Document:

Exhibit 4.3

    Execution
      Copy

    
      

      

    

     

    EXHIBIT
      4.3

     

     

    

     

    CANADIAN
      SATELLITE RADIO HOLDINGS INC.,

     

    as
      Grantor

     

    

     

    CANADIAN
      SATELLITE RADIO INC.

     

    

     

    

    
      
 

    INTEREST
      RESERVE AND SECURITY AGREEMENT

     

    Dated
      as
      of February 10, 2006

     

    

     

    

    

     

    

      
 

    THE
      BANK
      OF NOVA SCOTIA TRUST COMPANY OF NEW YORK

     

    as
      Interest Reserve Agent and Trustee

     

    
      
 

    

     

    
      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    THIS
      INTEREST RESERVE AND SECURITY AGREEMENT is
      entered into on February 10, 2006 (this “Agreement”),
      by
      and among THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK, in its capacities
      as Interest Reserve Agent, depositary bank and securities intermediary
      (collectively in such capacities, the “Interest
      Reserve Agent”),
      THE
      BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK, in its capacity as trustee under
      the Indenture described below (the “Trustee”),
      CANADIAN SATELLITE RADIO HOLDINGS INC., a corporation organized under the laws
      of the Province of Ontario, Canada (the “Grantor”)
      and
      CANADIAN SATELLITE RADIO INC., a corporation organized under the laws of the
      Province of Ontario, Canada (the “Guarantor”).
      

     

    RECITALS

     

    Pursuant
      to that certain indenture (the “Indenture”)
      dated
      as of February 10, 2006, by and between the Grantor, the Guarantor and the
      Trustee, the Grantor will issue $100.0 million in aggregate principal amount
      of
      its 123⁄4% Senior Notes due 2014 (the “Notes”).
      The
      Notes are being issued in a private placement (the “Offering”)
      pursuant to that certain purchase agreement dated as of February 7, 2006 (the
      “Purchase
      Agreement”),
      among
      the Grantor, the Guarantor and BEAR, STEARNS & CO. INC. and RBC CAPITAL
      MARKETS CORPORATION (together, the “Initial
      Purchasers”).
      In
      connection with the private placement of the Notes, the Grantor and the
      Guarantor prepared an Offering Memorandum dated February 7, 2006 (the
“Offering
      Memorandum”).
      In
      accordance with Section 3.3(e) hereof, capitalized terms that are used but
      not
      defined herein have the meanings assigned to them in the Indenture.

     

    The
      Grantor has agreed with the Initial Purchasers in the Purchase Agreement and
      with the Trustee in the Indenture to enter into this Agreement and to deposit
      an
      amount in cash with the Interest Reserve Agent precisely determined in order
      to
      provide sufficient funds to enable the Grantor to make the first six interest
      payments when due with respect to the Notes.

     

    The
      Grantor, the Trustee and the Interest Reserve Agent hereby agree that, in
      consideration of the mutual promises and covenants contained herein, the
      Interest Reserve Agent will hold in an account and will distribute Interest
      Reserve Property (as defined below) in accordance with and subject to the
      following:

     

     

    1.
        INSTRUCTIONS

     

    1.1.
        Interest
      Reserve Property.

     

    The
      initial funds to be deposited with the Interest Reserve Agent will be as
      follows:

     

    
      	(a)           
               	
              Concurrently
                with the execution and delivery hereof and the issuance of the Notes,
                the
                Grantor will deposit with the Interest Reserve Agent US$38,250,000
                (thirty
                eight million two hundred fifty thousand) in cash or by wire transfer
                in
                immediately available funds (the “Grantor’s
                Closing Date Deposit”),
                which amount represents an amount sufficient to enable the Grantor
                to make
                the first six interest payments when due with respect to the Notes.
                

