	 	Renewal Due	 	12/24/07	 	12/24/07
	 WORLDSPACE
	 	THAILAND	 	WorldSpace Corporation	 	351336	 	12/24/97	 	 	 	 	 	Renewal Due	 	12/24/07	 	12/24/07
	 WORLDSPACE
	 	TRINIDAD & TOBAGO	 	WorldSpace Corporation	 	27306	 	8/6/97	 	27306	 	9/10/98	 	Renewal Due	 	8/5/07	 	2/5/08
	 WORLDSPACE
	 	TRINIDAD & TOBAGO	 	WorldSpace Corporation	 	27307	 	8/6/97	 	27307	 	9/10/98 	 	Renewal Due	 	8/5/07	 	2/5/08
	 WORLDSPACE
	 	TURKEY	 	WorldSpace Corporation	 	12329	 	8/21/97	 	190286	 	8/21/97	 	Renewal Due	 	8/21/07	 	8/21/07
	 WORLDSPACE
	 	TURKEY	 	WorldSpace Corporation	 	12328	 	8/21/97	 	189577	 	8/21/97 	 	Renewal Due	 	8/21/07	 	8/21/07
	 WORLDSPACE
	 	UNITED ARAB EMR	 	WorldSpace Corporation	 	23877	 	10/11/97	 	 	 	 	 	Renewal Due	 	10/11/07	 	1/11/08
	 WORLDSPACE
	 	UNITED ARAB EMR	 	WorldSpace Corporation	 	23876	 	10/11/97	 	20707	 	2/5/99	 	Renewal Due	 	10/11/07	 	1/11/08
	 WORLDSPACE
	 	UNITED STATES	 	WorldSpace Corporation	 	75/318.440	 	7/2/97	 	2480218	 	8/21/01	 	Affidavit w/renewal	 	8/21/11	 	2/21/12
	 WORLDSPACE
	 	URUGUAY	 	WorldSpace Corporation	 	297331	 	8/5/97	 	297331	 	5/6/98	 	Renewal Due	 	5/6/08	 	11/06/08
	 WORLDSPACE
	 	VENEZUELA	 	WorldSpace Corporation	 	14443	 	7/17/97	 	219841	 	6/2/00	 	Renewal Due	 	6/2/10	 	12/2/10
	 WORLDSPACE
	 	VENEZUELA	 	WorldSpace Corporation	 	14444	 	7/17/97	 	12471	 	6/2/00	 	Renewal Due	 	6/2/10	 	12/2/10
	 WORLDSPACE
	 	VIETNAM	 	WorldSpace Corporation	 	35127	 	8/2/97	 	32871	 	12/22/99	 	Renewal Due	 	8/2/07	 	8/2/07

  

 8 

 WorldSpace Real Estate Leases 
  

					
	 Lessee

	  	 Location

	  	Expiration Date

	 1.      WorldSpace Corporation
	  	2400 N Street, NW, Washington, DC	  	July 30, 2012
	 2.      WorldSpace, Inc.
	  	11 Dupont Circle, NW, Washington, DC	  	February 20, 2006
	 3.      AsiaSpace, Ltd.
	  	Levels 4 & 5, 6, Riverside Quay, S. Melbourne	  	December 31, 2007
	 4.      AsiaSpace, Ltd.
	  	AOL Sublease, S. Melbourne	  	December 30, 2007
	 5.      AsiaSpace, Ltd.
	  	IT&E Sub-Under Lease, S. Melbourne	  	December 30, 2007
	 6.      AsiaSpace, Ltd.
	  	Sublease Parking License, S. Melbourne	  	Indefinite
	 7.      WorldSpace India
	  	Chennai, India	  	August 3, 2003
	 8.      WorldSpace India
	  	Dr. Office, Bangalore, India	  	October 16, 2003
	 9.      WorldSpace India
	  	Ralnam Complex, Bangalore, India	  	June 1, 2004
	 10.    WorldSpace India
	  	New Delhi, India	  	June 5, 2004
	 11.    WorldSpace India
	  	New Delhi, India	  	June 5, 2004
	 12.    WorldSpace India
	  	Mumbai, India	  	February 5, 2004
	 13.    WorldSpace Asia
	  	Jakarta, Indonesia	  	Month to Month
	 14.    AfriSpace Kenya Ltd.
	  	Rahimtulla Tower, Nairobi, Kenya	  	December 1, 2010
	 15.    WorldSpace SA
	  	ERF 140, Craighall Park, South Africa	  	October 31, 2007
	 16.    WorldSpace Corporation/WIN
	  	Soho Square/6 Dean Street, London, UK	  	March 25, 2018
	 17.    WorldSpace Corporation
	  	2B/2C Ayer Rajah Crescent, Singapore	  	March 31, 2005
	 18.    WorldSpace China
	  	No. 36 Xiaoyun Rd, Beijing, China	  	January 21, 2005
	 19.    WorldSpace UK
	  	Dubai Airport, Dubai, UAE	  	October 3, 2004
	 20.    WorldSpace France
	  	13, rue Michel Labrousee, Toulouse	  	January 14, 2012
	 21.    WorldSpace France
	  	bd Haussmann, Paris	  	January 14, 2006

  

 9 

 Patent Report by Invention 
 Status: PENDING 
  

											
	 COUNTY

	  	REFERENCE#

	  	TYPE

	  	FILED

	  	SERIAL#

	  	STATUS

	SYSTEM FOR PROVIDING GLOBAL PORTABLE INTERNET ACCESS USING LOW EARTH ORBIT SATELLITE AND SATELLITE DIRECT RADIO BROADCAST SYSTEM
						
	 ARGENTINA
	  	36619	  	CEQ	  	9/4/1998	  	980104428	  	PENDING
	 CANADA
	  	39655	  	DCA	  	8/19/1998	  	2,302,946	  	PENDING
	 CZECH REPUBLIC
	  	39657	  	DCA	  	8/19/1998	  	PV 2000-578	  	PUBLISHED
	 ALGERIA
	  	36618	  	CEQ	  	8/15/1998	  	980197	  	PENDING
	 EUROPEAN PATENT
	  	39659	  	DCA	  	8/19/1998	  	98942100.3	  	PENDING
	 INDONESIA
	  	39660	  	DCA	  	8/19/1998	  	W20000416	  	PENDING
	 INDIA
	  	36622	  	CEQ	  	8/18/1998	  	1463CAL98	  	PENDING
	 JAPAN
	  	39662	  	DCA	  	8/19/1998	  	2000-511285	  	PENDING
	 SOUTH KOREA
	  	39663	  	DCA	  	8/19/1998	  	2000-7002370	  	PENDING
	 MEXICO
	  	39664	  	DCA	  	8/19/1998	  	002,124	  	PENDING
	 POLAND
	  	39666	  	DCA	  	8/19/1998	  	P-341429	  	PENDING
	 SAUDI ARABIA
	  	36631	  	CEQ	  	11/30/1998	  	98 19 0842	  	PENDING
	 SINGAPORE
	  	39667	  	DCA	  	8/19/1998	  	200001004-1	  	PENDING
	 THAILAND
	  	36634	  	CEQ	  	8/7/1998	  	045446	  	PENDING
	
	SATELLITE DIRECT RADIO BROADCAST SYSTEM
						
	 UNIITED ARAB EMR
	  	37275	  	CEQ	  	11/12/1998	  	275/98	  	PENDING
	 ARIPO
	  	40107	  	DCA	  	11/6/1998	  	AP/P/00/01806	  	PENDING
	 ARGENTINA
	  	34124	  	CEQ	  	12/9/1996	  	96 01 05566	  	PUBLISHED
	 ARGENTINA
	  	37247	  	CEQ	  	11/12/1998	  	980105718	  	PENDING
	 BRAZIL
	  	35939	  	DCA	  	12/6/1996	  	P19611882-2	  	PENDING
	 CHILE
	  	34125	  	CEQ	  	12/6/1996	  	2171-96	  	PENDING
	 CHINA
	  	35941	  	DCA	  	12/6/1996	  	96198900.9	  	PUBLISHED
	 CHINA
	  	40111	  	DCA	  	11/6/1998	  	98811871.8	  	PUBLISHED
	 COLOMBIA
	  	37258	  	CEQ	  	11/5/1998	  	98065215	  	PENDING
	 COSTA RICA
	  	34141	  	CEQ	  	12/9/1996	  	TEMP	  	PENDING
	 CZECH REPUBLIC
	  	35942	  	DCA	  	12/6/1996	  	PV 1705-98	  	PUBLISHED
	 CZECH REPUBLIC
	  	40112	  	DCA	  	11/6/1998	  	PV 2000-1724	  	PUBLISHED
	 EGYPT
	  	37260	  	CEQ	  	11/14/1998	  	1408/1998	  	PENDING
	 EUROPEAN PATENT
	  	35944	  	DCA	  	12/6/1996	  	96942841.6	  	PENDING
	 EUROPEAN PATENT
	  	40114	  	DCA	  	11/6/1998	  	98 957612.9	  	PUBLISHED
	 ETHIOPIA
	  	34129	  	CEQ	  	 	  	 	  	MAILED
	 HONG KONG
	  	35941HK	  	CEQ	  	7/5/1999	  	99102834.8	  	PENDING
	 HONG KONG
	  	41838	  	CEQ	  	7/24/2001	  	01105170.0	  	PUBLISHED
	 INDONESIA
	  	34134	  	CEQ	  	12/9/1996	  	P-963652	  	PUBLISHED
	 INDONESIA
	  	40115	  	DCA	  	11/6/1998	  	W-20000899	  	PENDING
	 ISRAEL
	  	40116	  	DCA	  	11/6/1998	  	136095	  	PENDING
	 INDIA
	  	34109	  	CEQ	  	12/4/1996	  	2094/CAL/96	  	PENDING
	 INDIA
	  	37261	  	CEQ	  	11/12/1998	  	2003CAL98	  	PENDING
	 JAPAN
	  	35947	  	DCA	  	12/6/1996	  	09-522075	  	PENDING
	 JAPAN
	  	40117	  	DCA	  	11/6/1998	  	2000-521611	  	PENDING
	 SOUTH KOREA
	  	35954	  	DCA	  	12/6/1996	  	704368/1998	  	PENDING
	 SOUTH KOREA
	  	40118	  	DCA	  	11/6/1998	  	2000-7005256	  	PENDING
	 MEXICO
	  	35948	  	DCA	  	12/6/1996	  	984,474	  	PENDING
	 MALAYSIA
	  	34150	  	CEQ	  	12/6/1996	  	PI 9605136	  	PENDING
	 MALAYSIA
	  	37262	  	CEQ	  	10/29/1998	  	PI 9804944	  	PENDING
	 PHILIPPINES
	  	34135	  	CEQ	  	12/6/1996	  	54,973	  	PENDING
	 PHILIPPINES
	  	37270	  	CEQ	  	11/13/1998	  	1-1998-02988	  	PENDING
	 POLAND
	  	40121	  	DCA	  	11/6/1998	  	P-340492	  	PENDING
	 SAUDI ARABIA
	  	34146	  	CEQ	  	2/24/1997	  	97 17 0647	  	PENDING
	 SAUDI ARABIA
	  	37271	  	CEQ	  	5/4/1999	  	99 20 0067	  	PENDING
	 SINGAPORE
	  	35953	  	DCA	  	12/6/1996	  	9803224-6	  	PENDING
	 TANGIERS
	  	34130TA	  	CEQ	  	12/6/1996	  	1422	  	PENDING
	 THAILAND
	  	34133	  	CEQ	  	12/6/1996	  	034630	  	PUBLISHED
	 THAILAND
	  	37274	  	CEQ	  	10/16/1998	  	046639	  	PUBLISHED
	 UNITED STATES
	  	40783	  	CON	  	3/9/2001	  	09/801,674	  	PUBLISHED
	 UNITED STATES
	  	41323	  	CON	  	3/13/2001	  	09/803,988	  	PUBLISHED
	 URUGUAY
	  	34144	  	CEQ	  	12/9/1996	  	24,393	  	PUBLISHED

  

 10 

											
	SYSTEM FOR PROVIDING LOCATION-SPECIFIC DATA TO A USER
						
	 UNITED ARAB EMR
	  	35289	  	CEQ	  	11/5/1997	  	228/97	  	PENDING
	 ARGENTINA
	  	35278	  	CEQ	  	10/31/1997	  	970105090	  	PUBLISHED
	 EUROPEAN PATENT
	  	38507	  	DCA	  	10/31/1997	  	97946453.4	  	PENDING
	 HONG KONG
	  	40222	  	CEQ	  	5/30/2000	  	00103195.7	  	PENDING
	 INDONESIA
	  	35265	  	CEQ	  	10/31/1997	  	W-990294	  	PUBLISHED
	 ISRAEL
	  	38508	  	DCA	  	10/31/1997	  	129,639	  	PENDING
	 INDIA
	  	35264	  	CEQ	  	11/4/1997	  	2075CAL97	  	PENDING
	 JAPAN
	  	38509	  	DCA	  	10/31/1997	  	10-521639	  	PENDING
	 SOUTH KOREA
	  	38513	  	DCA	  	10/31/1997	  	1999-70704037	  	PENDING
	 MALAYSIA
	  	35318	  	CEQ	  	10/22/1997	  	PI 9704982	  	PENDING
	 PERU
	  	35284	  	CEQ	  	11/3/1997	  	000981/97	  	PENDING
	 PHILIPPINES
	  	35285	  	CEQ	  	11/4/1997	  	1-58398	  	PENDING
	 SAUDI ARABIA
	  	35286	  	CEQ	  	11/18/1998	  	98 19 0782	  	PENDING
	 SINGAPORE
	  	38512	  	DCA	  	10/31/1997	  	9902100-8	  	PENDING
	 THAILAND
	  	35288	  	CEQ	  	10/24/1997	  	040325	  	PUBLISHED
	 VENEZUELA
	  	35290	  	CEQ	  	11/4/1997	  	2213-97	  	PENDING
	
	REAL TIME INFORMATION DELIVERY SYSTEM FOR AIRCRAFT
						
	 EUROPEAN PATENT
	  	38556	  	DCA	  	11/6/1997	  	97946251.2	  	PENDING
	 INDONESIA
	  	37798	  	DCA	  	11/6/1997	  	W 990331	  	PENDING
	 JAPAN
	  	38558	  	DCA	  	11/6/1997	  	10/522566	  	PENDING
	 MEXICO
	  	38559	  	DCA	  	11/6/1997	  	994,428	  	PENDING
	 MALAYSIA
	  	35391	  	CEQ	  	11/10/1997	  	PI 9705336	  	PENDING
	 PHILIPPINES
	  	35390	  	CEQ	  	11/11/1997	  	I-58494	  	PENDING
	
	SATELLITE DIRECT RADIO BROADCAST SYSTEM WITH FORMATTING OF BROADCAST DATA, PROCESSING THEREOF BY SATELLITE PAYLOAD AND RECEPTION BY REMOTE RADIO RECEIVERS
						
	 UNITED ARAB EMR
	  	35312	  	CEQ	  	11/5/1997	  	227/97	  	PENDING
	 ARGENTINA
	  	35292	  	CEQ	  	10/31/1997	  	970105089	  	PUBLISHED
	 CHINA
	  	38536A	  	DIV	  	10/31/1997	  	02143088.8	  	PUBLISHED
	 CHINA
	  	38536B	  	DIV	  	10/31/1997	  	02143089.6	  	PUBLISHED
	 COSTA RICA
	  	35296	  	CEQ	  	11/5/1997	  	TEMP	  	PENDING
	 CZECH REPUBLIC
	  	38537	  	DCA	  	10/31/1997	  	PV 1541-99	  	PENDING
	 EGYPT
	  	35297	  	CEQ	  	11/5/1997	  	1171/97	  	PENDING
	 EUROPEAN PATENT
	  	38540	  	DCA	  	10/31/1997	  	97949350.9	  	PENDING
	 ETHIOPIA
	  	35298	  	CEQ	  	11/4/1997	  	EP/P/98/00008	  	PENDING
	 HONG KONG
	  	40224	  	CEQ	  	 	  	00103692.5	  	PENDING
	 INDONESIA
	  	37799	  	DCA	  	10/31/1997	  	W-990293	  	PENDING
	 INDIA
	  	35299	  	CEQ	  	10/23/1997	  	1999CAL97	  	PENDING
	 JAPAN
	  	38543	  	DCA	  	10/31/1997	  	10-521536	  	PENDING
	 SOUTH KOREA
	  	38547	  	DCA	  	10/31/1997	  	1999-7004036	  	PENDING
	 MEXICO
	  	38544	  	DCA	  	10/31/1997	  	994159	  	PENDING
	 MALAYSIA
	  	35301	  	CEQ	  	10/22/1997	  	PI 9704983	  	PENDING
	 NIGERIA
	  	35303	  	CEQ	  	11/4/1997	  	331/97	  	PENDING
	 PHILIPPINES
	  	35307	  	CEQ	  	11/4/1997	  	1-58397	  	PENDING
	 SAUDI ARABIA
	  	35308	  	CEQ	  	11/18/1998	  	98 19 0783	  	PENDING
	 THAILAND
	  	35311	  	CEQ	  	10/24/1997	  	040324	  	PUBLISHED
	 TRINIDAD & TOBAGO
	  	38548	  	DCA	  	10/31/1997	  	TTA/199/00040	  	PENDING
	 VENEZUELA
	  	35313	  	CEQ	  	11/4/1997	  	2214-97	  	PENDING
	
	DIGITAL BROADCAST SYSTEM USING SATELLITE DIRET BROADCAST SYSTEM AND TERRESTRIAL REPEAT SYSTEM
						
	 UNITED ARAB EMR
	  	35990	  	CEQ	  	11/15/1998	  	280/98	  	PENDING
	 ARIPO
	  	40265	  	CEQ	  	7/10/1998	  	AP/P/00/01925	  	PENDING
	 BRAZIL
	  	40267	  	CEQ	  	7/10/1998	  	PI 9815768-0	  	PENDING
	 CHINA
	  	40269	  	CEQ	  	7/10/1998	  	98813934.0	  	PUBLISHED
	 CZECH REPUBLIC
	  	40270	  	CEQ	  	7/10/1998	  	PV 2000-3260	  	PUBLISHED
	 EURASIAN PATENT
	  	40271	  	CEQ	  	7/10/1998	  	200001005	  	PUBLISHED
	 EUROPEAN PATENT
	  	40272	  	CEQ	  	7/10/1998	  	98933306.7	  	PUBLISHED
	 HONG KONG
	  	41907	  	CEQ	  	10/8/2001	  	01107035.1	  	PUBLISHED
	 INDONESIA
	  	40273	  	CEQ	  	7/10/1998	  	20001891	  	PENDING
	 ISRAEL
	  	40274	  	CEQ	  	7/10/1998	  	138309	  	PENDING
	 INDIA
	  	35984	  	CEQ	  	5/5/1998	  	805CAL98	  	PENDING
	 JAPAN
	  	40275	  	CEQ	  	7/10/1998	  	2000-538457	  	PENDING
	 SOUTH KOREA
	  	40280	  	CEQ	  	7/10/1998	  	2000-7010757	  	PENDING
	 MEXICO
	  	40276	  	CEQ	  	7/10/1998	  	009276	  	PENDING
	 POLAND
	  	40278	  	CEQ	  	7/10/1998	  	P 343075	  	PENDING
	 SAUDI ARABIA
	  	35987	  	CEQ	  	8/19/1998	  	98 19 0417	  	PENDING
	 THAILAND
	  	35989	  	CEQ	  	5/7/1998	  	043724	  	PENDING
	 UNITED STATES
	  	40264	  	DCA	  	9/26/2000	  	09/647,007	  	PENDING

  

 11 

 SYSTEM FOR BROADCASTING INFORMATION FROM THE INTERNET USING SATELLITE DIRECT RADIO BROADCAST SYSTEM AND SELECTIVELY
DOWNLOADING INNFORMATION AT USER TERMINAL 
  

											
	 ARGENTINA
	  	36600	  	CEQ	  	9/4/1998	  	980104427	  	PENDING
	 CANADA
	  	39637	  	DCA	  	8/19/1998	  	2,302,947	  	PENDING
	 CZECH REPUBLIC
	  	39639	  	DCA	  	8/19/1998	  	PV 2000-577	  	PUBLISHED
	 ALERGIA
	  	36599	  	CEQ	  	8/15/1998	  	980198	  	PENDING
	 EUROPEAN PATENT
	  	39641	  	DCA	  	8/19/1998	  	98943233.1	  	PENDING
	 INDONESIA
	  	39642	  	DCA	  	8/19/1998	  	W20000417	  	PENDING
	 INDIA
	  	36603	  	CEQ	  	8/18/1998	  	1464CAL98	  	PENDING
	 JAPAN
	  	39644	  	DCA	  	8/19/1998	  	2000-511304	  	PENDING
	 SOUTH KOREA
	  	39646	  	DCA	  	8/19/1998	  	2000-7002369	  	PENDING
	 MOROCCO
	  	36605	  	CEQ	  	9/1/1998	  	25,235	  	PENDING
	 MEXICO
	  	39646	  	DCA	  	8/19/1998	  	002,123	  	PENDING
	 MALAYSIA
	  	36604	  	CEQ	  	8/18/1998	  	P1 9803749	  	PENDING
	 PHILIPPINES
	  	36611	  	CEQ	  	8/6/1998	  	1-1988-02019	  	PUBLISHED
	 POLAND
	  	39648	  	DCA	  	8/19/1998	  	P-338984	  	PUBLISHED
	 SAUDI ARABIA
	  	36612	  	CEQ	  	12/26/1998	  	98 19 0928	  	PENDING
	 TANGIERS
	  	36605TA	  	CEQ	  	8/31/1998	  	1647	  	PENDING
	 THAILAND
	  	36615	  	CEQ	  	8/7/1998	  	045447	  	PUBLISHED
	 TURKEY
	  	39651	  	DCA	  	8/19/1998	  	2000/00590	  	PENDING
	 UNITED STATES
	  	39718	  	CIP	  	2/28/2000	  	09/514,387	  	PENDING
	
	SYSTEM FOR PROVIDING A USER WITH ACTIVE AND PASSIVE ACCESS T O CACHED CONTENT
						
	 ARIPO
	  	41581	  	DCA	  	9/21/1999	  	AP/P/01/02117	  	PENDING
	 BOLIVIA
	  	39054	  	CEQ	  	9/29/1999	  	12670	  	PENDING
	 CHILE
	  	39055	  	CEQ	  	9/29/1999	  	2230-99	  	PENDING
	 EUROPEAN PATENT
	  	41584	  	DCA	  	9/21/1999	  	99949762.1	  	PUBLISHED
	 INDIA
	  	41585	  	CEQ	  	10/2/1999	  	INPCT/2001/347	  	PENDING
	 SOUTH KOREA
	  	41586	  	DCA	  	9/21/1999	  	2001-7004226	  	PENDING
	 MALAYSIA
	  	39060	  	CEQ	  	9/16/1999	  	P1 99C4022	  	PENDING
	 TANGIERSS
	  	39062	  	CEQ	  	10/1/1999	  	1798	  	PENDING
	 THAILAND
	  	39071	  	CEQ	  	9/14/1999	  	052772	  	PUBLISHED
	
	METHOD AND APPARATUS FORM MOBILE PLATFORM RECEPTION AND SYNCHRONIZATION IN DIRECT DIGITAL SATELLITE
						
	 ARGENTINA
	  	41202	  	CEQ	  	2/26/2001	  	010100867	  	PENDING
	 CHINA
	  	43825	  	DCA	  	2/28/2001	  	01807645.9	  	PUBLISHED
	 EGYPT
	  	41203	  	CEQ	  	2/26/2001	  	0184/2001	  	PENDING
	 EUROPEAN PATENT
	  	43826	  	DCA	  	2/28/2001	  	PCT/US01/06337	  	PUBLISHED
	 GULF COOPERATION
	  	41212	  	CEQ	  	2/26/2001	  	GCC/P/2001/120	  	PENDING
	 INDONESIA
	  	43828	  	DCA	  	2/28/2001	  	wo 00200201926	  	PENDING
	 INDIA
	  	43827	  	DCA	  	2/28/2001	  	2002/01102	  	PENDING
	 SOUTH KOREA
	  	43829	  	DCA	  	2/28/2001	  	2002-7011314	  	PENDING
	 PHILIPPINES
	  	41211	  	CEQ	  	2/27/2001	  	1-2001-00458	  	PUBLISHED
	 RUSSIA
	  	43830	  	DCA	  	2/28/2001	  	2002125909	  	PENDING
	 SINGAPORE
	  	43831	  	DCA	  	2/28/2001	  	200205181-1	  	PENDING
	 THAILAND
	  	41214	  	CEQ	  	2/15/2001	  	063595	  	PUBLISHED
	 TAIWAN
	  	41213	  	CEQ	  	2/27/2001	  	90104466	  	PENDING
	 UNITED STATES
	  	38492	  	NEW	  	2/29/2000	  	60/185,701	  	PENDING
	 UNITED STATES
	  	38492A	  	FCA	  	8/18/2000	  	09/640,686	  	PENDING
	 SOUTH AFRICA
	  	43832	  	DCA	  	8/26/2001	  	2002/6847	  	PENDING
	
	METHOD AND APARATUS FOR PROVIDING PAGING SERVICE TO RADIO RECEIVERS IN A SATELLITE BROADCAST SYSTEM
						
	 UNITED STATES
	  	41106	  	NEW	  	11/9/2000	  	60246,739	  	PENDING
	
	QPSK PHASE AMBIGUITY CORRECTOR
						
	 UNITED STATES
	  	39443	  	NEW	  	9/28/2001	  	60/300,813	  	PENDING
	 WIPO
	  	43857	  	CEQ	  	9/30/2002	  	PCT/US02/31044	  	PUBLISHED
	
	DUAL CHANNEL DIGITAL SATELLITE RECEIVER CARD FOR PERSONAL COMPUTER
						
	 UNITED STATES
	  	42215	  	NEW	  	9/13/2001	  	60/318/633	  	PENDING
	
	PCMCIA CARD FOR PROVIDING HAND-HELD PERSONAL DATA ASSISTANT DEVICES WITH DIGITA SATELLITE BROADCAST RECEPTION AND BACKHAUL LINK
						
	 UNITED STATES
	  	42119	  	NEW	  	9/28/2001	  	60/325,180	  	PENDING
	
	DIGITAL DATA ADAPTER (DDA) FOR CONNECTING DIGITAL SATELLITE RECEIVER AND PERSONAL COMMUNICATION
						
	 UNITED STATES
	  	42214	  	NEW	  	10/31/2001	  	09/984,973	  	PUBLISHED

  

 12 

 Patent Report by Invention 
 PRINTED 8/6/2003 
 Status: ISSUED 
  

															
	 COUNTRY

	  	REFERENCE #

	  	TYPE

	  	FILED

	  	SERIAL #

	  	ISSUED

	  	PATENT #

	  	STATUS

	
	SYSTEM FOR PROVIDING GLOBAL PORTABLE INTERNET ACCESS USING LOW EARTH ORBIT SATELLITE AND SATELLITE DIRECT RADIO BROADCAST SYSTEM
								
	 ARIPO
	  	39652	  	DCA	  	8/19/1998	  	AP/P/00/01752	  	12/31/2002	  	AP 1133	  	ISSUED
	 AUSTRALIA
	  	39653	  	DCA	  	8/19/1998	  	90224/98	  	2/14/2002	  	740115	  	ISSUED
	 EURASIAN PATENT
	  	39658	  	DCA	  	8/19/1998	  	200000290	  	10/22/2001	  	001943	  	ISSUED
	 EGYPT
	  	36621	  	CEQ	  	9/3/1998	  	1052/98	  	3/31/2002	  	21805	  	ISSUED
	 ETHIOPIA
	  	36637	  	CEQ	  	9/4/1998	  	EP/P/98/00007	  	10/28/1999	  	00001	  	ISSUED
	 MOROCCO
	  	36624	  	CEQ	  	9/1/1998	  	25.236	  	4/1/1999	  	24,641	  	ISSUED
	 NIGERIA
	  	36625	  	CEQ	  	9/4/1998	  	315/98	  	6/28/2000	  	RP 13756	  	ISSUED
	 AFRICAN UNION
	  	39665	  	DCA	  	3/2/2000	  	1200000064	  	10/16/2000	  	11331	  	ISSUED
	 PANAMA
	  	36627	  	CEQ	  	9/2/1998	  	P1/PA98/84585	  	9/2/1998	  	84585	  	ISSUED
	 PERU
	  	36629	  	CEQ	  	9/7/1998	  	00835.1998	  	9/25/2002	  	2652	  	ISSUED
	 PAKISTAN
	  	36626	  	CEQ	  	8/6/1998	  	816/98	  	12/6/2000	  	136548	  	ISSUED
	 TAIWAN
	  	36633	  	CEQ	  	9/4/1998	  	87114694	  	4/21/2001	  	130157	  	ISSUED
	 UNITED STATES
	  	33878	  	NEW	  	9/5/1997	  	08/923,935	  	8/15/2000	  	6,105,060	  	ISSUED
	 SOUTH AFRICA
	  	36632	  	CEQ	  	8/11/1998	  	98/7180	  	6/30/1999	  	98/7180	  	ISSUED
	
	SATELLITE DIRECT RADIO BROADCAST SYSTEM
								
	 ARIPO
	  	35937	  	DCA	  	12/6/1996	  	AP/P/98/01256	  	12/31/1999	  	AP792	  	ISSUED
	 BANGLADESH
	  	34152	  	CEQ	  	12/7/1996	  	146/96	  	12/8/1995	  	1002849	  	ISSUED
	 BANGLADESH
	  	34152A	  	DIV	  	6/16/1998	  	93/98	  	12/8/1995	  	1002850	  	ISSUED
	 CANADA
	  	35940	  	DCA	  	12/6/1996	  	2,238,641	  	4/29/2003	  	2,238,641	  	ISSUED
	 CONGO
	  	34153	  	CEQ	  	12/6/1996	  	NP/23/EXT/96	  	5/16/1997	  	96/3479	  	ISSUED
	 DOMNICAN REPUBLIC
	  	34142	  	CEQ	  	12/6/1996	  	5358	  	10/22/1997	  	5358	  	ISSUED
	 ALGERIA
	  	34154	  	CEQ	  	12/8/1996	  	960,184	  	12/7/1996	  	960184	  	ISSUED
	 EURASIAN PATENT
	  	35943	  	DCA	  	12/6/1996	  	199800431	  	8/28/2000	  	001040	  	ISSUED
	 EURASIAN PATENT
	  	40113	  	DCA	  	11/6/1998	  	200000518	  	2/28/2002	  	002178	  	ISSUED
	 EGYPT
	  	34128	  	CEQ	  	12/8/1996	  	1092/96	  	4/30/2000	  	20 855	  	ISSUED
	 ISRAEL
	  	35946	  	DCA	  	12/6/1996	  	124715	  	4/13/2003	  	124715	  	ISSUED
	 IRAN
	  	34145	  	CEQ	  	3/18/1997	  	37512021	  	7/16/1997	  	25648	  	ISSUED
	 JORDAN
	  	34148	  	CEQ	  	12/7/1996	  	1942	  	3/10/1998	  	1942	  	ISSUED
	 MONGOLIA
	  	35949	  	DCA	  	12/6/1995	  	2319	  	9/23/1999	  	1564	  	ISSUED
	 NIGERIA
	  	34131	  	CEQ	  	12/6/1996	  	289/96	  	3/20/1997	  	RP 12,604	  	ISSUED
	 NIGERIA
	  	37265	  	CEQ	  	9/4/1998	  	388/98	  	6/28/2000	  	RP 13753	  	ISSUED
	 NEW ZEALAND
	  	35950	  	DCA	  	12/6/1996	  	324,563	  	12/16/1998	  	324,563	  	ISSUED
	 AFRICAN UNION
	  	35951	  	DCA	  	12/6/1996	  	PV98/00073	  	7/5/2001	  	10793	  	ISSUED
	 PERU
	  	34137	  	CEQ	  	1/14/1997	  	884/1996-OIN	  	9/29/2000	  	1594	  	ISSUED
	 PAKISTAN
	  	34151	  	CEQ	  	12/7/1996	  	745/96	  	12/7/1998	  	135446	  	ISSUED
	 PAKISTAN
	  	37266	  	CEQ	  	10/28/1998	  	1103/98	  	2/28/2001	  	136626	  	ISSUED
	 PARAGUAY
	  	34143	  	CEQ	  	12/6/1996	  	112	  	6/26/2000	  	9.949	  	ISSUED
	 SINGAPORE
	  	40122	  	DCA	  	11/6/1998	  	200002591-6	  	6/5/2001	  	73143	  	ISSUED
	 TURKEY
	  	35956	  	DCA	  	12/6/1996	  	98/00997	  	3/22/1999	  	TR19980099	  	ISSUED
	 TAIWAN
	  	34107	  	CEQ	  	12/6/1996	  	85115072	  	8/2/2000	  	113618	  	ISSUED
	 TAIWAN
	  	37273	  	CEQ	  	11/26/1998	  	87118736	  	2/20/2001	  	121205	  	ISSUED
	 UNITED STATES
	  	33877	  	NEW	  	12/8/1995	  	08/569,346	  	11/10/1998	  	5,835,487	  	ISSUED
	 UNITED STATES
	  	35248A	  	CIP	  	7/9/1998	  	09/112,349	  	3/13/2001	  	6,201,798	  	ISSUED
	 UNITED STATES
	  	36593	  	CON	  	7/30/1998	  	09/124,997	  	6/19/2001	  	6,249,514	  	ISSUED
	 SOUTH AFRICA
	  	34132	  	CEQ	  	12/6/1996	  	96/10298	  	9/23/1997	  	96/10298	  	ISSUED
	 SOUTH AFRICA
	  	45193	  	CEQ	  	11/11/1998	  	98/10314	  	4/26//2000	  	98/10314	  	ISSUED
	
	SYSTEM FOR PROVIDING LOCATION-SPECIFIC DATA TO USER
								
	 CHINA
	  	38505	  	DCA	  	10/31/1997	  	97180319.6	  	5/21/2003	  	ZL 97180319.6	  	ISSUED
	 EURASIAN PATENT
	  	38506	  	DCA	  	10/31/1997	  	199900446	  	10/30/2000	  	001163	  	ISSUED
	 EGYPT
	  	35266	  	CEQ	  	11/5/1997	  	117097	  	4/30/2001	  	21247	  	ISSUED
	 PAKISTAN
	  	35282	  	CEQ	  	10/24/1997	  	839/97	  	2/24/2000	  	136112	  	ISSUED
	 PAKISTAN
	  	35282A	  	DIV	  	10/24/1997	  	482/2000	  	 	  	137274	  	ISSUED
	 TAIWAN
	  	35287	  	CEQ	  	11/10/1997	  	86116876	  	10/21/1999	  	107998	  	ISSUED
	 UNITED STATES
	  	33876	  	NEW	  	11/5/1996	  	98/746,018	  	4/27/1999	  	5.898.680	  	ISSUED
	 SOUTH AFRICA
	  	35267	  	CEQ	  	10/27/1997	  	97/9604	  	7/28/1999	  	97/9604	  	ISSUED

  

 13 

															
	 COUNTRY

	  	REFERENCE#

	  	TYPE

	  	FILED

	  	SERIAL #

	  	ISSUED

	  	PATENT #

	  	STATUS

	REAL TIME INFORMATION DELIVERY SYSTEM FOR AIRCRAFT
								
	 TAIWAN
	  	35392	  	CEQ	  	11/11/1997	  	86116793	  	12/13/1999	  	105404	  	ISSUED
	 UNITED STATES
	  	34027	  	NEW	  	11/15/1996	  	08/749,457	  	10/12/1999	  	5,966,442	  	ISSUED
	 UNITED STATES
	  	38928	  	CON	  	8/2/1999	  	09/366,281	  	6/3/2003	  	6,574,338	  	ISSUED
	
	DIGITAL SATELLITE DIRECT BROADCAST SYSTEM WITH FORMATTING OF BROADCAST DATA, PROCESSING THEREOF BY SATELLITE PAYLOAD AND RECEPTION BY REMOTE RADIO RECEIVERS
								
	 ARIPO
	  	38532	  	DCA	  	10/31/1997	  	AP/P/99/01521	  	11/29/2002	  	AP 1123	  	ISSUED
	 ARIPO
	  	38532A	  	DIV	  	10/31/1997	  	2001/002383	  	11/29/2002	  	AP 1125	  	ISSUED
	 ARIPO
	  	38532B	  	DIV	  	10/31/1997	  	2001/002380	  	11/29/2003	  	AP 1124	  	ISSUED
	 AUSTRALIA
	  	38533	  	DCA	  	10/31/1997	  	70036/98	  	9/21/2000	  	724520	  	ISSUED
	 CHINA
	  	38536	  	DCA	  	10/31/1997	  	97180321.8	  	4/30/2003	  	ZL97180321.8	  	ISSUED
	 EURASIAN PATENT
	  	38539	  	DCA	  	10/31/1997	  	199900445	  	8/27/2001	  	001820	  	ISSUED
	 IRAN
	  	35300	  	CEQ	  	1/29/1998	  	37610011-16	  	4/21/1998	  	25851	  	ISSUED
	 AFRICAN UNION
	  	38538	  	DCA	  	10/31/1997	  	PV9900094	  	1/31/2000	  	11117	  	ISSUED
	 PAKISTAN
	  	35304	  	CEQ	  	10/24/1997	  	841/97	  	3/1/2002	  	136114	  	ISSUED
	 PAKISTAN
	  	35304A	  	DIV	  	7/17/1997	  	615/99	  	7/17/2000	  	136125	  	ISSUED
	 TURKEY
	  	38549	  	DCA	  	10/31/1997	  	1999/01741	  	9/21/2000	  	01741 B	  	ISSUED
	 TURKEY
	  	38549B	  	DIV	  	10/31/1997	  	2000/00846	  	1/22/2001	  	2000 846 B	  	ISSUED
	 TURKEY
	  	38549A	  	DIV	  	10/31/1997	  	2000/00847	  	1/22/2001	  	2000 847 B	  	ISSUED
	 TAIWAN
	  	35310	  	CEQ	  	11/11/1997	  	86116897	  	5/25/2000	  	110701	  	ISSUED
	 UNITED STATES
	  	33877A	  	NEW	  	11/5/1996	  	08/746,019	  	2/2/1999	  	5,867,490	  	ISSUED
	 SOUTH AFRICA
	  	35309	  	CEQ	  	10/27/1997	  	97/9606	  	7/28/1999	  	97/9606	  	ISSUED
	
	SATELLITE DIRECT RADIO BROADCAST RECEIVER FOR EXTRACTING A BROADCAST CHANNEL AND SERVICE CONTROL HEADER FROM TIME DIVISION MULTIPLEXED TRANSMISSIONS (AS
AMENDED)
								
	 UNITED STATES
	  	33877B	  	NEW	  	11/5/1996	  	08/746,067	  	2/9/1999	  	5,870,390	  	ISSUED
	
	 SYSTEM FOR FORMATTING BROADCAST DATA FOR SATELLITE TRANSMISSION AND RADIO RECEPTION

								
	 UNITED STATES
	  	33877C	  	NEW	  	11/5/1996	  	08/746,020	  	1/26/1999	  	5,864,546	  	ISSUED
	
	 SYSTEM FOR MANAGING SPACE SEGMENT USAGE AMONG BROADCAST SERVICE PROVIDERS

								
	 UNITED STATES
	  	33877D	  	NEW	  	11/5/1996	  	08/746,069	  	9/5/2000	  	6,115,366	  	ISSUED
	
	SATELLITE PAYLOAD PROCESSING SYSTEM FOR SWITCHING UPLINK SIGNALS TO TIME DIVISION MULTIPLEXED DOWNLINKED SIGNAL
								
	 UNITED STATES
	  	37717	  	CON	  	2/16/1999	  	09/250,263	  	12/25/2001	  	6,333,922	  	ISSUED
	
	SATELLITE PAYLOAD PROCESSING SYSTEM USING POLYPHASE DEMULTIPLEXING, QUADRATURE PHASE KEYING DEMODULATION AND RATE ALIGNMENT
								
	 UNITED STATES
	  	38157	  	CON	  	3/9/1999	  	09/265,537	  	4/1/2003	  	6,542,480	  	ISSUED
	
	 SATELLITE PAYLOAD PROCESSING SYSTEM PROVIDING ON-BOARD RATE ALIGNMENT

								
	 UNITED STATES
	  	33877G	  	NEW	  	11/5/1996	  	08/746,072	  	8/22/2000	  	6,108,319	  	ISSUED
	
	DIGITAL BROADCAST SYSTEM USING SATELLITE DIRECT BROADCAST SYSTEM AND TERRESTIRAL REPEAT
								
	 AFRICAL UNION
	  	40277	  	CEQ	  	7/10/1998	  	1200000257	  	8/13/2001	  	11532	  	ISSUED
	 PAKISTAN
	  	35985	  	CEQ	  	5/2/1998	  	430/98	  	9/2/2000	  	136394	  	ISSUED
	 SINGAPORE
	  	40279	  	CEQ	  	7/10/1998	  	200005147-4	  	11/14/2002	  	75704	  	ISSUED
	 TURKEY
	  	40282	  	CEQ	  	7/10/1998	  	2000/02768	  	6/21/2001	  	2000 02768	  	ISSUED
	 TAIWAN
	  	35988	  	CEQ	  	8/5/1998	  	87112878	  	8/28/2000	  	114432	  	ISSUED
	 SOUTH AFRICA
	  	35992	  	CEQ	  	4/30/1998	  	98/03650	  	11/24/1998	  	98/03650	  	ISSUED
	
	SYSTEM FOR SELECTIVELY DOWNLOADING INTERNET SERVICE PROVIDER INFORMATION USING SATELLITE DIRECT RADIO BROADCAST RECEIVER
								
	 AUSTRALIA
	  	39635	  	DCA	  	8/19/1998	  	91070/98	  	4/3/2003	  	755506	  	ISSUED
	 EURASIAN PATENT
	  	39640	  	DCA	  	8/19/1998	  	200000289	  	4/25/2002	  	002330	  	ISSUED
	 EGYPT
	  	36602	  	CEQ	  	9/3/1998	  	1051/98	  	2/27/2002	  	21737	  	ISSUED
	 ETHIOPIA
	  	36638	  	CEQ	  	9/4/1998	  	EP/P/98/00008	  	12/24/2001	  	00008	  	ISSUED
	 NIGERIA
	  	36606	  	CEQ	  	9/4/1998	  	314/98	  	7/21/2000	  	RP 13752	  	ISSUED
	 AFRICAL UNION
	  	39647	  	DCA	  	8/19/1998	  	1200000062	  	10/16/2000	  	11329	  	ISSUED
	 PERU
	  	36610	  	CEQ	  	9/7/1998	  	00834-1998	  	9/25/2002	  	2653	  	ISSUED
	 PAKISTAN
	  	36607	  	CEQ	  	8/6/1998	  	817/98	  	12/6/2000	  	136549	  	ISSUED
	 SINGAPORE
	  	39649	  	DCA	  	8/19/1998	  	200001005-8	  	3/28/2002	  	71366	  	ISSUED
	 TAIWAN
	  	36614	  	CEQ	  	9/4/1998	  	87114693	  	8/11/2000	  	118694	  	ISSUED
	 SOUTH AFRICA
	  	36613	  	CEQ	  	8/11/1998	  	98/7170	  	6/30/1999	  	98/7179	  	ISSUED

  

 14 

 SYSTEM FOR PROVIDING A USER WITH ACTIVE AND PASSIVE ACCESS TO CACHED CONTENT 
  

															
	 JORDAN
	  	39059	  	CEQ	  	10/2/1999	  	2150	  	12/2/2002	  	2150	  	ISSUED
	 NIGERIA
	  	39063	  	CEQ	  	9/30/1999	  	Temp	  	6/28/2000	  	RP 13755	  	ISSUED
	 PANAMA
	  	39065	  	CEQ	  	9/27/1999	  	PI/PA99/084830	  	3/27/2002	  	84830	  	ISSUED
	 PAKISTAN
	  	39064	  	CEQ	  	9/15/1999	  	798/99	  	6/25/2002	  	136986	  	ISSUED
	 TAIWAN
	  	39070	  	CEQ	  	10/1/1999	  	88116926	  	8/5/2002	  	153685	  	ISSUED
	
	METHOD AND APPARATUS FOR MOBILE PLATFORM RECEPTION AND SYNCHRONIZATION IN DIRECT DIGITAL SATELLITE
								
	 PAKISTAN
	  	41207	  	CEQ	  	2/17/2000	  	152/2001	  	6/14/2003	  	137592	  	ISSUED
	
	YAGI ANTENNA COUPLED WITH A LOW NOISE AMPLIFIER ON THE SAME PRINTED CIRCUIT BOARD
								
	 UNITED STATES
	  	40465	  	NEW	  	6/29/2000	  	09/605,396	  	12/4/2001	  	6,326,922	  	ISSUED
	
	SYSTEM FOR TIME DIVISION MULTIPLEXING BROADCAST CHANNELS WITH R-1/2 OR R-3/4 CONVOLUTION
								
	 UNITED STATES
	  	35922	  	NEW	  	4/7/1998	  	09/055,935	  	2/6/2001	  	6,185,265	  	ISSUED

  

 15 

 EXHIBIT I 
  
 LIST OF CERTAIN ENTITIES* 
  
 WorldSpace, Inc. 
  