            

    

     

    
      	(b)           
              	
              To
                the extent the Grantor issues Additional Notes under the Indenture
                prior
                to the payment of the first six interest payments on the Notes, the
                Grantor will deposit with the Interest Reserve Agent additional funds
                in
                cash or by wire transfer in immediately available funds (the “Grantor’s
                Additional Deposit”
                and together with the Grantor’s Initial Deposit (as defined below), the
                “Grantor’s
                Deposit”),
                which amount shall represent, when invested in Government Securities,
                an
                amount sufficient to enable the Grantor to make any remaining payments
                of
                the first six interest payments when due with respect to the Notes
                and the
                Additional Notes.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

    

    
      	(c)           
              	
              The
                Interest Reserve Agent will accept the Grantor’s Deposit and will hold
                such funds, all investments thereof, any Distributions (as hereinafter
                defined) and the proceeds of the foregoing in account number 03070-17
                maintained by the Interest Reserve Agent in the State of New York,
                United
                States, which account shall contain only the Interest Reserve Property
                (defined below), in the name of the Grantor (such account, together
                with
                any other account maintained by the Interest Reserve Agent hereunder,
                the
                “Interest
                Reserve Account”)
                for disbursement in accordance with the provisions hereof. For purposes
                of
                perfecting its security interest in the Interest Reserve Account
                the
                Trustee will be the entitlement holder and customer of the Interest
                Reserve Agent with respect to the Interest Reserve Account. The
                Grantor will not have any access to the Interest Reserve Account
                or funds,
                investments or other assets credited thereto, other than the right
                to have
                the funds applied to discharge when due the Grantor’s interest payments on
                the Notes and the right to receive the Interest Reserve Property
                under the
                circumstances specified in Section 1.4 hereof. The
                Grantor’s Deposit, the Interest Reserve Account and all funds, securities
                or other property now or hereafter credited to the Interest Reserve
                Account, all investments of any of the foregoing, plus all interest,
                dividends and other distributions and payments on any of the foregoing
                (collectively the “Distributions”)
                received or receivable by the Interest Reserve Agent, less any property
                and/or funds distributed or paid in accordance with this Agreement,
                together with all proceeds of any of the foregoing are collectively
                referred to herein as “Interest
                Reserve Property.”

            

    

     

    1.2.
        Grantor’s
      Rights in Interest Reserve Property; Security Interest.

     

    
      	(a)        
                	
              It
                is the intention of the parties hereto that the Grantor will not
                have any
                access to the Interest Reserve Account or the funds, investments
                or other
                assets credited thereto, other than the right to have the funds applied
                to
                discharge, when due, the Grantor’s interest payments on the Notes and the
                right to receive the Interest Reserve Property under the circumstances
                specified in Section 1.4 hereof, it being understood that Grantor
                is the
                beneficial owner of the Interest Reserve
                Account.

            

    

     

    
      	(b)        
                         
               	
              As
                security for the due and punctual payment when due of all amounts
                that may
                be payable from time to time under the Indenture and the Notes, now
                or
                hereafter arising, the Grantor hereby pledges, assigns and grants
                to the
                Trustee, for the benefit of the holders of the Notes, a continuing
                security interest in, and a lien on, all of the Grantor’s rights under
                this Agreement. As security for the due and punctual payment when
                due of
                all amounts that may be payable from time to time under the Indenture
                and
                the Notes, now or hereafter arising, the Grantor hereby pledges,
                assigns
                and grants to the Trustee, for the benefit of the holders of the
                Notes, a
                continuing security interest in, and a lien on, the Interest Reserve
                Property. The Grantor represents and warrants that the security interest
                of the Trustee in this Agreement and, to the extent that the Grantor
                has
                rights therein, the Interest Reserve Property, will at all times
                be valid,
                perfected and enforceable as a first priority security interest by
                the
                Trustee against the Grantor and all third parties in accordance with
                the
                terms of this Agreement.

            

    

     

    
      	(c)         
               	
              The
                parties hereto acknowledge and agree that: (i) the Interest Reserve
                Account will be treated as a “Securities Account,” (ii) the Interest
                Reserve Property will be treated as “Financial Assets,” (iii) this
                Agreement governs the Interest Reserve Account and provides rules
                governing the priority among possible “Entitlement Orders” received by the
                Interest Reserve Agent as “Securities Intermediary” from the Grantor, the
                Trustee and any other persons entitled to give “Entitlement Orders” with
                respect to such Financial Assets and (iv) the “Securities Intermediary’s
                Jurisdiction” is the State of New York. The Interest Reserve Agent
                represents and warrants that the Interest Reserve Agent is a “Securities
                Intermediary” with respect to the Interest Reserve Account and the
                “Financial Assets” credited to the Interest Reserve Account. Except as
                specifically provided herein, the terms of the New York Uniform Commercial
                Code, as amended, or any successor provision (the “Code”),
                will apply to this Agreement, and all terms quoted in this clause
                (c) and
                clause (e) will have the meanings assigned to them by Article 8 of
                the
                Code.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