 AfriSpace, Inc. 
  
 WorldSpace International Network Inc. 
  
 WorldSpace Satellite Company 
  
 WorldSpace Radio Company, Ltd. (inactive) 
  
 WorldSpace Corporation 
  
 WorldSpace Caribbean Ltd. 
  
 AsiaSpace, Ltd. 
  
 WorldSpace Southern Africa (Pty) Ltd. 
  
 WorldSpace (UK) Ltd. 
  
 WorldSpace Ghana Ltd. 
  
 AfriSpace (Kenya) Ltd. 
  
 WorldSpace Asia Pte. Ltd. 
  
 WorldSpace India Private Limited 
  
 PT WorldSpace Indonesia (75%) 
  
 WorldSpace France 
  
 AmeriSpace Ltd. (inactive) 
  
 WorldSpace do Brasil (inactive – in dissolution) 
  
 WorldSpace AmeriSpace do Brasil (inactive – in
dissolution) 
  
 WorldSpace Americas do Brasil
Ltda. (inactive – in dissolution) 
  
 WorldSpace Poland
(inactive) 

 WorldSpace Europe ApS 
  
 WorldSpace China 
  
 Wonderclick.com, Inc. (less than 50%) 
  
 XM Ventures Trust 

	*	100% interest unless otherwise stated 

  
 EXHIBIT J 
  
 LIST OF SUBORDINATE LOANS AND RELATED INFORMATION 
  

  
 Exhibit J 

 
 List of Subordinated Loans and Related Information 
  

										
	 Lender

	  	Date

	  	Principal

	 	 	Payments
to
Principal

	  	Accrued
Interest to
6/30/03

	 Industrial Development
	  	10/28/1998	  	10,000,000	 	 	 	  	2,420,413
	 Industrial Development
	  	11/20/1998	  	56,097,912	 	 	 	  	25,867,371
	 Saifcom Establishment
	  	1/13/1999	  	10,000,000	 	 	3,000,000	  	1,016,944
	 Yenura Pte. Ltd.
	  	9/21/2002	  	79,175,000	*	 	 	  	9,781,744

  

	*	includes advances through 6/30/03; current loan documentation covers advances through 6/2/03 

  

 LOAN AGREEMENT 
  
 This LOAN AGREEMENT, dated as of October 29, 1998 (the “Agreement”), by and between WorldSpace International
Network Inc., a corporation organized under the International Business Companies Act of the British Virgin Islands (the “Borrower”), Industrial Development Inc., a corporation organized under the International Business Companies Act of the
British Virgin Islands (the “Lender”), and Salah Idris, the sole shareholder of the Investor (the “Owner”). 
  
 WITNESSETH: 
  
 WHEREAS, in October 1998 the Owner and the Chairman and Chief Executive Officer of the Borrower orally agreed that the Owner would cause US$10,000,000 to
be transferred to the Borrower as a loan by or on behalf of the Lender; 
  
 WHEREAS, pursuant to that oral agreement, on or about October 29, 1998, the Owner caused US$10,000,000 to be transferred to the Borrower as a loan by or on behalf of the Lender (the “Loan”); 
  
 WHEREAS, the parties desire to set forth the terms of the Loan in this Loan
Agreement, which is being executed and delivered, together with the Promissory Note (as defined below), in October 2000; 
  
 NOW, THEREFORE, in consideration of the premises and the representations, warranties, covenants and agreements set forth herein, the parties hereto agree
as follows: 
  
 ARTICLE 1 
 PROMISSORY NOTE 
  
 Section 1.1 Promissory Note. Simultaneously with the execution and delivery of this Agreement, the Borrower shall execute and deliver to the Lender
a promissory note in the principal amount of $10 million and dated October 29, 1998, in the form of Exhibit A hereto (the “Promissory Note”). The Lender agrees that the Promissory Note shall constitute full and adequate consideration for
the Loan. 
  
 ARTICLE 2 
 REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE BORROWER 
  

The Borrower hereby represents and warrants to the Lender and as follows: 
  
 Section 2.1 Organization and Qualification. The Borrower is a corporation duly organized and validly existing under
the laws of the British Virgin Islands. 
  
 Section 2.2
Authorization. The Borrower has the requisite corporate power and authority to execute, deliver and perform this Agreement and to issue the Promissory Note. Upon approval of this Agreement and the issuance of the Promissory Note by a duly
adopted resolution of the Board of Directors of the Borrower, the execution, delivery and performance of this Agreement and the issuance of the Promissory Note will have been duly authorized by all requisite action (corporate or otherwise) on the
part of the [text illegible] validly executed and delivered by the Borrower. Assuming the due authorization, execution and delivery of this 

  

 
Agreement by the Lender, this Agreement constitutes, and the Promissory Note upon issuance will constitute, the valid and binding obligation of the Borrower,
enforceable against it in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium and similar laws of general application relating to or affecting creditors’ rights and to general principles of
equity. 
  
 Section 2.3 Non-contravention. The execution,
delivery and performance by the Borrower of this Agreement and the consummation by the Borrower of the transactions contemplated hereby do not and will not violate the Memorandum or Articles of Association of the Borrower, constitute a default under
any material loan agreement, mortgage, deed of trust, indenture, lease, license, other agreement or contract or, to the knowledge of the Borrower, any law, rule, regulation, order, decree, judgment, existing administrative interpretation thereof or
award to which the Borrower is a party or by which the Borrower is bound. There is no action, suit, proceeding, at law or in equity, by any person or entity, or any arbitration or any administrative or other proceeding or investigation by or before
any court or governmental or other instrumentality, agency, authority or body or any arbitrator, pending or, to the knowledge of the Borrower, threatened, against the consummation of the transactions contemplated hereby, and there is no valid basis
for any such action, suit, proceeding, arbitration or investigation. 
  
 Section 2.4 Consents. The execution, delivery and performance by the Borrower of this Agreement and the consummation by the Borrower of the transactions contemplated hereby do not and will not require (i) any action by or in respect
of, or registration or filing with, any governmental body, agency, official or authority, or (ii) any consent, approval, waiver or other similar action by any person under any loan agreement, mortgage, deed of trust, indenture, lease, license or
other agreement, contract or instrument to which the Borrower is a party or by which the Borrower or any of its assets is bound. 
  
 ARTICLE 3 
 REPRESENTATIONS,
WARRANTIES AND COVENANTS OF THE LENDER 
  
 The Lender and the
Owner hereby jointly and severally represent and warrant to the Borrower as follows: 
  
 Section 3.1 Organization and Qualification. The Lender is a corporation duly organized and validly existing under the laws of the British Virgin Islands. 
  
 Section 3.2 No Third Party Interests in the Loan. The Loan was made by
the Lender, or by the Owner on behalf of the Lender. In making the Loan, neither the Lender nor the Owner was acting as representative or agent of any other person or entity, and none of the funds used to make the Loan were borrowed from any other
person or entity. No person or entity other than the Lender has any claim against the Borrower for repayment of the Loan. 
  
 Section 3.3 Authorization. The Lender has the requisite corporate power and authority to execute, deliver and perform this Agreement. The
execution, delivery and performance of this Agreement have been duly authorized by all requisite action (corporate or otherwise) on the part of the Lender. This Agreement has been duly and validly executed and delivered by the Lender. Assuming the
due authorization, execution and delivery of this 

  

 2 

 
Agreement by the Borrower, this Agreement constitutes the valid and binding obligation of the Lender, enforceable against it in accordance with its terms,
subject to bankruptcy, insolvency, reorganization, moratorium and similar laws of general application relating to or affecting creditors’ rights and to general principles of equity. 
  
 Section 3.4 Non-contravention. The execution, delivery and performance by the Lender of this Agreement and the
consummation by the Lender of the transactions contemplated hereby do not and will not violate the Memorandum or Articles of Association of the Lender, constitute a default under any material loan agreement, mortgage, deed of trust, indenture,
lease, license, other agreement or contract or, to the knowledge of the Lender or the Owner, any law, rule, regulation, order, decree, judgment, existing administrative interpretation thereof or award to which the Lender or the Owner is a party or
by which the Lender or the Owner is bound. There is no action, suit, proceeding, at law or in equity, by any person or entity, or any arbitration or any administrative or other proceeding or investigation by or before any court or governmental or
other instrumentality, agency, authority or body or any arbitrator, pending or, to the-knowledge of the Lender or the Owner, threatened, against the consummation of the transactions contemplated hereby, and there is no valid basis for any such
action, suit, proceeding, arbitration or investigation. 
  
 Section 3.5 Consents. The execution, delivery and performance by the Lender of this Agreement and the consummation by the Lender of the transactions contemplated hereby do not and will not require any consent, approval, waiver or
other similar action by any person under any loan agreement, mortgage, deed of trust, indenture, lease, license or other agreement, contract or instrument to which the Lender or the Owner is a party or by which the Lender or the Owner is bound.

  
 Section 3.6 No Registration, etc. he Lender and the
Owner confirm that: 
  
 3.6.1 The Lender and the
Owner understand that the Promissory Note has not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and that the Promissory Note is being issued to the Lender in a transaction that is exempt from the
registration requirements of he Securities Act: 
  
 3.6.2 The Lender and the Owner acknowledge that (a) neither the Borrower nor any person acting on behalf of the Borrower has made any representation to the Lender or the Owner with respect to the Loan or the issuance of the Promissory Note
and (b) any information the Lender or the Owner desires concerning the Promissory Note or the Borrower or any other matter relevant to the Lender’s decision to purchase the Promissory Note is or has been made available to the Lender and the
Owner. 
  
 3.6.3 The Lender and the Owner have
such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Promissory Note. 
  
 3.6.4 The Lender is acquiring the Promissory Note for its own account and not with a view to any distribution of the Promissory Note,
subject, nevertheless, to the 

  

 3 

 
understanding that the disposition of its property will at all times be and remain within its control. 
  
 3.6.5 The Lender and the Owner, neither of which is a U.S.
citizen, were outside the United States at the time any offer was made to them with respect to the purchase of the Promissory Note and at the time the order to purchase the Promissory Note originated, the Lender and the Owner were outside the United
States. 
  
 3.6.6 The Lender understands that the
Promissory Note will bear a legend substantially to the following effect: 
  
 THIS PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY BE OFFERED, SOLD, -PLEDGED OR OTHERWISE TRANSFERRED
ONLY IN-COMPLIANCE WITH, OR PURSUANT TO AN EXEMPTION FROM, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS AND THE RESTRICTIONS ON TRANSFER SET FORTH HEREIN AND IN THE LOAN AGREEMENT DATED AS OF OCTOBER 29,
1998. 
  
 3.6.7 The Lender agrees that in the
event that at some future time the Lender wishes to transfer the Promissory Note, the Lender will not do so unless ten (10) days prior to any such proposed transfer the Lender gives written notice to the Borrower of such intention to effect such
transfer, setting forth the manner and circumstances of the proposed transfer and identifying the transferee(s), accompanied by (i) an opinion of counsel experienced in U.S. securities law matters reasonably satisfactory to the Borrower addressed to
the Borrower to the effect that the proposed transfer may be effected without registration under the Securities Act, (ii) representation letters in form and substance reasonably satisfactory to the Borrower to ensure compliance with the provisions
of the Securities Act and (iii) letters in form and substance reasonably satisfactory to the Borrower from each such transferee stating such transferee’s agreement to be bound by the terms of this Section 3.6. Such proposed transfer may be
effected only if the Borrower shall have received such notice of transfer, opinion of counsel, representation letters-and-other letters referred to in the immediately preceding sentence, unless any or all of such conditions shall have been waived by
the Borrower, whereupon the Lender shall be entitled to transfer the Promissory Note in accordance with-the terms of the-notice delivered by-the Lender to the Borrower. 
  
 ARTICLE 4 
 SURVIVAL OF REPRESENTATIONS AND WARRANTIES; 
 INDEMNIFICATION 
  
 Section 4.1 Survival of Representation and Warranties. The respective
representations and warranties of the Borrower and the Lender and the Owner contained in this Agreement shall survive the consummation of the transactions contemplated by this Agreement until the expiration of the statute of limitations applicable
to such matters. 
  

 4 

 Section 4.2 Mutual Indemnity. Each of (i) the Lender and the Owner and (ii) the Borrower (each, an
“Indemnitor”) shall indemnify and hold harmless the other, and such other party’s affiliates, shareholders, directors, officers, employees, attorneys, accountants and agents (each, an “Indemnitee”) from and
against any and all judgments, damages, losses, liabilities, costs and expenses (including, without limitation, reasonable counsel fees and disbursements incurred in responding to, investigating or defending a claim, in litigation or otherwise) (a
“Loss”) suffered or incurred by an Indemnitee, resulting from or arising out of the inaccuracy of any representation or warranty made-herein by such Indemnitor, or the failure by such Indemnitor to perform any covenant, agreement or other
obligation contained herein. 
  
 Section 4.3 Conditions of
Indemnification. The obligations and liabilities of an Indemnitee and an Indemnitor under this Article 4 with respect to claims for a Loss or potential Loss resulting from the assertion of liability by a third party (a “Claim”) shall
be subject to the following terms and-conditions: 
  
 (1) The
Indemnitee shall give the Indemnitor notice of any such Claim promptly after the Indemnitee learns of the existence of or receives written notice thereof (and in no event more than fifteen (15) days after the Indemnitee receives such written
notice), and the Indemnitor shall have the option to undertake the defense thereof with counsel of their own choosing by giving written notice thereof to the Indemnitee within thirty (30) days after receiving such notice. All cost and expense of
such defense (including, without limitation, reasonable fees and disbursements of counsel incurred in litigation or otherwise), and any settlement or compromise resulting from the defense of any Claim by the Indemnitor, shall be paid for by the
Indemnitor; provided, however, -that the Indemnitor shall not settle or compromise any such Claim unless the Indemnitee is fully released and discharged therefrom as a result thereof. The Indemnitee shall be entitled to participate in
the defense of such Claim with counsel of its choice, at its own expense; provided, however, that the Indemnitee shall not, without the written consent of the Indemnitor, compromise or settle any such Claim unless the Indemnitee waives
its right to indemnity therefor hereunder. 
  
 (2) In the event
that the Indemnitor, within a reasonable time after receipt of notice of any such Claim, but in no event more than thirty (30) days after receipt of such notice, fails to defend or take other appropriate action, the Indemnitee will (upon further
notice to the Indemnitor) have the right to undertake-the defense, compromise or settlement of such Claim; 
  
 provided, however, that the Indemnitee shall not, without the written consent of the Indemnitor, compromise or settle any such Claim unless the Indemnitee
waives its right to indemnity therefor hereunder. 
  
 (3) The
Indemnitee’s failure to meet any condition or perform any obligation set forth in this Section 4.3 shall in no way limit or negate any obligations or liabilities of the Indemnitor unless the Indemnitor is actually prejudiced by such failure
and, in such event, the Indemnitor’s obligations or liabilities shall be limited only to the extent of such prejudice. 
  
 Section 4.4 Assistance. In the event so requested by the Indemnitor, the Indemnitee shall use its reasonable efforts to make available all
information and assistance reasonably required in the defense by the Indemnitor of a Claim or a Loss. 
  

 5 

 Section 4.5 Survival. The obligations to indemnify and hold harmless pursuant to this Article 4
shall survive the consummation of the transactions contemplated by this Agreement. 
  
 Section 4.6 Exclusive Remedy. Except for remedies that cannot be waived as a matter of law, this Article 4 shall be the exclusive remedy for breach of the representations and warranties contained in this
Agreement or in any document or instrument executed and delivered pursuant hereto. 
  
 ARTICLE 5 
 FURTHER ASSURANCES 
  
 At any time after the date hereof, each of the parties hereto shall without further consideration promptly execute,
acknowledge and deliver to the requesting party any other assurances or documents reasonably requested by any other party hereto and necessary to consummate or further evidence the transactions contemplated hereby and to satisfy its obligations
hereunder. 
  
 ARTICLE 6 
 NO RIGHTS IN THIRD PARTIES 
  
 Nothing in this Agreement, express or implied, is intended or shall be construed to confer upon or give to any person, fine or corporation other than the
parties hereto and their successors and assigns, any remedy or claim wider or by reason of this Agreement or any term, covenant or condition hereof, and all the terms, covenants, conditions and agreements contained in this Agreement shall be for the
sole and exclusive benefit of the parties hereto and their successors and assigns. 
  
 ARTICLE 7 
 MISCELLANEOUS 
  
 Section 7.1 Note Register; Restriction on Transfer. The Borrower will at all times maintain, or cause an agent of the
Borrower to maintain, a register (the “Note Register”) in which there will be recorded by book entry the name and address of the Lender and each other person, if any, at any time owning any interest in the Promissory Note, or the right to
receive any payments of principal or interest thereunder, and the nature and extent of such interest or right. No transfer of any interest in the Promissory Note or any right to receive any payments of principal or interest thereunder will be
effective unless and until such transfer is recorded by book entry in the Note Register. The Lender may not assign or otherwise transfer (including by participation or otherwise) any or all or of its rights, or delegate any or all of its
obligations, under the Promissory Note, without the prior written consent of the Borrower. 
  
 Section 7.2 Entire Agreement. This Agreement and the Promissory Note contain the entire understanding of the parties hereto with respect to the subject matter contained herein. This Agreement and the Promissory Note
supersede all prior agreements and understanding between the parties with respect to such subject matter. 
  
 Section 7.3 Notices. Any and all notices or other communications or deliveries required or permitted to be given pursuant to any of the provisions of this
Agreement or the 

  

 6 

 
Promissory-Note shall be deemed to have been duly given for all purposes if sent by (i) telefax, (ii) certified or registered mail, return receipt requested
and postage prepaid, (iii) hand delivery or (iv) a nationally recognized overnight courier to the address listed below or at such other address as any party may specify by notice given to the other party in accordance with this Section 7.3.

  
 Notices to the Borrower shall be sent to: 
  
 WorldSpace International Network Inc. 
 c/o WorldSpace Management Corporation 
 2400 N
Street, N.W. 
 Washington, D.C. 20007 
 Telefax: 202-969-6560 
  
 Notices to the Lender should be
sent to: 
  
 Industrial Development Inc. 
 c/o Mr. Mr. Salah Idris 
 Apartment 77

 Raynham, Norfolk Crescent 
 London, United Kingdom 
 Telefax: 9662-6060283 
  
 The date of giving of any such notice shall be the date of delivery when such notice is delivered by telefax, hand delivery or overnight
courier, or five days following the posting of the mail. 
  
 Section 7.4 Waiver. No failure or delay by any party at any time to enforce one or more of the terms, conditions or obligations of this Agreement shall constitute a waiver of such terms, conditions or obligations or shall preclude
such party from requiring performance by the other party at any time. No waiver of the provisions hereof shall be effective unless in writing and signed by the party to be charged with such waiver. No waiver shall be deemed a continuing waiver or
waiver in respect of any subsequent breach or default, either of similar or different nature, unless expressly so stated in writing. 
  
 Section 7.5 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard
to any choice of law or conflict of law provisions thereof. 
  
 Section 7.6 Arbitration. Any dispute or other controversy arising out of or related to this Agreement or the performance or the breach thereof shall be finally settled by arbitration pursuant to the Rules of Conciliation and
Arbitration of the International Chamber of Commerce by three arbitrators appointed in accordance with the said Rules and judgment on the award may be entered in any court having jurisdiction. The arbitration shall be held in London, United Kingdom
and shall be conducted in the English language. 
  
 Section 7.7
Expenses. Each of the parties shall bear its own expenses in connection with the transactions contemplated hereby; provided, however, that the Lender shall pay all sales, 

  

 7 

 
transfer and documentary taxes, if any, payable in connection with the sale, issuance and-delivery of the Promissory Note to the Lender. 
  
 Section 7.8 Parties In Interest. This Agreement shall be binding upon
and shall inure to the benefit of the parties hereto and their respective permitted successors and permitted assigns. 
  
 Section 7.9 Severability. All the provisions of this Agreement shall be considered as separate terms and conditions. In the event any of the
provisions hereof is determined to be invalid, prohibited or unenforceable by a court or other body of competent jurisdiction, this Agreement shall be construed as if such invalid, prohibited or unenforceable provision has been more narrowly drawn
so as not to be invalid, prohibited or unenforceable, unless such construction would be unreasonable. Notwithstanding the foregoing sentence, in the event that any provision contained in this Agreement should be determined to be invalid, prohibited
or unenforceable, the validity, legality and enforceability of the remaining provisions contained in this Agreement shall not in any way be affected or impaired thereby, unless such construction would be unreasonable. 
  
 Section 7.10 Headings. The -headings -used herein are for reference
purposes only and shall not in any way affect the meaning or interpretation of this Agreement. 
  
 Section 7.11 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which, taken together, shall constitute one and the same instrument.

  
 IN WITNESS WHEREOF, this Agreement has been signed on behalf
of each of the parties as of the date first written above. 
  
  

					
	 WORLDSPACE INTERNATIONAL NETWORK INC.

		
	 By:
	 	 /s/ Noah A. Samara

	 	 	 Name:
	 	 Noah A. Samara

	 	 	 Title:
	 	 Chairman and Chief Executive Officer

	
	 INDUSTRIAL DEVELOPMENT INC.

		
	 By:
	 	 /s/ Salah Idris

	 	 	 Name:
	 	 Salah Idris

	 	 	 Title:
	 	 Chairman

	
	 /s/ Salah Idris

 SALAH IDRIS

  

 8 

  
 EXCHANGE AGREEMENT

  
 This EXCHANGE AGREEMENT, dated as of November 20, 1998
(the “Agreement”), by and between WorldSpace International Network Inc., a corporation organized under the International Business Companies Act of the British Virgin Islands (‘WTN’), Industrial Development Inc., a corporation
organized under the International Business Companies Act of the British Virgin Islands (the “Investor”), and Salah Idris, the sole shareholder of the Investor (the ‘Owner’). 
  
 W I T N E S S E T H: 
  
 WHEREAS, on December 18, 1996, WIN agreed to issue 4,674,826 of its Class B
Ordinary Shares, par value $.01 per share (the “Investor’s Shares”), to the Investor pursuant to that certain Mezzanine Note Transfer, Waiver and Redemption Agreement, dated as of December 18, 1996, by and between World Space, Inc., a
Maryland corporation, the Investor and WIN; 
  
 WHEREAS, because
of recent publicity regarding allegations that the Owner has been or is connected with terrorists or terrorist activities, which allegations the Owner vehemently denies, the parties believe it would be in the best interest of WIN if the Investor
ceased to be a holder of voting stock of WIN while such allegations remain outstanding; 
  
 WHEREAS, WIN and the Investor desire to effect the transfer of the Investor’s Shares to WIN in exchange for a promissory note of the Company in the principal amount of US$56,097,912, which note will be
convertible into 4,674,826 Class B Ordinary Shares of WIN, on the terms and subject to the conditions set forth in this Agreement. 
  
 NOW, THEREFORE, in consideration of the premises and the representations, warranties, covenants and agreements set forth herein, the parties hereto agree
as follows: 
  
 ARTICLE 1 
 TRANSFER AND EXCHANGE 
  
 Section 1.1 Transfer and Exchange. The Investor agrees to sell, assign, transfer, convey and deliver to WIN, and WIN agrees to purchase, accept,
acquire and take assignment and delivery of, the Investor’s Shares, free and clear of all liens, charges, pledges, security interests or other encumbrances, in exchange for the consideration specified in Section 1.2 hereof. 
  
 Section 1.2 Consideration. In consideration for the Investor’s
Shares, WIN shall issue to the Investor a promissory note in the principal amount of US$56,097,912, in the form of Exhibit A hereto (the “Convertible Note”). 
  
 Section 1.3 Closing. The closing (the “Closing”) of the transfer of the Investor’s Shares to WIN and
the issuance of the Convertible Note pursuant to Sections 1.1 and 1.2 hereof will take place at the offices of Jones, Day, Reavis & Pogue, Bucklersbury House, 3 Queen 

  

 
Victoria Street, London EC4N 8NA, England on December 15, 1998, or at and on such other time, date or place as may be mutually agreed upon in writing by WIN
and the Investor (the “Closing Date”). At the Closing, the Investor shall deliver to WIN the certificates, if any, that have been issued representing the Investor’s Shares and such other documents as WIN may request to effect the
transfer of the Investor’s Shares, and WIN shall issue and deliver the Convertible Note to the investor. 
  
 Section 1.4 Approval And Consent. This Agreement shall terminate, without any liability by any party hereunder, if as of December 15, 1998, or such
later date as WIN and the investor may have agreed in writing to be the Closing Date, both of the following shah not have occurred: (1) approval of the execution and delivery of this Agreement and the issuance of the Convertible Note by a duly
adopted resolution of the Board of Directors of WIN and (2) receipt by WIN, under the Loan Agreement, dated as of December 18, 1996, by and among WIN, WorldSpace Satellite Company Ltd. and Credit Suisse S.A., as amended, of the written consent of
Credit Suisse, S.A. to the execution, delivery and performance by WIN of the Exchange Agreement and the Convertible Note. 
  
 ARTICLE 2 
 REPRESENTATIONS,
WARRANTIES AND COVENANTS OF WIN 
  
 WIN hereby represents and
warrants to the Investor and as follows: 
  
 Section 2.1
Organization and Qualification. WIN is a corporation duly organized and validly existing under the laws of the British Virgin Islands. 
  
 Section 2.2 Authorization. WIN has the requisite corporate power and authority to execute, deliver and perform this Agreement and to issue the
Convertible Note. Upon approval of this Agreement and the issuance of the Convertible Note by a duly adopted resolution of the Board of Directors of WIN, the execution, delivery and performance of this Agreement and the issuance of the Convertible
Note will have been duly authorized by all requisite action (corporate or otherwise) on the part of WIN. This Agreement has been duly and validly executed and delivered by WIN. Assuming the due authorization, execution and delivery of this Agreement
by the Investor, this Agreement constitutes, and the Convertible Note upon issuance will constitute, the valid and binding obligation of WIN, enforceable against it in accordance with their respective terms, subject to bankruptcy, insolvency,
reorganization, moratorium and similar laws of general application relating to or affecting creditors’ rights and to general principles of equity. 
  
 Section 2.3 Non-contravention. Subject to the receipt by WIN of the written consent of Credit Suisse, S.A. contemplated by Section 1.4 hereof, the
execution, delivery and performance by WIN of this Agreement and the consummation by WIN of the transactions contemplated hereby do not and will not violate the Memorandum or Articles of Association of WIN, constitute a default under any material
loan agreement, mortgage, deed of trust, indenture, lease, license, other agreement or contract or, to the knowledge of WIN, any law, rule, regulation, order, decree, judgment, existing administrative interpretation thereof or award to which WIN is
a party or by which WIN is bound. There is no action, suit, proceeding, at law or in equity, by any person or entity, or any arbitration or any administrative or other proceeding or investigation by or before any court or governmental or other
instrumentality, agency, authority 

  

 -2- 

 
or body or any arbitrator, pending or, to the knowledge of WIN, threatened, against the consummation of the transactions contemplated hereby, and there is no
valid basis for any such action, suit, proceeding, arbitration or investigation. 
  
 Section 2.4 Consents. The execution, delivery and performance by WIN of this Agreement and the consummation by WIN of the transactions contemplated hereby do not and will not require (1) any action by or in
respect of, or registration or filing with, any governmental body, agency, official or authority, or (ii) any consent, approval, waiver or other similar action by any person under any loan agreement, mortgage, deed of trust, indenture, lease,
license or other agreement, contract or instrument to which WIN is a party or by which WIN or any of its assets is bound, except for the written consent of Credit Suisse, S.A. contemplated by Section 1.4 hereof. 
  
 ARTICLE 3 
 REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE INVESTOR 
  
 The Investor and the Owner hereby jointly and severally represent and warrant to WIN as follows: 
  
 Section 3.1 Organization and Qualification. The Investor is a
corporation duly organized and validly existing under the laws of the British Virgin Islands. 
  
 Section 3.2 Authorization. The Investor has the requisite corporate power and authority to execute, deliver and perform this Agreement. The execution, delivery and performance of this Agreement have been duly
authorized by all requisite action (corporate or otherwise) on the part of the Investor. This Agreement has been duly and validly executed and delivered by the Investor. Assuming the due authorization, execution and delivery of this Agreement by
WIN, this Agreement constitutes the valid and binding obligation of the Investor, enforceable against it in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and similar laws of general application relating to
or affecting creditors’ rights and to general principles of equity. 
  
 Section 3.3 Non-contravention. The execution, delivery and performance by the Investor of this Agreement and the consummation by the Investor of the transactions contemplated hereby do not and will not violate
the Memorandum or Articles of Association of the Investor, constitute a default under any material loan agreement, mortgage, deed of trust, indenture, lease, license, other agreement or contract or, to the knowledge of the Investor or the Owner, any
law, rule, regulation, order, decree, judgment, existing administrative interpretation thereof or award to which the Investor or the Owner is a party or by which the Investor or the Owner is bound. There is no action, suit, proceeding, at law or in
equity, by any person or entity, or any arbitration or any administrative or other proceeding or investigation by or before any court or governmental or other instrumentality, agency, authority or body or any arbitrator, pending or, to the knowledge
of the Investor or the Owner, threatened, against the consummation of the transactions contemplated hereby, and there is no valid basis for any such action, suit, proceeding, arbitration or investigation. 
  

 -3- 

 Section 3.4 Consents. The execution, delivery and performance by the Investor of this Agreement
and the consummation by the Investor of the transactions contemplated hereby do not and will not require any consent, approval, waiver or other similar action by any person under any loan agreement, mortgage, deed of trust, indenture, lease, license
or other agreement, contract or instrument to which the Investor or the Owner is a party or by which the Investor or the Owner is bound. 
  
 Section 3.5 Title to Investor’s Shares. Upon issuance and delivery of the Convertible Note to the Investor, WIN will receive good and
marketable title to the Investor’s Shares free and clear of all liens, mortgages, charges, pledges, security interests or other encumbrances. 
  
 Section 3.6 Purchase of the Convertible Note. In connection with the Investor’s purchase of the Convertible Note in exchange for the
Investor’s Shares, the investor and the Owner confirm that: 
  
 3.6.1 The Investor and the Owner understand that the Convertible Note has not been, and the underlying WIN Class B Ordinary Shares will not be, registered under the U.S. Securities Act of 1933, as amended (the
“Securities Act”), and that the Convertible Note is being issued to the Investor in a transaction that is exempt from the registration requirements of the Securities Act. 
  
 3.6.2 The Investor and the Owner acknowledge that (a) neither WIN nor any person acting on behalf of WIN has
made any representation to the Investor or the Owner with respect to the offer or sale of the Convertible Note and (b) any information the Investor or the Owner desires concerning the Convertible Note or WIN or any other matter relevant to the
Investor’s decision to purchase the Convertible Note is or has been made available to the Investor and the Owner. 
  
 3.6.3 The Investor and the Owner have such knowledge and experience in financial and business matters as to be capable of evaluating the
merits and risks of an investment in the Convertible Note. 
  
 3.6.4 The Investor is acquiring the Convertible Note for its own account and not with a view to any distribution of the Convertible Note or the underlying Class B Ordinary Shares, subject, nevertheless, to the
understanding that the disposition of its property will at all times be and remain within its control. 
  
 3.6.5 The Investor and the Owner, neither of which is a U.S. citizen, were outside the United States at the time any offer was made to
them with respect to the purchase of the Convertible Note and at the time the order to purchase the Convertible Note originated, the Investor and the Owner were outside the United States. 
  
 3.6.6 The Investor understands that the Convertible Note,
and any Class B Ordinary Shares of WIN issued upon conversion thereof, will bear a legend substantially to the following effect: 
  
 THIS NOTE HAS NOT BEEN, AND THE SHARES OF WORLDSPACE INTERNATIONAL NETWORK INC. CLASS B ORDINARY SHARES 

  

 -4- 

 
OBTAINABLE UPON CONVERSION HEREOF WILL NOT BE, REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS AND MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH, OR PURSUANT TO AN EXEMPTION FROM, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS AND THE RESTRICTIONS ON
TRANSFER SET FORTH IN THE EXCHANGE AGREEMENT DATED AS OF NOVEMBER 20, 1998 AND IN THE CASE OF A TRANSFER OF CLASS B ORDINARY SHARES, IN COMPLIANCE WITH THE RESTRICTIONS ON TRANSFER SET FORTH IN THE MEMORANDUM OF ASSOCIATION OF WORLD SPACE
INTERNATIONAL NETWORK INC. 
  
 3.6.7 The Investor
agrees that in the event that at some future time the Investor wishes to transfer the Convertible Note or any of the Class B Shares issued upon conversion thereof, the Investor will not do so unless ten (10) days prior to any such proposed transfer
the Investor gives written notice to WIN of such intention to effect such transfer, setting forth the manner and circumstances of the proposed transfer and identifying the transferee(s), accompanied by (i) an opinion of counsel experienced in U.S.
securities law matters reasonably satisfactory to WIN addressed to WIN to the effect that the proposed transfer may be effected without registration under the Securities Act, (ii) representation letters in form and substance reasonably satisfactory
to WIN to ensure compliance with the provisions of the Securities Act and (iii) letters in form and substance reasonably satisfactory to WIN from each such transferee stating such transferee’s agreement to be bound by the terms of this Section
3.6. Such proposed transfer may be effected only if WIN shall have received such notice of transfer, opinion of counsel, representation letters and other letters referred to in the immediately preceding sentence, unless any or all of such conditions
shall have been waived by WIN, whereupon the Investor shall be entitled to transfer the Convertible Note or the Class B Shares issued upon conversion thereof in accordance with the terms of the notice delivered by the Investor to WIN. 
  
 ARTICLE 4 
 SURVIVAL OF REPRESENTATIONS AND WARRANTIES; 
 INDEMNIFICATION 

 
 Section 4.1 Survival of Representation and Warranties. The
respective representations and warranties of WIN and the Investor and the Owner contained in this Agreement shall survive the consummation of the transactions contemplated by this Agreement until the expiration of the statute of limitations
applicable to such matters. 
  
 Section 4.2 Mutual
Indemnity. Each of (i) the Investor and the Owner and (ii) WIN (each, an “Indemnitor”) shall indemnify and hold harmless the other, and such other party’s affiliates, shareholders, directors, officers, employees, attorneys,
accountants and agents (each, an “Indemnitee”) from and against any and all judgments, damages, losses, liabilities, costs and expenses (including, without limitation, reasonable counsel fees and disbursements incurred in responding
to, investigating or defending a claim, in litigation or otherwise) (a “Loss”) suffered or incurred by an Indemnitee, resulting from or arising out of the inaccuracy of any 

  

 -5- 

 
representation or warranty made herein by such Indemnitor, or the failure by such Indemnitor to perform any covenant, agreement or other obligation contained
herein. 
  
 Section 4.3 Conditions of Indemnification. The
obligations and liabilities of an Indemnitee and an Indemnitor under this Article 4 with respect to claims for a Loss or potential Loss resulting from the assertion of liability by a third party (a “Claim”) shall be subject to the
following terms and conditions: 
  
 (a) The Indemnitee shall give
the Indemnitor notice of any such Claim promptly after the Indemnitee learns of the existence of or receives written notice thereof (and in no event more than fifteen (15) days after the Indemnitee receives such written notice), and the Indemnitor
shall have the option to undertake the defense thereof with counsel of their own choosing by giving written notice thereof to the Indemnitee within thirty (30) days after receiving such notice. All cost and expense of such defense (including,
without limitation, reasonable fees and disbursements of counsel incurred in litigation or otherwise), and any settlement or compromise resulting from the defense of any Claim by the Indemnitor, shall be paid for by the Indemnitor, provided,
however, that the Indemnitor shall not settle or compromise any such Claim unless the Indemnitee is fully released and discharged therefrom as a result thereof. The Indemnitee shall be entitled to participate in the defense of such Claim with
counsel of its choice, at its own expense; provided, however, that the Indemnitee shall not, without the written consent of the Indemnitor, compromise or settle any such Claim unless the Indemnitee waives its right to indemnity
therefor hereunder., 
  
 (b) In the event that the Indemnitor,
within a reasonable time after receipt of notice of any such Claim, but in no event more than thirty (30) days after receipt of such notice, fails to defend or take other appropriate action, the Indemnitee will (upon further notice to the
Indemnitor) have the right to undertake the defense, compromise or settlement of such Claim; provided, however, that the Indemnitee shall not, without the written consent of the Indemnitor, compromise or settle any such Claim unless
the Indemnitee waives its right to indemnity therefor hereunder. 
  
 (c) The Indemnitee’s failure to meet any condition or perform any obligation set forth in this Section 4.3 shall in no way limit or negate any obligations or liabilities of the Indemnitor unless the Indemnitor is actually prejudiced by
such failure and, in such event, the Indemnitor’s obligations or liabilities shall be limited only to the extent of such prejudice. 
  
 Section 4.4 Assistance. In the event so requested by the Indemnitor, the Indemnitee shall use its reasonable efforts to make available all
information and assistance reasonably required in the defense by the Indemnitor of a Claim or a Loss. 
  
 Section 4.5 Survival. The obligations to indemnify and hold harmless pursuant to this Article 4 shall survive the consummation of the transactions
contemplated by this Agreement. 
  
 Section 4.6 Exclusive
Remedy. Except for remedies that cannot be waived as a matter of law, this Article 4 shall be the exclusive remedy for breach of the representations and warranties contained in this Agreement or in any document or instrument executed and
delivered pursuant hereto. 
  

 -6- 

 ARTICLE 5 
 FURTHER ASSURANCES 
  
 At
any time after the date hereof each of the parties hereto shall without further consideration promptly execute, acknowledge and deliver to the requesting party any other assurances or documents reasonably requested by any other party hereto and
necessary to consummate or further evidence the transactions contemplated hereby and to satisfy its obligations hereunder. 
  
 ARTICLE 6 
 NO RIGHTS IN THIRD PARTIES

  
 Nothing in this Agreement, express or implied, is intended
or shall be construed to confer upon or give to any person, fine or corporation other than the parties hereto and their successors and assigns, any remedy or claim under or by reason of this Agreement or any term, covenant or condition hereof, and
all the terms, covenants, conditions and agreements contained in this Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors and assigns. 
  
 ARTICLE 7 
 MISCELLANEOUS 
  
 Section 7.1 Entire
Agreement. This Agreement and the Convertible Note contain the entire understanding of the parties hereto with respect to the subject matter contained herein. Thus Agreement and the Convertible Note supersede all prior agreements and
understanding between the parties with respect to such subject matter. 
  
 Section 7.2 Notices. Any and all notices or other communications or deliveries required or permitted to be given pursuant to any of the provisions of this Agreement or the Convertible Note shall be deemed to have been duly given for
all purposes if sent by (i) telefax, (ii) certified or registered mail, return receipt requested and postage prepaid, (iii) hand delivery or (iv) a nationally recognized overnight courier to the address listed below or at such other address as any
party may specify by notice given to the other party in accordance with this Section 7.2. 
  