    

    
      	(d)          
               	
              The
                Interest Reserve Agent hereby agrees that all property delivered
                to the
                Interest Reserve Agent for crediting to the Interest Reserve Account
                will
                be promptly credited to the Interest Reserve Account by the Interest
                Reserve Agent. The Interest Reserve Agent represents and warrants
                that it
                has not entered into, and agrees that it will not enter into, any
                control
                agreement or any other agreement relating to the Interest Reserve
                Account
                with any other third party without the prior written consent of the
                Grantor, the Trustee and the Initial
                Purchasers.

            

    

     

    
      	(e)        
                	
              Each
                of the parties hereto acknowledge and agree that the Interest Reserve
                Account will be under the control (within the meanings of Sections
                8-106,
                9-106 and 9-104 of the Code) of the Trustee and, notwithstanding
                any other
                provision of this Agreement, the Interest Reserve Agent will comply
                with
                all “Entitlement Orders” and instructions given by the Trustee with
                respect to the Interest Reserve Account or Interest Reserve Property
                without further consent of the Grantor or any other person, provided
                that
                in giving instructions to the Interest Reserve Agent the Trustee
                shall be
                governed by the rights, obligations and entitlements of the Indenture
                and
                this Agreement. The Grantor shall have no right to give any Entitlement
                Orders or instructions.

            

    

     

    
      	(f)           
                	
              The
                Grantor agrees to take all steps reasonably requested by the Trustee
                in
                connection with the perfection of the Trustee’s security interest in this
                Agreement and the Interest Reserve Property and, without limiting
                the
                generality of the foregoing, the Grantor hereby authorizes the Trustee
                and
                the Initial Purchasers on behalf of the Trustee to file one or more
                UCC
                financing statements (or the equivalent thereof in any domestic or
                foreign
                jurisdiction other than the District of Columbia) in such jurisdictions
                and filing offices and containing such description of collateral
                as the
                Trustee, or the Initial Purchasers on behalf of the Trustee, may
                determine
                is necessary or advisable in order to perfect the security interest
                granted herein. The Grantor represents and warrants that it is duly
                formed
                and validly existing as a corporation under the laws of the Province
                of
                Ontario, Canada, and is not organized under the laws of any other
                jurisdiction, and the Grantor hereby agrees that, prior to the termination
                of this Agreement, it will not change its name or jurisdiction of
                organization without giving the Trustee not more than 60 or less
                than 30
                days’ prior written notice thereof.

            

    

     

    
      	(g)       
                	
              Upon
                the release of any Interest Reserve Property pursuant to Section
                1.4
                hereof, the security interest of the Trustee for the benefit of the
                holders of the Notes will automatically terminate with respect to
                any such
                Interest Reserve Property released without any further action and
                such
                released Interest Reserve Property will be delivered to the recipient
                free
                and clear of any and all liens, claims or encumbrances of any person,
                including, without limitation, the Interest Reserve Agent, the Trustee
                and
                the holders of the Notes. The Trustee will take all steps necessary
                to
                terminate any financing statements and will execute such other documents
                without recourse, representation or warranty of any kind as the Grantor
                may reasonably request in writing to evidence or confirm the termination
                of the security interest in such released Interest Reserve
                Property.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.3.
        Investment
      of Interest Reserve Property.

     

    
      	(a)         
               	
              Upon
                written directions from the Grantor, the Interest Reserve Agent will
                invest or reinvest the Interest Reserve Property, without distinction
                between principal and income, in cash and United States Government
                Securities. The Interest Reserve Agent will credit all such investments
                to
                the Interest Reserve Account and hereby agrees to treat any such
                investment as a “Financial Asset” within the meaning of Section
                8-102(a)(9) of the Code.