 Notices to WIN shall be sent to: 
  
 WorldSpace
International Network Inc. 
 c/o WorldSpace Management Corporation 
 2400 N Street, N.W. 
 Washington, D.C. 20007 
 Telefax:
202-969-6560 
  
 Notices to the Investor should be sent to: 
  
 Industrial Development Inc. 
 c/o Edmond Tavernier 
  

 -7- 

 Tavernier, Gillioz, de Preux, Dorsaz 
 Avocats au Barreau de Genève 
 11-bis, Rue Toepffer 
 1206 Geneva 
 Switzerland 
 Telefax: 011-41-22-347-9789

  
 The date of giving of any such notice shall be the date of delivery when such
notice is delivered by telefax, hand delivery or overnight courier, or five days following the posting of the mail. 
  
 Section 7.3 Waiver. No failure or delay by any party at any time to enforce one or more of the terms, conditions or obligations of this Agreement
shall constitute a waiver of such terms, conditions or obligations or shall preclude such party from requiring performance by the other party at any time. No waiver of the provisions hereof shall be effective unless in writing and signed by the
party to be charged with such waiver. No waiver shall be deemed a continuing waiver or waiver in respect of any subsequent breach or default, either of similar or different nature, unless expressly so stated in writing. 
  
 Section 7.4 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard to any choice of law or conflict of law provisions thereof. 
  
 Section 7.5 Arbitration. Any dispute or other controversy arising out of or related to this Agreement or the performance or the breach thereof
shall be finally settled by arbitration pursuant to the Rules of Conciliation and Arbitration of the International Chamber of Commerce by three arbitrators appointed in accordance with the said Rules and judgment on the award may be entered in any
court having jurisdiction. The arbitration shall be held in Geneva, Switzerland and shall be conducted in the English language. 
  
 Section 7.6 Expenses. Each of the parties shall bear its own expenses in connection with the transactions contemplated hereby; provided,
however, that the Investor shall pay all sales, transfer and documentary taxes, if any, payable in connection with the sale, issuance and delivery of the Convertible Note to the Investor and the delivery of the Investor’s Shares to WIN.

  
 Section 7.7 Parties In Interest. This Agreement shall
be binding upon and shall inure to the benefit of the parties hereto and their respective permitted successors and permitted assigns. 
  
 Section 7.8 Severability. All the provisions of this Agreement shall be considered as separate terms and conditions. In the event any of the
provisions hereof is determined to be invalid, prohibited or unenforceable by a court or other body of competent jurisdiction, this Agreement shall be construed as if such invalid, prohibited or unenforceable provision has been more narrowly drawn
so as not to be invalid, prohibited or unenforceable, unless such construction would be unreasonable. Notwithstanding the foregoing sentence, in the event that any provision contained in this Agreement should be determined to be invalid, prohibited
or unenforceable, the validity, legality and enforceability of the remaining provisions contained in 

  

 -8- 

 
this Agreement shall not in any way be affected or impaired thereby, unless such construction would be unreasonable. 
  
 Section 7.9 Headings. The headings used herein are for reference
purposes only and shall not in any way affect the meaning or interpretation of this Agreement. 
  
 Section 7.10 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which, taken together, shall constitute one and the same instrument.

  
 IN WITNESS WHEREOF, this Agreement has been signed on behalf
of each of the parties as of the date first written above. 
  

			
	WORLDSPACE INTERNATIONAL NETWORK, INC.
		
	By:	 	/s/ Noah A. Samara
	Name:	 	Noah A. Samara
	Title:	 	Chairman and Chief Executive Officer
	
	INDUSTRIAL DEVELOPMENT INC.
		
	By:	 	/s/ [Signatures of designated representatives]
	Name:	 	 
	Title:	 	 
	
	/s/ Salah Idris
	Salah Idris

  

 -9- 

 February 28, 2000 
  

WorldSpace International Network Inc. 
 2400 N Street, N.W. 
 Washington, D.C. 
 Attention: Mr. Noah A. Samara 
 Chairman and Chief Executive Officer 
  
 Strictly Confidential 
  
 Dear
Mr. Samara: 
  
 This letter is provided in connection with the letter of
today’s date to you from SaifCom Establishment regarding the loan of US$10 million to WorldSpace International Network Inc. on January 13, 1999, a copy of which is attached (the “SaifCom Letter”). 
  
 This letter is to inform you that I hereby consent to the SaifCom Letter and to the repayment
of the US$10 million loan as provided therein. In addition, I hereby represent and warrant to you (1) that SaifCom Establishment is ultimately owned and controlled entirely by a trust for the benefit of myself and members of my family, and (2) that
the representations and warranties of SaifCom Establishment set forth in the SaifCom Letter are true and correct in all respects. 
  

	
	 Yours faithfully,

	
	 Othman al-Omek

	
	 /s/ Othman al-Omek

  

 SAIFCOM ESTABLISHMENT, Vaduz 
  
 WorldSpace International Network Inc. 
 2400 N
Street, NW 
 Washington, DC 
  
 Attention: Mr. Noah A. Samara 
 Chairman and Chief Executive Officer

  
 28 February 2000 
  
 Dear Sirs: 
  
 Loan of US$10 million 
  
 We are writing to confirm the agreement between us in relation to the loan of US$10 million (the “Loan”) made by SaifCom Establishment (the “Lender”) to WorldSpace International Network Inc. (the
“Borrower”) on January 13, 1999. 
  
 As an initial matter we confirm
that the Loan was intended to be a short-term bridging loan and that it would be repaid once additional funding had been obtained by the Borrower from other sources. However, as the Loan has now been outstanding for more than 13 months it has become
necessary for us to agree more precise terms for the repayment of the Loan and to record these in writing. 
  
 It has been agreed that the Borrower will make an initial repayment in the amount of US$3 million immediately. This payment is to be received by the Borrower in immediately available funds within 5 business days
following the date this letter is signed on behalf of the Borrower. If the initial repayment of US$3 million has not been received in full by that date, the amount of such US$3 million remaining outstanding shall carry interest at the rate of 5% per
annum from that date to the date of actual payment, such interest to be computed on a daily basis with monthly rests. 
  
 It has also been agreed that the Borrower will repay the balance of the Loan, namely, the sum of US$7 million (together with accrued interest, if any), immediately after
the Borrower has received proceeds aggregating at least US$100 million from one or more financings after the date of this letter, including without limitation the sales of shares, the issuance of debt securities or any other borrowing. If the Loan
is not repaid in full prior to August 18, 2000, then from and after that date simple interest at the rate of 5% per annum will accrue on the outstanding balance to the date of actual payment, such interest to be computed on a daily basis. The
outstanding balance of the Loan may be prepaid at any time on whole or in part without premium or penalty. Any payment on the Loan will be applied first to accrued and unpaid interest, if any, and then to the outstanding principal amount.

  

 The Borrower shall make the initial payment of US$3 million and the subsequent repayment of US$7 million (in aggregate)
(and any payment of interest on any of these sums) by wire transfer of funds to the Lender’s bank account in accordance with the following instructions (or such alternative instructions as the Lender may from time to time notify in writing to
the Borrower): 
  
 Bank of New York 

New York 
 Swift: IVU US 3N 
 ABA No: 0211 000 018 
 In favour of Clariden Bank 
 Account No: 890-0360-852 
 Reference: SaifCom Establishment, account number: 73222

  
 All payments of interest to be made pursuant to this agreement shall be made
free and clear of all deductions and withholdings save as may be required by law. 
  
 The Loan (together with any accrued interest) shall forthwith become repayable in full without any demand being required in the event that: 
  

	a)	the Borrower becomes unable to pay its debts as they fall due or becomes insolvent or files any petition or action for relief under any bankruptcy, insolvency or moratorium law; or

  

	b)	a receiver is appointed in respect of the whole or any part of the undertaking or assets of the Borrower; or 

  

	c)	an order for the winding-up of the Borrower is made by any court or a petition for such an order is made to any court and not withdrawn within fourteen days; or

  

	d)	a shareholders resolution is passed for the winding-up of the Borrower or a shareholders meeting is convened for the purpose of considering passing such a resolution.

  
 The Lender thereby represents and warrants to the Borrower as
follows: 
  

	 	a)	the Loan was effected by a wire transfer of funds on January 13, 1999 from the Lender’s own account at Clariden Bank to an account of the Borrower at Citibank NA;

  

	 	b)	in making the Loan the Lender was acting entirely on behalf of itself and not as representative or agent of any other person or entity and the funds so transferred were not borrowed
from any other person or entity; and 

  

	 	c)	no person other than the Lender has any claim against the Borrower for repayment of the Loan. 

  

 The Borrower may rely on the representations and warranties set forth in the preceding paragraph as having been true in
all respects on January 13, 1999, as being true today, and as continuing to be true on any date that all or any portion of the Loan is repaid or any interest thereon is paid. The Lender will indemnify and hold harmless the Borrower from and against
any and all judgments, damages, losses, liabilities, costs and expenses suffered or incurred by the Borrower as a result of any third party demonstrating to the satisfaction of any court that it has a lawful claim against the Borrower for the
repayment of the whole or any part of the Loan. 
  
 The Borrower is authorized to
rely on the representations and warranties and the indemnity set forth above in making any repayment of the Loan pursuant to this letter agreement. 
  
 Would you please countersign the attached duplicate of this letter and return it to us by way of confirmation of your agreement to the terms of this letter. 

 
 Signed for and on behalf of Saifcom 
 Establishment 
 by its duly authorized officer: 
  

			
		
	 Signature:
	 	 /s/ Dr. Daniel Kieber

	 Name:
	 	 Dr. Daniel Kieber

	 Title:
	 	 Director

  
 WorldSpace International Network Inc.
hereby confirms its agreement to the term so this letter. 
  
 Signed for and on
behalf of WorldSpace 
 International 
 Network Inc. by its duly
authorized officer: 
  

			
		
	 Signature:
	 	 /s/ Noah A. Samara

	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

	 Date:
	 	 

  

 LOAN AGREEMENT AND GUARANTEE 
  
 This LOAN AGREEMENT AND GUARANTEE (this “Agreement”), dated as of September 21, 2002 (the “Effective
Date”), by and among WorldSpace, Inc., a corporation organized under the laws of the State of Maryland (“Borrower” and the “Company”), WorldSpace International Network Inc., a company organized under the International
Business Companies Act of the British Virgin Islands (“WIN”), WorldSpace Satellite Company Ltd., a company organized under the International Business Companies Act of the British Virgin Islands (“Satellite Company”), and Yenura
Pte. Ltd., a private limited company to be organized under Singapore law (“Lender”). 
  
 WITNESSETH: 
  
 WHEREAS,
the Company, which is the ultimate parent company of the WorldSpace enterprise (which includes WIN and WSI) has been engaged for a long period in an effort to raise private capital for the enterprise; 
  
 WHEREAS, in order to provide needed working capital during the pendency of
this fundraising effort, Noah A. Samara, who is the Chairman and Chief Executive Officer and a major shareholder of the Company, arranged the advances to or for the benefit of the Company set forth on Schedule 1 hereto, in the aggregate amount of
US$52,925,000 (the “Original Loans”), prior to the Effective Date; 
  
 WHEREAS, the Lender is to be organized under Singapore law shortly following the execution and delivery of this Agreement, and Noah A. Samara will serve as Managing Director of the Lender; 
  
 WHEREAS, from time to time Lender may make additional advances to the Company
under this Agreement (such additional advances, together with the Original Loans, the “Loans”); 
  
 WHEREAS, all Loans and guarantees under this Agreement will be senior obligations of the Company, WIN and Satellite Company, as applicable, ranking senior
in right of payment to all existing and future indebtedness other than Permitted Debt (as defined); and 
  
 WHEREAS, this Agreement is to set forth the terms and conditions of the Loans; 
  
 NOW, THEREFORE, in consideration of the premises and the representations, warranties, covenants and agreements set forth
herein, the parties hereto agree as follows: 
  
 ARTICLE 1

 THE LOANS AND CONVERTIBLE NOTES 
  
 Section 1.1 Loans. Borrower hereby acknowledges receipt of the Original Loans. 
  
 Section 1.2 Senior Convertible Notes. Immediately upon receipt by Borrower of written notice from Lender that it has
been organized under Singapore law and that it has ratified the execution and delivery of this Agreement (including, without limitation, its representations and warranties set forth herein), Borrower will execute and 

  

 
deliver to Lender one or more Senior Convertible Notes, in the principal amount of US$52,925,000, in substantially the form of Exhibit A hereto, which will
be in full consideration for the Original Loans (collectively with each additional Senior Convertible Note, if any, issued pursuant to Section 1.3 below, the “Convertible Notes”). 
  
 Section 1.3 Supplemental Loans. Upon the request of Borrower, Lender
may make future Loans under this Agreement. Such Loans will be made in the sole discretion of Lender, and Lender will have the right to have such Loans be evidenced by (a) a Supplemental Loan Agreement and Guarantee in substantially the form of
Exhibit B hereto (each a “Supplemental Agreement” and collectively the “Supplemental Agreements”) and (b) a Convertible Note in substantially the form of Exhibit A hereto. The parties agree that any such supplemental Loans will
be governed by the terms and conditions of this Agreement and that each Supplemental Agreement will become part of this Agreement. 
  
 Section 1.4 Conversion or Exchange. The Loans will be convertible into shares of common stock of the Company, or exchangeable for shares of
WorldSpace Digital Mobile Holding Company ApS, a subsidiary of the Company organized under the law of Denmark, on the terms and subject to the conditions set forth in the Convertible Notes. 
  
 Section 1.5 Security. (a) Upon the request of Lender the Loans
(including, without limitation, the Original Loans) will be secured by the Company’s pledge of (i) all of the shares of WorldSpace Digital Mobile Holding Company ApS that are owned by the Company as of the Effective Date, and (ii) any
additional shares of WorldSpace Digital Mobile Holding Company ApS, or any other equity or debt interests therein, that the Company may acquire (whether directly or indirectly through any entity directly or indirectly owned or controlled by the
Company) using proceeds from any of the Loans; provided that such pledge will be subject to any limitations thereon contained in the existing secured debt agreement of Borrower and any limitations that may be imposed by applicable law. Any
such pledge will be on customary terms reasonably satisfactory to the Company and the Lender, provided that the Lender will not have the right to control the voting of any pledged securities unless there has occurred and is continuing an event of
default with respect to any of the Loans. 
  
 (b)
Upon the request of Lender the Loans (including, without limitation, the Original Loans) will be secured by the grant to the Lender of security interests in certain assets by each of WIN, Satellite Company and WSI pursuant to Security Agreements in
the forms attached hereto as Exhibit C-1, Exhibit C-2 and Exhibit C-3, respectively (the “Security Agreements”). 
  
 ARTICLE 2 
 REPRESENTATIONS,
WARRANTIES AND COVENANTS 
 OF WSI, WIN AND SATELLITE COMPANY 
  
 Each of Borrower, WIN and Satellite Company hereby represents and warrants to Lender, as of the Effective Date, the date of
any issuance of a Convertible Note, and the date of any Supplemental Agreement, as follows: 
  
 Section 2.1 Organization and Qualification. Borrower is a corporation duly organized and validly existing under the laws of the State of Maryland, USA. Each of WIN and Satellite Company is a company duly
organized, validly existing and in good standing under the laws of the British Virgin Islands. 
  

 - 2 - 

 Section 2.2 Authorization. Each of Borrower, WIN and Satellite Company has the requisite corporate
or organizational power and authority to execute, deliver and perform this Agreement and, in the case of Borrower, to issue the Convertible Notes. Upon approval of this Agreement and, in the case of Borrower, the issuance of the Convertible Notes by
a duly adopted resolution of the Board of Directors of Borrower, WIN and Satellite Company, the execution, delivery and performance of this Agreement and, in the case of Borrower, the issuance of the Convertible Notes will have been duly authorized
by all requisite action (corporate or otherwise) on the part of Borrower, WIN and Satellite Company. This Agreement has been duly and validly executed and delivered by Borrower, WIN and Satellite Company. Assuming the due authorization, execution
and delivery of this Agreement by Lender, this Agreement constitutes the valid and binding obligation of Borrower, WIN and Satellite Company enforceable against each of them in accordance with its terms, subject to bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium and similar laws of general application relating to or affecting creditors’ rights and to general principles of equity. Each Convertible Note upon issuance will constitute the valid and binding
obligation of Borrower, enforceable against it in accordance with its terms, subject to bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium and similar laws of general application relating to or affecting creditors’ rights
and to general principles of equity. 
  
 Section 2.3
Non-contravention. The execution, delivery and performance by each of Borrower, WIN and Satellite Company of this Agreement and the consummation by each of them of the transactions contemplated hereby do not and will not violate the Articles
of Incorporation or Bylaws of WSI, or the Memorandum or Articles of Association of WIN or Satellite Company, as the case may be, or to the knowledge of Borrower, WIN or Satellite Company, violate any law, rule, regulation, order, decree, judgment,
existing administrative interpretation thereof or award to which Borrower, WIN or Satellite Company, as the case may be, is a party or by which Borrower, WIN or Satellite Company, as the case may be, is bound. There is no action, suit, proceeding,
at law or in equity, by any person or entity, or any arbitration or any administrative or other proceeding or investigation by or before any court or governmental or other instrumentality, agency, authority or body or any arbitrator, pending or, to
the knowledge of Borrower, WIN or Satellite Company, threatened, against the consummation of the transactions contemplated hereby, and there is no valid basis for any such action, suit, proceeding, arbitration or investigation. 
  
 Section 2.4 Consents. The execution, delivery and performance by
Borrower, WIN and Satellite Company of this Agreement and the consummation by Borrower, WIN and Satellite Company of the transactions contemplated hereby do not and will not require any action by or in respect of, or registration or filing with, any
governmental body, agency, official or authority. 
  
 Section 2.5
WorldSpace Europe. Borrower agrees that as long as any Convertible Note is outstanding, without the prior written consent of Lender: (a) Borrower will not sell, lease, transfer or otherwise dispose of any shares, or any other equity or debt
interest, that Borrower may at any time hold in WorldSpace Digital Mobile Holding Company ApS, provided that this clause will not restrict the ability of WorldSpace Digital Mobile Holding Company ApS from issuing shares or incurring
indebtedness to any party; (b) no direct or indirect subsidiary of Borrower will purchase or hold any shares of, or any other equity or debt interest in, WorldSpace Digital Mobile Holding Company ApS; (c) Borrower will not grant or create any pledge
of, lien on or security interest in any shares, or any other equity or debt interest, that Borrower may at any time hold in WorldSpace Digital Mobile Holding Company ApS, provided that this clause will not restrict the granting of any 

  

 - 3 - 

 
purchase money security interest; and (d) Borrower will not, and will not permit any of its direct or indirect subsidiaries other than WorldSpace Digital
Mobile Holding Company ApS to, engage in, or invest or hold any interest in, any entity that engages in or proposes to engage in, direct satellite delivery of radio or data services in Europe using any satellite other than AfriStar or AsiaStar.

  
 Section 2.6 Incurrence of Indebtedness. The Company,
WIN and Satellite Company will not, without the prior written consent of the Lender, directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable with respect to, contingently or otherwise, any
indebtedness other than Permitted Debt. For purposes of this agreement “Permitted Debt” will mean (a) existing indebtedness, (b) trade indebtedness incurred in the ordinary course of business and consistent with past practices, (c)
intercompany indebtedness between or among the Company, WIN and Satellite Company, and (d) indebtedness that is expressly subordinate in right of payment to all obligations of the Company, WIN and Satellite Company under this Agreement. 

 
 Section 2.7 Security Agreements. The Company, WIN and Satellite
Company will comply with their obligations under the Security Agreements, if the Security Agreements are executed and delivered. 
  
 ARTICLE 3 
 REPRESENTATIONS,
WARRANTIES AND COVENANTS OF LENDER 
  
 Lender hereby
represents and warrants to Borrower, WIN and Satellite Company, as of the Effective Date, the date of any issuance of a Convertible Note, and the date of any Supplemental Agreement, as follows: 
  
 Section 3.1 Organizations and Authorization. Lender is or will be a
Singapore company duly organized and validly existing under the laws of Singapore. Lender has or will have the requisite power and authority to execute, deliver and perform this Agreement. The execution, delivery and performance of this Agreement
have been or will be duly authorized by all requisite action (corporate or otherwise) on the part of Lender. This Agreement has been duly and validly executed and delivered by or on behalf of Lender. Assuming the due authorization, execution and
delivery of this Agreement by Borrower, WIN and Satellite Company, this Agreement constitutes the valid and binding obligation of Lender, enforceable against it in accordance with its terms, subject to bankruptcy, insolvency, reorganization,
fraudulent conveyance, moratorium and similar laws of general application relating to or affecting creditors’ rights and to general principles of equity. 
  

Section 3.2 Non-contravention. The execution, delivery and performance by Lender of this Agreement and the consummation by Lender of the
transactions contemplated hereby do not and will not violate the organizational documents of Lender, constitute a default under any material loan agreement, mortgage, deed of trust, indenture, lease, license, other agreement or contract or, to the
knowledge of Lender, any law, rule, regulation, order, decree, judgment, existing administrative interpretation thereof or award to which Lender is a party or by which Lender is bound. There is no action, suit, proceeding, at law or in equity, by
any person or entity, or any arbitration or any administrative or other proceeding or investigation by or before any court or governmental or other instrumentality, agency, authority or body or any arbitrator, pending or, to the knowledge of Lender,
threatened, against the consummation of the transactions contemplated hereby, and there is no valid basis for any such action, suit, proceeding, arbitration or investigation. 
  

 - 4 - 

 Section 3.3 Consents. The execution, delivery and performance by Lender of this Agreement and the
consummation by Lender of the transactions contemplated hereby do not and will not require any action by or in respect of, or registration or filing with, any governmental body, agency, official or authority. 
  
 Section 3.4 No Registration, etc. Lender confirms that: 
  
 3.4.1 Lender understands that the Convertible Notes have not been, and the
WSI Common Shares (as defined in the Convertible Notes) will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and that the Convertible Notes are being issued to Lender in a transaction that is
exempt from the registration requirements of the Securities Act. 
  
 3.4.2 Lender acknowledges that (a) neither Borrower, WIN nor Satellite Company, nor any person acting on behalf of any of them, has made any representation to Lender with respect to the Loan or the issuance of the Convertible Notes and (b)
any information Lender desires concerning the Convertible Note or Borrower, WIN or Satellite Company or any other matter relevant to Lender’s decision to purchase the Convertible Notes is or has been made available to Lender. 
  
 3.4.3 Lender, through Mr. Samara, has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and risks of an investment in the Convertible Notes. 
  
 3.4.4 Lender is an Accredited Investor as defined in Regulation D under the Securities Act. 
  
 3.4.5 Lender made the Loan and is acquiring the Convertible Notes for its own account and not with a view to any
distribution of the Convertible Notes, subject, nevertheless, to the understanding that the disposition of his property will at all times be and remain within its control. 
  
 3.4.6 Lender understands that the Convertible Notes, and any WSI Common Shares issued upon conversion thereof, will bear a
legend substantially to the following effect: 
  
 THIS
CONVERTIBLE NOTE HAS NOT BEEN, AND THE WORLDSPACE, INC. SHARES OF COMMON STOCK OBTAINABLE UPON CONVERSION HEREOF WILL NOT BE, REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS
AND MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH, OR PURSUANT TO AN EXEMPTION FROM, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS AND THE RESTRICTIONS ON TRANSFER SET FORTH
HEREIN AND IN THE LOAN AGREEMENT DATED AS OF SEPTEMBER 21, 2002. 
  
 3.4.7 Lender agrees that in the event that at some future time Lender wishes to transfer the any Convertible Note or any of the WSI Common Shares issued upon conversion thereof, Lender will not do so unless ten (10) days prior to any such
proposed transfer Lender gives written notice to Borrower of such intention to effect such transfer, setting forth the manner and circumstances of the proposed transfer and identifying the transferee(s), accompanied by (i) an opinion of counsel
experienced in U.S. securities law 

  

 - 5 - 

 
matters reasonably satisfactory to Borrower addressed to Borrower to the effect that the proposed transfer may be effected without registration under the
Securities Act, (ii) representation letters in form and substance reasonably satisfactory to Borrower to ensure compliance with the provisions of the Securities Act and (iii) letters in form and substance reasonably satisfactory to Borrower from
each such transferee stating such transferee’s agreement to be bound by the terms of this Section 3.4. Such proposed transfer may be effected only if Borrower shall have received such notice of transfer, opinion of counsel, representation
letters and other letters referred to in the immediately preceding sentence, unless any or all of such conditions shall have been waived by Borrower, whereupon Lender will be entitled to transfer the Convertible Note in accordance with the terms of
the notice delivered by Lender to Borrower. 
  
 ARTICLE 4

 SURVIVAL OF REPRESENTATIONS AND WARRANTIES; 
 INDEMNIFICATION 
  
 Section
4.1 Survival of Representation and Warranties. The respective representations and warranties of the parties contained in this Agreement will survive the consummation of the transactions contemplated by this Agreement until the expiration of
the statute of limitations applicable to such matters. 
  
 Section
4.2 Mutual Indemnity. 
  
 4.2.1 Lender will indemnify and
hold harmless Borrower, WIN and Satellite Company and each of their respective affiliates, shareholders, directors, officers, employees, attorneys, accountants and agents (each, a “Borrower Indemnitee”) from and against any and all
judgments, damages, losses, liabilities, costs and expenses (including, without limitation, reasonable counsel fees and disbursements incurred in responding to, investigating or defending a claim, in litigation or otherwise) (a “Loss”)
suffered or incurred by a Borrower Indemnitee, resulting from or arising out of the inaccuracy of any representation or warranty made by Lender herein or the failure by Lender to perform any covenant, agreement or other obligation contained in this
Agreement or the Convertible Notes. 
  
 4.2.2 Borrower, WIN and
Satellite Company will indemnify and hold harmless Lender and its affiliates, shareholders, directors, officers, employees, attorneys, accountants and agents (each a “Lender Indemnitee”) from and against any Loss suffered or incurred by a
Lender Indemnitee, resulting from or arising out of the inaccuracy of any representation or warranty made by Borrower, WIN or Satellite Company, as the case may be, herein or the failure by Borrower, WIN or Satellite Company, as the case may be, to
perform any covenant, agreement, or other obligation contained in this Agreement or the Convertible Notes. 
  
 4.2.3 Notwithstanding the foregoing, no Indemnitor will have any liability under this Section 4.2 with respect to any deduction or withholding amount for
or on account of any taxes, duties, assessments, fees or other governmental charges in connection with any payment under the Convertible Notes. 
  
 Section 4.3 Conditions of Indemnification. 
  
 4.3.1 For purposes of this Section 4.3 and Section 4.4 below, (a) in the case of any claim for indemnification pursuant to Section 4.2.1, the term
“Indemnitor” will refer to Lender and the term “Indemnitee” will refer to Borrower Indemnitee making such claim 

  

 - 6 - 

 
for indemnification, and (b) in the case of any claim for indemnification pursuant to Section 4.2.2, the term “Indemnitor” will refer to Borrower,
WIN or Satellite Company, as the case may be, and the term “Indemnitee” will refer to Lender Indemnitee making such claim for indemnification. 
  
 4.3.2 The obligations and liabilities of an Indemnitee and the person obligated to provide such indemnification hereunder (the “Indemnitor”)
under this Article 4 with respect to claims for a Loss or potential Loss resulting from the assertion of liability by a third party (a “Claim”) will be subject to the following terms and conditions: 
  
 (a) The Indemnitee will give the Indemnitor notice of any
such Claim promptly after the Indemnitee learns of the existence of or receives written notice thereof (and in no event more than fifteen (15) days after the Indemnitee receives such written notice), and the Indemnitor will have the option to
undertake the defense thereof with counsel of their own choosing by giving written notice thereof to the Indemnitee within thirty (30) days after receiving such notice. All cost and expense of such defense (including, without limitation, reasonable
fees and disbursements of counsel incurred in litigation or otherwise), and any settlement or compromise resulting from the defense of any Claim by the Indemnitor, will be paid for by the Indemnitor; provided, however, that the
Indemnitor will not settle or compromise any such Claim unless the Indemnitee is fully released and discharged therefrom as a result thereof. The Indemnitee will be entitled to participate in the defense of such Claim with counsel of its choice, at
its own expense; provided, however, that the Indemnitee will not, without the written consent of the Indemnitor, compromise or settle any such Claim unless the Indemnitee waives its right to indemnity therefor hereunder. 
  
 (b) In the event that the Indemnitor, within a reasonable
time after receipt of notice of any such Claim, but in no event more than thirty (30) days after receipt of such notice, fails to defend or take other appropriate action, the Indemnitee will (upon further notice to the Indemnitor) have the right to
undertake the defense, compromise or settlement of such Claim; provided, however, that the Indemnitee will not, without the written consent of the Indemnitor, compromise or settle any such Claim unless the Indemnitee waives its right
to indemnity therefor hereunder. 
  
 (c) The
Indemnitee’s failure to meet any condition or perform any obligation set forth in this Section 4.3 will in no way limit or negate any obligations or liabilities of the Indemnitor unless the Indemnitor is actually prejudiced by such failure and,
in such event, the Indemnitor’s obligations or liabilities will be limited only to the extent of such prejudice. 
  
 Section 4.4 Assistance. In the event so requested by the Indemnitor, the Indemnitee will use its reasonable efforts to make available all
information and assistance reasonably required in the defense by the Indemnitor of a Claim or a Loss. 
  
 Section 4.5 Survival. The obligations to indemnify and hold harmless pursuant to this Article 4 will survive the consummation of the transactions
contemplated by this Agreement. 
  
 Section 4.6 Exclusive
Remedy. Except for remedies that cannot be waived as a matter of law, this Article 4 will be the exclusive remedy for breach of the 

  

 - 7 - 

 
representations and warranties contained in this Agreement or in any document or instrument executed and delivered pursuant hereto. 
  
 ARTICLE 5 
 FURTHER ASSURANCES 
  
 At any time after the date hereof, each of the parties hereto will without further consideration (a) promptly execute, acknowledge and deliver to the requesting party any other assurances or documents reasonably
requested by any other party hereto and necessary to consummate or further evidence the transactions contemplated hereby and to satisfy its obligations hereunder and (b) promptly deliver to the requesting party any other information reasonably
requested by any other party hereto and necessary to assure compliance with applicable law in connection with the transactions contemplated hereby. The parties agree that this Article 5 will apply to the negotiation, execution and delivery of the
security agreements referenced in Section 1.4. 
  
 ARTICLE 6

 NO RIGHTS IN THIRD PARTIES 
  
 Nothing in this Agreement, express or implied, is intended or will be construed to confer upon or give to any person, firm or corporation other than the
parties hereto and their successors and assigns, any remedy or claim under or by reason of this Agreement or any term, covenant or condition hereof, and all the terms, covenants, conditions and agreements contained in this Agreement will be for the
sole and exclusive benefit of the parties hereto and their successors and assigns. 
  
 ARTICLE 7 
 GUARANTEE BY WIN AND SATELLITE COMPANY 
  
 Section 7.1 Guarantee. WIN and Satellite Company, jointly and
severally, hereby absolutely and unconditionally guarantee the faithful and full performance of all covenants, indemnifications, obligations and liabilities (including the obligation to pay all amounts when due) made or assumed by Borrower under
this Agreement and the Convertible Notes. 
  
 Section 7.2
Direct and Unconditional Liability. The liability of each of WIN and Satellite Company under this Article 7 will be direct and immediate and will not be conditioned or contingent upon the pursuit or exhaustion of any remedies against Borrower
and will continue until all obligations of WIN and Satellite Company as set forth in this Article 7 are discharged. Upon failure of WIN or Satellite Company to pay immediately all amounts due under this Article 7 upon demand, WIN and Satellite
Company hereby agree jointly and severally to pay all legal and other costs and expenses, including, but not limited to, reasonable attorney’s fees incurred by Lender in connection with the enforcement of this Article 7. The guarantee set forth
in this Article 7 is a guarantee of payment and not of collection. 
  
 Section 7.3 Waiver of Certain Defenses. WIN and Satellite Company each expressly waives all defenses available to it under the law of the State of New York, including, but not limited to (a) notice of acceptance of the guarantee set
forth in this Article 7; (b) presentment and demand for payment of any of the debts of Borrower due and payable under this Agreement or the Convertible Notes; (c) protest and notice of dishonor with respect to any of such debts of Borrower, and (d)
failure of Lender to act with promptness and diligence. 
  

 - 8 - 

 ARTICLE 8 
 MISCELLANEOUS 
  
 Section
8.1 Note Register; Restriction on Transfer. Borrower will at all times maintain, or cause an agent of Borrower to maintain, a register (the “Note Register”) in which there will be recorded by book entry the name and address of
Lender and each other person, if any, at any time owning any interest in a Convertible Note, or the right to receive any payments of principal or interest thereunder, and the nature and extent of such interest or right. No transfer of any interest
in a Convertible Note or any right to receive any payments of principal or interest thereunder will be effective unless and until such transfer is recorded by book entry in the Note Register. Lender may not assign or otherwise transfer (including by
participation or otherwise) any or all or of its rights, or delegate any or all of its obligations, under this Agreement or any Convertible Note, without the prior written consent of Borrower, which will not be unreasonably withheld. 
  
 Section 8.2 Entire Agreement. This Agreement, the Convertible Notes,
any Supplemental Agreements and the Security Agreements (if executed and delivered) contain the entire understanding of the parties hereto with respect to the subject matter contained herein. This Agreement, the Convertible Notes and any
Supplemental Agreements supersede all prior agreements and understandings between the parties with respect to such subject matter. 
  
 Section 8.3 Notices. Any and all notices or other communications or deliveries required or permitted to be given pursuant to any of the provisions
of this Agreement or any Convertible Note will be deemed to have been duly given for all purposes if sent by (i) telefax, (ii) certified or registered mail, return receipt requested and postage prepaid, (iii) hand delivery or (iv) a nationally
recognized overnight courier to the address listed below or at such other address as any party may specify by notice given to the other party in accordance with this Section 8.3. 
  
 Notices to Borrower will be sent to: 
  
 WorldSpace, Inc. 
 2400 N Street, N.W. 
 Washington, D.C. 20007 
 Telefax: 202-969-6560 
  
 Notices
to WIN will be sent to: 
  
 WorldSpace International Network Inc.

 c/o WorldSpace Management Corp. 
 2400 N Street, N.W. 
 Washington, D.C. 20037 
  
 Notices to Satellite Company will be sent to: 
  
 WorldSpace Satellite Company Ltd. 
 c/o WorldSpace Management Corp. 
 2400 N Street, N.W. 
 Washington, D.C. 20037 
  

 - 9 - 

 Notices to Lender should be sent to: 
  
 Yenura Pte. Ltd. 
 c/o CitiLegal LLC 
 7 Temasek Boulevard 
 #21-02 Suntec Tower One 
 Singapore 038987 
 Telefax: (65) 338-6277 
  
 The date of giving of any such notice will be the date of delivery when such notice is delivered by telefax, hand delivery or overnight courier, or five
days following the posting of the mail. 
  
 Section 8.4
Waiver. No failure or delay by any party at any time to enforce one or more of the terms, conditions or obligations of this Agreement will constitute a waiver of such terms, conditions or obligations or will preclude such party from requiring
performance by the other party at any time. No waiver of the provisions hereof will be effective unless in writing and signed by the party to be charged with such waiver. No waiver will be deemed a continuing waiver or waiver in respect of any
subsequent breach or default, either of similar or different nature, unless expressly so stated in writing. 
  
 Section 8.5 Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of New York without regard
to any choice of law or conflict of law provisions thereof. 
  
 Section 8.6 Arbitration. Any dispute or other controversy arising out of or related to this Agreement or the performance or the breach thereof will be finally settled by arbitration pursuant to the Rules of Conciliation and
Arbitration of the International Chamber of Commerce by three arbitrators appointed in accordance with the said Rules and judgment on the award may be entered in any court having jurisdiction. The arbitration will be held in Geneva, Switzerland and
will be conducted in the English language. 
  
 Section 8.7
Expenses. Each of the parties will bear its own expenses in connection with the transactions contemplated hereby. 
  
 Section 8.8 Parties In Interest. This Agreement will be binding upon and will inure to the benefit of the parties hereto and their respective
permitted successors and permitted assigns. 
  
 Section 8.9
Severability. All the provisions of this Agreement will be considered as separate terms and conditions. In the event any of the provisions hereof is determined to be invalid, prohibited or unenforceable by a court or other body of competent
jurisdiction, this Agreement will be construed as if such invalid, prohibited or unenforceable provision has been more narrowly drawn so as not to be invalid, prohibited or unenforceable, unless such construction would be unreasonable.
Notwithstanding the foregoing sentence, in the event that any provision contained in this Agreement should be determined to be invalid, prohibited or unenforceable, the validity, legality and enforceability of the remaining provisions contained in
this Agreement will not in any way be affected or impaired thereby, unless such construction would be unreasonable. 
  
 Section 8.10 Headings. The headings used herein are for reference purposes only and will not in any way affect the meaning or interpretation of
this Agreement. 
  

 - 10 - 

 Section 8.11 Counterparts. This Agreement may be executed in two or more counterparts, each of
which will be deemed an original but all of which, taken together, will constitute one and the same instrument. 
  
 IN WITNESS WHEREOF, this Agreement has been signed on behalf of each of the parties on June 23, 2003, effective as of the date first written above.

  

			
	 WORLDSPACE, INC.

		
	 By:
	 	/s/    Ronald W. Johnston
	 Name:
	 	 
	 Title:
	 	 
	
	 WORLDSPACE INTERNATIONAL NETWORK INC.

		
	 By:
	 	/s/    Ronald W. Johnston
	 Name:
	 	 
	 Title:
	 	 
	
	 WORLDSPACE SATELLITE COMPANY LTD.

		
	 By:
	 	/s/    Stuart Fiskin
	 Name:
	 	Stuart Fiskin
	 Title:
	 	Treasurer
	
	 YENURA PTE. LTD.

		
	 By:
	 	/s/    Noah A. Samara
	 Name:
	 	 
	 Title:
	 	 

  
 The undersigned hereby
disclaims, waives and releases any interest in the Loans and any claim against the Company in connection with the Loan. 
  

	
	
	/s/    Noah A. Samara
	 Noah A. Samara

  

 - 11 - 

 SCHEDULE 1 
  

ADVANCES 
  

					
	     Date    

	  	Amount Advanced

	 
	 04/12/01
	  	$	1,000,000	*
	 05/02/01
	  	$	14,000,000	 
	 07/12/01
	  	$	 500,000	*
	 08/22/01
	  	$	7,000,000	 
	 10/03/01
	  	$	1,000,000	*
	 11/06/01
	  	$	3,000,000	 
	 12/04/01
	  	$	800,000	 
	 12/06/01
	  	$	2,300,800	 
	 01/02/02
	  	$	799,200	 
	 01/04/02
	  	$	1,000,000	 
	 01/11/02
	  	$	900,000	 
	 01/24/02
	  	$	400,000	 
	 01/29/02
	  	$	1,600,000	 
	 02/13/02
	  	$	325,000	 
	 02/15/02
	  	$	1,200,000	 
	 02/26/02
	  	$	1,000,000	 
	 02/28/02
	  	$	500,000	 
	 03/07/02
	  	$	800,000	 
	 03/12/02
	  	$	300,000	 
	 03/27/02
	  	$	500,000	 
	 04/01/02
	  	$	900,000	 
	 04/08/02
	  	$	1,000,000	 

  

				
	 04/16/02
	  	$	450,000
	 04/19/02
	  	$	300,000
	 04/25/02
	  	$	1,000,000
	 05/02/02
	  	$	700,000
	 05/13/02
	  	$	1,000,000
	 05/16/02
	  	$	300,000
	 05/22/02
	  	$	600,000
	 05/28/02
	  	$	800,000
	 06/04/02
	  	$	200,000
	 06/12/02
	  	$	750,000
	 06/14/02
	  	$	100,000
	 06/20/02
	  	$	1,000,000
	 06/26/02
	  	$	1,000,000
	 07/03/02
	  	$	600,000
	 07/10/02
	  	$	100,000
	 08/08/02
	  	$	400,000
	 08/12/02
	  	$	400,000
	 08/16/02
	  	$	1,000,000
	 08/22/02
	  	$	100,000
	 09/04/02
	  	$	1,000,000
	 09/11/02
	  	$	300,000
	 	  	
	

	 Total:
	  	$	52,925,000

  

	*	Paid directly to Jones, Day, Reavis & Pogue on behalf of the Company. 

  

 - 2 - 

 FIRST SUPPLEMENTAL LOAN AGREEMENT AND GUARANTEE 
  
 Reference is made to that certain LOAN AGREEMENT AND GUARANTEE (the
“Agreement”), dated as of September 21, 2002 (the “Effective Date”), by and among WorldSpace, Inc., a corporation organized under the laws of the State of Maryland (the “Borrower” and the “Company”),
WorldSpace International Network Inc., a company organized under the International Business Companies Act of the British Virgin Islands (“WIN”), WorldSpace Satellite Company Ltd., a company organized under the International Business
Companies Act of the British Virgin Islands (“Satellite Company”), and Yenura Pte. Ltd., a private limited company organized under Singapore law (the “Lender”). Capitalized terms used in this First Supplemental Loan Agreement and
Guarantee (this “Supplemental Agreement”), unless otherwise defined herein, will have the meanings set forth in the Agreement. 
  
 WITNESSETH: 
  
 WHEREAS, in addition to the Original Loans made prior to the Effective Date, since the Effective Date the loans to the Company set forth in Schedule 1
hereto (the “Supplemental Loans”), in the aggregate principal amount of US$24,750,000, have been made by or on behalf of the Lender; 
  
 WHEREAS, the Agreement permits additional Loans under the Agreement to be evidenced by a Supplemental Agreement and Convertible Note; 
  
 NOW, THEREFORE, in consideration of the premises and for other consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
  
 1. Supplemental Loans. Borrower hereby acknowledges receipt of the Supplemental Loans. Immediately upon execution of this Supplemental Agreement,
Borrower will execute and deliver to Lender one or more Convertible Notes in the principal amount thereof, which will be in full consideration for the Supplemental Loans. The interest rate specified in said Convertible Notes will be ten percent
(10%) per annum. The Supplemental Loans will be Loans under the Agreement and will be governed by the terms and conditions of the Agreement. 
  
 2. Governing Law. This Supplemental Agreement will be governed by and construed in accordance with the laws of the State of New York
without regard to any choice of law or conflict of law provisions thereof. 
  
 3. Counterparts. This Supplemental Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which, taken together, will constitute one and the same
instrument. 
  

 IN WITNESS WHEREOF, this Supplemental Agreement has been signed on behalf of each of the parties on June
23, 2003. 
  
  

			
	 WORLDSPACE, INC.

		
	 By:
	 	 /s/ Ronald W. Johnston

	 Name:
	 	 
	 Title:
	 	 
	
	 WORLDSPACE INTERNATIONAL NETWORK
 INC.

		
	 By:
	 	 /s/ Ronald W. Johnston

	 Name:
	 	 
	 Title:
	 	 
	
	 WORLDSPACE SATELLITE COMPANY LTD.

		
	 By:
	 	 /s/ Stuart Fishkin, Treasurer

	 Name:
	 	 
	 Title:
	 	 
	
	 YENURA PTE. LTD.

		
	 By:
	 	 /s/ Noah A. Samara

	 Name:
	 	 
	 Title:
	 	 

  

 - 2 - 

  
 SCHEDULE 1 

 
 LOANS 
  

				
	     Date    

	  	Amount Advanced

	 09/24/02
	  	$	750,000
	 09/30/02
	  	$	900,000
	 10/01/02
	  	$	700,000
	 10/08/02
	  	$	1,000,000
	 10/16/02
	  	$	400,000
	 10/18/02
	  	$	1,600,000
	 10/29/02
	  	$	500,000
	 10/30/02
	  	$	1,600,000
	 11/13/02
	  	$	1,000,000
	 11/20/02
	  	$	1,700,000
	 12/09/02
	  	$	1,000,000
	 12/18/02
	  	$	2,000,000
	 01/09/03
	  	$	1,050,000
	 01/27/03
	  	$	1,000,000
	 02/05/03
	  	$	1,000,000
	 02/25/03
	  	$	1,000,000
	 03/13/03
	  	$	1,000,000
	 03/25/03
	  	$	1,000,000
	 04/08/03
	  	$	1,550,000
	 04/25/03
	  	$	1,500,000
	 05/13/03
	  	$	1,000,000
	 06/02/03
	  	$	1,500,000
	 	  	
	

	 Total:
	  	$	24,750,000

  

  
 EXHIBIT K 
  
 LIST OF PERSONS ENTITLED TO RECEIVE DISTRIBUTIONS 
  

  
 EXHIBIT K 
  
 List of Persons to Receive Distributions 
  

			
	 1.
	  	See, WorldSpace, Inc. Shareholder List attached hereto
		
	 2.
	  	See, Exhibit J – List of Subordinated Loans attached hereto

  

  
 WorldSpace, Inc.

  
 Shareholder List – September 2003 

 

									
	 Shareholder

	  	Citizenship

	  	Shares

	  	% of
Whole

	  	 Comments

	 Richard Allen
	  	United States	  	30,000	  	0.32	  	 
	 Patricia Ammann
	  	United States	  	45,630	  	0.49	  	 
	 Bina Aspen Rothblatt
	  	United States	  	1,463,011	  	15.81	  	Life partner of Martine Rothblatt
	 Teresa Bongartz
	  	United States	  	2,000	  	0.02	  	Related to Martine Rothblatt
	 Richard Butler
	  	United States	  	12,000	  	0.13	  	 
	 Peter Dolan
	  	United States	  	52,626	  	0.57	  	 
	 Salha Hassan Elkurdi
	  	Sudan/Swiss	  	5,000	  	0.05	  	 
	 Saad El Fishaway
	  	United States	  	60,000	  	0.65	  	 
	 Edmund & Mary Lou Habib
	  	United States	  	19,000	  	0.20	  	 
	 Robert Johnstone (Davenport)
	  	United States	  	30,210	  	0.33	  	 
	 Marc Kase
	  	United States	  	500	  	nil	  	 
	 Christine Kochman
	  	United States	  	15,000	  	0.16	  	 
	 James Laramie
	  	United States	  	30,000	  	0.32	  	 
	 Regula Lorenz
	  	United States	  	45,000	  	0.49	  	 
	 MARCOR
	  	United States	  	30,210	  	0.33	  	Controlled by Martine Rothblatt
	 Tedson Meyers
	  	United States	  	5,000	  	0.05	  	 
	 Felipe Noguera
	  	Trinidad	  	20,000	  	0.22	  	 
	 Philip Olivetti
	  	United States	  	35,421	  	0.38	  	 
	 Jason O’Neil
	  	United States	  	7,500	  	0.08	  	 
	 Shirley O’Neil
	  	United States	  	22,500	  	0.24	  	 
	 Napier Pillai
	  	Trinidad	  	100,000	  	1.08	  	Former WorldSpace executive
	 Mrs. Ruth Pritchard
	  	United States	  	60,000	  	0.65	  	 
	 W.L. Prichard & Co
	  	United States	  	31,050	  	0.34	  	 
	 PPH Cure Foundation
	  	United States	  	186,000	  	2.01	  	Foundation supporting medical research, related to Martine Rothblatt
	 Volunteers in Technical Assistance
	  	United States	  	65,241	  	0.70	  	 
	 Louis A. Bransford
	  	United States	  	10,000	  	0.10	  	 
	 Quintiles Transnational Corp.
	  	United States	  	14,000	  	0.15	  	 
	 Eli Rothblatt
	  	United States	  	12,000	  	0.13	  	Related to Martine Rothblatt
	 Gabriel Rothblatt
	  	United States	  	24,121	  	0.26	  	Related to Martine Rothblatt
	 Jenesis Rothblatt
	  	United States	  	22,121	  	0.24	  	Related to Martine Rothblatt

  

									
	 Shareholder

	  	Citizenship

	  	Shares

	  	% of
Whole

	  	 Comments

	 Martine Rothblatt
	  	United States	  	30,000	  	0.32	  	CEO, United Therapeutics
	 Sunee Rothblatt
	  	United States	  	24,121	  	0.26	  	Related to Martine Rothblatt
	 Najwa M. Sa’d
	  	United States	  	1,500	  	0.02	  	 
	 Eyob Samara
	  	United States	  	500,000	  	5.40	  	Brother of Noah Samara; EVP, WorldSpace
	 Noah Samara
	  	United States	  	1,795,000	  	19.39	  	Chairman & CEO, WorldSpace
	 Abdi Sharif
	  	United States	  	4,000	  	0.04	  	 
	 Syndicated Communications
	  	United States	  	845,527	  	9.14	  	Venture capital firm
	 Keiei Joho Co., Ltd.
	  	Japan	  	600,000	  	6.48	  	Successor to Techno-Venture Ltd. holding
	 TelUS
	  	United States	  	3,000,000	  	32.41	  	Controlled by Noah Samara
	 Stephanie Zucker
	  	United States	  	500	  	nil	  	 
	 	  	TOTAL	  	9,255,789	  	100	  	 

  

  
 Exhibit J 

 
 List of Subordinated Loans and Related Information 
  

										
	 Lender

	  	Date

	  	Principal

	 	 	Payments
to
Principal

	  	Accrued
Interest to
6/30/03

	 Industrial Development
	  	10/28/1998	  	10,000,000	 	 	 	  	2,420,413
	 Industrial Development
	  	11/20/1998	  	56,097,912	 	 	 	  	25,867,371
	 Saifcom Establishment
	  	1/13/1999	  	10,000,000	 	 	3,000,000	  	1,016,944
	 Yenura Pte. Ltd.
	  	9/21/2002	  	79,175,000	*	 	 	  	9,781,744

  

	*	includes advances through 6/30/03; current loan documentation covers advances through 6/2/03 

  

 EXHIBIT L 
  
 DISPUTE RESOLUTION PROCEDURES 
  
 1. Agreement to Dispute Resolution Procedures 
  
 Any dispute, claim, or controversy arising out of or relating to the Loan Restructuring Agreement to which this Exhibit L is attached and made a
part (the “Agreement”), or the performance, breach, validity, interpretation, application, or termination thereof (“Dispute”), shall be resolved in accordance with the procedures specified in this Exhibit L, which shall be
the sole and exclusive procedures for the resolution of any such Dispute. As used herein, “party” shall refer either to Stonehouse or to the WorldSpace Parties (as such parties are defined in the Agreement). 
  
 2. Good Faith Negotiation 
  
 In the event of any Dispute, the parties shall first attempt in good faith to resolve such Dispute promptly by negotiation
between representatives who have authority to settle the Dispute. Any party may give the other party written notice of any Dispute not resolved in the normal course of business. Within fifteen (15) days after delivery of the notice, the receiving
party shall submit to the other a written response. The notice and the response shall each include (a) a statement of the party’s position and a general summary of arguments supporting that position, and (b) the name and title of the person(s)
who will represent that party in the negotiations. Within thirty (30) days after delivery of the notice of Dispute, the representatives of the parties shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably
deem necessary, to attempt to resolve the Dispute. All reasonable requests for information made by one party to the other will be honored; however, no party is required to provide confidential, trade secret, proprietary, or privileged information.

  
 All negotiations pursuant to this clause are confidential and
shall be treated as compromise and settlement negotiations for purposes of applicable rules of evidence. 
  
 If a party refuses to negotiate as provided herein, any other party may immediately initiate arbitration as provided in Section 4 below. 
  
 3. Mediation After Negotiation 
  
 If any Dispute has not been resolved by negotiation as set forth above within forty-five (45) days of delivery of the notice
of Dispute, or if the parties failed to meet within thirty (30) days of delivery of the notice of Dispute (the “Negotiating Period”), the parties shall endeavor to settle the Dispute by good faith mediation. Upon the expiration of the
Negotiating Period, any party may give written notice of mediation. The parties shall attempt to agree upon a qualified, neutral individual who shall serve as mediator. If the parties fail to agree upon a mediator within fifteen (15) days of
delivery of the notice of mediation, the mediator will be appointed by the American Arbitration Association’s International Centre for Dispute Resolution (“AAA”) from its roster of neutral mediators. 

 The mediation shall occur in New York City, New York, USA within thirty (30) days after appointment of a
mediator, or at such other time and place as the parties may agree. Any Dispute which remains unresolved forty-five (45) days after appointment of a mediator shall be settled by arbitration in accordance with Section 4 below. 
  
 If a party refuses to participate in the mediation process as provided
herein, any other party may immediately initiate arbitration as provided in Section 4 below. 
  
 Unless otherwise agreed by the parties or ordered by the arbitrator in a subsequent arbitral proceeding as provided herein, the parties shall bear the cost of the mediation equally between them. 
  
 In the event that any party fails or refuses to participate in mediation in
good faith as provided herein, the arbitrator in any subsequent arbitration is authorized to determine whether the failure to participate in the mediation was due to the bad faith of a party, and if so may award to the other party or parties all
costs associated with the mediation efforts, including attorneys’ fees and costs, mediator’s fees, and administrative fees, if any. 
  
 Other than with respect to its occurrence or the failure to occur, the mediation is in all respects confidential and shall be treated as compromise and
settlement negotiations for purposes of applicable rules of evidence. 
  
 The mediator may not serve as an arbitrator in any subsequent arbitration proceedings concerning the Dispute. 
  
 4. Agreement to Arbitrate 
  
 Any Dispute which has not been resolved by a non-binding procedure as provided herein within ninety (90) days of the initiation of such procedure shall be
finally resolved by arbitration administered by the AAA under its International Arbitration Rules in effect as of the date of the Agreement (“AAA International Rules”), and judgment on the award may be entered in any court having
jurisdiction thereof. 
  
 5. Selection and Appointment of Arbitrator 

 
 The Dispute shall be heard and determined by a sole arbitrator, who shall
be qualified by education, training, and experience to hear and determine matters in the nature of the Dispute (the “Arbitrator”). 
  
 The parties shall attempt to agree upon a qualified individual to serve as Arbitrator. If the parties are unable to so agree within thirty (30) days of
the response to the notice of arbitration, then the Arbitrator shall be selected and appointed in accordance with the AAA International Rules. 

 Should the Arbitrator die, resign, refuse to act, or become incapable of performing his or her functions
as the Arbitrator, the AAA may declare a vacancy. The vacancy shall be filled by the method by which the Arbitrator was originally appointed. 
  
 The Arbitrator shall be bound by and shall follow the then current American Bar Association/AAA Rules of Ethics for Arbitrators. 
  
 6. Seat and Language of Arbitral Proceedings 
  
 The language of the arbitration shall be English. 
  
 The seat of the arbitration shall be New York City, New York, USA. Upon
agreement of the parties and the Arbitrator, pre-hearing conferences may be held in other locations; however, the seat of the arbitration will be deemed to remain unchanged and any awards or orders will be deemed to have been made at the seat of the
arbitration. 
  
 7. Governing Law 
  
 The Arbitrator shall determine the matters at issue in the Dispute in
accordance with the substantive law of New York, USA. 
  
 The
arbitration proceedings shall be governed by the Agreement, the AAA International Rules, and by the procedural arbitration law of the site of the arbitration, and by the United Nations Convention on the Recognition and Enforcement of Foreign
Arbitral Awards. 
  
 The Arbitrator shall decide the issues
submitted as an arbitrator at law only and shall base his/her award, and any interim awards, upon the terms of the Agreement and the laws of New York, USA. The Arbitrator is not empowered to and shall not act as amiable compositeur or ex aequo et
bono. 
  
 8. Pre-Hearing Procedure and Disposition 
  
 At the request of a party, the Arbitrator may take such interim measures and
make such interim orders as it deems necessary, including measures for the preservation of assets, the conservation of goods, or the sale of perishable goods. The Arbitrator may require appropriate security as a condition of ordering such measures.

  
 At any time after the Arbitrator is appointed and upon motion
of any party, the Arbitrator shall hear and determine any preliminary issue of law asserted by a party to be dispositive, in whole or in part, of any claim or defense, pursuant to such procedures as the Arbitrator deems appropriate. 

 At any time after the Arbitrator is appointed and upon motion of any party, the Arbitrator may summarily
determine and dismiss, in whole or in part, any claim or issue in dispute (a) if the party asserting it has failed to state a claim as a matter of law, or (b) if the pleadings and evidence show that no genuine issue of material fact exists with
respect to any element of the claim or defense and that the moving party is entitled to disposition of the claim or defense as a matter of law. 
  
 If the Arbitrator deems it appropriate, keeping in mind the expedited and efficient nature of arbitration, the arbitral proceedings may be bifurcated
according to claims or issues, and claims or issues may be heard and determined separately as may be appropriate. 
  
 9. Document Disclosures 
  
 Pursuant to a schedule to be established by the Arbitrator, the parties shall exchange those documents upon which the producing party may rely in support
of any claim or defense. The parties may further exchange documents in response to written requests for disclosure of non-privileged documents directly relevant to the determination of the issues presented for determination by the Arbitrator. Any
Dispute regarding such requests for disclosure or the adequacy of any party’s disclosures shall be determined by the Arbitrator consistent with the expedited nature of arbitration. 
  
 The Arbitrator shall take into account applicable principles of legal privilege and related protections, such as those
involving the confidentiality of communications between a lawyer and a client and the work product of a lawyer, and no party or witness may be required to waive any privilege recognized at law. The Arbitrator shall issue orders as reasonably
necessary to protect the confidentiality of proprietary information, trade secrets, and other sensitive information disclosed. 
  
 10. Awards and Relief 
  
 All awards shall be in writing and shall state the reasoning upon which the award rests. Any award shall be made and signed by the Arbitrator. 

 
 The Arbitrator is expressly empowered to grant any remedy or relief not
expressly prohibited herein available under the applicable law, including but not limited to specific performance of the contract to the extent allowed by law, declaration of the validity, meaning, and effect of the contract and the rights or duties
of the parties thereunder, and, to the extent allowed by law, prohibiting or mandating actions by a party with respect to the performance of the contract or matters arising out of or in connection therewith. 
  
 In his/her award, the Arbitrator may apportion the costs of arbitration
between or among the parties in such manner as it deems reasonable, taking into account the circumstances of the case, the conduct of the parties during the proceedings, and the result of the arbitration, including requiring one party to bear all or
the majority of such costs. 

 Unless otherwise ordered by the Arbitrator as part of his/her award, each party shall bear its own costs
and expenses; and the costs of arbitration, including the fees and expenses of the Arbitrator and of any expert or other assistance engaged by the Arbitrator, shall be borne by the parties to the arbitration in equal shares. 
  
 11. Failure to Participate or to Pay Advances of Costs and Fees 
  
 The failure or refusal of any party, having been given due notice thereof,
to participate at any stage of the dispute resolution proceedings shall not prevent the proceedings from continuing, nor shall such failure or refusal impair the validity of the award or cause the award to be void or voidable, nor shall it be a
basis for challenge of the validity or enforceability of the award or of the arbitration proceedings. 
  
 If any party fails to timely pay an advance on fees and costs ordered by the Arbitrator or the AAA within twenty (20) days after the date set for such
deposit, that party shall be deemed to be in default. The Arbitrator and/or the AAA shall then determine whether the funds on deposit are sufficient to satisfy the anticipated estimated expenses for the proceeding to continue on an expedited basis
without the participation of the defaulting party. If so, the proceeding will continue without the participation of the defaulting party, and the Arbitrator may enter an award on default. Prior to entering an award on default, the Arbitrator shall
require the non-defaulting party to produce such evidence and legal argument in support of its contentions as the Arbitrator may deem appropriate. The Arbitrator may receive such evidence and argument without the defaulting party’s presence or
participation. If the funds on deposit are deemed insufficient to satisfy the estimated costs of continuing as provided herein, the non-defaulting party may make all or part of the requested deposit in an amount sufficient to allow the proceeding to
continue without the participation of the defaulting party. If the non-defaulting party chooses not to make the requested deposit, the Arbitrator may suspend or terminate the proceedings. 
  
 12. Adherence to Time Limits 
  
 In accepting appointment, the Arbitrator shall commit that his/her schedule permits him/her to devote the reasonably necessary time and attention to the
arbitration proceedings and to resolving the Dispute within the time periods set by the Agreement and by the AAA International Rules. 
  
 Any time limits set forth in this Dispute resolution agreement or in the AAA International Rules may be modified upon written agreement of the parties and
the Arbitrator or by order of the Arbitrator. 
  
 Any failure of
the Arbitrator to satisfy such time limits or to render a final award within the time specified shall not impair the validity of the award or cause the award to be void or voidable, nor shall it be a basis for challenge of the validity or
enforceability of the award or of the arbitration proceedings. 

 13. Interim Measures from the Courts in Aid of Arbitration 
  
 At any time after submission of a written notice of Dispute, any party may request a court of competent jurisdiction to
grant interim measures of protection: (a) to preserve the status quo pending resolution of the Dispute; (b) to prevent the destruction of documents and other information or things related to the Dispute; (c) to prevent the transfer, dissipation, or
hiding of assets; and/or (d) to aid the arbitral proceedings and the award. A request for such interim measures to a judicial authority shall not be deemed incompatible with or a waiver of a party’s right to arbitrate a Dispute. 
  
 The parties agree that a court at the seat of the arbitration at the request
of a party, or the Arbitrator with the consent of all parties, may consolidate two or more arbitral proceedings among the parties to the Agreement if there exist common questions of law or fact. 
  
 14. Confidentiality 
  
 Unless the parties agree otherwise, the parties, the Arbitrator, and the AAA shall treat the dispute resolution proceedings
provided for herein, any related disclosures, and the decisions of the Arbitrator, as confidential, except in connection with judicial proceedings ancillary to the dispute resolution proceedings, such as a judicial challenge to, or enforcement of,
the arbitral award, and unless otherwise required by law to protect a legal right of a party. 
  
 15. Survival and Severability 
  
 The terms of this Exhibit L shall survive the termination or expiration of the Agreement. 
  
 If any provision of this agreement shall be unenforceable, invalid, or unlawful in any respect, then such provision shall be deemed severable from the
remaining provisions and the enforceability, validity, and lawfulness of the remaining provisions will not be impaired. 

 EXHIBIT M 
  
 FORM OF LEGAL OPINION 
  
 [COUNSEL’S LETTERHEAD] 
  
                          , 2003 
  
 Stonehouse Capital Ltd. 
 c/o Al-Murjan Organization 
 P.O. Box 52558 
 Jeddah 21573 
 Saudi Arabia 
  

	Re:	WorldSpace - Loan Restructuring Agreement 

  
 Dear Sirs: 
  
 We have acted as [Maryland/British Virgin Islands] counsel to [WorldSpace, Inc./WorldSpace International Network Inc. and WorldSpace Satellite Company Ltd.] (the
[“Company”/“Companies”]) in connection with the transactions contemplated by the Loan Restructuring Agreement dated September         , 2003 between WorldSpace, Inc.,
WorldSpace International Network Inc., WorldSpace Satellite Company Ltd. and Stonehouse Capital Ltd., a corporation organized and existing under the laws of the Cayman Islands (“Stonehouse”) (the “Loan Restructuring
Agreement”). Unless otherwise noted herein, all capitalized terms used but not defined herein shall have the respective meanings as set forth in the Loan Restructuring Agreement. 
  
 We have reviewed, inter alia, originals, drafts, copies or conformed copies of the following documents: 

 
 A. the constitutive documents of the [Company/Companies] (hereinafter
referred to as “Charter Documents”); 
  
 B. [the
Written Resolutions of the Board of Directors of the [Company/Companies] dated [                    , 2003] [and
                    , 2003, respectively] and the corporate records of the [Company/Companies] maintained at its registered office in
                    ;]/Modify as appropriate for jurisdiction and entity type.] 
  
 C. the Loan Restructuring Agreement; 
  
 D. the Release[s] and the Original Agreement Release executed by the
[Company/Companies]; 

 Stonehouse Capital Ltd. 
                     
    , 2003 
 Page 2 
  

 E. the Royalty Agreement; 
  
 F. the New Loan Documentation; 
  
 G. the Escrow Agreement; 
  
 H. the Subordination Agreement; and 
  
 I. the Director’s Certificate(s), [a copy/copies] of which [is/are] attached hereto. 
  
 The following opinion is given as to circumstances existing on the date hereof and known to us and as to the laws of the
[State of Maryland/British Virgin Islands] as the same are in force at the date hereof. The documents (C) though (H) listed above are referred to herein as the “Documents”. In giving this opinion, we have assumed, but have not
independently verified, that the Documents have been or, as the case may be, will be duly authorized, executed and delivered by or on behalf of all relevant parties (other than the [Company/Companies]). 
  
 Based upon and subject to the foregoing and having regard to such legal
considerations as we deem relevant, we are of the opinion that: 
  
 1. The [Company has/Companies have] been duly incorporated and [is/are] validly existing and in good standing under the laws of the [State of Maryland/British Virgin Islands], and [has/have each] been registered as [a corporation under the
laws of the State of Maryland/companies organized and existing under the International Business Companies Act of the British Virgin Islands]; 
  
 2. The [Company has/Companies have] full power and authority under [its] [their respective] Charter Documents to execute and deliver, and to perform
[its/each of their respective] obligations under, the Documents. 
  
 3. The execution of the Documents by the [Company/Companies] and the performance of [its/each of their respective] obligations thereunder does not result in a breach of any of the terms or provisions of [its/their respective] Charter
Documents. 
  
 4. The Documents have been duly authorized by and
on behalf of the [Company/Companies] and have been duly executed and delivered by and on behalf of the [Company/Companies]. 
  
 5. No governmental approvals or other approval, consent or other action from or in respect of, or filing or registration with, or notice to any
governmental authority of the [State of 

  

 Stonehouse Capital Ltd. 
                     
    , 2003 
 Page 3 
  

 
Maryland/British Virgin Islands] is required to be given, obtained, made or taken in connection with the execution and delivery of any of the Documents by
the [Company/Companies]. 
  
 This opinion is given solely for the
benefit of Stonehouse and its successors and assigns. We are licensed to practice under the laws of the [State of Maryland/British Virgin Islands] and this opinion relates solely to the laws of [State of Maryland/British Virgin Islands] at the date
hereof. 
  
 Yours faithfully, 
  
 [Counsel’s Name] 
  

 [COMPANY LETTERHEAD] 
  
                          , 2003 
  
 [Address of legal counsel] 
  
 _____________________ 
 _____________________

 _____________________ 
  
 Dear Sirs, 
  

	 	Re:	WorldSpace - Loan Restructuring Agreement 

  
 I, being the              of
                         (the “Company”) refer to the documentation more particularly described in the
Resolutions referred to in paragraph 3 below (the “Documents”). I hereby certify on behalf of the Company that at the date hereof: 
  
 1. The [Memorandum and Articles of Association] of the Company as registered with the [registrar of Companies] on
                             ,
             are unamended and remain in force and effect. 
  
 2. The Company has not entered into any mortgages or charges over its property, details of which are required to be entered into the [Registrar of
Mortgages and Charges] maintained at its registered office in                      other than as recorded therein. 
  
 3. The Resolutions of the Directors dated
                         , 2003 (the “Resolutions”) are signed by [the Directors] in the manner
prescribed in the Company’s [Articles of Association]. 
  
 4.
The Resolutions were duly adopted and in full force and effect at the date hereof and have not been amended, varied or revoked in any respect. The [Shareholders/Members] of the Company have not restricted the powers of the Directors. 
  
 5. The Directors of the Company at the date of the Resolutions, and at the
date hereof, were and are as follows: 
  
 ___________________

 ___________________ 
 ___________________ 
  
 6. The [Minute Book] and
corporate records of the Company are maintained at its registered office in         , and made available to [Local Counsel], are complete and accurate in all material aspects and all Minutes and Resolutions
filed thereon represent a complete and accurate 

 Stonehouse Capital Ltd. 
                     
    , 2003 
 Page 2 
  

 
record of all meetings of the Directors duly convened in accordance with the [Articles of Association] and all Resolutions passed by written consent.

  
 7. Prior to, at the time of, and immediately following
execution of the Documents the Company was able to pay its debts as they fell due and entered into the Documents for proper value and not with an intention to defraud or hinder such creditors or by way of fraudulent preference. 
  
 8. The Company is not involved in any legal arbitral. administrative or other
proceedings and no steps have been taken to commence the winding up of the Company. 
  
 9. The Directors have acted bona fide in the best interests of the Company in relation to the transaction contemplated under the Documents and have disclosed any interest in accordance with the Company’s
[Articles of Association]. 
  
 10. The Documents have been
executed and delivered on behalf of the Company by                     . 
  
 11. The Company is not an agent of any sovereign entity and has not executed the Documents in exercise of sovereign
immunity. 
  

	
	Yours faithfully,
	
	 

  

 EXHIBIT N 
  
 LIST OF CERTAIN SHAREHOLDER(S) 
  

			
	 	  	Number of Shares

	 Rothblatt Interests1
	  	1,793,584
	 Stephanie Zucker
	  	500

	1	Consists of Bina Apsen Rothblatt, Teresa Bongartz, MARCOR, PPH Cure Foundation, Eli Rothblatt, Gabriel Rothblatt, Jenesis Rothblatt, Martine Rothblatt and Sunee
Rothblatt. 

  
 FIRST AMENDMENT

  
 TO 
  
 LOAN RESTRUCTURING AGREEMENT 
  
 AND 
  
 ROYALTY AGREEMENT 
  
 AMONG 
 STONEHOUSE CAPITAL LTD. 
 WORLDSPACE,
INC. 
 WORLDSPACE INTERNATIONAL NETWORK INC. 
  
 AND 
  
 WORLDSPACE SATELLITE COMPANY, LTD. 
  
 Dated September 28, 2004 
  

 This First Amendment (“First Amendment”) made as of this 28th day of September, 2004 by
and among Stonehouse Capital Ltd. (“Stonehouse”), WorldSpace, Inc. (“WSI”), WorldSpace International Network Inc. (“WIN”) and WorldSpace Satellite Company Ltd. (“WSC”) (WSI, WIN, and WSC collectively referred
to herein as the “WorldSpace Parties”). 
  
 WITNESSETH:

  
 WHEREAS, Stonehouse and the WorldSpace Parties did enter into
that certain Loan Restructuring Agreement dated as of September 30, 2003 (the “Loan Restructuring Agreement”) in order to enable the WorldSpace Parties to obtain capital investment to finance the commercial expansion of their business; and

  
 WHEREAS, Stonehouse and the WorldSpace Parties did enter into
that certain Royalty Agreement dated as of September 30, 2003 (the “Royalty Agreement”) in order to establish certain rights of Stonehouse to receive royalty payments from the WorldSpace Parties; and 
  
 WHEREAS, Stonehouse, the WorldSpace Parties and Tri-State Commercial
Closings, Inc. (the “Escrow Agent”) did enter into that certain Escrow Agreement dated as of September 30, 2003 (the “Escrow Agreement”) (the Loan Restructuring Agreement, the Royalty Agreement and the Escrow Agreement
collectively referred to herein as the “Agreements”) in order to establish the terms by which certain documents be held in escrow; and 
  
 WHEREAS, Stonehouse and each of the WorldSpace Parties desire to amend the Loan Restructuring Agreement and the Royalty Agreement and to provide the
Escrow Agent with notification of such amendments in accordance with the provisions set forth below. 
  
 NOW THEREFORE, in consideration of the mutual promises and covenants herein contained, the receipt and sufficiency of which are hereby acknowledged,
Stonehouse and the WorldSpace Parties hereby agree to amend the Loan Restructuring Agreement and the Royalty Agreement and to provide the Escrow Agent with notification of such amendments as follows: 
  

	1.	Replace Section 2.02 of the Loan Restructuring Agreement with: 

  
 “If the Restructuring does not occur by March 31, 2005 or by such later date as may be agreed by Stonehouse and WSI in writing (the March 31, 2005
date or such later date agreed by Stonehouse and WSI referred to herein as the “Outside Date”), then this Agreement will terminate, and each of the Original Agreements will remain in full force and effect and unmodified hereby
(including, without 

  

 
limitation, with respect to the accrual of interest without interruption), as if this Agreement had never been entered into.” 
  

	2.	Replace Section 1.2(b) of Exhibit B to the Loan Restructuring Agreement with: 

  

“(b) this Release will be null and void if the date of the closing of the Debt Restructuring Transaction does not occur on or before December 31,
2005.” 
  

	3.	Replace Section 5.05 of the Royalty Agreement with: 

  
 “This Agreement will automatically terminate if the Effective Date has not occurred on or before March 31, 2005.” 
  

	4.	The forms of the Loan Restructuring Agreement, the Royalty Agreement and the Escrow Agreement attached to the Agreements as exhibits, where applicable, shall be considered to be
revised to reflect the terms contained in this First Amendment. 

  

	5.	Stonehouse and WSI agree to provide the Escrow Agent with a written notice (which notice shall be countersigned by the Escrow Agent), notifying the Escrow Agent of the change to the
“Outside Date” as effected by this Amendment. 

  

	6.	This First Amendment may be executed in multiple counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

  

	7.	Except as otherwise hereby modified, all other terms, provisions and conditions of the Agreements shall remain in full force and effect. 

  
 IN WITNESS WHEREOF, the parties have caused this First Amendment to be signed
in their respective names as of the date first above written. 
  

			
	 STONEHOUSE CAPITAL LIMITED

		
	 By:
	 	 /s/    ABDULRAHMAN BIN
MAHFOUZ

	 Name:
	 	 Abdulrahman Bin Mahfouz

		
	 By:
	 	 /s/    SULTAN BIN
MAHFOUZ

	 Name:
	 	 Sultan Bin Mahfouz

  

			
	 WORLDSPACE, INC.

		
	 By:
	 	 /s/    NOAH A. SAMARA

	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

	
	WORLDSPACE INTERNATIONAL NETWORK INC.
		
	 By:
	 	 /s/    NOAH A. SAMARA

	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

	
	 WORLDSPACE SATELLITE COMPANY, LTD.

		
	 By:
	 	 /s/    NOAH A. SAMARA

	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

  

  
 SECOND AMENDMENT

  
 TO 
  
 LOAN RESTRUCTURING AGREEMENT 
  
 AND 
  
 ROYALTY AGREEMENT 
  
 AMONG 
 STONEHOUSE CAPITAL LTD. 
 (a
corporation organized and existing under the laws of the Cayman Islands) 
  
 WORLDSPACE, INC. 
 (a corporation organized and existing under the laws of the State of Maryland)

  
 WORLDSPACE INTERNATIONAL NETWORK INC. 
 (a company organized and existing under the International Business Companies Act 
 of the British Virgin Islands) 
  
 WORLDSPACE SATELLITE COMPANY, LTD. 
 (a company organized and existing under the International
Business Companies Act 
 of the British Virgin Islands) 
  
 AND 
  
 WORLDSPACE, INC. 
 (a corporation
organized and existing under the laws of the State of Delaware) 
  
 Dated as of December 30, 2004 
  

 This Second Amendment (“Second Amendment”) made as of this 30th day of December, 2004 by and among: 
  

(i) Stonehouse Capital Ltd., a corporation organized and existing under the laws of the Cayman Islands (“Stonehouse”); 
  
 (ii) WorldSpace, Inc., a corporation organized and existing under the laws of the State of
Maryland (“WSI-MD”); 
  
 (iii) WorldSpace International Network Inc., a
company organized and existing under the International Business Companies Act of the British Virgin Islands (“WIN”); 
  
 (iv) WorldSpace Satellite Company Ltd., a company organized and existing under the International Business Companies Act of the British Virgin Islands (“WSC”);
and 
  
 (v) WorldSpace, Inc., a corporation organized and existing under the laws
of the State of Delaware (“WSI-DE”) (WSI-MD, WIN, WSC and WSI-DE collectively referred to herein as the “WorldSpace Parties”). 
  
 WITNESSETH: 
  
 WHEREAS, Stonehouse and the WorldSpace Parties (other than WSI-DE) did enter into that certain Loan Restructuring Agreement dated as of September 30,
2003, as amended by that certain First Amendment to Loan Restructuring Agreement and Royalty Agreement dated September 28, 2004 (the “Loan Restructuring Agreement”) in order to enable the WorldSpace Parties (other than WSI-DE) to obtain
capital investment to finance the commercial expansion of their business; 
  
 WHEREAS, Stonehouse and the WorldSpace Parties (other than WSI-DE) did enter into that certain Royalty Agreement dated as of September 30, 2003, as amended by that certain First Amendment to Loan Restructuring
Agreement and Royalty Agreement dated September 28, 2004 (the “Royalty Agreement”) in order to establish certain rights of Stonehouse to receive royalty payments from the WorldSpace Parties (other than WSI-DE) (the Loan Restructuring
Agreement and the Royalty Agreement collectively referred to herein as the “Agreements”); 
  
 WHEREAS, prior to the date hereof, WSI-MD owned WIN, which in turn owned WSC; 
  
 WHEREAS, as of even date herewith, WIN will be merged with and into WSI-MD and WSI-MD will immediately thereafter be merged
with and into WSI-DE (the “WSI Mergers”); 
  

 WHEREAS, upon the WSI Mergers, WSI-DE will assume all of the rights, obligations and liabilities of WIN
and WSI-MD in and under the Agreements by operation of law; 
  
 WHEREAS, Stonehouse and each of the WorldSpace Parties desire to amend the Loan Restructuring Agreement and the Royalty Agreement in accordance with the provisions set forth below. 
  
 NOW THEREFORE, in consideration of the mutual promises and covenants herein
contained, the receipt and sufficiency of which are hereby acknowledged, Stonehouse and the WorldSpace Parties hereby agree to amend the Loan Restructuring Agreement and the Royalty Agreement as follows: 
  
 1. Add the following term and its corresponding definition to the Royalty Agreement:

  

			
	“WSI-DE”	  	means WorldSpace Inc., a corporation organized and existing under the laws of the State of Delaware as of the Effective Date.

  
 2. Add the following text to become a
new Section 4.03(c) to the Royalty Agreement: 
  
 (c)
Distributions to those shareholders listed on Exhibit H shall not be subject to the restrictions on Distributions provided in this Section 4.03 (which Section 4.03 provides, in part, that such Distributions are expressly subordinate to the actual
payment of the Royalty Payment); provided, however, that for the sake of clarity it is agreed that for purposes of calculating the Proceeds Portion in a Scale-Down Transaction, the amount of the Distributions used as a basis for such determination
shall be calculated by reference to all Current Shareholders, whether or not they have been exempted from the restrictions under this Section 4.03. It is further contemplated that such shareholders listed on Exhibit H shall receive Class A common
shares in WSI-DE which are not restricted as to the payment of Distributions and all other Current Shareholders will receive Class B common shares in WSI-DE and the certificates representing such Class B shares shall include a legend referencing the
applicable restrictions under this Agreement. 
  
 3. Add the attached Addendum A
as a new Exhibit H to the Royalty Agreement. 
  
 4. The forms of the Loan
Restructuring Agreement and the Royalty Agreement (attached as exhibits to the Royalty Agreement and the Loan Restructuring Agreement, respectively) shall be considered to be revised to reflect the terms contained in this Second Amendment.

  

 5. In executing this Second Amendment, the WorldSpace Parties acknowledge and affirm that, upon the WSI Mergers (i) all
obligations and liabilities of WSI-MD and WIN (including, but not limited to, such parties’ obligations and liabilities under the Loan Restructuring Agreement and the Royalty Agreement) will be assumed by WSI-DE and (ii) WSC will become a
subsidiary of WSI-DE. 
  
 6. This Second Amendment may be executed in multiple
counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
  
 7. Except as otherwise hereby modified, all other terms, provisions and conditions of the Agreements shall remain in full force and effect. 
  
 8. This Second Amendment shall be governed by and construed in accordance with the laws of
the State of New York, without regard to any choice of law or conflict of law provisions thereof. 
  
 IN WITNESS WHEREOF, the parties have caused this Second Amendment to be signed in their respective names as of the date first above written. 

 
 (Signature page follows) 
  

			
	 STONEHOUSE CAPITAL LTD.

		
	By:	 	/s/ Cherif Sedky
		
	 Name:
	 	 Cherif Sedky

	
	WORLDSPACE, INC., a corporation organized and existing under the laws of the State of Maryland
		
	By:	 	/s/ Noah A. Samara
	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

	
	WORLDSPACE INTERNATIONAL NETWORK INC.
		
	By:	 	/s/ Noah A. Samara
	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

	
	 WORLDSPACE SATELLITE COMPANY, LTD.

		
	By:	 	/s/ Noah A. Samara
	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

	
	WORLDSPACE, INC., a corporation organized and existing under the laws of the State of Delaware
		
	By:	 	/s/ Noah A. Samara
	 Name:
	 	 
	 Title:
	 	 Chairman and Chief Executive OfficerRoyalty Agreement dated September 30, 2003

 Exhibit 10.3 
  
 Pages where confidential treatment has been requested are stamped “Confidential Treatment Requested.” The redacted materials have
been separately filed with the SEC; the appropriate section has been marked at the appropriate place with a “*.” 
  

  
 ROYALTY AGREEMENT 
  
 among 
  
 STONEHOUSE CAPITAL LTD. 
  
 WORLDSPACE, INC. 
  
 WORLDSPACE INTERNATIONAL NETWORK INC. 
  
 AND 
  
 WORLDSPACE SATELLITE COMPANY LTD. 
  
 Dated as of September 30, 2003 
  

  

  
 TABLE OF CONTENTS

  

					
	 	  	 	  	Page

	 ARTICLE I
	  	 DEFINITIONS AND INTERPRETATION
	  	1
			
	 Section 1.01
	  	 General Definitions
	  	1
			
	 Section 1.02
	  	 Interpretation
	  	6
			
	 ARTICLE II
	  	 PAYMENTS
	  	7
			
	 Section 2.01
	  	 Royalty Payments
	  	7
			
	 Section 2.02
	  	 Scale-Down Fee
	  	8
			
	 Section 2.03
	  	 Equalization Payment
	  	8
			
	 Section 2.04
	  	 Effectiveness
	  	8
			
	 ARTICLE III
	  	 REPRESENTATIONS
	  	9
			
	 Section 3.01
	  	 Representations of the WorldSpace Parties
	  	9
			
	 Section 3.02
	  	 Representations of Stonehouse
	  	9
			
	 ARTICLE IV
	  	 COVENANTS
	  	10
			
	 Section 4.01
	  	 Reporting
	  	10
			
	 Section 4.02
	  	 Audit
	  	10
			
	 Section 4.03
	  	 Distributions
	  	10
			
	 Section 4.04
	  	 Sale of Assets
	  	11
			
	 Section 4.05
	  	 Funding Expenditure Plan
	  	11
			
	 Section 4.06
	  	 Confidentiality
	  	11
			
	 Section 4.07
	  	 Subordination
	  	12
			
	 ARTICLE V
	  	 MISCELLANEOUS
	  	12
			
	 Section 5.01
	  	 Saving of Rights
	  	12
			
	 Section 5.02
	  	 Notices
	  	13
			
	 Section 5.03
	  	 Overdue Payments
	  	14
			
	 Section 5.04
	  	 Payment Location
	  	14
			
	 Section 5.05
	  	 Termination
	  	14
			
	 Section 5.06
	  	 Applicable Law and Dispute Resolution
	  	14
			
	 Section 5.07
	  	 Successors and Assigns
	  	14
			
	 Section 5.08
	  	 Waivers and Consents; Amendments
	  	14
			
	 Section 5.09
	  	 Joint and Several Liability
	  	15
			
	 Section 5.10
	  	 Severability
	  	15
			
	 Section 5.11
	  	 Counterparts
	  	15
			
	 Section 5.12
	  	 Further Assurances
	  	15

  

 i 

  
 TABLE OF CONTENTS

  

					
	 Section 5.13
	  	 Entire Agreement
	  	15
	 Section 5.14
	  	 Additional Exhibits
	  	15
	 Section 5.15
	  	 Tax Disclosure
	  	16

  
 EXHIBITS 
  

			
		
	Exhibit A	  	Form of Control Agreement
		
	Exhibit B	  	Funding Expenditure Plan
		
	Exhibit C	  	Dispute Resolution Procedures
		
	Exhibit D	  	Financial Model
		
	Exhibit E	  	Annual Operating Budget
		
	Exhibit F	  	Operating and Marketing Plan
		
	Exhibit G	  	Restructuring Agreement

  

 - ii - 

  
 ROYALTY AGREEMENT 

 
 THIS ROYALTY AGREEMENT (this “Agreement”) dated as of
September 30, 2003 (the “Execution Date”), is by and between (1) Stonehouse Capital Ltd., a Cayman Islands corporation (“Stonehouse”), and (2) WorldSpace, Inc., a Maryland corporation
(“WSI”), WorldSpace International Network Inc., a company organized under the International Business Companies Act of the British Virgin Islands (“WIN”), WorldSpace Satellite Company Ltd., a company organized under
the International Business Companies Act of the British Virgin Islands (“WSC”). WSI, WIN and WSC are collectively referred to as the “WorldSpace Parties.” 
  
 RECITALS 
  
 A. The parties are parties to a Restructuring Agreement of even date herewith, a copy of which is attached hereto as
Exhibit G (the “Restructuring Agreement”) pursuant to which Stonehouse is releasing and discharging the obligations of the WorldSpace Parties under that certain Amended and Restated Loan Agreement and Guarantee dated as of
April 21, 2000, simultaneously with the execution and delivery of this Agreement. 
  
 B. The Restructuring Agreement provides for the execution and delivery of this Agreement. 
  
 NOW, THEREFORE, in consideration of the foregoing and the agreements set forth herein, and for other good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS AND
INTERPRETATION 
  
 Section 1.01 General Definitions.
Wherever used in this Agreement, the following terms have the meanings opposite them: 
  

			
	“Affiliate”	  	with respect to any entity, any entity that controls, is controlled by, or is under common control with the entity in question. For purposes of this definition, “control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of voting securities or otherwise;
		
	“Agreement”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“Annual Operating Budget”	  	has the meaning ascribed thereto in Section 5.14(b) hereof;
		
	“Code”	  	has the meaning ascribed thereto in Section 2.01(b) hereof;
		
	“Current Shareholders”	  	the parties who, at any time prior to the Effective Date, were shareholders of WSI or any of its Affiliates or

  

 1 

			
	 	  	subsidiaries or who are Affiliates, family members or other relatives of any parties who were shareholders of WSI or any of its Affiliates or subsidiaries on or prior to the Effective Date;
provided, that “Current Shareholders” does not include any of the WorldSpace Parties or any direct or indirect wholly-owned subsidiaries thereof;
		
	“Distribution Calculation Year”	  	has the meaning ascribed thereto in Section 4.03(a) hereof;
		
	“Distribution Payment Year”	  	has the meaning ascribed thereto in Section 4.03(a) hereof;
		
	“Distributions”	  	dividends or similar distributions, return of capital, payments with respect to loans by or to, or other payments (other than reasonable salaries or similar compensation for services) made by
any of the WorldSpace Parties to any Current Shareholders or any successors, transferees or assignees thereof (whether made in respect of shares or loans acquired or made by any Current Shareholders prior or subsequent to the Effective Date) or any
other payments of any kind by any of the WorldSpace Parties with respect to Subordinate Loans; provided, that “Distributions” will not include any dividends, similar distributions or return of capital paid in respect of any shares
acquired by any Current Shareholders in a Qualifying Public Offering pursuant to the prospectus used in such Qualifying Public Offering or acquired by any Current Shareholders in the open market at any time after the Qualifying Public Offering,
unless such shares were acquired pursuant to options, warrants or similar rights awarded to any Current Shareholders prior to such Qualifying Public Offering or unless such shares were acquired, directly or indirectly, in substitution or exchange
for shares held by any of the Current Shareholders prior to such Qualifying Public Offering;
		
	“Dollars”	  	the lawful currency of the United States of America, also represented herein with the “$” sign;
		
	“Effective Date”	  	the date of the Restructuring (as defined in the Restructuring Agreement);
		
	“EBITDA”	  	earnings before interest, taxes, depreciation and amortization (including, without limitation, the amortization of goodwill and other intangibles) and before any extraordinary losses or
writedowns of assets, and without reduction for loss carryovers from prior periods;

  

 - 2 - 

			
	“Eliminated WorldSpace Party”	  	has the meaning ascribed thereto in Section 2.02(a) hereof;
		
	“Excess Funds”	  	with respect to any Royalty Calculation Year, those funds which have been earned by WSI in such Royalty Calculation Year and, as of the last day of such Royalty Calculation Year, have not
been spent by WSI, minus the amount of the Royalty Payment which will be owed to Stonehouse with respect to such Royalty Calculation Year (and to be paid by the Second Payment Date following such Royalty Calculation Year), it being acknowledged and
agreed that the determination of the amount of Excess Funds applicable to a Royalty Calculation Year will be made from the consolidated audited financial statements of WSI no later than one hundred twenty (120) calendar days following the end of
such Royalty Calculation Year;
		
	“Execution Date”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“Financial Model”	  	has the meaning ascribed thereto in Section 5.14(a) hereof;
		
	“First Payment Date”	  	for any Royalty Calculation Year, the date that is sixty (60) calendar days after the end of such Royalty Calculation Year;
		
	“Interim Payment”	  	for any Royalty Calculation Year, an amount equal to eighty percent (80%) of the Royalty Payment for such Royalty Calculation Year, as estimated in good faith by WSI on the basis of the best
information reasonably available thirty (30) calendar days after the end of such Royalty Calculation Year;
		
	“LIBOR”	  	British Bankers’ Association interbank offered rate for deposits in the loan currency;
		
	“New Investment”	  	all of the investment (whether debt, equity or other form of investment, or a combination thereof) made in WSI (and/or one or more direct or indirect subsidiaries one hundred percent (100%)
of whose revenues are included in WorldSpace EBITDA as of the Effective Date) subsequent to the Execution Date to and including the Effective Date, from any party or parties who, prior to the Execution Date, are not shareholders of WSI or any of its
Affiliates or subsidiaries and are not Affiliates, family members or other relatives of any such shareholders;
		
	“New Loan Documentation”	  	has the meaning ascribed thereto in the Restructuring Agreement;

  

 - 3 - 

			
	“Operating and Marketing Plan”	  	has the meaning ascribed thereto in Section 5.14(c) hereof;
		
	“Permitted Investments”	  	investments with maturities of six (6) months or less from the date of acquisition which are:
		
	 	  	(i) Dollar denominated securities issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof (provided that the full faith and
credit of the United States of America is pledged in support thereof); or
		
	 	  	(ii) time deposits and certificates of deposit of any commercial bank having capital and surplus in excess of five hundred million Dollars ($500,000,000) or its equivalent and having a rating
on its commercial paper of at least A-1 or the equivalent thereof by Standard & Poor’s Corporation or at least P-1 or the equivalent thereof by Moody’s Investors Service, Inc.;
		
	“Person”	  	any natural person, corporation, company, partnership, firm, voluntary association, joint venture, trust, unincorporated organization, authority or any other entity whether acting in an
individual, fiduciary or other capacity;
		
	“Proceeds Portion”	  	in any Scale-Down Transaction, the portion of the proceeds (whether cash or property) of the sale or liquidation constituting such Scale-Down Transaction that is to be included in any
Distributions;
		
	“Qualifying Public Offering”	  	a firm commitment underwritten public offering of common stock, pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission, which results
in (i) gross proceeds (before underwriting discounts and commissions) to WSI of at least $50,000,000 from purchasers thereunder which are not Affiliates of WSI, and (ii) an aggregate valuation of all the outstanding shares of WSI’s common stock
on a fully-diluted basis immediately prior to consummation of the offering of at least $100,000,000;
		
	“Reference Date”	  	December 31, 2002;
		
	“Restructuring Agreement”	  	has the meaning ascribed thereto in the Recitals hereof;
		
	“Royalty Calculation Year”	  	each calendar year during the Term;

  

 - 4 - 

			
	“Royalty Payment”	  	for any Royalty Calculation Year, an amount equal to ten percent (10%) of WorldSpace EBITDA for such Royalty Calculation Year;
		
	“Royalty Reserve Account”	  	has the meaning ascribed thereto in Section 2.01(b) hereof;
		
	“Royalty Reserve Annual Account”	  	has the meaning ascribed thereto in Section 2.01(b) hereof;
		
	“Scale-Down Fee”	  	has the meaning ascribed thereto in Section 2.02(a) hereof;
		
	“Scale-Down Transaction”	  	has the meaning ascribed thereto in Section 2.02(a) hereof;
		
	“Second Payment Date”	  	for any Royalty Calculation Year, the date that is one hundred eighty (180) calendar days after the end of such Royalty Calculation Year;
		
	“Stonehouse”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“Subordinate Loans”	  	has the meaning ascribed thereto in the Restructuring Agreement;
		
	“Subordination Agreement”	  	has the meaning ascribed thereto in the Restructuring Agreement;
		
	“Term”	  	January 1, 2003 to December 31, 2015, inclusive;
		
	“Transaction Documents”	  	has the meaning ascribed thereto in the Restructuring Agreement;
		
	“U.S. GAAP”	  	generally accepted accounting principles in the United States;
		
	“WIN”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“WorldSpace Enterprise”	  	has the meaning ascribed thereto in the Restructuring Agreement;
		
	“WorldSpace Parties”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“WorldSpace EBITDA”	  	the amount of EBITDA shown on WSI’s audited consolidated income statement for each year, prepared in accordance with U.S. GAAP, consistently applied, adjusted so that:
		
	 	  	(a) WorldSpace EBITDA includes, with respect to any entities in which WSI has an ownership interest, directly or indirectly, of greater than fifty percent (50%) but less than one hundred
percent (100%), only WSI’s pro rata portion of the EBITDA of such entities;

  

 - 5 - 

			
	 	  	(b) WorldSpace EBITDA includes, with respect to any entities in which WSI has an ownership interest, directly or indirectly, of fifty percent (50%) or less, only amounts actually distributed
to WSI in cash or property as dividends or similar distributions, return of capital, payments with respect to loans, or other payments (other than reasonable compensation for services); and
		
	 	  	(c) WorldSpace EBITDA does not include, with respect to any WorldSpace Party that becomes an Eliminated WorldSpace Party, the EBITDA of such WorldSpace Party for any period after the date of
the Scale-Down Transaction in connection with which such WorldSpace Party became an Eliminated WorldSpace Party;
		
	“WSC”	  	has the meaning ascribed thereto in the Preamble hereof; and
		
	“WSI”	  	has the meaning ascribed thereto in the Preamble hereof.

  
 Section 1.02
Interpretation. Unless otherwise indicated in this Agreement: 
  
 (a) headings are for convenience only and do not affect the interpretation of this Agreement; 
  
 (b) words importing the singular include the plural and vice versa; 
  
 (c) a reference to an Exhibit, Article, party, Schedule or Section is a reference to that Article or Section
of, or that Exhibit, party or Schedule to, this Agreement; 
  
 (d) a reference to a document includes an amendment or supplement to, or replacement or novation of, that document but disregarding any amendment, supplement, replacement or novation made in breach of this Agreement;

  
 (e) a reference to a party to any document
includes that party’s successors and permitted assigns; and 
  
 (f) “including” and “include” shall be deemed to mean “including, without limitation” and “include, without limitation.” 
  
 For the avoidance of any doubt, in the event of any sale or transfer of assets to any party,
including, without limitation, sales of less than all or substantially all of the assets of the WorldSpace Parties and sales of ownership interests in any entities, U.S. GAAP will govern whether and the extent to which the sale proceeds are taken
into account in calculating WorldSpace EBITDA in the accounting period of such sale or transfer. 
  

 - 6 - 

  
 ARTICLE II 
  
 PAYMENTS 
  
 Section 2.01 Royalty Payments. (a) WSI will pay to Stonehouse the Royalty Payment for each Royalty Calculation
Year, as follows: (i) the Interim Payment will be due and payable to Stonehouse not later than the First Payment Date for such Royalty Calculation Year; and (ii) the full amount of the Royalty Payment, less the amount of the Interim Payment
previously paid to Stonehouse, will be due and payable to Stonehouse on the Second Payment Date for such Royalty Calculation Year. 
  
 (b) WSI will establish and maintain a segregated reserve account (the “Royalty Reserve Account”) with a subaccount for
each Royalty Calculation Year (each such subaccount a “Royalty Reserve Annual Account”). Within forty-five (45) days after the beginning of each quarter during each Royalty Calculation Year, WSI will deposit into the Royalty Reserve
Annual Account for such Royalty Calculation Year an amount equal to twenty-five percent (25%) of the Royalty Payment for such Royalty Calculation Year, as estimated in good faith by WSI on the basis of the best information then reasonably available;
provided, that WSI will use its good faith and reasonable efforts to obtain, and provide to Stonehouse, information of detail and scope sufficient to make a meaningful estimate. If the estimated Royalty Payment for a Royalty Calculation Year
changes from one quarter to the next, then the amount that WSI will deposit into the Royalty Reserve Annual Account during the quarter in which such estimate is changed will be adjusted to make up for the shortage (in the case of an increase in the
estimate) or excess (in the case of a decrease in the estimate) in the amount or amounts deposited in such Royalty Reserve Annual Account in prior quarters of such Royalty Calculation Year. The amounts deposited in the Royalty Reserve Annual Account
for any Royalty Calculation Year, together with the amount of any interest thereon, shall be applied toward the payment of WSI’s obligations under Section 2.01(a) due on the First Payment Date and/or the Second Payment Date for such Royalty
Calculation Year, and (subject to the next sentence) the amounts contained in the Royalty Reserve Account or the Royalty Reserve Annual Account shall not be used for any other purpose without the prior written consent of Stonehouse (which consent
shall be in the sole and absolute discretion of Stonehouse). Any balance remaining in the Royalty Reserve Annual Account for any Royalty Calculation Year after the Royalty Payment for such Royalty Calculation Year has been paid in full may be
removed from the Royalty Reserve Account and applied as WSI determines to be appropriate, provided that, until the Term has ended, such application is in full compliance with all of the applicable terms and conditions of this Agreement (including,
without limitation, Section 4.03 hereof). The Royalty Reserve Account and the Royalty Reserve Annual Account each constitute “Deposit Accounts” within the meaning of the Uniform Commercial Code as may be in effect in New York from time to
time (the “Code”). Each Deposit Account is subject to the “control” (as set forth in the Code) of Stonehouse for the Term, as such “control” has been agreed to by the WorldSpace Parties, Stonehouse, and the bank
with which the Royalty Reserve Account and the Royalty Reserve Annual Account are maintained, in an authenticated record in the form attached hereto as Exhibit A. Except to the extent Stonehouse may otherwise agree, funds in the
Royalty Reserve Annual Account may only be invested in Permitted Investments. 
  

 - 7 - 

 Section 2.02 Scale-Down Fee. (a) If, during the Term, there is a transaction by an entity
within the WorldSpace Enterprise that results in a sale of all or substantially all of the WorldSpace Parties’ assets (as they are reflected on the consolidated balance sheet of WSI at the Reference Date) or there is a liquidation of any of the
WorldSpace Parties, and as a result of such transaction or liquidation subsequent Royalty Payments pursuant to Section 2.01 (or any other payments contemplated hereunder) are likely to be substantially reduced in the aggregate or terminated (a
“Scale-Down Transaction”), then Stonehouse will be entitled, at its option, to receive a fee (the “Scale-Down Fee”) in lieu of future payments hereunder with respect to each of the WorldSpace Parties all or
substantially all of the assets of which are being sold or which are being liquidated in such Scale-Down Transaction (each such WorldSpace Party with respect to which Stonehouse makes such an election is referred to herein as an “Eliminated
WorldSpace Party”). 
  
 (b) In the event
that Stonehouse elects to receive a Scale-Down Fee with respect to a Scale-Down Transaction, then WSI will pay to Stonehouse a Scale-Down Fee equal to sixty (60%) percent of the Proceeds Portion in such Scale-Down Transaction; provided,
however, that such percentage will be reduced by ten (10%) percent thereof (i.e., from sixty percent (60%) to fifty-four percent (54%), then from fifty-four percent (54%) to forty-eight percent (48%), etc.) for each $50 million
in payments actually made to Stonehouse theretofore under Section 2.01 and this Section 2.02. The receipt by Stonehouse of the Scale-Down Fee will not affect Stonehouse’s right to receive a Royalty Payment for the Royalty Calculation Year in
which the Scale-Down Transaction occurs, and such Royalty Payment will be based upon a calculation of WorldSpace EBITDA that takes such Scale-Down Transaction into account in accordance with the definition of “WorldSpace EBITDA” in
Section 1.01. 
  
 Section 2.03 Equalization Payment.
Upon a sale or liquidation of the WorldSpace Enterprise at any time during the Term (whether by virtue of (a) sale of WorldSpace Parties and/or their Affiliates or (b) a sale of all or substantially all of the WSI assets, or (c) a bankruptcy or
liquidation of WorldSpace Parties and/or their Affiliates or (d) a foreclosure on the WSI assets or the WorldSpace Parties by a WSI creditor), then to the extent that the total cumulative amount of Distributions received (including any Distributions
received or to be received with respect to such sale or liquidation event) by Noah Samara (or any of his Affiliates or family members or other related parties) exceeds the cumulative amounts received (including amounts received or to be received
with respect to such sale or liquidation event by Stonehouse under Sections 2.01 and 2.02 above), then Noah Samara will immediately pay Stonehouse a cash payment equal to one-half of such excess amount. 
  
 Section 2.04 Effectiveness. Notwithstanding any other provision
of this Agreement, none of the WorldSpace Parties will have any obligation pursuant to Sections 2.01 or 2.02 or Article IV, and Noah Samara will have no obligation pursuant to Section 2.03, and Stonehouse will have no rights under any of those
provisions, unless and until the Effective Date occurs. Immediately upon the occurrence of the Effective Date, the WorldSpace Parties will make any and all payments and deposits that would have theretofore been required under Sections 2.01 and 2.02
and Article IV but for this Section 2.04. 
  

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 ARTICLE III 
  
 REPRESENTATIONS 
  
 Section 3.01 Representations of the WorldSpace Parties. Each of the WorldSpace Parties represents, warrants,
and covenants, jointly and severally, to Stonehouse that as of the date of this Agreement and as of the Effective Date: 
  
 (a) Such WorldSpace Party is a legal entity duly organized and validly existing under the laws of the jurisdiction in which it is
organized, and has the power and authority to carry on its business and to own its properties and assets and to execute, deliver and perform this Agreement; 
  
 (b) This Agreement has been duly and validly authorized, executed and delivered by it and constitutes its valid and legally binding
obligation, enforceable in accordance with its terms (except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the rights of creditors generally and by general
principles of equity); 
  
 (c) Each of the
representations and warranties made by the WorldSpace Parties (or any of them) in the Restructuring Agreement is incorporated herein by reference, without regard to Section 4.03 of the Restructuring Agreement, and is true and correct as of the
Execution Date and as of the Effective Date; and 
  
 (d) All Charter Documents, financial reports and other documents required to be delivered to Stonehouse pursuant to the terms of the Transaction Documents are true, complete and accurate copies thereof. 
  
 Section 3.02 Representations of Stonehouse. Stonehouse
represents, warrants, and covenants to the WorldSpace Parties that as of the date of this Agreement and as of the Effective Date: 
  
 (a) It is a legal entity duly organized and validly existing under the laws of the jurisdiction in which it is organized, and has the
power and authority to carry on its business and to own its properties and assets and to execute, deliver and perform this Agreement; 
  
 (b) This Agreement has been duly and validly authorized, executed and delivered by it and constitutes its valid and legally binding
obligation; and 
  
 (c) Each of the
representations and warranties made by Stonehouse in Section 4.02 of the Restructuring Agreement is incorporated herein by reference, without regard to Section 4.03 of the Restructuring Agreement, and is true and correct as of the Execution Date and
as of the Effective Date. 
  

 - 9 - 

  
 ARTICLE IV 
  
 COVENANTS 
  
 Section 4.01 Reporting. (a) On or prior to the First Payment Date for each Royalty Calculation Year, WSI will
use its good faith and reasonable efforts to obtain, and provide to Stonehouse, information of detail and scope sufficient to make a meaningful estimate of the Royalty Payment for such Royalty Calculation Year. 
  
 (b) Not later than one hundred twenty (120) days after the
end of each Royalty Calculation Year, WSI will deliver to Stonehouse a copy of its audited consolidated financial statement as of the end of such fiscal year and for the year then ending, prepared in accordance with U.S. GAAP, consistently applied.

  
 Section 4.02 Audit. Stonehouse will have the
right to audit the books and accounts of the WorldSpace Parties at any time during the Term, but not more frequently than once per year, upon reasonable advance notice in order to determine or confirm any calculation of WorldSpace EBITDA (or for
purposes related thereto), and the WorldSpace Parties agree to fully cooperate with Stonehouse in connection therewith. 
  
 Section 4.03 Distributions. (a) The WorldSpace Parties agree that Distributions may be paid only (i) with Excess Funds available at the end
of a given Royalty Calculation Year (such given Royalty Calculation Year referred to herein as the “Distribution Calculation Year”, and the Royalty Calculation Year following the Distribution Calculation Year referred to herein as
the “Distribution Payment Year”), (ii) on or after the Second Payment Date of the applicable Distribution Payment Year, and (iii) after the Royalty Payment due and payable on such Second Payment Date has been paid in full to
Stonehouse. 
  
 (b) Additionally, in no event
shall any Distribution be paid unless on the date of such payment, each of the following requirements has been satisfied: 
  
 i) no breach in any material respect of a representation or warranty in the New Loan Documentation (or in any respect if a materiality
standard is not provided for such representation or warranty in the New Loan Documentation), default (or event which, with the giving of notice or the passage of time, would become a default) under this Agreement or under any New Loan Documentation,
has occurred and is continuing; 
  
 ii) all
reserves required under any Transaction Document or New Loan Documentation are in place and at the required levels; 
  
 iii) the WorldSpace Parties are current on all expenses and other amounts owed to any Person, and the contemplated payment of the
Distribution will not result in any reasonably foreseeable or likely shortfall in funds available to meet future expenses and other amounts which will become due to any Person during the subsequent twelve-month period; 
  
 iv) the payment of the Distribution is made only from
earnings from the applicable Distribution Calculation Year; and 
  

 - 10 - 

 v) the payment of the Distribution is in all respects permitted under applicable law.

  
 Section 4.04 Sale of Assets. (a) For a period of
three (3) years from the Effective Date, none of the WorldSpace Parties will voluntarily sell all or substantially all of its assets, or voluntarily liquidate, without the prior written consent of Stonehouse, which consent will not be unreasonably
withheld. 
  
 (b) The WorldSpace Parties will not
sell any of their ownership position in any of the entities listed in Exhibit I to the Restructuring Agreement (which exhibit is incorporated herein by reference) or any of their assets listed in Exhibit H of the Restructuring Agreement (which
exhibit is incorporated herein by reference) for less than fair value. For purposes of this Section 4.04(b), fair value may be conclusively established by an opinion of an internationally recognized investment banking firm engaged by WSI;
provided, that in the absence of such an opinion other evidence may be used to establish fair value; and provided further, that any sale of assets by any WorldSpace Parties to an unaffiliated third party in the ordinary course
of business will be presumed to be for fair value absent clear evidence to the contrary. Notwithstanding the foregoing, this Section 4.04(b) will not restrict the WorldSpace Parties from placing assets into wholly or partially owned direct or
indirect subsidiaries or from entering into joint venture or financing arrangements; provided, that none of the WorldSpace Parties will sell or transfer assets to affiliates or joint ventures in which the collective ownership interests of the
WorldSpace Parties is less than one hundred percent (100%) unless such sale or transfer is made for fair value (which may include, without limitation, an equity interest in the transferee) and is consistent with Section 4.04(c) hereof; and
provided further, that if any of the WorldSpace Parties makes such a sale or transfer of assets to any affiliate or joint venture in which the collective ownership interests of the WorldSpace Parties is less than one hundred percent
(100%), then the WorldSpace Parties will be required hereby to dedicate the consideration received in exchange for such sale or transfer to the ongoing business of the WorldSpace Enterprise which may include, without limitation, holding any equity
interest in the transferee that may be part of such consideration; 
  
 (c) Notwithstanding anything which may be contained to the contrary in this Section 4.04, in Section 2.02 or elsewhere, no sale or transfer of assets of the WorldSpace Enterprise is intended to be permitted hereunder
to the extent such sale or transfer would be reasonably likely, as assessed at or immediately prior to the time of such sale of transfer, to materially diminish the overall return to Stonehouse (whether through Royalty Payments, Scale-Down Fees or
other fees, or any combination of the same) under this Royalty Agreement during the Term. 
  
 Section 4.05 Funding Expenditure Plan. WSI will apply the proceeds of the New Investment substantially in accordance with the Funding Expenditure Plan set forth as Exhibit B. 
  
 Section 4.06 Confidentiality. All information disclosed to any
party pursuant to this Agreement will be kept confidential by such party, and will not be used by such party other than in connection with this Agreement, except to the extent such information was known by such party prior to the time it was
provided to the party hereunder or is or has become lawfully obtainable from other sources, or to the extent such duty as to confidentiality and non-use is 

  

 - 11 - 

 
waived by the parties in writing, or except as may be required by order of any court or governmental agency. This Section 4.06 shall not apply to disclosures
of information obtained hereunder by any party hereto made to such party’s legal counsel, to such party’s consultants, or to any other such Persons whose services such party may require throughout the Term. The foregoing obligation of
confidentiality and non-use will survive any termination of this Agreement. 
  
 Each of the WorldSpace Parties agrees that it shall immediately notify Stonehouse if there is any change after the date hereof to any of the information described on Exhibit K to the Restructuring Agreement, and each
of the WorldSpace Parties also agrees that if any Person who has not previously executed and delivered a Subordination Agreement becomes entitled to receive (or to potentially receive) Distributions (other than with respect to dividends which,
pursuant to the terms hereof, may be distributed to shareholders of WSI), such Person shall immediately execute and deliver a Subordination Agreement. 
  
 Section 4.07 Subordination. Each of the WorldSpace Parties agrees that it shall immediately notify Stonehouse if there is any change after
the date hereof to any of the information described on Exhibit K to the Restructuring Agreement (which exhibit is incorporated herein by reference), and each of the WorldSpace Parties also agrees that if any Person who has not previously executed
and delivered a Subordination Agreement becomes entitled to receive (or to potentially receive) Distributions (other than with respect to dividends which, pursuant to the terms hereof, may be distributed to shareholders of WSI), such Person shall
immediately execute and deliver a Subordination Agreement. 
  
 ARTICLE V 
  
 MISCELLANEOUS 
  
 Section 5.01 Saving of Rights. 
  
 (a) The rights and remedies of Stonehouse in relation to any
misrepresentation or breach of warranty on the part of any of the WorldSpace Parties shall not be prejudiced by any investigation by or on behalf of Stonehouse into the affairs of any of the WorldSpace Parties, by the execution or the performance of
this Agreement or by any other act or thing which may be done by or on behalf of Stonehouse in connection with this Agreement and which might, apart from this Section, prejudice such rights or remedies. 
  
 (b) No course of dealing or waiver by Stonehouse in
connection with any condition or payment to be made under this Agreement shall impair any right, power or remedy of Stonehouse with respect to any other condition or payments, or be construed to be a waiver thereof; nor shall the action of
Stonehouse with respect to any condition or payment affect or impair any right, power or remedy of Stonehouse with respect to any other condition or payment. 
  

(c) No course of dealing and no failure or delay by Stonehouse in exercising, in whole or in part, any power, remedy, discretion,
authority or other right under this Agreement or any other agreement shall waive or impair, or be construed to be a waiver of or an acquiescence in, such or any other power, remedy, discretion, authority or right under this 

  

 - 12 - 

 
Agreement, or in any manner preclude its additional or future exercise; nor shall the action of Stonehouse with respect to any default, or any acquiescence
by it therein, affect or impair any right, power or remedy of Stonehouse with respect to any other default. 
  
 Section 5.02 Notices. Any and all notices or other communications or deliveries required or permitted to be given pursuant to any of the
provisions of this Agreement will be deemed to have been duly given for all purposes if sent both (a) by telefax and (b) by certified or registered mail, return receipt requested and postage prepaid, by hand delivery, or by an internationally
recognized overnight courier, in any case to the telefax number and the address of such party listed below or to such other telefax number or address as any party may specify by notice given to the other party in accordance with this Section 5.02.

  
 Notices to Stonehouse will be sent to: 
  
 Stonehouse Capital Ltd. 
 c/o Al-Murjan Organization 
 PO Box 52558

 Jeddah 21573 
 Saudi Arabia

 Attention: Cherif Sedky 
 Telefax: 011-9662-694-3466 
  
 with a copy to: 
  
 Jeffrey H. Goodman, Esq. 
 Fulbright & Jaworski L.L.P. 
 801
Pennsylvania Avenue, N.W. 
 Washington, D.C. 20004-2623 
 Telefax: 202-662-4643 
  
 Notices to the
WorldSpace Parties will be sent to: 
  
 Noah A. Samara

 Chairman and Chief Executive Officer 
 WorldSpace International Network Inc. 
 2400 N Street, N.W. 
 Washington, D.C. 20037 
 Telefax: 202-969-6004

  
 with a copy to: 
  
 Donald J. Frickel, Esq. 
 WorldSpace International Network Inc. 
 2400 N Street, N.W. 
 Washington, D.C. 20037 
 Telefax: 202-969-6560

  

 - 13 - 

 The date of giving of any such notice will be: (a) in the case of delivery by hand or courier, the date of delivery at
the appropriate address specified in or pursuant to this Section 5.02, provided that the notice has also been sent by telefax to the appropriate telefax number specified in or pursuant to this Section 5.02; or (b) in the case of delivery by mail,
five (5) days following the posting of the mail addressed to the appropriate address specified in or pursuant to this Section 5.02, if posted in the same country as the country of the address, and twelve (12) days following the posting of the mail
addressed to the appropriate address specified in or pursuant to this Section 5.02, if posted in a different country than the country of the address, provided that the notice has also been sent by telefax to the appropriate telefax number specified
in or pursuant to this Section 5.02. 
  
 Section 5.03
Overdue Payments. All overdue amounts payable pursuant to the terms of this Agreement shall accrue interest from the date on which payment of the relevant amount became due until the date of actual payment at a rate of LIBOR plus five
percent (5%) per annum. 
  
 Section 5.04 Payment
Location. All payments to Stonehouse pursuant to this Agreement shall be made by wire transfer to Account Number              at
             (ABA Number             ), or to such other account, or in accordance with such other instruction, as
Stonehouse may notify the WorldSpace Parties from time to time. 
  
 Section 5.05 Termination. This Agreement will automatically terminate if the Effective Date has not occurred on or before September     , 2004. 
  
 Section 5.06 Applicable Law and Dispute Resolution. This Agreement
shall be deemed to be a contract made under, and shall be governed by, and shall be construed and interpreted in accordance with, the laws of the State of New York, United States of America, without regard to the conflict of laws provisions thereof
(other than Section 5-1401 and 5-1402 of the General Obligations Laws of the State of New York). The parties hereto agree to submit any dispute based on any matter arising out of or relating to this Agreement or the transactions contemplated hereby
to arbitration in accordance with the terms set forth on Exhibit C attached hereto. 
  
 Section 5.07 Successors and Assigns. This Agreement binds and benefits the respective successors and assigns of the parties; provided, however, that none of the WorldSpace Parties may
assign or delegate any of their respective rights or obligations under this Agreement without the prior consent of Stonehouse. 
  
 Section 5.08 Waivers and Consents; Amendments. No failure or delay by any party at any time to enforce one or more of the terms, conditions
or obligations of this Agreement will constitute a waiver of such terms, conditions or obligations or will preclude such party from requiring performance by the other party at any time. No waiver of the provisions hereof, or any consent given
hereunder, will be effective unless in writing and signed by the party to be charged with such waiver or consent. No waiver will be deemed a continuing waiver or waiver in respect of any subsequent breach or default, either of similar or different
nature, unless expressly so stated in writing. This Agreement may only be amended by a written instrument signed by all of the parties hereto. 
  

 - 14 - 

 Section 5.09 Joint and Several Liability. Each of the WorldSpace Parties hereby agrees that
it shall be jointly and severally liable for the obligations of each of the WorldSpace Parties hereunder. 
  
 Section 5.10 Severability. All the provisions of this Agreement will be considered as separate terms and conditions. In the event any of the
provisions hereof is determined to be invalid, prohibited or unenforceable by a court or other body of competent jurisdiction, this Agreement will be construed as if such invalid, prohibited or unenforceable provision has been more narrowly drawn so
as not to be invalid, prohibited or unenforceable, unless such construction would be unreasonable. Notwithstanding the foregoing sentence, in the event that any provision contained in this Agreement should be determined to be invalid, prohibited or
unenforceable, the validity, legality and enforceability of the remaining provisions contained in this Agreement will not in any way be affected or impaired thereby, unless such construction would be unreasonable. 
  
 Section 5.11 Counterparts. This Agreement may be executed in
two or more counterparts, each of which will be deemed an original but all of which, taken together, will constitute one and the same instrument. 
  
 Section 5.12 Further Assurances. The WorldSpace Parties, at their expense, will execute and deliver promptly such additional documents,
assignments, certificates and instruments as Stonehouse may reasonably request in order to effectuate the provisions of, and the transactions provided for in, this Agreement. Stonehouse, at the expense of the WorldSpace Parties, will execute and
deliver promptly such additional documents, assignments, certificates and instruments as any of the WorldSpace Parties may reasonably request in order to effectuate the provisions of, and the transactions provided for in, this Agreement. 

 
 Section 5.13 Entire Agreement. This Agreement contains the
entire understanding of the parties hereto with respect to the subject matter contained herein. This Agreement supersedes all prior agreements and understandings between or among the parties with respect to such subject matter hereof (including,
upon the Effective Date, the Restructuring Agreement; provided, however, that the foregoing is not intended to diminish the continuing validity and effectiveness of any definitions or other terms that are defined or otherwise
incorporated herein by cross-reference to the Restructuring Agreement in Sections 1.01, 3.01(c), 3.02, 4.04(b), and 4.07). 
  
 Section 5.14 Additional Exhibits. The parties hereto acknowledge and agree to the following: 
  
 (a) the financial model of the WorldSpace Enterprise (based
on mutually agreed assumptions and showing mutually agreed debt coverage and equity return forecasts), current as of the Execution Date, is attached hereto as Exhibit D (the “Financial Model”); 
  
 (b) the annual operating budget of the WorldSpace Enterprise
(allocated on a monthly basis, for the twelve months immediately following the date of the Restructuring), current as of the Execution Date, is attached hereto as Exhibit E (the “Annual Operating Budget”); 
  

 - 15 - 

 (c) the operating and marketing plan of the WorldSpace Enterprise, current as of the
Execution Date, is attached hereto as Exhibit F (the “Operating and Marketing Plan”); and 
  
 (d) until (and including) the Effective Date, the WorldSpace Parties shall promptly notify Stonehouse in writing of any changes occurring
after the Execution Date with respect to the Financial Model, the Annual Operating Budget, the Operating and Marketing Plan and/or the Funding Expenditure Plan. 
  

Section 5.15 Tax Disclosure. Notwithstanding anything herein to the contrary, but only to the extent permitted under applicable
securities laws, each party to the transactions contemplated by this Agreement (and each employee, representative and other agent thereof) is authorized to disclose to any and all persons, without limitation of any kind, the tax treatment and tax
structure of such transactions and all materials of any kind (including opinions or other tax analyses) insofar as they relate to the tax treatment and tax structure of such transactions; provided, that this authorization does not extend to
disclosure of any other information, including without limitation (a) the identity of any party to such transactions (or any affiliate thereof), (b) the existence or status of any negotiations or (c) any financial, business, legal or personal
information of or regarding any party (or any of its affiliates) to the extent not related to the tax treatment or tax structure of such transactions. 
  
 *         *         * 
  

 - 16 - 

 The parties hereto have duly executed this Agreement as of September 30, 2003. 
  

			
	 WORLDSPACE, INC.

		
	By:	 	 /s/    NOAH A. SAMARA

	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

	
	 WORLDSPACE INTERNATIONAL NETWORK INC.

		
	By:	 	 /s/    NOAH A. SAMARA

	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

	
	 WORLDSPACE SATELLITE COMPANY LTD.

		
	By:	 	 /s/    NOAH A. SAMARA

	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

	
	 STONEHOUSE CAPITAL LTD.

		
	By:	 	 /s/    ABDULRAHMAN BIN
MAHFOUZ

	 	 	 Abdulrahman Bin Mahfouz

		
	By:	 	 /s/    SULTAN BIN
MAHFOUZ

	 	 	 Sultan Bin Mahfouz

  
 The undersigned,
Noah A. Samara, agrees to Section 2.03 of the foregoing Agreement. 
  

	
	
	 /s/    NOAH A. SAMARA

	 Noah A. Samara

  

 - 17 - 

 EXHIBIT A 
  
 FORM OF CONTROL AGREEMENT 
  
 ACCOUNT CONTROL AGREEMENT 
  
 THIS ACCOUNT CONTROL AGREEMENT (this “Agreement”) dated as of
                 2003, is by and between (1) Stonehouse Capital Ltd. a Cayman Islands corporation (“Stonehouse”), (2) [BANK], a
                     (“Depositary Bank”), and (3) WorldSpace, Inc., a Maryland corporation (“WSI”), WorldSpace
International Network Inc., a company organized under the International Business Companies Act of the British Virgin Islands (“WIN”), WorldSpace Satellite Company Ltd., a company organized under the International Business Companies
Act of the British Virgin Islands (“WSC”). WSI, WIN and WSC are collectively referred to as the “WorldSpace Parties.” 
  
 RECITALS: 
  
 A. Stonehouse and the WorldSpace Parties are parties to a Royalty Agreement dated as of September     , 2003, a copy of which
is attached hereto as Exhibit A (the “Royalty Agreement”), pursuant to which Stonehouse shall receive certain royalty payments from WSI in order to secure certain obligations of the WorldSpace Parties under that certain
Restructuring Agreement dated as of September     , 2003 (the “Restructuring Agreement”) by and among Stonehouse and the WorldSpace Parties. 
  
 B. In order to facilitate the payment of the Royalty Payments as contemplated by the Royalty Agreement, WSI is required to
establish and maintain with the Depositary Bank a Royalty Reserve Account, and Royalty Reserve Annual Accounts (each, together with any successor account or accounts, a “Royalty Account” and collectively the “Royalty
Accounts”) in accordance with the provisions of the Royalty Agreement. 
  
 C. Stonehouse and the WorldSpace Parties desire that the Depositary Bank enter into this Agreement in order to establish Stonehouse’s “control,” as defined in Sections 9-104 and 9106 of the New York
Uniform Commercial Code as such may be in effect from time to time (the “Code”), in each Royalty Account and such other accounts as may be maintained by the WorldSpace Parties from time to time pursuant to this Agreement and the Royalty
Agreement with the Depositary Bank (in its capacity as Depositary Bank or in its capacity as “securities intermediary” (as such term is defined in the Code), as the case may be), and to provide for the rights of the parties under this
Agreement with respect to such accounts. 
  

 NOW, THEREFORE, in consideration of the foregoing and the agreements set forth herein, and for other good
and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS AND INTERPRETATION 
  
 Section 1.01 General Definitions. Unless otherwise defined herein, capitalized terms used in this Agreement shall have the same meanings as those ascribed thereto in the Royalty Agreement. 
  
 Section 1.02 Interpretation. In this Agreement, unless the
context otherwise requires: 
  

	 	(a)	headings are for convenience only and do not affect the interpretation of this Agreement; 

  

	 	(b)	words importing the singular include the plural and vice versa; 

  

	 	(c)	a reference to an Exhibit, Article, party, Schedule or Section is a reference to that Article or Section of, or that Exhibit, party or Schedule to, this Agreement;

  

	 	(d)	a reference to a document includes an amendment or supplement to, or replacement or novation of, that document but disregarding any amendment, supplement, replacement or novation
made in breach of this Agreement; 

  

	 	(e)	a reference to a party to any document includes that party’s successors and permitted assigns; and 

  

	 	(f)	“including” and “include” shall be deemed to mean “including, without limitation” and “include, without limitation.”

  
 ARTICLE II 
  
 GRANT OF SECURITY INTEREST; DEPOSIT ACCOUNT PROVISIONS 
  
 Section 2.01 Grant of Security Interest. As security for the
prompt and complete payment and performance when due of all of the obligations of the WorldSpace Parties under the Royalty Agreement, WSI hereby grants to Stonehouse a continuing first priority security interest in and to all WSI’s right, title
and interest in and to the Royalty Accounts, the proceeds thereof and any and all cash, investments and securities from time to time on deposit therein. 
  
 Section 2.02 The Deposit Accounts. WSI hereby agrees and confirms that it has instructed the Depositary Bank to establish the Royalty
Accounts in accordance with the provisions of the Royalty Agreement. The Depositary Bank hereby agrees and confirms that, pursuant to WSI’s written instruction, the Depositary Bank has established the Royalty Reserve Account with account
numbers [IDENTIFY ACCOUNT NUMBER] in the name of “[IDENTIFY EXACT TITLE OF ACCOUNT]” and the Royalty Reserve Annual Account for calendar year 2003 with account number [IDENTIFY ACCOUNT NUMBER] in the name of “[IDENTIFY EXACT TITLE OF
ACCOUNT]”. Each of the parties to this Agreement hereby 

  

 2 

 
agrees that each Royalty Account will constitute, and will be maintained as, a “deposit account” within the meaning of Article 9 of the Code (each
such Royalty Account hereinafter referred to as a “Deposit Account”). Except as provided herein, the Depositary Bank has not agreed, and will not agree, with any third party to comply with instructions or other directions concerning any
Deposit Account or the disposition of funds in any Deposit Account originated by such third party without the prior written consent of Stonehouse and WSI. 
  
 Section 2.03 Subordination of Lien; Waiver of Set-Off. In the event that the Depositary Bank has, or after the date hereof obtains by
agreement, operation of law or otherwise, a lien or security interest in any Deposit Account or any funds or other assets credited thereto, the Depositary Bank agrees that such lien or security interest shall be subordinate to the lien and security
interest of Stonehouse in such Deposit Account and/or the funds or other assets credited thereto. The funds and other assets standing to the credit of the Deposit Accounts will not be subject to deduction, set-off, banker’s lien, or any other
right in favor of any person other than Stonehouse (except that the Depositary Bank may set off (i) all amounts due to the Depositary Bank in respect of customary costs and expenses for the routine maintenance and operation of the Deposit Accounts
and (ii) the face amount of any checks that have been credited to any Deposit Account but are subsequently returned unpaid because of uncollected or insufficient funds). 
  
 Section 2.04 Control. The parties hereto hereby agree that the Depositary Bank shall comply with instructions
originated by Stonehouse directing disposition of funds or other assets standing to the credit of each Deposit Account without further consent by any WorldSpace Party or any other Person. Stonehouse agrees not to give any instructions that are in
contravention of the provisions of the Royalty Agreement. Except as expressly provided in the Royalty Agreement, the Depositary Bank will not permit the withdrawal or other disposition of any funds standing to the credit of any Deposit Account by
any WorldSpace Party without Stonehouse’s express prior written consent. The parties hereto hereby agree that Stonehouse shall have “control” within the meaning of Section 9-104 of the Code of all of the Deposit Accounts and any and
all funds or other assets therein or credited thereto, and each WorldSpace Party hereby disclaims any entitlement to claim “control” of any of the Deposit Accounts. 
  
 Section 2.05 Permitted Investments. As contemplated by Section 2.01 of the Royalty Agreement, WSI shall be
entitled to instruct the Depositary Bank from time to time to invest the funds and other assets standing to the credit of the Deposit Accounts in Permitted Investments; provided, however, that WSI shall be required to comply with the
following provisions prior to any such investment in Permitted Investments: 
  
 (a) prior to any such investment in a Permitted Investment, WSI shall give Stonehouse ten (10) days prior written notice of its intention to instruct the Depositary Bank to invest the funds standing to the credit of a
Deposit Account in a Permitted Investment, and such written notice shall contain reasonable details of the amount and nature of any such proposed Permitted Investment; 
  
 (b) each such Permitted Investment shall be made only by the creation and maintenance by WSI with the
Depositary Bank of one or more “securities accounts” within the meaning of Section 8-501 of the Code; and 
  

 3 

 (c) WSI shall ensure that Stonehouse shall have a first-priority security interest in and
to each such Permitted Investment and its proceeds under the Code and any other applicable law, with effect from the date that such Permitted Investment is made, and shall take all such actions as may be necessary to create in favor of Stonehouse,
and to perfect, a first-priority security interest in and to each such Permitted Investment and its proceeds. 
  
 ARTICLE III 
  
 SECURITIES ACCOUNTS 
  
 Section 3.01
Establishment of Securities Accounts. The Depositary Bank hereby agrees and confirms that it will, if requested by WSI pursuant to Article II above, establish one or more “securities accounts” within the meaning of Section
8-501 of the Code for the purpose of carrying out the instructions of WSI in connection with investments in Permitted Investments (each such account, a “Securities Account”). The parties hereto hereby agree that: (i) each Securities
Account will be maintained as a “securities account” within the meaning of Section 8-501 of the Code, (ii) WSI shall be the “entitlement holder” (within the meaning of Section 8-102(a)(7) of the Code) in respect of the
“financial assets” (within the meaning of Section 8-102(a)(9) of the Code) credited to each Securities Account, and the Depositary Bank will treat WSI as entitled to exercise the rights that comprise the financial assets credited to the
Securities Accounts, (iii) WSI shall direct the Depositary Bank with respect to the voting of any financial assets credited to the Securities Accounts, (iv) all “investment property” (within the meaning of Section 9-102(49) of the Code)
delivered to the Depositary Bank will be held by the Depositary Bank and promptly credited to the Securities Accounts by an appropriate entry in its records in accordance with this Agreement, (v) all “financial assets” (within the meaning
of Section 8102(a)(9) of the Code) in registered form or payable to or to the order of and credited to a Securities Account shall be registered in the name of, payable to or to the order of, or indorsed to, the Depositary Bank or in blank, or
credited to another securities account maintained in the name of the Depositary Bank, and in no case will any financial asset credited to any Securities Account be registered in the name of, payable to or to the order of, or indorsed to, any of the
WorldSpace Parties except to the extent the foregoing have been subsequently indorsed by WSI to the Depositary Bank or to Stonehouse or in blank, and (vi) the Depositary Bank shall not change the name or account number of any Securities Account
without the prior written consent of Stonehouse. 
  
 Section 3.02
Securities Intermediary. The Depositary Bank hereby represents and warrants that it is a “securities intermediary” within the meaning of Section 8-102(a)(14) of the Code and that it shall act in that capacity with respect to
each Securities Account and the financial assets contained therein. 
  
 Section 3.03 Financial Assets Election. The Depositary Bank agrees that each Permitted Investment or the proceeds thereof (including any cash, security, instrument or obligation, share, participation, interest or other
property whatsoever) credited to a Securities Account shall be treated as a “financial asset” within the meaning of Section 8-102(a)(9) of the Code. Notwithstanding any provision herein contained to the contrary, any property contained in
a Securities Account which is not deemed to be a financial asset under applicable law will be under the exclusive dominion and control of Stonehouse. 
  

 4 

 Section 3.04 Subordination of Lien; Waiver of Set-Off. In the event that the Depositary
Bank has or subsequently obtains by agreement, by operation of law or otherwise a lien or security interest in a Securities Account or any security entitlement credited thereto, the Depositary Bank agrees that such lien or security interest shall be
subordinate to the lien and security interest of Stonehouse in and to a Securities Account or any security entitlement credited thereto. The financial assets standing to the credit of the Securities Accounts will not be subject to deduction,
set-off, banker’s lien, or any other right in favor of any Person other than Stonehouse (except that the Depositary Bank may set off (i) all amounts due to the Depositary Bank in respect of customary costs and expenses for the routine
maintenance and operation of the Securities Accounts and (ii) the face amount of any checks which have been credited to the Securities Accounts but are subsequently returned unpaid because of uncollected or insufficient funds). 
  
 Section 3.05 Entitlement Orders. If at any time the Depositary
Bank shall receive from Stonehouse any “entitlement order” (within the meaning of Section 8-102(a)(8) of the Code) including any other order directing the transfer or redemption of any financial asset relating to the Securities Accounts,
the Depositary Bank shall comply with such entitlement order or other order without further consent by WSI or any other Person. The parties hereto hereby agree that Stonehouse shall have “control” (within the meaning of Section 8-106(d)(2)
of the Code) of WSI’s “security entitlement” (within the meaning of Section 8-102(a)(17) of the Code) with respect to each Securities Account and the financial assets credited to such Securities Account, and WSI hereby disclaims any
entitlement to claim “control” of such “security entitlement.” 
  
 Section 3.06 Representations Regarding Securities Accounts. Each of the WorldSpace Parties represents, warrants, and covenants, jointly and severally, to Stonehouse that WSI will be the sole entitlement
holder to each Securities Account. 
  
 Section 3.07 Reliance
Upon Instructions of Stonehouse. Subject to Section 3.05 hereof, it is agreed and understood that any Securities Account will be administered by the Depositary Bank, as securities intermediary, according to instructions given to it by WSI to
the extent such instructions are permitted by the Royalty Agreement. As to all matters concerning administration of a Securities Account or a Deposit Account hereunder, the Depositary Bank shall be entitled, in its reasonable discretion, to request
and receive direction from Stonehouse. The Depositary Bank shall be entitled to conclusively presume that any direction given to it by Stonehouse is in accordance with the Royalty Agreement. 
  
 Section 3.08 Indemnification by WorldSpace Parties. Each
WorldSpace Party agrees to indemnify and defend the Depositary Bank and its officers, directors and employees from and against any and all claims, losses and liabilities, including the reasonable costs of its counsel, resulting from this Agreement
(including, without limitation, enforcement of this Agreement), but excluding any such claims, losses or liabilities resulting from the gross negligence or willful misconduct or unlawful acts of the Depositary Bank or any of its officers, directors
or employees, or any willful failure of the Depositary Bank or any of its officers, directors or employees to follow written directions delivered to the Depositary Bank in accordance with this Agreement. 
  

 5 

 Section 3.09 Costs and Expenses. The WorldSpace Parties shall be responsible for, and
hereby agree to pay, all reasonable out-of-pocket costs and expenses incurred by the Depositary Bank and Stonehouse in connection with the execution, administration or enforcement of this Agreement, including, but not limited to, reasonable
attorneys’ fees and costs, whether or not such enforcement includes the filing of a lawsuit. Notwithstanding anything to the contrary. the WorldSpace Parties shall not be responsible for any costs or expenses incurred by the Depositary Bank or
Stonehouse if such costs or expenses result from the gross negligence or willful misconduct or unlawful acts of the Depositary Bank, Stonehouse or any of their respective officers, directors or employees, or any willful failure of the Depositary
Bank or any of its officers, directors or employees to follow written directions delivered to the Depositary Bank in accordance with this Agreement. 
  
 ARTICLE IV 
  
 MISCELLANEOUS 
  
 Section 4.01 Notice of Adverse Claims. Except for the claims and interest of Stonehouse and each WorldSpace Party in each Deposit Account and Securities Account, the Depositary Bank does not know of any
claim to, or interest in, the Deposit Account, the Securities Account or in any financial asset credited thereto. If any Person asserts any lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant of attachment,
execution or similar process) against any Deposit Account or any Securities Account or in any financial asset credited thereto, the Depositary Bank will promptly notify Stonehouse and the WorldSpace Parties in writing thereof. 
  
 Section 4.02 Representation and Warranty by WSI. WSI hereby
represents and warrants to Stonehouse that each Royalty Account shall constitute, and shall be maintained as, either a “deposit account” within the meaning of Article 9 of the Code or a “securities account” within the meaning of
Section 8-501 of the Code. 
  
 Section 4.03 Representation,
Warranties and Covenants of the Depositary Bank. The Depositary Bank hereby makes the following representations, warranties and covenants: 
  
 (a) The Securities Account and/or the Deposit Account has been established as set forth in Sections 2.01 and 3.01 above and such
Securities Account and/or Deposit Account will be maintained in the matter set forth herein until termination of this Agreement; 
  
 (b) This Agreement is the valid and legally binding obligation of the Depositary Bank; 
  
 (c) Tax Reporting. All items of income, gain, expense and
loss recognized in the Securities Account and/or the Deposit Account shall be reported to the Internal Revenue Service and all state and local taxing authorities under the name and taxpayer identification number of WSI; and 
  
 (d) The Depositary Bank will promptly send copies of all
statements, confirmations and other correspondence concerning the Securities Account, Deposit Account 

  

 6 

 
and/or any financial assets credited thereto simultaneously to each of WSI and Stonehouse at the address for each set forth in Section 4.04 of this
Agreement. 
  
 Section 4.04 Notice. Any and all
notices or other communications or deliveries required or permitted to be given pursuant to any of the provisions of this Agreement will be deemed to have been duly given for all purposes if sent both (a) by telefax and (b) by certified or
registered mail, return receipt requested and postage prepaid, by hand delivery, or by an internationally recognized overnight courier, in any case to the telefax number and the address of such party listed below or to such other telefax number or
address as any party may specify by notice given to the other party in accordance with this Section 4.04. 
  
 For Stonehouse: 
  
 Stonehouse Capital Ltd. 
 c/o Al-Murjan
Organization 
 PO Box 52558 
 Jeddah 21573 
 Saudi Arabia 
 Attention: Cherif Sedky 
 Telefax: 011-9662-694-3466 
  
 with a copy to: 
  
 Jeffrey H. Goodman, Esq. 
 Fulbright &
Jaworski L.L.P. 
 801 Pennsylvania Avenue, N.W. 
 Washington, D.C. 20004-2623 
 Telefax: 202-662-4643 
  
 For the WorldSpace Parties: 
  
 Noah A. Samara 
 Chairman and Chief Executive Officer 
 WorldSpace International Network Inc. 
 2400 N Street, N.W. 
 Washington, D.C. 20037 
 Telefax: 202-969-6004

  
 with a copy to: 
  
 Donald J. Frickel, Esq. 
 WorldSpace International Network Inc. 
 2400 N
Street, N.W. 
 Washington, D.C. 20037 
 Telefax: 202-969-6560 
  

 7 

 For the [Depositary Bank]: 
  

					
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 

  
 The date of giving of
any such notice will be: (a) in the case of delivery by hand or courier, the date of delivery at the appropriate address specified in or pursuant to this Section 4.04, provided that the notice has also been sent .y telefax to the appropriate telefax
number specified in or pursuant to this Section 4.04; or (b) in the case of delivery by mail, five (5) days following the posting of the mail addressed to the appropriate address specified in or pursuant to this Section 4.04, if posted in the same
country as the country of the address, and twelve (12) days following the posting of the mail addressed to the appropriate address specified in or pursuant to this Section 4.04, if posted in a different country than the country of the address,
provided that the notice has also been sent by telefax to the appropriate telefax number specified in or pursuant to this Section 4.04. 
  
 Section 4.05 No Other Agreements. Neither the Depositary Bank nor any WorldSpace Party has entered into any agreement with respect to the
Accounts or any funds or assets standing to the credit thereof, other than this Agreement. The Depositary Bank has not entered into any agreement with WSI or any other Person purporting to limit or condition the obligation of the Depositary Bank to
comply with entitlement orders originated by Stonehouse in accordance herewith. 
  
 Section 4.06 Rights and Powers of Stonehouse. The rights and powers granted herein to Stonehouse have been granted in order to perfect its lien and security interests in the Deposit Accounts and any
Securities Accounts that may be established hereunder, and are powers coupled with an interest and will be affected neither by the bankruptcy or insolvency of the WorldSpace Parties nor the lapse of time. 
  
 Section 4.07 Limited Rights of the WorldSpace Parties. The
WorldSpace Parties shall not have any rights against or to monies held in any Deposit Account or Securities Account, as third party beneficiary or otherwise, or any right to direct the Depositary Bank to apply or transfer monies in any Deposit
Account or Securities Account, except the right to receive or make requisitions of monies, or to direct the investment of monies, held in any such Deposit Account or Securities Account as expressly permitted in the Royalty Agreement and this
Agreement. Except as may be expressly permitted in this Agreement and the Royalty Agreement, in no event shall any amounts or assets standing to the credit of any Deposit Account or Securities Account be registered in the name of any WorldSpace
Party, payable to the order of any WorldSpace Party or specially indorsed to any WorldSpace Party, except to the extent that the foregoing have been specially indorsed to the Depositary Bank or Stonehouse or in blank. 
  
 Section 4.08 Entire Agreement. This Agreement, the Royalty
Agreement and the other Transaction Documents set forth the entire Agreement of the parties with respect to the subject matter hereof and supersede and discharge all prior agreements (written or oral) and all contemporaneous oral agreements
concerning such subject matter. 
  

 8 

 Section 4.09 Waivers and Consents: Amendments. No failure or delay by any party at any time
to enforce one or more of the terms, conditions or obligations of this Agreement will constitute a waiver of such terms, conditions or obligations or will preclude such party from requiring performance by the other party at any time. No waiver of
the provisions hereof, or any consent given hereunder, will be effective unless in writing and signed by the party to be charged with such waiver or consent. No waiver will be deemed a continuing waiver or waiver in respect of any subsequent breach
or default, either of similar or different nature, unless expressly so stated in writing. This Agreement may only be amended by a written instrument signed by all of the parties hereto. 
  
 Section 4.10 Illegality; Validity. If any term or provision set forth in this Agreement shall be invalid or
unenforceable, the remainder of this Agreement, or the application of such terms or provisions to Persons or circumstances other than those to which it is held invalid or unenforceable, shall be construed in all respects as if such invalid or
unenforceable term or provision were omitted. 
  
 Section 4.11
Successors, Assigns. This Agreement binds and benefits the respective successors and assigns of the parties; provided, however, that none of the WorldSpace Parties nor the Depositary Bank may assign or delegate any of its
respective rights or obligations under this Agreement without the prior written consent of Stonehouse. 
  
 Section 4.12 Transaction Document. This Agreement shall be a “Transaction Document” as defined in the Restructuring Agreement.

  
 Section 4.13 Counterparts. This Agreement may be
executed in any number of counterparts, all of which shall constitute one and the same instrument. 
  
 Section 4.14 Further Assurances. WSI shall, upon request by Stonehouse, execute and deliver to Stonehouse and to such other Persons as
Stonehouse may reasonably require, such additional documents, and shall take such other actions as Stonehouse may reasonably require, in order to perfect or evidence the security interests granted to Stonehouse hereunder. WSI also authorizes
Stonehouse to file any financing or continuation statement without the signature of WSI to the extent permitted by applicable law. 
  
 Section 4.15 Continuous Perfection. WSI will not change its name or identity or change the location of its principal place of business or
chief executive office unless WSI shall have given Stonehouse at least sixty (60) days prior written notice thereof and shall have taken, at the expense of WSI, all action necessary to file any financing or continuation statement that may be
required under applicable law in order to continue the perfection and priority of the security interests intended to be created under this Agreement. 
  
 Section 4.16 Governing Law. This Agreement and each Deposit Account and Securities Account (including all security entitlements relating
thereto) shall be governed by and construed in accordance with the laws of the State of New York. The State of New York shall be the jurisdiction of the Depositary Bank (in its capacity as depositary bank and securities intermediary) for the
purposes of Articles 8 and 9 of the Code. 
  

 9 

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

			
	WORLDSPACE, INC.
		
	By: 	 	 
	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

  

			
	WORLDSPACE INTERNATIONAL NETWORK INC.
		
	By: 	 	 
	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

  

			
	WORLDSPACE SATELLITE COMPANY LTD.
		
	By: 	 	 
	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

  

			
	STONEHOUSE CAPITAL LTD.
		
	By: 	 	 
	 	 	 Abdulrahman Bin Mahfouz

		
	By: 	 	 
	 	 	 Sultan Bin Mahfouz

  

			
	 [BANK]

		
	By: 	 	 

  

 10 

 EXHIBIT B 
  
 FUNDING EXPENDITURE PLAN 
  

 August 25, 2003 
  
 Jeffrey H. Goodman, Esq. 
 Gregg Harris, Esq.

 Fulbright & Jaworski L.L.P. 
 801 Pennsylvania Avenue, N.W.

 Washington, D.C. 20004-2623 
  

	 	Re:	Restructuring and Royalty Agreements 

  
 Dear Jeff and Gregg: 
  
 You have asked for a more descriptive version of the Funding Expenditure Plan (see, Sections 1.01 and 3.01(i) of the Loan Restructuring Agreement and Section 4.05 of the Royalty Agreement), which describes and
prescribes how WorldSpace, Inc. (the Company) shall apply proceeds of the of its new investment. 
  
 The Company is currently consuming cash at the rate of $3.5 million per month. The Funding Expenditure Plan projects an increase from the current spending rate to provide for re-directed and expanded staffing, sales
and marketing, incremental capital expenditures and working capital management. The fixed cost component of this plan coincides with the Annual Operating Plan previously given to you on March 17, 2003. You should consider that plan as commencing at
the time of funding. 
  
 Attached hereto is a revised breakdown of spending
categories and amounts for each of the first three years of operations post-financing. A descriptive narrative is included to describe the purpose and nature of each spending category. 
  
 The Loan Restructuring Agreement requires minimum cumulative investment proceeds of at least $50,000,000 to activate the restructuring. The
Funding Expenditure Plan forecasts total cash requirements in the amount of “*” from the day of funding to reach EBITDA profitability and positive cash flow. This plan requires cash expenditures of “*” in year 1, “*” in
Year 2 and “*” in year 3. 
  
 If at least $50 million are raised in our
current financing activity, but not the total required funds, management will reduce operating activities and focus initially on the India and China markets only, thereby deferring Europe and the Middle East. Capital 

  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

 
expenditures will be delayed, marketing activities and staffing realigned based on market focus until a new, additional financing can be carried out
successfully. 
  
 Please let us know if you have any further questions.

  

	
	 Yours sincerely,

	
	 
	 Donald J. Frickel
 SVP & General Counsel

  

 Funding Expenditure Plan 
  

 WorldSpace Funding Expenditure Plan 
  
 WORLDSPACE INC. 
  

							
	 COSTS AND EXPENSES        

	  	YEAR 1

	 	YEAR 2

	 	YEAR 3

	 FIXED OPEX (Fixed Costs in WS Model)
	  	“*”	 	“*”	 	“*”
	 VARIABLE OPEX
	  	“*”	 	“*”	 	“*”
	 CAPEX
	  	“*”	 	“*”	 	“*”
	 Change in Working Capital (Payables/Receivers)
	  	“*”	 	“*”	 	“*”
	 Financing Need (Repayment of Saifcom Loan)
	  	“*”	 	“*”	 	“*”
	 Alternative Minimum Tax
	  	“*”	 	“*”	 	“*”
	 TOTAL CASH SPEND
	  	“*”	 	“*”	 	“*”
				
	 TOTAL CASH REQUIRED AFTER CASH GENERATED FROM NET REVENUES
	  	“*”	 	“*”	 	“*”
				
	 NET REVENUES
	  	“*”	 	“*”	 	“*”
	 Subscription Audio & Multimedia
	  	“*”	 	“*”	 	“*”
	 Advertising
	  	“*”	 	“*”	 	“*”
	 Other
	  	“*”	 	“*”	 	“*”
	 EU Mobile
	  	“*”	 	 	 	“*”
	 CUMULATIVE RECEIVERS SOLD
	  	“*”	 	“*”	 	“*”
	 END OF PERIOD SUBSCRIBERS
	  	“*”	 	“*”	 	“*”
				
	 EBITDA (Before CAPEX)
	  	“*”	 	“*”	 	“*”
	 EBITDA (Plus CAPEX)
	  	“*”	 	“*”	 	“*”

  
 [logo]
WORLDSPACE®
                                        
                                        
                                        
             
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  
  

 August 2003 
  
 [Logo] 
  
 WORLDSPACE® 
  
 Use of Proceeds

  

 Proprietary & Confidential 

 Use of Proceeds 
  
 Summary Use of Proceeds 
 $ in millions 
  

			
	 CAPEX
	  	“*”
	 Receiver Seeding
	  	“*”
	 Payables
	  	“*”
	 Other Financing
	  	“*”
		
	 Operating Expenses
	  	 
	 Variable Costs
	  	“*”
	 Fixed Costs
	  	“*”
	 Total Opex
	  	“*”
	 Less Net Revenues
	  	“*”
	 Net Operating Expenses
	  	“*”
	 	  	

	 Total Cash Required
	  	“*”
	 	  	

  
 A. Summary of Use of Proceeds

  
 WorldSpace requires approximately “*” in funding to rollout its
services to India, China, Phase 1 of European Mobile project, South Africa and the Middle East, of which approximately “*” is earmarked for rollout of European mobile. The primary uses for this raise consist of capital expenditures of
“*”, working capital of “*”, and net operating expenses of “*”. 
  
 B. Variable Costs 
 $ in millions 
  

									
	 	  	Year 1

	 	Year 2

	 	Year 3

	 	Total to B.E.

	 SAC
	  	“*”	 	“*”	 	“*”	 	“*”
	 Customer Care
	  	“*”	 	“*”	 	“*”	 	“*”
	 Production Rights
	  	“*”	 	“*”	 	“*”	 	“*”
	 	  	
	 	
	 	
	 	

	 Total
	  	“*”	 	“*”	 	“*”	 	“*”

  
 Subscriber Acquisition Costs (SAC)

  
 Total subscriber acquisition costs (SAC) are projected to be
“*”, including European mobile SAC expenditures estimated at “*”. The SAC have been estimated based on the typical spends that other service providers have made for rolling out different types of services (such as cellular or
ISP) using India as a benchmark. In markets that WorldSpace is targeting, even competitive service providers, such as cellular, do not offer subsidies for handsets. The SAC are estimated at “*” per subscriber in Year 1, falling to
“*” per subscriber in Year 2 and “*” per subscriber in Year 3. 
  

 Proprietary & Confidential 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

 SAC is primarily in the form of advertising with minimal equipment and retailer subsidies envisioned. The SAC reduce to
an average of about “*” per subscriber by Year 3 as the marketing and subscriber acquisition spend in the chosen rollout markets is spread over a faster ramp-up. It is also assumed that by this time WorldSpace would have created
substantial awareness based on spending in the previous years. Such a reduction in SAC is normal for other similar services. However, we are cognizant of the fact that SAC costs for the service may vary from our projections, and we have done a
sensitivity analysis around this and built in substantial cushion such that if SAC costs were to double, we would still break-even by Year 3 whilst requiring approximately “*” additional funding investment. 
  
 For our European mobile business, SAC do include both equipment subsidies and marketing
costs. Equipment subsidies are estimated to be “*” per subscriber for OEM customers falling to “*” by Year 8. Equipment subsidies to non-OEM customers are estimated at “*” falling to “*” by Year 7. Marketing
costs per gross addition are estimated at “*”. We are also projecting an OEM revenue share of “*” and a content partner revenue share of “*” of subscription revenues. Our SAC for European Mobile also includes certain
fixed sales and marketing expenditure. We are providing for a communication and advertising budget to build brand awareness, projected at “*”through Year 3, “*”in Year 4, and “*”on an annual basis thereafter. This will
allow advertising campaigns in France based on media support such as TV, print, and radio. Total SAC spend for European mobile business including fixed advertising costs and sales and marketing personnel through Year 3 is approximately
“*”. 
  
 Customer Care 
  
 Total spend of customer care is estimated at “*”of which “*”is for
European mobile rollout. Customer care is composed of subscription management at “*” per subscriber per year, and billing, collection and other customer care items at “*” of revenues. Total spend on customer care is expected to
run at approximately “*” of revenues. Customer care for our European mobile business includes subscription management and billing and collection infrastructure and is estimated at “*” per subscriber. 
  
 Performance Rights 
  
 We expect to spend a total of “*” on performance rights and royalty payments to associations such as ASCAP/BMI. Music rights are
expected to average “*”of revenues. These payments are a function of the location where the content is uplinked and will vary for the different markets. For example, our content for India is uplinked from Singapore, which has an extremely
favourable environment. Music rights for our European mobile business are expected to average “*” of revenues. 
  

 Proprietary & Confidential 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

 C. Fixed Costs 
  
 Content 
 $ in millions 
  

									
	 	  	Year 1

	 	Year 2

	 	Year 3

	 	Total to B.E.

	 Local
	  	“*”	 	“*”	 	“*”	 	“*”
	 Global
	  	“*”	 	“*”	 	“*”	 	“*”
	 Multimedia
	  	“*”	 	“*”	 	“*”	 	“*”
	 	  	
	 	
	 	
	 	

	 Total
	  	“*”	 	“*”	 	“*”	 	“*”

  
 We expect to spend approximately
“*”through Year 3 on WorldSpace global branded content. A portion of our content will be produced locally in each region and we are budgeting for local content produced locally in each region and we are budgeting for local content
production costs of “*”. Both the home audio and mobile service will use global and local content. Of the local spend of “*”, we expect to spend approximately “*” through Year 3 producing content specifically for
Europe. 
  
 Fixed Costs 
  
 We project to spend approximately “*”on content as outlined above. WorldSpace
employs approximately “*”globally, including “*” consultants. Salaries and benefits account for “*”in Year 1 rising to “*”in Year 3 as we expand our services to China, India, Europe and other markets. We
expect to spend “*”on facilities and equipment including buildings, leases and other non-capitalized equipment. Our G&A spend is projected at “*”through Year 3 and includes outside services, insurance for the satellite,
travel and other operating expenses. Of this “*”expenditure on G&A, we project to spend “*”for our G&A activities specifically directed towards our European mobile business. Our fixed costs excludes approximately
“*” of fixed SAC costs for our European Mobile business which are accounted for above under the variable costs section. 
  

									
	 	  	Year 1

	 	Year 2

	 	Year 3

	 	Total to B.E.

	 Content
	  	“*”	 	“*”	 	“*”	 	“*”
	 Headcount
	  	“*”	 	“*”	 	“*”	 	“*”
	 Facilities
	  	“*”	 	“*”	 	“*”	 	“*”
	 Other G&A1
	  	“*”	 	“*”	 	“*”	 	“*”
	 	  	
	 	
	 	
	 	

	 Total
	  	“*”	 	“*”	 	“*”	 	“*”

  
 Headcount (Year 1 breakdown)

  

					
	 	  	 	 	%

	 Content
	  	“*”	 	“*”
	 Sales & Marketing
	  	“*”	 	“*”
	 Engineering & Operation
	  	“*”	 	“*”
	 G&A
	  	“*”	 	“*”
	 Regulatory
	  	“*”	 	“*”
	 	  	
	 	

	 	  	“*”	 	“*”

	1	includes Insurance, outside services, T&E, and other G&A

  

 Proprietary & Confidential 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

 D. Capital Expenditures 
 $ in millions 
  

									
	 	  	Year 1

	 	Year 2

	 	Year 3

	 	Total to B.E.

	 Chipset
	  	“*”	 	“*”	 	“*”	 	“*”
	 Repeaters
	  	“*”	 	“*”	 	“*”	 	“*”
	 General Cap X
	  	“*”	 	“*”	 	“*”	 	“*”
	 	  	
	 	
	 	
	 	

	 Total
	  	“*”	 	“*”	 	“*”	 	“*”

  
 We expect to spend a total of
“*”on capital expenditures to breakeven in Year 3, of which “*” or “*” is directly attributed to the mobile service rollout. Research and development expenditures for mobile chip set development total “*”. A
network of terrestrial repeaters will be built out in major cities requiring “*”capital expenditure in Year 2 and “*” in Year 3. Other general capital expenditure not specific to mobile service are estimated “*” and
will be spent on uplink stations, music studios, SMS, renewals and replacements. 
  
 This total spend of “*” includes an expected spend of “*”for Phase 1 of our European mobile business. Research and development expenditures for mobile chip set development are almost “*” in total evenly split
in Year 1 and Year 2. A network of terrestrial repeaters will be built out in France nation wide requiring “*” over Year 2 and Year 3. Other general capital expenditure specific to our Phase 1 rollout are estimated at “*” and
will be spent on a feeder link station, studio digital platform, subsidies for receiver manufacturers investment and frequency migrating. WorldSpace has allocated approximately “*” for potential cost of migrating rural French farmer to
another frequency. 
  
 E. Working Capital 
  
 WorldSpace will require approximately “*” to fund working capital needs in the
near future, including about “*” for receiver financing. This expenditure will enable us to produce “*” receivers, which should be sufficient to stimulate the supply chain and ensure a steady flow of receivers into our various
markets. We also require about “*” for account payables, primarily towards Alcatel to whom we owe approximately “*” on F3 and F4. The remaining “*” will go towards payment of an Alternative Minimum Tax (which may result
from the cancellation of our Stonehouse debt) and other receivable financing. 
  

 Proprietary & Confidential 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

 EXHIBIT C 
  
 DISPUTE RESOLUTION PROCEDURES 
  
 1. Agreement to Dispute Resolution Procedures 
  
 Any dispute, claim, or controversy arising out of or relating to the Royalty Agreement to which this Exhibit C is attached and made a part (the
“Agreement”), or the performance, breach, validity, interpretation, application, or termination thereof (“Dispute”), shall be resolved in accordance with the procedures specified in this Exhibit C, which shall be the sole
and exclusive procedures for the resolution of any such Dispute. As used herein, “party” shall refer either to Stonehouse or to the WorldSpace Parties (as such parties are defined in the Agreement). 
  
 2. Good Faith Negotiation 
  
 In the event of any Dispute, the parties shall first attempt in good faith to resolve such Dispute promptly by negotiation
between representatives who have authority to settle the Dispute. Any party may give the other party written notice of any Dispute not resolved in the normal course of business. Within fifteen (15) days after delivery of the notice, the receiving
party shall submit to the other a written response. The notice and the response shall each include (a) a statement of the party’s position and a general summary of arguments supporting that position, and (b) the name and title of the person(s)
who will represent that party in the negotiations. Within thirty (30) days after delivery of the notice of Dispute, the representatives of the parties shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably
deem necessary, to attempt to resolve the Dispute. All reasonable requests for information made by one party to the other will be honored; however, no party is required to provide confidential, trade secret, proprietary, or privileged information.

  
 All negotiations pursuant to this clause are confidential and
shall be treated as compromise and settlement negotiations for purposes of applicable rules of evidence. 
  
 If a party refuses to negotiate as provided herein, any other party may immediately initiate arbitration as provided in Section 4 below. 
  
 3. Mediation After Negotiation 
  
 If any Dispute has not been resolved by negotiation as set forth above within forty-five (45) days of delivery of the notice
of Dispute, or if the parties failed to meet within thirty (30) days of delivery of the notice of Dispute (the “Negotiating Period”), the parties shall endeavor to settle the Dispute by good faith mediation. Upon the expiration of the
Negotiating Period, any party may give written notice of mediation. The parties shall attempt to agree upon a qualified, neutral individual who shall serve as mediator. If the parties fail to agree upon a mediator within fifteen (15) days of
delivery of the notice of mediation, the mediator will be appointed by the American Arbitration Association’s International Centre for Dispute Resolution (“AAA”) from its roster of neutral mediators. 

 The mediation shall occur in New York City, New York, USA within thirty (30) days after appointment of a
mediator, or at such other time and place as the parties may agree. Any Dispute which remains unresolved forty-five (45) days after appointment of a mediator shall be settled by arbitration in accordance with Section 4 below. 
  
 If a party refuses to participate in the mediation process as provided
herein, any other party may immediately initiate arbitration as provided in Section 4 below. 
  
 Unless otherwise agreed by the parties or ordered by the arbitrator in a subsequent arbitral proceeding as provided herein, the parties shall bear the cost of the mediation equally between them. 
  
 In the event that any party fails or refuses to participate in mediation in
good faith as provided herein, the arbitrator in any subsequent arbitration is authorized to determine whether the failure to participate in the mediation was due to the bad faith of a party, and if so may award to the other party or parties all
costs associated with the mediation efforts, including attorneys’ fees and costs, mediator’s fees, and administrative fees, if any. 
  
 Other than with respect to its occurrence or the failure to occur, the mediation is in all respects confidential and shall be treated as compromise and
settlement negotiations for purposes of applicable rules of evidence. 
  
 The mediator may not serve as an arbitrator in any subsequent arbitration proceedings concerning the Dispute. 
  
 4. Agreement to Arbitrate 
  
 Any Dispute which has not been resolved by a non-binding procedure as provided herein within ninety (90) days of the initiation of such procedure shall be
finally resolved by arbitration administered by the AAA under its International Arbitration Rules in effect as of the date of the Agreement (“AAA International Rules”), and judgment on the award may be entered in any court having
jurisdiction thereof. 
  
 5. Selection and Appointment of Arbitrator 

 
 The Dispute shall be heard and determined by a sole arbitrator, who shall
be qualified by education, training, and experience to hear and determine matters in the nature of the Dispute (the “Arbitrator”). 
  
 The parties shall attempt to agree upon a qualified individual to serve as Arbitrator. If the parties are unable to so agree within thirty (30) days of
the response to the notice of arbitration, then the Arbitrator shall be selected and appointed in accordance with the AAA International Rules. 

 Should the Arbitrator die, resign, refuse to act, or become incapable of performing his or her functions
as the Arbitrator, the AAA may declare a vacancy. The vacancy shall be filled by the method by which the Arbitrator was originally appointed. 
  
 The Arbitrator shall be bound by and shall follow the then current American Bar Association/AAA Rules of Ethics for Arbitrators. 
  
 6. Seat and Language of Arbitral Proceedings 
  
 The language of the arbitration shall be English. 
  
 The seat of the arbitration shall be New York City, New York, USA. Upon
agreement of the parties and the Arbitrator, pre-hearing conferences may be held in other locations; however, the seat of the arbitration will be deemed to remain unchanged and any awards or orders will be deemed to have been made at the seat of the
arbitration. 
  
 7. Governing Law 
  
 The Arbitrator shall determine the matters at issue in the Dispute in
accordance with the substantive law of New York, USA. 
  
 The
arbitration proceedings shall be governed by the Agreement, the AAA International Rules, and by the procedural arbitration law of the site of the arbitration, and by the United Nations Convention on the Recognition and Enforcement of Foreign
Arbitral Awards. 
  
 The Arbitrator shall decide the issues
submitted as an arbitrator at law only and shall base his/her award, and any interim awards, upon the terms of the Agreement and the laws of New York, USA. The Arbitrator is not empowered to and shall not act as amiable compositeur or ex aequo et
bono. 
  
 8. Pre-Hearing Procedure and Disposition 
  
 At the request of a party, the Arbitrator may take such interim measures and
make such interim orders as it deems necessary, including measures for the preservation of assets, the conservation of goods, or the sale of perishable goods. The Arbitrator may require appropriate security as a condition of ordering such measures.

  
 At any time after the Arbitrator is appointed and upon motion
of any party, the Arbitrator shall hear and determine any preliminary issue of law asserted by a party to be dispositive, in whole or in part, of any claim or defense, pursuant to such procedures as the Arbitrator deems appropriate. 

 At any time after the Arbitrator is appointed and upon motion of any party, the Arbitrator may summarily
determine and dismiss, in whole or in part, any claim or issue in dispute (a) if the party asserting it has failed to state a claim as a matter of law, or (b) if the pleadings and evidence show that no genuine issue of material fact exists with
respect to any element of the claim or defense and that the moving party is entitled to disposition of the claim or defense as a matter of law. 
  
 If the Arbitrator deems it appropriate, keeping in mind the expedited and efficient nature of arbitration, the arbitral proceedings may be bifurcated
according to claims or issues, and claims or issues may be heard and determined separately as may be appropriate. 
  
 9. Document Disclosures 
  
 Pursuant to a schedule to be established by the Arbitrator, the parties shall exchange those documents upon which the producing party may rely in support
of any claim or defense. The parties may further exchange documents in response to written requests for disclosure of non-privileged documents directly relevant to the determination of the issues presented for determination by the Arbitrator. Any
Dispute regarding such requests for disclosure or the adequacy of any party’s disclosures shall be determined by the Arbitrator consistent with the expedited nature of arbitration. 
  
 The Arbitrator shall take into account applicable principles of legal privilege and related protections, such as those
involving the confidentiality of communications between a lawyer and a client and the work product of a lawyer, and no party or witness may be required to waive any privilege recognized at law. The Arbitrator shall issue orders as reasonably
necessary to protect the confidentiality of proprietary information, trade secrets, and other sensitive information disclosed. 
  
 10. Awards and Relief 
  
 All awards shall be in writing and shall state the reasoning upon which the award rests. Any award shall be made and signed by the Arbitrator. 

 
 The Arbitrator is expressly empowered to grant any remedy or relief not
expressly prohibited herein available under the applicable law, including but not limited to specific performance of the contract to the extent allowed by law, declaration of the validity, meaning, and effect of the contract and the rights or duties
of the parties thereunder, and, to the extent allowed by law, prohibiting or mandating actions by a party with respect to the performance of the contract or matters arising out of or in connection therewith. 
  
 In his/her award, the Arbitrator may apportion the costs of arbitration
between or among the parties in such manner as it deems reasonable, taking into account the circumstances of the case, the conduct of the parties during the proceedings, and the result of the arbitration, including requiring one party to bear all or
the majority of such costs. 

 Unless otherwise ordered by the Arbitrator as part of his/her award, each party shall bear its own costs
and expenses; and the costs of arbitration, including the fees and expenses of the Arbitrator and of any expert or other assistance engaged by the Arbitrator, shall be borne by the parties to the arbitration in equal shares. 
  
 11. Failure to Participate or to Pay Advances of Costs and Fees 
  
 The failure or refusal of any party, having been given due notice thereof,
to participate at any stage of the dispute resolution proceedings shall not prevent the proceedings from continuing, nor shall such failure or refusal impair the validity of the award or cause the award to be void or voidable, nor shall it be a
basis for challenge of the validity or enforceability of the award or of the arbitration proceedings. 
  
 If any party fails to timely pay an advance on fees and costs ordered by the Arbitrator or the AAA within twenty (20) days after the date set for such
deposit, that party shall be deemed to be in default. The Arbitrator and/or the AAA shall then determine whether the funds on deposit are sufficient to satisfy the anticipated estimated expenses for the proceeding to continue on an expedited basis
without the participation of the defaulting party. If so, the proceeding will continue without the participation of the defaulting party, and the Arbitrator may enter an award on default. Prior to entering an award on default, the Arbitrator shall
require the non-defaulting party to produce such evidence and legal argument in support of its contentions as the Arbitrator may deem appropriate. The Arbitrator may receive such evidence and argument without the defaulting party’s presence or
participation. If the funds on deposit are deemed insufficient to satisfy the estimated costs of continuing as provided herein, the non-defaulting party may make all or part of the requested deposit in an amount sufficient to allow the proceeding to
continue without the participation of the defaulting party. If the non-defaulting party chooses not to make the requested deposit, the Arbitrator may suspend or terminate the proceedings. 
  
 12. Adherence to Time Limits 
  
 In accepting appointment, the Arbitrator shall commit that his/her schedule permits him/her to devote the reasonably necessary time and attention to the
arbitration proceedings and to resolving the Dispute within the time periods set by the Agreement and by the AAA International Rules. 
  
 Any time limits set forth in this Dispute resolution agreement or in the AAA International Rules may be modified upon written agreement of the parties and
the Arbitrator or by order of the Arbitrator. 
  
 Any failure of
the Arbitrator to satisfy such time limits or to render a final award within the time specified shall not impair the validity of the award or cause the award to be void or voidable, nor shall it be a basis for challenge of the validity or
enforceability of the award or of the arbitration proceedings. 

 13. Interim Measures from the Courts in Aid of Arbitration 
  
 At any time after submission of a written notice of Dispute, any party may request a court of competent jurisdiction to
grant interim measures of protection: (a) to preserve the status quo pending resolution of the Dispute; (b) to prevent the destruction of documents and other information or things related to the Dispute; (c) to prevent the transfer, dissipation, or
hiding of assets; and/or (d) to aid the arbitral proceedings and the award. A request for such interim measures to a judicial authority shall not be deemed incompatible with or a waiver of a party’s right to arbitrate a Dispute. 
  
 The parties agree that a court at the seat of the arbitration at the request
of a party, or the Arbitrator with the consent of all parties, may consolidate two or more arbitral proceedings among the parties to the Agreement if there exist common questions of law or fact. 
  
 14. Confidentiality 
  
 Unless the parties agree otherwise, the parties, the Arbitrator, and the AAA shall treat the dispute resolution proceedings
provided for herein, any related disclosures, and the decisions of the Arbitrator, as confidential, except in connection with judicial proceedings ancillary to the dispute resolution proceedings, such as a judicial challenge to, or enforcement of,
the arbitral award, and unless otherwise required by law to protect a legal right of a party. 
  
 15. Survival and Severability 
  
 The terms of this Exhibit C shall survive the termination or expiration of the Agreement. 
  
 If any provision of this agreement shall be unenforceable, invalid, or unlawful in any respect, then such provision shall be deemed severable from the
remaining provisions and the enforceability, validity, and lawfulness of the remaining provisions will not be impaired. 

 Royalty Agreement 
 Exhibit D 
 Financial Model 
  
 TABLE OF CONTENTS 
  

			
	1.	 	 SUMMARY MODEL

		
	2.	 	 WORLDSPACE MAIN MODEL

		
	3.	 	 EUROPEAN MOBILE MODEL

  

 Pages 1 - 5 
  
 * 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 WorldSpace 
 Model Breakout 
  

							
	S-Main	  	Input	  	 	  	Choose the markets that the model will consider
	 Sum
	  	Output	  	 	  	High-level summary of business opportunity
	 Subscriber Economics
	  	Calculation	  	 	  	Calculates revenue and costs on a per customer/subscriber basis
	 Subscriber Economics Summary    
	  	Output	  	 	  	Presents Subscriber Economics
	 Variable Cost Assumptions
	  	Input	  	 	  	Contains all Variable cost Assumptions
	 Pen Sum
	  	Output	  	 	  	Summary of Penetrations of different Hardware in our markets
	 IS-D
	  	Output	  	 	  	Detailed income statement, Includes summary WS Fixed Costs based on Budgets
	 IS
	  	Output	  	 	  	Income Statement Used for Financial Model
	 BS
	  	Output	  	 	  	WS Balance sheet shows the affect of Royalty agreement as of YE 2002
	 CF
	  	Output	  	 	  	Cash-Flow
	 DCF
	  	Output	  	 	  	Discounted Cash-Flow Analysis
	 WC Sch
	  	Input/Calc	  	 	  	Uses assumptions on Working Capital needs To Calculate Balances for BS
	 D-N Sch
	  	Input/Calc	  	 	  	Depreciation Network includes the Capital Needs for the satellite/Ground Network and Calculates the Depreciation
	 D-O Sch
	  	Input/Calc	  	 	  	Depreciation Other includes the Capital Needs for Other General Cap-ex and Calculates the Depreciation
	 A-Sch
	  	Input/Calc	  	 	  	Amortization Schedule Not Used
	 D-Sch
	  	Input/Calc	  	 	  	Used to Calculate the Debt needs of the company Used in BS
	 I-Sch
	  	Input/Calc	  	 	  	Interest Calculations
	 E-Sch
	  	Input/Calc	  	 	  	Used to Calculate Retained Earnings for the BS
	 Royal Rev
	  	Calculation	  	 	  	Calculates Chipset royalties company forecasts receiving from the sale of receivers
	 S-Audio
	  	Input	  	Fixed Audio	  	This is the audio Assumptions page it includes all the revenue assumptions for the Fixed Audio business line
	 A-AD
	  	Calculation	  	Fixed Audio	  	Fixed Audio advertising revenue using information from HA Sales and S-Audio
	 A-Sub
	  	Calculation	  	Fixed Audio	  	Fixed Audio Subscription revenue using information from HA Sales and S-Audio
	 A-Fix
	  	Calculation	  	Fixed Audio	  	Fixed Audio Capacity Lease revenue using information from HA Sales and S-Audio
	 A-Costs
	  	Input Calculation    	  	Fixed Audio	  	Variable Costs for fixed Audio Business
	 S-MM
	  	Input	  	Multi-Media	  	Assumptions for the Multi-Media Business Line
	 MM-Sub
	  	Calculation	  	Multi-Media    	  	Multimedia Subscription Revenue using information form C-Sales DDA-Sales and S-MM
	 MM-Costs
	  	Input/Calculation	  	Multi-Media	  	Variable Costs for Multi-Media business line
	 S-Mobile
	  	Input	  	Mobile	  	Assumptions for the Mobile Business Line
	 M-AD
	  	Calculation	  	Mobile	  	Mobile Audio advertising revenue using information from M Sales and S-Mobile
	 M-Sub
	  	Calculation	  	Mobile	  	Mobile Audio Subscription revenue using information from M Sales and S-Mobile
	 M-Fix
	  	Calculation	  	Mobile	  	Mobile Audio Capacity Lease revenue using information from M Sales and S-Mobile
	 M-Costs
	  	Input Calculation	  	Mobile	  	Variable Costs for Mobile Business
	 HA Sales
	  	Input	  	Fixed Audio	  	Home Audio Receiver Sales
	 DDA Sales
	  	Input	  	Multi-Media	  	Digital Data Adapter Sales (Multi-Media Appliance)
	 C Sales
	  	Input	  	Multi-Media	  	PC Card Sales (Multi-Media Appliance)
	 M-Sales
	  	Input	  	Mobile	  	Mobile Receiver sales
	 HH
	  	Informational	  	Fixed Audio	  	Households in our target markets
	 PCs
	  	Informational	  	Multi-Media	  	PC’s in our target markets
	 Cars
	  	Informational	  	Mobile	  	Cars in our Large markets
	 Pens
	  	Informational	  	 	  	% penetration of our target market
	 M-Pen
	  	Informational	  	Mobile	  	% penetration of our target market
	 A-Pen
	  	Informational	  	Fixed Audio	  	% penetration of our target market
	 Summary by Country
	  	Informational	  	 	  	Summary of Subs and Rev by Country
	 IS- by
Country
	  	Informational	  	 	  	Income Statement Broken out by Market

  

			
	WorldSpace	 	Top – 4,nCh,S
	Main Switches	 	Audio + Multimedia

  

										
	 Country Selection

	  	 	 	 	 	  	 Business Lines

	  	 
	(Y=1. N=0)	  	 	 	 	 	  	 (Y=1. N=0)
	  	 
	#	  	 	 	 	Insert 1 to Activate Country	  	Audio	  	 
	 Middle East
	  	 	 	 	1	  	 Premium Sub
	  	1
	 South Africa
	  	 	 	 	1	  	 	  	 
	 China
	  	 	 	 	1	  	Multimedia	  	1
	 India
	  	 	 	 	1	  	 Basic Sub.
	  	1
	 	  	 	 	 	 	  	 Premium Sub.
	  	1
	Scenarios	  	 	 	 	Insert 1 to Activate Scenario	  	Mobile	  	1
	Decrease Penetration by	  	0	%	 	1	  	 	  	 
	Change Subscription	  	 	 	 	 	  	 	  	 
	Pricing (Enter percent to lower price if you want to raise price enter negative percent)	  	0	%	 	 	  	 	  	 

  

			
	 	 	Check
	 	 	    4

  

 Pages 8 – 100 
  
 * 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 EXHIBIT E 
  
 ANNUAL OPERATING BUDGET 
  

  
 WorldSpace Annual
Operating Plan (Expense Budget) 1/3 
  

																					
	 	  	Contribution Margin  	  	Headcount Expense  	  	Travel &  
Entertainment  	  	Facilities  	  	Equipment  	  	Sales & Marketing  	  	Outside Services  	  	Other  	  	Total  
Expenses  	  	EBITDA  
	 011-CEO-OCOB
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 003-CEO-MESSF
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 004-CEO-Chan
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 005-CEO-Eyob
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 006-CEO-STPA
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 017-CEO-CTO
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 029-CEO-Roxe
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total CEO
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 002-COO-OCOO
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 111-GA-WEUM
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 007-FS-OCFO
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 008-FS-HR
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 009-FS-ADMN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 010-FS-IT
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 011-FS-FINA
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Finance-Admin
	  	 	  	 	  	 	  	*	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 012-EO-PREN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 013-EO-ADMN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 014-EO-ADSD
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 015-EO-GSEN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 016-EO-BCNO
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 018-EO-ENSO
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 028-EO-AFSP
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total E&O
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 019-AC-ADMN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 020-AC-GLMU
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 021-AC-PROD
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 022-AC-BCRL
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 023-AC-BCSY
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Audio Content
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 024-SM-SAMK
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 025-LR-LEGL
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 026-LR-REGL
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Legal and Regulatory
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 027-GS-GSU
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 0275-GS-DOD
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total GSU
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 Total CSO
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

  
 WorldSpace Annual
Operating Plan (Expense Budget) 2/3 
  

																					
	 	  	Contribution Margin  	  	Headcount  
Expense  	  	Travel & Entertainment  	  	Facilities  	  	Equipment  	  	Sales &  
Marketing  	  	Outside  
Services  	  	Other  	  	Total Expenses  	  	EBITDA  
	 101-GA-CHIN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 201-LR-CHIN
 301-EO-CHIN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 601-SM-CHIN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total China
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 110-GA-Idi
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 221-FIN-Indi
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 321-EO-Idi
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 621-SM-Idi
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total India
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 108-GA-Indo
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 208-LR-Indo
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 308-EO-Indo
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 608-SM-Indo
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Indonesia
	  	 	  	 	  	 	  	 	  	*	  	 	  	 	  	 	  	 	  	 
	 										 
	 109-GA-Sing
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 209-LR-Sing
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 309-EO-Sing
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 609-SM-Sing
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Singapore
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 105-GA-Aust
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 205-LR-Aust
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 305-EO-Aust
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 605-SM-Aust
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Australia
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 GA-Others
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 LR-Others
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 EO-Others
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 SM-Others
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Others
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 GA-AsiaStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 LR-AsiaStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 EO-AsiaStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 SM-AsiaStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total AsiaStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

  
 WorldSpace Annual
Operating Plan (Expense Budget) 3/3 
  

																					
	 	  	Contribution Margin  	  	Headcount  
Expense  	  	Travel & Entertainment  	  	Facilities  	  	Equipment  	  	Sales &  
Marketing  	  	Outside  
Services  	  	Other  	  	Total Expenses  	  	EBITDA  
	 102-GA-Lond
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 202-LR-Lond
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 302-EO-Lond
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 602-SM-Lond
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total London
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 103GA-Duba
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 203-LR-Duba
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 303-EO-Duba
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 603-SM-Duba
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Dubai
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 104-GA-Fran
 204-LR-Fran
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 304-EO-Fran
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 604-SM-Fran
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total France
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 106-GA-Eafr
	  	 	  	 	  	 	  	 	  	*	  	 	  	 	  	 	  	 	  	 
	 206-LR-Eafr
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 306-EO-Eafr
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 606-SM-Eafr
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total East Africa
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 107-GA-Safr
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 207-LR-Safr
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 307-EO-Safr
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 607-SM-Safr
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total South Africa
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 GA-AfriStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 LR-AfriStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 EO-AfriStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 SM-AfriStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total AfriStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 Total
 Company
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 EXHIBIT F 
  
 OPERATING AND MARKETING PLAN 
  

  
 Annual Operating Plan 
  

  

 WorldSpace Annual Operating Plan (Expense Budget) 1/3 
  

																					
	 	  	Contribution Margin  	  	Headcount Expense  	  	Travel &  
Entertainment  	  	Facilities  	  	Equipment  	  	Sales & Marketing  	  	Outside Services  	  	Other  	  	Total  
Expenses  	  	EBITDA  
	 011-CEO-OCOB
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 003-CEO-MESSF
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 004-CEO-Chan
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 005-CEO-Eyob
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 006-CEO-STPA
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 017-CEO-CTO
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 029-CEO-Roxe
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total CEO
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 002-COO-OCOO
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 111-GA-WEUM
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 007-FS-OCFO
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 008-FS-HR
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 009-FS-ADMN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 010-FS-IT
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 011-FS-FINA
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Finance-Admin
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	*	  	 	  	 	  	 	  	 	  	 	  	 
	 012-EO-PREN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 013-EO-ADMN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 014-EO-ADSD
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 015-EO-GSEN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 016-EO-BCNO
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 018-EO-ENSO
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 028-EO-AFSP
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total E&O
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 019-AC-ADMN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 020-AC-GLMU
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 021-AC-PROD
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 022-AC-BCRL
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 023-AC-BCSY
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Audio Content
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 024-SM-SAMK
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 025-LR-LEGL
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 026-LR-REGL
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Legal and Regulatory
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 027-GS-GSU
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 0275-GS-DOD
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total GSU
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 Total CSO
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 WorldSpace Annual Operating Plan (Expense Budget) 2/3 
  

																					
	 	  	Contribution  
Margin  	  	Headcount  
Expense  	  	Travel &  
Entertainment  	  	Facilities  	  	Equipment  	  	Sales &  
Marketing  	  	Outside  
Services  	  	Other  	  	Total  
Expenses  	  	EBITDA  
	 101-GA-CHIN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 201-LR-CHIN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 301-EO-CHIN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 601-SM-CHIN
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total China
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 110-GA-Idi
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 221-FIN-Indi
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 321-EO-Idi
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 621-SM-Idi
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total India
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 108-GA-Indo
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 208-LR-Indo
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 308-EO-Indo
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 608-SM-Indo
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Indonesia
	  	 	  	 	  	 	  	 	  	*	  	 	  	 	  	 	  	 	  	 
	 										 
	 109-GA-Sing
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 209-LR-Sing
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 309-EO-Sing
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 609-SM-Sing
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Singapore
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 105-GA-Aust
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 205-LR-Aust
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 305-EO-Aust
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 605-SM-Aust
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Australia
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 GA-Others
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 LR-Others
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 EO-Others
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 SM-Others
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Others
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 GA-AsiaStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 LR-AsiaStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 EO-AsiaStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 SM-AsiaStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total AsiaStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 WorldSpace Annual Operating Plan (Expense Budget) 3/3 
  

																					
	 	  	Contribution  
Margin  	  	Headcount  
Expense  	  	Travel &  
Entertainment  	  	Facilities  	  	Equipment  	  	Sales &  
Marketing  	  	Outside  
Services  	  	Other  	  	Total  
Expenses  	  	EBITDA  
	 102-GA-Lond
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 202-LR-Lond
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 302-EO-Lond
 602-SM-Lond
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total London
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 103GA-Duba
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 203-LR-Duba
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 303-EO-Duba
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 603-SM-Duba
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total Dubai
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 104-GA-Fran
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 204-LR-Fran
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 304-EO-Fran
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 604-SM-Fran
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total France
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 106-GA-Eafr
	  	 	  	 	  	 	  	 	  	*	  	 	  	 	  	 	  	 	  	 
	 206-LR-Eafr
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 306-EO-Eafr
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 606-SM-Eafr
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total East Africa
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 107-GA-Safr
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 207-LR-Safr
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 307-EO-Safr
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 607-SM-Safr
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total South Africa
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 GA-AfriStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 LR-AfriStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 EO-AfriStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 SM-AfriStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Total AfriStar
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 										 
	 Total
 Company
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 WorldSpace Annual Operating Plan 
  
 Comparison of Financial model to Operating Plan 
  
 * 
  
 Note: There are small differences between the operating plan and financial model due to the different methodologies used. 
  
 Proprietary & Confidential 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 WorldSpace Annual Operating Plan 
  
 Gross Revenue by Month 
  
 * 
  
 Proprietary & Confidential 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 WorldSpace Annual Operating Plan 
  
 Contribution Margin by Month 
  
 * 
  
 Proprietary & Confidential 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 WorldSpace Annual Operating Plan 
  
 Revenue by Business Line 
  
 * 
  
 Proprietary & Confidential 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 WorldSpace Annual Operating Plan 
  
 Revenue Summary 
  
 * 
  
 Proprietary & Confidential 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 WorldSpace Annual Operating Plan 
  
 * 
  
 Proprietary & Confidential 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 [Logo] 
  
 WorldSpace Corporation 
  
 Global Marketing Plan 
  
 August 2003 
  

 CONTENTS 
  

			
	 Vision and Goal
	  	3
	 Objectives
	  	3
	 Key Initiatives
	  	3
	 The Company’s Market Segment
	  	3
	 Product Capabilities
	  	4
	 Audio
	  	4
	 Multimedia
	  	4
	 Encryption
	  	5
	 Compelling Consumer Content
	  	5
	 Product Road Map
	  	5
	 Launch of Mobile Service
	  	5
	 Product Applications
	  	8
	 Target Client Markets
	  	8
	 Positioning
	  	9
	 Pricing
	  	10
	 Distribution and Promotion
	  	11
	 Sales & Marketing Budgets
	  	12

  

 i 

 Vision and Goal 
  
 WorldSpace Inc. (“WorldSpace” or the “Company”) is a satellite-based, global digital audio and multimedia broadcasting company headquartered in
Washington, D.C. Since it’s founding, WorldSpace’s strategic goal has been to become a leading global media company offering a wide range of audio and multimedia services to an audience of unprecedented size. Investing over US$1.2 billion,
the Company has established the world’s first satellite-based digital audio and multimedia broadcasting network, with two active satellites (AsiaStar and AfriStar) that cover Asia, Africa, the Middle East and most of Europe. WorldSpace also has
one ground spare satellite and another in process. The WorldSpace high power satellites with their digitally formatted transmission capabilities provide listeners with near CD quality sound. Each satellite has three beams, and each beam can
currently carry about 50 high quality digital channels. 
  
 Objectives

  

	 	1.	Generate “*” in receiver sales in 2003 

 Ramp up
receiver sales to achieve “*” in 2004 
  

	 	2.	Generate “*” in enterprise sales (Closed User’ Groups and Capacity Leases) in 2003 

 Ramp up enterprise sales to achieve “*” on 2004 
  

	 	3.	Generate “*” in consumer subscription sales in 2003 Ramp up consumer subscriptions to achieve “*” in 2004 

  
 Key Initiatives 
  

	 	•	 	Drive orders to a few key receiver manufacturer partners 

  

	 	•	 	Leverage manufacturer, content, and distributor partners to build co-marketing plans to implement targeted opportunities 

  

	 	•	 	Launch Mobile service 

  

	 	•	 	Target, win, and leverage reference enterprise accounts 

  
 The Company’s Market Segment 
  
 WorldSpace is a digital satellite media broadcaster. Two satellites provide audio and multimedia distribution capabilities to Africa, Asia, the Middle
East, and Europe. The company produces and distributes its own audio content, partners with brow’ casters to distribute their content, and provides satellite capacity for enterprise clients to prepare and distribute their propriety content.
WorldSpace is entrenched in the same market segment as XM and Sirius satellite radio companies, who each license technology from WorldSpace. 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 3 

 XM, Sirius, and WorldSpace: A Comparison 
  

							
	 	  	XM

	 	Sirius

	 	WorldSpace

	 Founded
	  	1992	 	1990	 	1990
	 Investment Since Inception
	  	~US$1,800M*	 	~US$1,900M*	 	~US$1,200M
	 Business Concept
	  	Digital Audio to Auto,
Office & Home	 	Digital Audio to Auto,
Office & Home	 	Digital Audio & Data to
Auto, Office & Home
	 Current Target Region
	  	North America	 	North America	 	Asia, Africa, Europe, ME
	 Subscribers/Customers
	  	~201,000	 	~15,000	 	*
	 Rated
	  	US$10/month	 	US$13/month	 	*
	 Sub. Acquisition cost (SAC)
	  	~ US$130/Sub.	 	~US$155/Sub.	 	*
	 Present Annual OPEX Burn Rate
	  	~ $275M*	 	~ US$290M*	 	*

  

	*	Estimates drawn from Bear Stearns report on Satellite Radio, June 2002 

  

	**	In India for audio service @*, in Kenya for KIE project @*. 

  
 Since WorldSpace provides data or multimedia content delivery in addition to audio programming, it is unique in its comparison to XM and Sirius. For pure
data and multimedia delivery services, WorldSpace shares a common market segment with other satellite technology companies such as EuroSat and PanAmSat. Again, WorldSpace is differentiated from other players in the data satellite delivery market
because it also broadcasts premium audio content. 
  
 Product Capabilities

  
 WorldSpace audio and multimedia content distribution to
both home/office fixed receivers and mobile receivers. 
  
 Audio 
  
 WorldSpace digital satellite
audio broadcasting provides extremely clear reception throughout a vast coverage area. Listeners equipped with a simple receiver (similar to a traditional radio, with the addition of a 4 inch diameter antenna) can tune in to WorldSpace audio
broadcasts anywhere in the coverage area. 
  
 Multimedia

  
 In addition, WorldSpace provides data and multimedia
transmission capabilities. Clients can deliver data in many different formats, including web content and slide show presentations, to multiple receiving sites anywhere within the WorldSpace coverage area. To receive data or multimedia content,
receiver sites simply need a PC Adaptor, small enough to fit in the palm of a 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  
  

 4 
  
  

 
hand. The PC Adaptor acts as an antenna, enabling the user to receive digital multimedia content directly to their personal computer. 
  
 Encryption 
  
 Any audio or multimedia delivery can be encrypted, depending on the needs of
a client or target audience. The WorldSpace proprietary encryption capability provides secure content delivery through encryption of information through both the uplink and receiving stages. This security mechanism is quite user friendly; clients
simply enter a code either directly into their audio receiver or use an allocated a password to unlock encrypted data delivery. 
  
 Compelling Consumer Content 
  
 In addition to the delivery capabilities of the WorldSpace system, the company also produces its own, and partners with other broadcasters to produce
their own, radio programming. Boasting top radio talent and best of breed partners, the company broadcasts a variety of global, regional, and local news, information, and music. From international jazz favorites produced by WorldSpace on its
“Riff” channel to global news and entertainment provided by National Public Radio, the company provides a diverse range of quality programming to its listening audience. 
  
 Product Road Map 
  
 WorldSpace continues to work with key manufacturing partners to develop receivers that will lead the consumer electronics market into the future.
Currently, a wide range of individual, home, and office receivers are marketed. Hardware on the market today ranges from portable, durable individual units specially suited to meet the needs of travelers, military, and harsh rural conditions to
boom-box type units with CD, AM, and FM features designed to interest the younger, electronics savvy consumer. Moving into the future, WorldSpace is working with its priority manufacturing partners :o release second and third generation products
with newer, more efficient chipsets and enhanced product features and functions. 
  
 Launch of Mobile Service 
  
 Additionally, WorldSpace is working with its core manufacturing and technology partners to enter the mobile, or in-car satellite radio market. XM and Sirius have paved the way, introducing satellite radio as an in-car product in the United
States. WorldSpace intends to launch the first ever in-car satellite radio service in Europe, Africa, India, and South East Asia. The company and its partners have implemented an “early-entry” market penetration plan to introduce in-car
mobile units beginning in 2003. The company successfully demonstrated mobile in-car satellite radio in 2002 in France, Germany, South Africa, and India. These demonstrations met with widespread success in the investment, press, automobile
manufacturer, electronics, and broadcast communities. 
  
 Mobile Service
Accomplishments to date: 
  

	 	•	 	Launched Successful Demonstrations in Paris, Germany, S. Africa, and India—Technology Proven, Alliances secured, Major Press Coverage 

  

 5 

	 	•	 	WorldSpace, Alcatel, Fraunhoffer, ST Microelectronics and XM* are core partners in European venture. 

  

	 	•	 	Automobile Manufacturers have expressed a strong interest to link up with venture. PSA, Daimler Chrysler, BMW already involved 

  

	 	•	 	WorldSpace assets F3 and F4 make the investment in the satellite infrastructure very attractive (favorably positions WS) 

  

	 	•	 	Currently in discussions to buy/absorb Global Radio 

  

	 	•	 	Morgan Stanley has already completed a first phase investment banking positioning study to assist in the fund raising. 

  

 6 

 * 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 7 

 Product Applications 
  
 The WorldSpace audio and multimedia content broadcast capabilities can be applied to numerous market needs. The company is building success on several
focused applications of its capabilities: education, health, and entertainment. 
  
 Target Client Markets 
  
 WorldSpace targets its
capabilities to focused consumer, government, and enterprise clients around the world. Specifically, WorldSpace is achieving success and building momentum in education, health, and entertainment markets. The following chart outlines key regional
markets, a brief assessment of the ICT and media landscapes in those markets, target client categories per region, and the solution marketed to’ these clients. 
  

							
	 Regions

	  	 Market Assessment

	  	 Target Client Categories

	  	 Solution

	Africa	  	 ICT infrastructure non-existent or expensive
 Very few
news and entertainment options.
	  	Private education institutions, Public education ministries, Niche consumer audiences	  	 Health and Education content delivery.
 Targeted
subscription content to niche consumers, i.e. expatriate populations.

	China	  	 Inconsistent ICT infrastructure nation-wide
 Few news and
entertainment options.
	  	Indirect sales distribution through partnerships: government telecommunications and broadcast agencies	  	 Health and Education content delivery.
 Mobile satellite
radio programming to niche consumers.

	Europe	  	 Tech-savvy consumer.
 Numerous, large expatriate
populations.
	  	Niche consumer audiences. Travel entertainment providers	  	 Targeted subscription content to niche consumers, i.e. expatriate populations.
 Enterprise sales to in-flight / train travel entertainment providers.

	India	  	 ICT infrastructure expensive. Few ratio news and entertainment options.
 Music is valued and personal. Paid subscription entertainment is common and accepted.
	  	 Private and public education institutions.
 Enterprise
finance industry. Niche consumer audiences.
	  	 Health and education content delivery.
 Data delivery to
finance industry clients.
 Targeted subscription content to niche consumers.

	South East Asia	  	 Tech-savvy consumers.
 Few news and entertainment options
in some locations.
	  	Niche consumer audiences. Travel entertainment providers.	  	 Targeted subscription content to niche consumers, i.e. expatriate populations.
 Enterprise sales to in-flight / train travel entertainment providers.

  
 In 2003, the company
will leverage success achieved in 2002 in both the consumer and enterprise markets. Specifically, the company will utilize the multi-million dollar United States Government contract it won in 2002 as a reference account to speed up the sales cycle
of government opportunities currently in the sales pipeline, worldwide. Additionally, the successful launch of 
  

 8 

 WorldSpace Global Marketing Plan 
  
 August 2003 
  
 of subscription in both India and Europe in 2002 serves as both an internal and external model to continue to penetrate the European and Indian market as well as to
launch subscription in Africa, South East Asia, and China 
  
 *

  
 Positioning 
  
 WorldSpace offers the following key differentiators: 
  

	 	•	 	Low Cost one to Many Communication 

  

	 	•	 	Huge Geographic Coverage/Market Reach 

  

	 	•	 	Independent of Costly Terrestrial Infrastructure 

  

	 	•	 	Availability of Low Cost Subscriber Units 

  

	 	•	 	Mobility 

  

	 	•	 	Just in Time Information – Audio and Data (128kb/s) 

  

	 	•	 	Quality of sound 

  

	 	•	 	Flexible capacity packages for enterprise clients to efficiently purchase only needed resources 

  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 9 

 Pricing 
  
 The WorldSpace pricing schedule is competitive with other communications and media alternatives. Subscription content is available at a low monthly fee,
on the basis of an annual purchase. Pricing to enterprise and government clients combines a capacity and per site fee. The pricing is set at a level to allow the company to receive margins on its resources, and simultaneously provide a competitive
advantage over other ICT alternatives. 
  

 10 

 * 
  
 Terms Defined 
  

			
	 Capacity Price
	  	 Fee for satellite capacity usage

		
	 Service Charge
	  	 Fee per receiver

		
	 CUG
	  	 Encrypted delivery of client specific content

		
	 Capacity Lease
	  	 Lease of satellite capacity for broadcasters

		
	 Multimedia
	  	 Delivery of data only or data and audio to a computer

		
	 Subscription
	  	 Term used specifically for consumer business

  
 Pricing Guidelines (Applies to
all): 
  
 Account managers may offer strategic discounting of up to
15%. The pricing schedule above is the minimum requirement fro the end user. Any revenue sharing partnerships will necessitate an increase in the above pricing. Contract pricing should be signed for durations of 6 months to 3 years. 

 
 Hardware, Installation, Training, and Maintenance are separate and in addition to all
pricing. 
  
 Distribution and Promotion 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 11 

 For its entire consumer business, WorldSpace will continue to work with key partners to promote and
distribute receivers and subscription packages. 
  
 In each
market, the company has formed key content, manufacturer, and distributor partners. 
  
 Strategic Distribution Alliances 
  

					
	 Region

	  	 Partners

	  	 End Client/Solution

	 Africa
	  	Educational institutions, African governments, European and US agencies, NGOs	  	Business and Government; Consumer Subscription/Mobile
	 China
	  	 Government ICT and broadcast partners;
 Receiver
partners
	  	Business and Government; Consumer Subscription/Mobile
	 Europe
	  	Joint venture with Alcatel Space, others	  	Consumer Subscription/Mobile
	 India
	  	Automobile manufacturers, after-market distributors, consumer electronics distributors, broadcast, infrastructure	  	Business; Consumer Subscription/ Mobile
	 South East Asia
	  	Automobile manufacturers, after market distributors, broadcast, infrastructure	  	Consumer Subscription/Mobile

  
 In 2003, WorldSpace
will build co-marketing plans with each of its partners to target and distribute its products in key markets. The tactics used will vary based on geographic region, target audience, and the partners’ areas of leverage in the market. Marketing
distribution and promotion efforts with partners may include: 
  

	 	•	 	Direct sales 

  

	 	•	 	Events, trade shows and conferences 

  

	 	•	 	Inserts in industry publications 

  

	 	•	 	On air ads and cross promotions (on WorldSpace and on partners’ terrestrial bands) . 

  

	 	•	 	Direct marketing (mail, email) 

  

	 	•	 	Press releases, article placement, interviews for ‘expert positioning’ 

  
 Sales & Marketing Budgets 
  
 Total Sales and Marketing Expenditures per region (not including head count) as well as line item expenses totaled for the regional offices appear below.

  
 * 
  

	*	Confidential Treatment Requested. The redacted material has been separately filed with the Commission. 

  

 12 

 EXHIBIT G 

  
 LOAN RESTRUCTURING AGREEMENT 
  
 among 
  
 STONEHOUSE CAPITAL LTD. 
  
 WORLDSPACE, INC. 
  
 WORLDSPACE INTERNATIONAL NETWORK INC. 
  
 and 
  
 WORLDSPACE SATELLITE COMPANY LTD. 
  
 Dated as of September 30, 2003 
  

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE 1
	  	 DEFINITIONS AND INTERPRETATION
	  	2
			
	 Section 1.01
	  	 General Definitions
	  	2
			
	 Section 1.02
	  	 Interpretation
	  	4
			
	 ARTICLE 2
	  	 RESTRUCTURING
	  	4
			
	 Section 2.01
	  	 Release of Obligations
	  	4
			
	 Section 2.02
	  	 Outside Date
	  	5
			
	 Section 2.03
	  	 Standstill
	  	5
			
	 ARTICLE 3
	  	 CONDITIONS PRECEDENT
	  	5
			
	 Section 3.01
	  	 Conditions Precedent
	  	5
			
	 ARTICLE 4
	  	 REPRESENTATIONS
	  	8
			
	 Section 4.01
	  	 Representations
	  	8
			
	 Section 4.02
	  	 Representations of Stonehouse
	  	10
			
	 Section 4.03
	  	 Termination of Representations
	  	11
			
	 ARTICLE 5
	  	 COVENANTS
	  	11
			
	 Section 5.01
	  	 Affirmative Covenants
	  	11
			
	 ARTICLE 6
	  	 MISCELLANEOUS
	  	11
			
	 Section 6.01
	  	 Saving of Rights
	  	11
			
	 Section 6.02
	  	 Notices
	  	12
			
	 Section 6.03
	  	 [Intentionally deleted.]
	  	13
			
	 Section 6.04
	  	 [Intentionally deleted.]
	  	13
			
	 Section 6.05
	  	 Applicable Law and Dispute Resolution
	  	13
			
	 Section 6.06
	  	 Successors and Assigns
	  	13
			
	 Section 6.07
	  	 Amendments, Waivers and Consents
	  	13
			
	 Section 6.08
	  	 Joint and Several Liability
	  	13
			
	 Section 6.09
	  	 Severability
	  	13
			
	 Section 6.10
	  	 Counterparts
	  	14
			
	 Section 6.11
	  	 Further Assurances
	  	14
			
	 Section 6.12
	  	 Entire Agreement
	  	14

  

 i 

 TABLE OF CONTENTS 
  
 EXHIBITS 
  

			
		
	Exhibit A	  	Form of Original Agreement Release
		
	Exhibit B	  	Form of Release
		
	Exhibit C	  	Form of Escrow Agreement
		
	Exhibit D	  	Form of Royalty Agreement
		
	Exhibit E	  	New Loan Parameters
		
	Exhibit F	  	Organizational Chart
		
	Exhibit G	  	Required Consents
		
	Exhibit H	  	List of Assets
		
	Exhibit I	  	List of Certain Entities
		
	Exhibit J	  	List of Subordinate Loans and Related Information
		
	Exhibit K	  	List of Persons Entitled to Receive Distributions
		
	Exhibit L	  	Dispute Resolution Procedures
		
	Exhibit M	  	Form of Legal Opinion
		
	Exhibit N	  	List of Certain Shareholder(s)

  

 ii 

 Loan Restructuring Agreement 
  
 LOAN RESTRUCTURING AGREEMENT (this “Agreement”), dated as of September 30, 2003 (the
“Execution Date”), among: 
  
 (1) STONEHOUSE
CAPITAL LTD., a corporation organized and existing under the laws of the Cayman Islands (“Stonehouse”); 
  
 (2) WORLDSPACE, INC., a corporation organized and existing under the laws of the State of Maryland, the United States of America (“WSI”);

  
 (3) WORLDSPACE INTERNATIONAL NETWORK INC., a company organized
and existing under the International Business Companies Act of the British Virgin Islands (“WIN”); and 
  
 (4) WORLDSPACE SATELLITE COMPANY LTD., a company organized and existing under the International Business Companies Act of the British Virgin Islands
(“WSC”). 
  
 RECITALS 
  
 A. The WorldSpace Parties and Stonehouse are parties to that certain Amended
and Restated Loan Agreement and Guarantee, dated as of April 21, 2000, by and among Stonehouse, WorldSpace, WIN and Satellite Company (the “Loan Agreement”). 
  
 B. The obligations of WSI, WIN and WSC under the Loan Agreement are secured by three Security Agreements, each dated as of
April 21, 2000, between Stonehouse and respectively, WSI, WIN, and WSC (each referred to herein as a “Security Agreement” and collectively as the “Security Agreements”). 
  
 C. The WorldSpace Parties have requested that Stonehouse enter into this
Agreement in order to enable the WorldSpace Parties to obtain capital investment to finance the commercial expansion of their business and thereby enhance the prospective return to Stonehouse on its investment in the WorldSpace Enterprise.

  

 1 

 NOW, THEREFORE, in consideration of the foregoing and the agreements set forth herein, and for other good
and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
 ARTICLE 1 
  
 Definitions and Interpretation 
  
 Section 1.01 General Definitions. Wherever used in this Agreement, the following terms have the meanings opposite them: 
  

			
	“Agreement”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“Annual Operating Budget”	  	the annual operating budget (allocated on a monthly basis, for the twelve months immediately following the date of the Restructuring) which is attached as Exhibit E to the Royalty
Agreement;
		
	“Charter Documents”	  	in respect of any company, corporation, partnership, governmental agency, or other enterprise, its founding act, charter, articles of incorporation and by-laws, memorandum and articles of
association, statute or such other constitutional instrument and any amendments thereto;
		
	“Condition Precedent”	  	has the meaning ascribed thereto in Section 3.01 hereof;
		
	“Designated Releases”	  	has the meaning ascribed thereto in Section 3.01(a) hereof;
		
	“Distributions”	  	has the meaning ascribed thereto in the Royalty Agreement;
		
	“Dollars”	  	the lawful currency of the United States of America, also represented herein with the “$” sign;
		
	“Economic Ownership Interest”	  	the percentage ownership interest in an entity (which interest must include the right to receive a proportionate share of dividends, profits and similar amounts distributed by such entity)
held by a Person or Persons, directly or indirectly on a fully diluted basis;
		
	“Escrow Agent”	  	has the meaning ascribed thereto in Section 3.01(a) hereof;
		
	“Escrow Agreement”	  	has the meaning ascribed thereto in Section 3.01(a) hereof;
		
	“Execution Date”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“Financial Model”	  	the financial model (based on mutually agreed assumptions and showing mutually agreed debt coverage and equity return forecasts) which is attached as Exhibit D to the Royalty
Agreement;
		
	“Fiscal Year”	  	the accounting year of each of the WorldSpace Parties commencing each year on January 1 and ending on the following December 31, or such other period as the WorldSpace Parties, with
Stonehouse’s consent, from time to time designate as their accounting year;

  

 2 

			
	“Funding Expenditure Plan”	  	the mutually agreed plan for the use of the New Loan (including, inter alia, a disbursement schedule therefor) which is attached as Exhibit B to the Royalty Agreement;
		
	“Loan Agreement”	  	has the meaning ascribed thereto in the Recitals hereof;
		
	“New Investor”	  	has the meaning ascribed thereto in Section 3.01(c) hereof;
		
	“New Loan”	  	has the meaning ascribed thereto in Section 3.01(c) hereof;
		
	“New Loan Documentation”	  	has the meaning ascribed thereto in Section 3.01(c) hereof;
		
	“New Loan Parameters”	  	has the meaning ascribed thereto in Section 3.01(c) hereof;
		
	“Operating and Marketing Plan”	  	the operating and marketing plan which is attached as Exhibit F to the Royalty Agreement;
		
	“Original Agreement Release”	  	has the meaning ascribed thereto in Section 2.01 hereof;
		
	“Original Agreements”	  	has the meaning ascribed thereto in Section 2.01 hereof;
		
	“Outside Date”	  	has the meaning ascribed thereto in Section 2.02 hereof;
		
	“Person”	  	any natural person, corporation, company, partnership, firm, voluntary association, joint venture, trust, unincorporated organization, authority or any other entity whether acting in an
individual, fiduciary or other capacity;
		
	“Releases”	  	has the meaning ascribed thereto in Section 3.01(a) hereof;
		
	“Restructuring”	  	has the meaning ascribed thereto in Section 3.01 hereof;
		
	“Royalty Agreement”	  	has the meaning ascribed thereto in Section 3.01(b) hereof;
		
	“Security Agreements”	  	has the meaning ascribed thereto in the Recitals hereof;
		
	“Shareholders”	  	has the meaning ascribed thereto in Section 3.01(a) hereof;
		
	“Stonehouse”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“Subordination Agreement”	  	has the meaning ascribed thereto in Section 3.01(k);
		
	“Subordinate Lenders”	  	has the meaning ascribed thereto in Section 3.01(k);
		
	“Subordinate Loans”	  	has the meaning ascribed thereto in Section 3.01(k);
		
	“Transaction Documents”	  	has the meaning ascribed thereto in Section 3.01(j) hereof;

  

 3 

			
	“U.S. GAAP”	  	generally accepted accounting principles in the United States, consistently applied;
		
	“WorldSpace Enterprise”	  	the assets and other resources involved in the broadcast of satellite audio and multimedia content and any investments or other assets owned, whether directly or indirectly, by
WSI;
		
	“WorldSpace Parties”	  	WSI, WIN and WSC, or any of them individually as the context may require;
		
	“WIN”	  	has the meaning ascribed thereto in the Preamble hereof;
		
	“WSC”	  	has the meaning ascribed thereto in the Preamble hereof; and
		
	“WSI”	  	has the meaning ascribed thereto in the Preamble hereof.

  
 Section 1.02
Interpretation. In this Agreement, unless the context otherwise requires: 
  
 (a) headings are for convenience only and do not affect the interpretation of this Agreement; 
  
 (b) words importing the singular include the plural and vice
versa; 
  
 (c) a reference to an Exhibit,
Article, party, Schedule or Section is a reference to that Article or Section of, or that Exhibit, party or Schedule to, this Agreement; 
  
 (d) a reference to a document includes an amendment or supplement to, or replacement or novation of, that document but disregarding any
amendment, supplement, replacement or novation made in breach of this Agreement; 
  
 (e) a reference to a party to any document includes that party’s successors and permitted assigns; and 
  
 (f) “including” and “include” shall be
deemed to mean “including, without limitation” and “include, without limitation.” 
  
 ARTICLE 2 
  
 Restructuring 
  
 Section 2.01 Release of
Obligations. 
  
 Upon (but not before) the satisfaction
(or waiver by Stonehouse in its sole and absolute discretion) of each of the Conditions Precedent, Stonehouse shall cancel, release and discharge, by the execution and delivery of a mutual release in the form attached hereto as Exhibit A (the
“Original Agreement Release”) (a) all obligations and liabilities (whether or not accrued and 

  

 4 

 
whenever scheduled to be due and payable) of the WorldSpace Parties arising under the Loan Agreement, and (b) all of its liens and security interests under
the Security Agreements (the Security Agreements and the Loan Agreement collectively referred to herein as the “Original Agreements”). Pursuant to the Original Agreement Release, the WorldSpace Parties shall cancel, release and
discharge all obligations and liabilities (whether or not accrued) of Stonehouse arising under or in connection with the Loan Agreement or any of the other Original Agreements. The Original Agreement Release shall be fully executed, and delivered to
the Escrow Agent, no later than the Execution Date. Until its release from escrow, the Original Agreement Release shall be held by the Escrow Agent pursuant to the Escrow Agreement. For the avoidance of doubt, the Original Agreement Release shall
not become effective unless and until the Restructuring has occurred and the Original Agreement Release is released from escrow. 
  
 Section 2.02 Outside Date. 
  
 If the Restructuring does not occur by the one-year anniversary of the Execution Date or by such later date as may be agreed by Stonehouse and WSI in
writing (the one-year anniversary of the Execution Date or such later date agreed by Stonehouse and WSI referred to herein as the “Outside Date”), then this Agreement will terminate, and each of the Original Agreements will remain
in full force and effect and unmodified hereby (including, without limitation, with respect to the accrual of interest without interruption), as if this Agreement had never been entered into. 
  
 Section 2.03 Standstill. 
  
 At no time prior to the Outside Date shall Stonehouse, WSI, WIN, WSC, or the
owners, shareholders, officers or directors of any of the foregoing initiate any legal proceedings against each other arising out of or in any way related to any of the WorldSpace Parties (or any of their affiliates), the WorldSpace Enterprise,
Stonehouse (or any of its affiliates), or to any of the Original Agreements, with respect to any act, omission or claim taken or arising prior to the Outside Date, it being the intention of the aforesaid parties that there be a standstill
arrangement among them until the aforesaid date in order for the WorldSpace Parties to seek new investors; provided, however, that none of the foregoing is intended to, nor shall, preclude any party hereto from enforcing its rights
under this Agreement. Additionally, and notwithstanding any of the foregoing, in the event that any of the WorldSpace Parties (a) initiates voluntary bankruptcy, insolvency or similar proceedings during such standstill period, or (b) has any
involuntary bankruptcy or similar proceedings initiated against it during such standstill period, or (c) takes any action to reorganize or other action which could adversely impact Stonehouse’s current investment during such standstill period,
then Stonehouse shall be entitled to take any steps it deems appropriate to protect its investment, and in the case of clause (b), the WorldSpace Parties shall be entitled to take any steps they deem appropriate to protect their interest.

  
 ARTICLE 3 
  
 Conditions Precedent 
  
 Section 3.01 Conditions Precedent. The execution and delivery
of the Release (including its release from escrow) by Stonehouse (referred to herein as the “Restructuring”) 

  

 5 

 
shall be expressly conditioned upon the fulfillment, in form and substance reasonably satisfactory to Stonehouse, of each of the following (each referred to
herein as a “Condition Precedent”), or waiver thereof by Stonehouse in its sole and absolute discretion; it being acknowledged that certain of the conditions precedent below may be satisfied simultaneously with (rather than prior
to) the occurrence of the Restructuring so long as such satisfaction is accomplished pursuant to closing logistics acceptable to Stonehouse. 
  
 (a) Stonehouse and each of the related individuals and entities specified in the form of release attached hereto as Exhibit B (the
“Releases”) shall have received Releases, each released from escrow, unconditional and in full force and effect, and fully executed by each of the WorldSpace Parties and their respective shareholders (the
“Shareholders”). All of the Releases shall be fully executed, and delivered to the Escrow Agent, no later than the Execution Date. Until their release from escrow, the Releases shall be held by Tri-State Commercial Closings, Inc. or
such replacement escrow agent as may be agreed between Stonehouse and the WorldSpace Parties (Tri-State Commercial Closings, Inc. or such replacement escrow agent, as applicable, referred to herein as the “Escrow Agent”) pursuant to
an escrow agreement in the form attached hereto as Exhibit C (the “Escrow Agreement”); notwithstanding the foregoing, provided that the WorldSpace Parties have used their best reasonable efforts to obtain Releases from all of
the Shareholders, if the WorldSpace Parties are unable to obtain a Release from that (or those, as applicable) individual Shareholder(s) specified on Exhibit N (the “Designated Releases”), the WorldSpace Parties may, by
written notice to Stonehouse not less than 15 nor more than 30 days prior to the date of the Restructuring, substitute for the Designated Releases an unsecured indemnity, in form and substance satisfactory to Stonehouse, jointly and severally from
Noah Samara and Salah Idris and in favor of Stonehouse and its designees. 
  
 (b) A royalty agreement in the form attached hereto as Exhibit D (the “Royalty Agreement”) shall have been fully executed and delivered, be released from escrow, unconditional and in full force
and effect. The Royalty Agreement shall be fully executed, and delivered to the Escrow Agent, no later than the Execution Date. Until its release from escrow, the Royalty Agreement shall be held by the Escrow Agent pursuant to the Escrow Agreement.

  
 (c) After the Execution Date, WSI (and/or one
or more direct or indirect subsidiaries one hundred percent (100%) of whose revenues are included in WorldSpace EBITDA, as defined in the Royalty Agreement) shall have received total cumulative investment proceeds of at least fifty million Dollars
(US$50,000,000) (whether debt, equity or other form of investment or a combination thereof) (the “New Loan”) from one or more parties who, prior to the Execution Date, are not (nor were at any time previously) shareholders of WSI or
any of its affiliates or subsidiaries and are not affiliates, family members or other relatives of any such shareholders, through one or more transactions including a private placement, a privately negotiated transaction and/or a public offering,
all on terms substantially meeting the parameters described in Exhibit E attached hereto (the “New Loan Parameters”). The parties hereby acknowledge that one such parameter shall be that the investor or lender providing the
New Loan (together with any successor or assignee thereof, the “New Investor”) agrees, pursuant to documentation which is in form and substance satisfactory to Stonehouse, that the Royalty Agreement and payment obligations
thereunder shall follow the assets of the WorldSpace Parties and not be diminished or otherwise impaired upon the New Investor’s exercise of remedies under its loan agreement (or, if applicable, other similar agreement) and related
documentation 

  

 6 

 
(collectively, the “New Loan Documentation”) to foreclose on and/or sell assets following a default by any of the WorldSpace Parties.

  
 (d) WSI shall have paid the success fee of
Stonehouse’s investment bankers, Houlihan, Lokey, Howard and Zukin, not to exceed one million two hundred fifty thousand Dollars ($1,250,000), plus expenses. 
  
 (e) [Intentionally deleted.] 
  
 (f) [Intentionally deleted.] 
  
 (g) [Intentionally deleted.] 
  
 (h) [Intentionally deleted.] 
  
 (i) The factual information contained in the Financial Model, the Funding Expenditure Plan, the Annual
Operating Budget, and the Operating and Marketing Plan shall continue to be true, correct, and complete, and applicable, in all material respects as of the date of the Restructuring; the projections and forecasts contained in the Financial Model,
the Funding Expenditure Plan, the Annual Operating Budget, and the Operating and Marketing Plan shall continue to represent the reasonable business judgment of the WorldSpace Parties and to be based on assumptions which are fair and reasonable as of
the date of the Restructuring; and updated copies of all of the foregoing, showing all changes from the prior versions, shall have been delivered to Stonehouse, together with satisfactory evidence of the New Investor’s approval thereof.

  
 (j) Stonehouse shall have received
satisfactory evidence of each WorldSpace Party’s authority to enter into this Agreement and each of the other documents contemplated hereby (including the Royalty Agreement, the Releases, the Escrow Agreement, the Original Agreement Release,
and the New Loan Documentation) (this Agreement and such other documents referred to herein as the “Transaction Documents”) to be entered into by it. 
  
 (k) Stonehouse shall have received a subordination and standstill agreement, in form and substance
satisfactory to Stonehouse (referred to herein as a “Subordination Agreement”), from the makers or providers of any loan or other debt (other than the New Loan and the loan under the Loan Agreement) which is existing (or with
respect to which any contingent or other obligations or liabilities shall exist) as of the date of the Restructuring (the aforesaid makers or providers referred to herein collectively as the “Subordinate Lenders”; and the aforesaid
loans or other debt referred to herein collectively as the “Subordinate Loans”), and Stonehouse also shall have received copies of all documentation entered into in connection with, or otherwise evidencing, the Subordinate Loans.

  
 (l) Stonehouse shall have received an updated
organizational chart certified by WSI listing all subsidiaries and other affiliates of WSI which is consistent with Exhibit F. 
  
 (m) The evidence offered by the WorldSpace Parties to Stonehouse prior to the Execution Date as to the anticipated tax consequences of the
transactions contemplated hereunder (including those in connection with any “forgiveness of debt”) shall have been 

  

 7 

 
provided to Stonehouse, without any changes that reasonably cause Stonehouse to be dissatisfied therewith. 
  
 (n) No misrepresentation or (unless cured) breach or other
default hereunder by any of the WorldSpace Parties shall have occurred. 
  
 (o) Stonehouse shall have received a legal opinion, in the form attached hereto as Exhibit M, from counsel to the WorldSpace Parties. 
  
 ARTICLE 4 
  
 Representations 
  
 Section 4.01 Representations. Each of the WorldSpace Parties represents, warrants, and covenants, jointly and severally, to Stonehouse that
as of the Execution Date and as of the date of the Restructuring: 
  
 (a) Such WorldSpace Party is a legal entity duly organized and validly existing under the laws of the jurisdiction in which it is organized, and has the power and authority to carry on its business and to own its
properties and assets and to execute, deliver and perform this Agreement and each of the other Transaction Documents; 
  
 (b) This Agreement has been duly and validly authorized, executed and delivered by it and constitutes its valid and legally binding
obligation, enforceable in accordance with its terms (except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the rights of creditors generally and by general
principles of equity); 
  
 (c) The execution,
delivery and performance by it of this Agreement and each of the other Transaction Documents does not conflict with or result in a breach of any of the terms, conditions or provisions of, or constitute a default or require any consent under, any
indenture, mortgage, agreement or other instrument or arrangement to which such WorldSpace Party is a party or by which it is bound, or any judgment, decree or order of any law, statute, rule or regulation applicable to it, or violate any of the
terms or provisions of its Charter Documents; 
  
 (d) Except as disclosed and attached hereto as Exhibit G, it is not required to obtain any material consent, authorization, registration, filing, agreement, notarization, certificate, license, approval, permit, authority or exemption
in connection with the execution, delivery, performance, validity or enforceability of this Agreement, the other Transaction Documents; 
  
 (e) All Charter Documents, financial reports and other documents required to be delivered to Stonehouse pursuant to the terms of the
Transaction Documents prior to (and including) the date of the Restructuring are true, complete and accurate copies thereof; 
  
 (f) There are no outstanding liens on any of its assets, and no contracts or arrangements, conditional or unconditional, exist for the
creation by it of any lien (other than existing liens in favor of Stonehouse, liens to secure all or part of the New Loan, and liens 

  

 8 

 
arising by operation of law); provided, however, that if a lien arises after the Execution Date and prior to (and including) the date of the
Restructuring (other than a lien in favor of Stonehouse, a lien to secure all or part of the New Loan or a lien arising by operation of law), beginning on the date such lien arises the WorldSpace Parties shall have thirty (30) days (or if shorter,
until five (5) days before the date of the Restructuring) to remove such lien (and cure any adverse effects which may have arisen therefrom); 
  
 (g) Such WorldSpace Party is not in violation of any applicable statute, regulation or other law applicable to it; provided,
however, that if such a violation occurs after the Execution Date and prior to (and including) the date of the Restructuring, beginning on the date such violation occurs the WorldSpace Parties shall have thirty (30) days (or if shorter, until
five (5) days before the date of the Restructuring) to cure such violation (and any adverse effects which may have arisen therefrom); 
  
 (h) Such WorldSpace Party is not engaged in or threatened by any litigation, arbitration, investigation, administrative proceedings or
other similar types of action; provided, however, that if any such action referenced in this subparagraph (h) occurs after the Execution Date and prior to (and including) the date of the Restructuring, beginning on the date such action
occurs the WorldSpace Parties shall have thirty (30) days (or if shorter, until five (5) days before the date of the Restructuring) to have such action terminated (and cure any adverse effects which may have arisen therefrom); 
  
 (i) All material authorizations, licenses and permits
required for the operation of the WorldSpace Enterprise have been obtained, and are current, valid and in full force and effect; provided, however, that if any such authorizations, licenses or permits become invalid after the Execution
Date and prior to (and including) the date of the Restructuring, beginning on the date such authorizations, licenses or permits become invalid the WorldSpace Parties shall have thirty (30) days (or if shorter, until five (5) days before the date of
the Restructuring) to have such authorizations, licenses or permits restored (and cure any adverse effects which may have arisen therefrom); 
  
 (j) The Financial Model, the Funding Expenditure Plan, the Annual Operating Budget and the Operating and Marketing Plan, which are subject
to the assumptions and qualifications set forth therein, have been prepared by the WorldSpace Parties in good faith and do not contain any statement of present or historical fact that is not true and correct in all material respects; 
  
 (k) All tax returns and reports required by law to be filed
by such WorldSpace Party have been duly filed, and taxes, obligations, fees and other governmental charges upon it, or its properties, or its income or assets, which are due and payable or to be withheld, have been paid or withheld, other than those
presently payable without penalty or interest and those subject to contest diligently pursued and conducted in good faith by appropriate proceedings so long as it has set aside adequate reserves with respect thereto in accordance with U.S. GAAP;
provided, however, that if the WorldSpace Parties inadvertently breach the terms of this subparagraph (k) after the Execution Date and prior to (and including) the date of the Restructuring, beginning on the date of such breach the
WorldSpace Parties shall have thirty (30) days (or if shorter, until five 

  

 9 

 
(5) days before the date of the Restructuring) to cure such breach (and any adverse effects which may have arisen therefrom); 
  
 (l) All assets material to the WorldSpace Enterprise
(including intangible assets, such as licenses, material contracts, and leases of property containing operational assets) including all material assets owned by each of the WorldSpace Parties, as well as the identification of the owner of each such
asset, are included on the list set forth as Exhibit H, and Exhibit H is true and complete in all material respects, and each of the WorldSpace Parties agrees that, until (and including) the date of the Restructuring, it shall
immediately notify Stonehouse if there is any material change after the date hereof to any of the information described on Exhibit H; 
  
 (m) Exhibit I is an accurate and complete list of entities whose earnings are included in WSI’s consolidated income statement,
as well as any other entities in which WSI has any Economic Ownership Interest as of the Execution Date, including the percentage ownership interest of WSI in each listed entity, and each of the WorldSpace Parties agrees that, until (and including)
the date of the Restructuring, it shall immediately notify Stonehouse if there is any material change after the Execution Date to any of the information described on Exhibit I; 
  
 (n) Exhibit J is an accurate and complete list of the Subordinate Lenders and the Subordinate Loans
(together with the documentation entered into in connection with, or otherwise evidencing, the same), existing as of the Execution Date, and each of the WorldSpace Parties agrees that, until (and including) the date of the Restructuring, it shall
immediately notify Stonehouse if there is any change after the Execution Date to any of the information described on Exhibit J; and 
  
 (o) Exhibit K is an accurate and complete list of each of the Persons who, on or after the date of the Restructuring, may be
entitled to receive Distributions (as defined in the Royalty Agreement) (together with the documentation entered into in connection with, or otherwise evidencing, the rights to receive such Distributions), and each of the WorldSpace Parties agrees
that, until (and including) the date of the Restructuring, it shall immediately notify Stonehouse if there is any change after the date hereof to any of the information described on Exhibit K, and each of the WorldSpace Parties also agrees
that if, prior to (and including) the date of the Restructuring, any Person who has not previously executed and delivered a Subordination Agreement becomes entitled to receive (or to potentially receive) Distributions (other than with respect to
dividends which, pursuant to the terms of the Royalty Agreement, may be distributed to shareholders of WSI), such Person shall immediately execute and deliver a Subordination Agreement. 
  
 Section 4.02 Representations of Stonehouse. Stonehouse represents and warrants that, as of the Execution Date
and as of the date of the Restructuring: 
  
 (a)
It is a legal entity duly organized and validly existing under the laws of the jurisdiction in which it is organized, and has the power and authority to execute, deliver and perform this Agreement and the Original Agreement Release; and 

 

 10 

 (b) This Agreement and (as of the date of the Restructuring) the Original Agreement
Release has been duly and validly authorized, executed and delivered by it and constitutes its valid and legally binding obligation, enforceable in accordance with its terms (except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, or similar laws affecting the rights of creditors generally and by general principles of equity). 
  
 Section 4.03 Termination of Representations. The representations, warranties and covenants set forth in Sections 4.01 and 4.02 shall
terminate upon and shall not survive the occurrence of the Restructuring. 
  
 ARTICLE 5 
  
 Covenants

  
 Section 5.01 Affirmative Covenants. Unless
Stonehouse otherwise agrees, prior to (and including) the date of the Restructuring the WorldSpace Parties shall: 
  
 (a) As soon as available but in any event within one hundred twenty (120) days after the end of each Fiscal Year, deliver to Stonehouse a
copy of the WorldSpace Parties’ audited consolidated financial statement as of the end of such Fiscal Year, prepared in accordance with U.S. GAAP; and 
  
 (b) Use the proceeds comprising the New Loan only in accordance with (or substantially in accordance with) the Funding Expenditure
Plan. 
  
 ARTICLE 6 
  
 Miscellaneous 
  
 Section 6.01 Saving of Rights. 
  
 (a) The rights and remedies of Stonehouse in relation to any
misrepresentation or breach of warranty on the part of any of the WorldSpace Parties shall not be prejudiced by any investigation by or on behalf of Stonehouse into the affairs of any of the WorldSpace Parties, by the execution or the performance of
this Agreement or by any other act or thing which may be done by or on behalf of Stonehouse in connection with this Agreement and which might, apart from this Section, prejudice such rights or remedies. 
  
 (b) No course of dealing or waiver by Stonehouse in
connection with any condition or payment to be made under this Agreement shall impair any right, power or remedy of Stonehouse with respect to any other condition or payments, or be construed to be a waiver thereof; nor shall the action of
Stonehouse with respect to any condition or payment affect or impair any right, power or remedy of Stonehouse with respect to any other condition or payment. 
  

 11 

 (c) No course of dealing and no failure or delay by Stonehouse in exercising, in whole or
in part, any power, remedy, discretion, authority or other right under this Agreement or any other agreement shall waive or impair, or be construed to be a waiver of or an acquiescence in, such or any other power, remedy, discretion, authority or
right under this Agreement, or in any manner preclude its additional or future exercise; nor shall the action of Stonehouse with respect to any default, or any acquiescence by it therein, affect or impair any right, power or remedy of Stonehouse
with respect to any other default. 
  
 Section 6.02
Notices. Any and all notices or other communications or deliveries required or permitted to be given pursuant to any of the provisions of this Agreement will be deemed to have been duly given for all purposes if sent both (a) by
telefax and (b) by certified or registered mail, return receipt requested and postage prepaid, by hand delivery, or by an internationally recognized overnight courier, in any case to the telefax number and the address of such party listed below or
to such other telefax number or address as any party may specify by notice given to the other party in accordance with this Section 6.02. 
  
 For the WorldSpace Parties: 
  
 Noah A. Samara 
 Chairman and Chief Executive
Officer 
 WorldSpace International Network Inc. 
 2400 N Street, N.W. 
 Washington, D.C. 20037 
 Telefax: 202-969-6004 
  
 with a copy to: 
  
 Donald J. Frickel, Esq. 
 WorldSpace
International Network Inc. 
 2400 N Street, N.W. 
 Washington, D.C. 20037 
 Telefax: 202-969-6560 
  
 For Stonehouse: 
  
 Stonehouse Capital Ltd. 
 c/o Al-Murjan
Organization 
 PO Box 52558 
 Jeddah 21573 
 Saudi Arabia 
 Attention: Cherif Sedky 
 Telefax: 011-9662-694-3466 
  
 with a copy to: 
  
 Jeffrey H. Goodman, Esq. 
 Fulbright &
Jaworski L.L.P. 
 801 Pennsylvania Avenue, N.W. 
 Washington, D.C. 20004-2623 
 Telefax: 202-662-4643 
  

 12 

 The date of giving of any such notice will be: (a) in the case of delivery by hand or courier, the date
of delivery at the appropriate address specified in or pursuant to this Section 6.02, provided that the notice has also been sent by telefax to the appropriate telefax number specified in or pursuant to this Section 6.02; or (b) in the case of
delivery by mail, five (5) days following the posting of the mail addressed to the appropriate address specified in or pursuant to this Section 6.02, if posted in the same country as the country of the address, and twelve (12) days following the
posting of the mail addressed to the appropriate address specified in or pursuant to this Section 6.02, if posted in a different country than the country of the address, provided that the notice has also been sent by telefax to the appropriate
telefax number specified in or pursuant to this Section 6.02. 
  
 Section 6.03 [Intentionally deleted.] 
  
 Section 6.04
[Intentionally deleted.] 
  
 Section 6.05 Applicable Law and
Dispute Resolution. This Agreement shall be deemed to be a contract made under, and shall be governed by, and shall be construed and interpreted in accordance with, the laws of the State of New York, United States of America, without regard
to the conflict of laws provisions thereof (other than Section 5-1401 and 5-1402 of the General Obligations Laws of the State of New York). The parties hereto agree to submit any dispute based on any matter arising out of or relating to this
Agreement or the transactions contemplated hereby to arbitration in accordance with the terms set forth on Exhibit L attached hereto. 
  
 Section 6.06 Successors and Assigns. This Agreement binds and benefits the respective successors and assigns of the parties;
provided, however, that none of the WorldSpace Parties may assign or delegate any of their respective rights or obligations under this Agreement without the prior consent of Stonehouse. 
  
 Section 6.07 Amendments, Waivers and Consents. No failure or
delay by any party at any time to enforce one or more of the terms, conditions or obligations of this Agreement will constitute a waiver of such terms, conditions or obligations or will preclude such party from requiring performance by the other
party at any time. No waiver of the provisions hereof, or any consent given hereunder, will be effective unless in writing and signed by the party to be charged with such waiver or consent. No waiver will be deemed a continuing waiver or waiver in
respect of any subsequent breach or default, either of similar or different nature, unless expressly so stated in writing. This Agreement may only be amended by a written instrument signed by all of the parties hereto. 
  
 Section 6.08 Joint and Several Liability. Each of the
WorldSpace Parties hereby agrees that it shall be jointly and severally liable for the obligations of each of the WorldSpace Parties hereunder. 
  
 Section 6.09 Severability. All the provisions of this Agreement will be considered as separate terms and conditions. In the event any of the
provisions hereof is determined to be 

  

 13 

 
invalid, prohibited or unenforceable by a court or other body of competent jurisdiction, this Agreement will be construed as if such invalid, prohibited or
unenforceable provision has been more narrowly drawn so as not to be invalid, prohibited or unenforceable, unless such construction would be unreasonable. Notwithstanding the foregoing sentence, in the event that any provision contained in this
Agreement should be determined to be invalid, prohibited or unenforceable, the validity, legality and enforceability of the remaining provisions contained in this Agreement will not in any way be affected or impaired thereby, unless such
construction would be unreasonable. 
  
 Section 6.10
Counterparts. This Agreement may be executed in several counterparts, each of which is an original, but all of which together constitute one and the same agreement. 
  
 Section 6.11 Further Assurances. The WorldSpace Parties will, at their cost, execute and deliver promptly such
additional documents, assignments, certificates and instruments as Stonehouse may reasonably request in order to effectuate the provisions of, and the transactions provided for in, this Agreement. Stonehouse will, at the cost of the WorldSpace
Parties, execute and delivery promptly such additional documents, assignments, certificates and instruments as any for the WorldSpace Parties may reasonably request in order to effectuate the provisions of, and the transactions provided for in, this
Agreement (including, without limitation, the release of the liens pursuant to the Security Agreements). 
  
 Section 6.12 Entire Agreement. Subject to Section 2.02 hereof, this Agreement supersedes any prior agreement (including that certain Term
Sheet executed by the parties hereto and dated as of March 1, 2003), understanding, representation or warranty between the parties as to the subject matter of this Agreement, which prior agreements, understandings, representations and warranties
shall be of no continuing effect except to the extent otherwise provided herein. 
  
 *         *         * 
  

 14 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be signed in their respective names as of
the date first above written. 
  

			
	WORLDSPACE, INC.
		
	By:	 	/S/    NOAH A. SAMARA
	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

	
	WORLDSPACE INTERNATIONAL NETWORK INC.
		
	By:	 	/S/    NOAH A. SAMARA
	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

	
	WORLDSPACE SATELLITE COMPANY LTD.
		
	By:	 	/S/    NOAH A. SAMARA
	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

	
	STONEHOUSE CAPITAL LTD.
		
	By:	 	/S/    ABDULRAHMAN BIN MAHFOUZ
	 	 	Abdulrahman Bin Mahfouz
		
	By:	 	/S/    SULTAN BIN MAHFOUZ
	 	 	 Sultan Bin Mahfouz

  

 15 

  
 FIRST AMENDMENT

  
 TO 
  
 LOAN RESTRUCTURING AGREEMENT 
  
 AND 
  
 ROYALTY AGREEMENT 
  
 AMONG 
 STONEHOUSE CAPITAL LTD. 
 WORLDSPACE,
INC. 
 WORLDSPACE INTERNATIONAL NETWORK INC. 
  
 AND 
  
 WORLDSPACE SATELLITE COMPANY, LTD. 
  
 Dated September 28, 2004 
  

 This First Amendment (“First Amendment”) made as of this 28th day of September, 2004 by
and among Stonehouse Capital Ltd. (“Stonehouse”), WorldSpace, Inc. (“WSI”), WorldSpace International Network Inc. (“WIN”) and WorldSpace Satellite Company Ltd. (“WSC”) (WSI, WIN, and WSC collectively referred
to herein as the “WorldSpace Parties”). 
  
 WITNESSETH:

  
 WHEREAS, Stonehouse and the WorldSpace Parties did enter into
that certain Loan Restructuring Agreement dated as of September 30, 2003 (the “Loan Restructuring Agreement”) in order to enable the WorldSpace Parties to obtain capital investment to finance the commercial expansion of their business; and

  
 WHEREAS, Stonehouse and the WorldSpace Parties did enter into
that certain Royalty Agreement dated as of September 30, 2003 (the “Royalty Agreement”) in order to establish certain rights of Stonehouse to receive royalty payments from the WorldSpace Parties; and 
  
 WHEREAS, Stonehouse, the WorldSpace Parties and Tri-State Commercial
Closings, Inc. (the “Escrow Agent”) did enter into that certain Escrow Agreement dated as of September 30, 2003 (the “Escrow Agreement”) (the Loan Restructuring Agreement, the Royalty Agreement and the Escrow Agreement
collectively referred to herein as the “Agreements”) in order to establish the terms by which certain documents be held in escrow; and 
  
 WHEREAS, Stonehouse and each of the WorldSpace Parties desire to amend the Loan Restructuring Agreement and the Royalty Agreement and to provide the
Escrow Agent with notification of such amendments in accordance with the provisions set forth below. 
  
 NOW THEREFORE, in consideration of the mutual promises and covenants herein contained, the receipt and sufficiency of which are hereby acknowledged,
Stonehouse and the WorldSpace Parties hereby agree to amend the Loan Restructuring Agreement and the Royalty Agreement and to provide the Escrow Agent with notification of such amendments as follows: 
  

	1.	Replace Section 2.02 of the Loan Restructuring Agreement with: 

  
 “If the Restructuring does not occur by March 31, 2005 or by such later date as may be agreed by Stonehouse and WSI in writing (the March 31, 2005
date or such later date agreed by Stonehouse and WSI referred to herein as the “Outside Date”), then this Agreement will terminate, and each of the Original Agreements will remain in full force and effect and unmodified hereby
(including, without 

  

 
limitation, with respect to the accrual of interest without interruption), as if this Agreement had never been entered into.” 
  

	2.	Replace Section 1.2(b) of Exhibit B to the Loan Restructuring Agreement with: 

  

“(b) this Release will be null and void if the date of the closing of the Debt Restructuring Transaction does not occur on or before December 31,
2005.” 
  

	3.	Replace Section 5.05 of the Royalty Agreement with: 

  
 “This Agreement will automatically terminate if the Effective Date has not occurred on or before March 31, 2005.” 
  

	4.	The forms of the Loan Restructuring Agreement, the Royalty Agreement and the Escrow Agreement attached to the Agreements as exhibits, where applicable, shall be considered to be
revised to reflect the terms contained in this First Amendment. 

  

	5.	Stonehouse and WSI agree to provide the Escrow Agent with a written notice (which notice shall be countersigned by the Escrow Agent), notifying the Escrow Agent of the change to the
“Outside Date” as effected by this Amendment. 

  

	6.	This First Amendment may be executed in multiple counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

  

	7.	Except as otherwise hereby modified, all other terms, provisions and conditions of the Agreements shall remain in full force and effect. 

  
 IN WITNESS WHEREOF, the parties have caused this First Amendment to be signed
in their respective names as of the date first above written. 
  

			
	 STONEHOUSE CAPITAL LIMITED

		
	 By:
	 	 /s/    ABDULRAHMAN BIN
MAHFOUZ

	 Name:
	 	 Abdulrahman Bin Mahfouz

		
	 By:
	 	 /s/    SULTAN BIN
MAHFOUZ

	 Name:
	 	 Sultan Bin Mahfouz

  

			
	 WORLDSPACE, INC.

		
	 By:
	 	 /s/    NOAH A. SAMARA

	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

	
	WORLDSPACE INTERNATIONAL NETWORK INC.
		
	 By:
	 	 /s/    NOAH A. SAMARA

	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

	
	 WORLDSPACE SATELLITE COMPANY, LTD.

		
	 By:
	 	 /s/    NOAH A. SAMARA

	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

  

  
 SECOND AMENDMENT

  
 TO 
  
 LOAN RESTRUCTURING AGREEMENT 
  
 AND 
  
 ROYALTY AGREEMENT 
  
 AMONG 
 STONEHOUSE CAPITAL LTD. 
 (a
corporation organized and existing under the laws of the Cayman Islands) 
  
 WORLDSPACE, INC. 
 (a corporation organized and existing under the laws of the State of Maryland)

  
 WORLDSPACE INTERNATIONAL NETWORK INC. 
 (a company organized and existing under the International Business Companies Act 
 of the British Virgin Islands) 
  
 WORLDSPACE SATELLITE COMPANY, LTD. 
 (a company organized and existing under the International
Business Companies Act 
 of the British Virgin Islands) 
  
 AND 
  
 WORLDSPACE, INC. 
 (a corporation
organized and existing under the laws of the State of Delaware) 
  
 Dated as of December 30, 2004 

 This Second Amendment (“Second Amendment”) made as of this 30th day of December, 2004 by and among: 
  

(i) Stonehouse Capital Ltd., a corporation organized and existing under the laws of the Cayman Islands (“Stonehouse”); 
  
 (ii) WorldSpace, Inc., a corporation organized and existing under the laws of the State of
Maryland (“WSI-MD”); 
  
 (iii) WorldSpace International Network Inc., a
company organized and existing under the International Business Companies Act of the British Virgin Islands (“WIN”); 
  
 (iv) WorldSpace Satellite Company Ltd., a company organized and existing under the International Business Companies Act of the British Virgin Islands (“WSC”);
and 
  
 (v) WorldSpace, Inc., a corporation organized and existing under the laws
of the State of Delaware (“WSI-DE”) (WSI-MD, WIN, WSC and WSI-DE collectively referred to herein as the “WorldSpace Parties”). 
  
 WITNESSETH: 
  
 WHEREAS, Stonehouse and the WorldSpace Parties (other than WSI-DE) did enter into that certain Loan Restructuring Agreement dated as of September 30,
2003, as amended by that certain First Amendment to Loan Restructuring Agreement and Royalty Agreement dated September 28, 2004 (the “Loan Restructuring Agreement”) in order to enable the WorldSpace Parties (other than WSI-DE) to obtain
capital investment to finance the commercial expansion of their business; 
  
 WHEREAS, Stonehouse and the WorldSpace Parties (other than WSI-DE) did enter into that certain Royalty Agreement dated as of September 30, 2003, as amended by that certain First Amendment to Loan Restructuring
Agreement and Royalty Agreement dated September 28, 2004 (the “Royalty Agreement”) in order to establish certain rights of Stonehouse to receive royalty payments from the WorldSpace Parties (other than WSI-DE) (the Loan Restructuring
Agreement and the Royalty Agreement collectively referred to herein as the “Agreements”); 
  
 WHEREAS, prior to the date hereof, WSI-MD owned WIN, which in turn owned WSC; 
  
 WHEREAS, as of even date herewith, WIN will be merged with and into WSI-MD and WSI-MD will immediately thereafter be merged
with and into WSI-DE (the “WSI Mergers”); 
  

 WHEREAS, upon the WSI Mergers, WSI-DE will assume all of the rights, obligations and liabilities of WIN
and WSI-MD in and under the Agreements by operation of law; 
  
 WHEREAS, Stonehouse and each of the WorldSpace Parties desire to amend the Loan Restructuring Agreement and the Royalty Agreement in accordance with the provisions set forth below. 
  
 NOW THEREFORE, in consideration of the mutual promises and covenants herein
contained, the receipt and sufficiency of which are hereby acknowledged, Stonehouse and the WorldSpace Parties hereby agree to amend the Loan Restructuring Agreement and the Royalty Agreement as follows: 
  
 1. Add the following term and its corresponding definition to the Royalty Agreement:

  

			
	“WSI-DE”	  	means WorldSpace Inc., a corporation organized and existing under the laws of the State of Delaware as of the Effective Date.

  
 2. Add the following text to become a
new Section 4.03(c) to the Royalty Agreement: 
  
 (c)
Distributions to those shareholders listed on Exhibit H shall not be subject to the restrictions on Distributions provided in this Section 4.03 (which Section 4.03 provides, in part, that such Distributions are expressly subordinate to the actual
payment of the Royalty Payment); provided, however, that for the sake of clarity it is agreed that for purposes of calculating the Proceeds Portion in a Scale-Down Transaction, the amount of the Distributions used as a basis for such determination
shall be calculated by reference to all Current Shareholders, whether or not they have been exempted from the restrictions under this Section 4.03. It is further contemplated that such shareholders listed on Exhibit H shall receive Class A common
shares in WSI-DE which are not restricted as to the payment of Distributions and all other Current Shareholders will receive Class B common shares in WSI-DE and the certificates representing such Class B shares shall include a legend referencing the
applicable restrictions under this Agreement. 
  
 3. Add the attached Addendum A
as a new Exhibit H to the Royalty Agreement. 
  
 4. The forms of the Loan
Restructuring Agreement and the Royalty Agreement (attached as exhibits to the Royalty Agreement and the Loan Restructuring Agreement, respectively) shall be considered to be revised to reflect the terms contained in this Second Amendment.

  

 5. In executing this Second Amendment, the WorldSpace Parties acknowledge and affirm that, upon the WSI Mergers (i) all
obligations and liabilities of WSI-MD and WIN (including, but not limited to, such parties’ obligations and liabilities under the Loan Restructuring Agreement and the Royalty Agreement) will be assumed by WSI-DE and (ii) WSC will become a
subsidiary of WSI-DE. 
  
 6. This Second Amendment may be executed in multiple
counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
  
 7. Except as otherwise hereby modified, all other terms, provisions and conditions of the Agreements shall remain in full force and effect. 
  
 8. This Second Amendment shall be governed by and construed in accordance with the laws of
the State of New York, without regard to any choice of law or conflict of law provisions thereof. 
  
 IN WITNESS WHEREOF, the parties have caused this Second Amendment to be signed in their respective names as of the date first above written. 

 
 (Signature page follows) 
  

			
	STONEHOUSE CAPITAL LTD.
		
	By:	 	/s/ Cherif Sedky
		
	 Name:
	 	 Cherif Sedky

	
	WORLDSPACE, INC., a corporation organized and existing under the laws of the State of Maryland
		
	By:	 	/s/ Noah A. Samara
	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

	
	WORLDSPACE INTERNATIONAL NETWORK INC.
		
	By:	 	/s/ Noah A. Samara
	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

	
	 WORLDSPACE SATELLITE COMPANY, LTD.

		
	By:	 	/s/ Noah A. Samara
	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

	
	WORLDSPACE, INC., a corporation organized and existing under the laws of the State of Delaware
		
	By:	 	/s/ Noah A. Samara
	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

  

			
	 	  	 Addendum A
 (Exhibit H to the
 Restructuring Agreement)

  
 WorldSpace, Inc.
Shareholders 
  

			
	 Shareholder

	 	 Residence

	Bina Aspen Rothblatt	 	Silver Spring, MD
	Syncom	 	Silver Spring, MD
	Keiei Joho Co., Ltd.	 	Tokyo, Japan
	Eyob Samara	 	Tacoma Park, MD
	PPH Cure Foundation	 	Washington, DC
	World Against Racism Foundation	 	Washington, DC
	Napier Pillai	 	Port of Spain, Trinidad & Tobago
	Volunteers in Technical Assistance	 	San Diego, CA
	Kathleen Pritchard	 	Bethesda, MD
	Saad El Fishaway	 	Washington, DC
	Peter Dolan	 	Rockville, MD
	Benno Ammann	 	Middleburg, VA
	Regula Lorenz	 	Middleburg, VA
	Philip Olivetti	 	New York, NY
	W.L. Pritchard & Co	 	Bethesda, MD
	MARCOR (controlled by M. Rothblatt)	 	Silver Spring, MD
	Robert Johnstone (Davenport)	 	Richmond, VA
	Christine Kochman	 	Washington, DC
	James Laramie	 	Great Falls, VA
	Martine Rothblatt	 	Silver Spring, MD
	Richard Allen	 	Washington, DC
	Gabriel Rothblatt	 	Silver Spring, MD
	Sunee Rothblatt	 	Silver Spring, MD
	Shirley O’Neil	 	Gaithersburg, MD
	Jenesis Rothblatt	 	Silver Spring, MD
	Felipe Noguera	 	Andalusia Maravel, Trinidad & Tobago
	Edmund & Mary Lou Habib	 	Derwood, MD
	Quintiles Transnational Corp.	 	Raleigh, NC
	Eli Rothblatt	 	Silver Spring, MD
	Richard Butler	 	Victoria, Australia
	Louis Bransford	 	Alexandria, VA
	Shaista Amir Rizvi	 	Beltsville, MD
	Jason O’Neil	 	Washington, DC
	Salha Hassan Elkurdi	 	Founex, Switzerland
	Tedson Meyers	 	Washington, DC
	Abdi Sharif	 	Encino, CA
	Teresa Bongartz	 	 
	Najwa M. Sa’d	 	Reston, VA
	Marc Kase	 	Reston, VA
	Stephanie Zucker	 	Reston, VA

  

 THIRD AMENDMENT 
 TO 
  
 ROYALTY AGREEMENT 
  
 AMONG

  
 STONEHOUSE CAPITAL LTD. 
 (a corporation organized and existing under the laws of the Cayman Islands) 
  
 WORLDSPACE, INC. 
 (a corporation organized and existing under the laws of the State of Delaware) 
  
 AND 
  
 WORLDSPACE SATELLITE COMPANY, LTD. 
 (a company organized and existing under the International Business Companies Act

 of the British Virgin Islands) 
  
 Dated as of June 29, 2005 
  

 This Third Amendment (“Third Amendment”) made as of this 29th day of June 2005 by and among:

  
 (i) Stonehouse Capital Ltd., a corporation organized and existing under the
laws of the Cayman Islands (“Stonehouse”); 
  
 (ii) WorldSpace Satellite
Company Ltd., a company organized and existing under the International Business Companies Act of the British Virgin Islands (“WSC”); and 
  
 (iii) WorldSpace, Inc., a corporation organized and existing under the laws of the State of Delaware (“WSI-DE”), and successor by merger to each of WorldSpace,
Inc., a corporation organized under the laws of the State of Maryland (“WSI-MD”), and WorldSpace International Network Inc., a company organized under the International Business Companies Act of the British Virgin Islands
(“WIN”); (WSC and WSI-DE together referred to herein as the “WorldSpace Parties”). 
  
 WITNESSETH: 
  
 WHEREAS, Stonehouse and WSC, WSI-MD and WIN did enter into that certain Royalty Agreement dated as of September 30, 2003, as amended by that certain First Amendment to Loan Restructuring Agreement and Royalty Agreement dated September 28,
2004; 
  
 WHEREAS, on December 30, 2004, Stonehouse, the
WorldSpace Parties, WSI-MD and WIN did enter into that certain Second Amendment to the Loan Restructuring Agreement and Royalty Agreement among Stonehouse, WSI-MD, WIN, WSC and WSI-DE (the Royalty Agreement, as amended by the First Amendment and the
Second Amendment thereto, the “Royalty Agreement”); 
  
 WHEREAS, on December 30, 2004, WIN merged with and into WSI-MD and WSI-MD immediately thereafter merged with and into WSI-DE and, by virtue of the mergers, WSI-DE assumed all of the rights, obligations and liabilities of WIN and WSI-MD in
and under the Royalty Agreement by operation of law; and 
  
 WHEREAS, Stonehouse and each of the WorldSpace Parties desire to amend the Royalty Agreement in accordance with the provisions set forth below. 
  
 NOW THEREFORE, in consideration of the mutual promises and covenants herein contained, the receipt and sufficiency of which are hereby acknowledged,
Stonehouse and the WorldSpace Parties hereby agree to amend the Royalty Agreement as follows: 
  

	 	1.	Exhibit H to the Royalty Agreement is hereby amended by adding thereto Noah A. Samara and TelUS Communications. 

  

	 	2.	Section 4.06 of the Royalty Agreement is amended by deleting the last paragraph thereof in its entirety. 

  

	 	3.	The parties agree that the WorldSpace parties obligations under Section 4.07 of the Royalty Agreement shall only apply in the event that any of the shares of Class B Common Stock,
par value $.01 per share (the “Class B Shares”) of WSI-DE shall be exchanged for another instrument issued by a WorldSpace Party that entitles the holder thereof to receive Distributions, other than: (i) the exchange by Noah A. Samara and
TelUS Communications of any of the Class B Shares held by them of record for shares of Class A Common Stock, par value $.01 per share (“Class A Shares”) of WSI-DE and (ii) the automatic conversion of Class B Shares into Class A Shares that
is provided for in the Certificate of Incorporation of WSI-DE as at the earlier of (i) July 1, 2016 or (ii) the Second Payment Date of the Royalty Payment owed by the WorldSpace Parties in respect of the final Royalty Calculation Year for which a
Royalty Payment is owed or as otherwise permitted under the Royalty Agreement; provided that the WorldSpace Parties agree that any Class B Shares that are converted into Class A Shares as a result of the July 1, 2016 trigger date shall, in no event,
be paid any Distributions until all Royalty Payments then due and owning to Stonehouse under the Royalty Agreement have been paid. The parties hereto further agree that, except as specifically provided in this paragraph 3. to this Third Amendment,
Section 4.07 of the Royalty Agreement shall be of no further force or effect. 

  

	 	4.	This Third Amendment may be executed in multiple counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

  

	 	5.	Except as otherwise hereby modified, all other terms, provisions and conditions of the Royalty Agreement shall remain in full force and effect. 

  

	 	6.	This Third Amendment shall be governed by and construed in accordance with the laws of the State of New York, without regard to any choice of law or conflict of law provisions
thereof. 

  
 IN WITNESS WHEREOF, the parties have
caused this Third Amendment to be signed in their respective names as of the date first above written. 
  

			
	 STONEHOUSE CAPITAL LIMITED

		
	 By:
	 	 /s/ Abdulrahman Bin Mahfouz/CS

	 Name:
	 	 Abdulrahman Bin Mahfouz

		
	 By:
	 	 /s/ Sultan Bin Mahfouz/CS

	 Name:
	 	 Sultan Bin Mahfouz

	
	WORLDSPACE, INC., a corporation organized and existing under the laws of the State of Delaware
		
	 By:
	 	 /s/ Noah A. Samara

	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

	
	 WORLDSPACE SATELLITE COMPANY, LTD.

		
	 By:
	 	 /s/ Noah A. Samara

	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

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