            

    

     

    
      	(b)          
              	
              The
                Interest Reserve Agent will have no liability for any investment
                losses,
                fees, taxes or other charges arising from or related to any such
                investment, reinvestment or liquidation of an investment other than
                in
                accordance with Section 2.1 hereof.

            

    

     

    
      	(c)         
               	
              The
                Interest Reserve Agent will have no obligation to invest or reinvest
                the
                Interest Reserve Property if deposited with the Interest Reserve
                Agent
                after 11:00 a.m. New York City time on such day of deposit. Instructions
                received after 11:00 a.m. New York City time will be treated as if
                received on the following Business Day. Any interest or other income
                received on such investment and reinvestment of the Interest Reserve
                Property will become part of the Interest Reserve Property and any
                losses
                incurred on such investment and reinvestment of the Interest Reserve
                Property will be debited against the Interest Reserve Property. The
                Interest Reserve Property will remain uninvested with no liability
                for
                interest therein if written directions are not given to the Interest
                Reserve Agent. Notwithstanding the foregoing, the Interest Reserve
                Agent
                will have the power to sell or liquidate the foregoing investments
                whenever the Interest Reserve Agent is required to release all or
                any
                portion of the Interest Reserve Property pursuant to Section 1.4
                hereof.
                In no event will the Interest Reserve Agent be deemed an investment
                manager or adviser in respect of any selection of investments hereunder.
                It is understood and agreed that the Interest Reserve Agent or its
                affiliates are permitted to receive additional compensation that
                could be
                deemed to be in the Interest Reserve Agent’s economic self-interest for
                (1) serving as investment adviser, administrator, shareholder servicing
                agent, custodian or sub-custodian with respect to certain of the
                investments, (2) using affiliates to effect transactions in certain
                investments or (3) effecting transactions in
                investments.

            

    

     

    1.4.
        Distribution
      of Interest Reserve Property.

     

    Subject
      to Section 1.2(e), the Interest Reserve Agent is directed to hold and distribute
      the Interest Reserve Property in the following manner:

     

    
      	(a)           	
              The
                Interest Reserve Agent will only release the Interest Reserve Property
                in
                the cases specifically provided for in this Section
                1.4.

            

    

     

    
      	(b)          	
              [Intentionally
                Omitted].

            

    

     

    
      	(c)         
               	
              (i)
                to the trustee to pay interest on the Notes when due and, upon certain
                repurchases or redemptions of the Notes, provided such repurchases
                or
                redemptions are permitted under the Indenture, to pay principal of
                and
                premium, if any, thereon; or 

            

    

     

    (ii)
      to
      the Grantor provided that no Event of Default will have occurred or be
      continuing or result therefrom (A) promptly upon the Interest Reserve Agent’s
      investment in Government Securities in accordance with Section 1.3 hereof of
      that portion of the Grantor’s Closing Date Deposit that,
      when
      invested in Government Securities, represents an amount sufficient to enable
      the
      Grantor to make the first six interest payments when due with respect to the
      Notes (the “Grantor’s
      Initial Deposit”),
      an
      amount equal to the difference between the Grantor’s Closing Date Deposit and
      the Grantor’s Initial Deposit (B) to the extent that the Grantor redeems,
      retires or repurchases any of the then outstanding Notes prior to the end of
      the
      Interest Reserve Period, in the amount of the Interest Reserve Property in
      excess of the amounts necessary to pay the reserve interest on the remaining
      Notes when due shall be released to the Grantor or (C) to the extent of any
      Interest Reserve Property remaining after the Grantor makes the first six
      interest payments on the Notes.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    In
      the
      case of each distribution in accordance with (i) or (ii) above, such
      distribution will be by wire transfer of immediately available funds in
      accordance with the appropriate wire transfer instructions set forth in Section
      1.6(a) hereof. 

     

    
      	(d)       
                	
              If
                the Interest Reserve Agent receives a written notice and instruction
                from
                the Trustee that the principal amount of and accrued and unpaid interest
                on the Notes has become immediately due and payable pursuant to Article
                VI
                of the Indenture, then the Interest Reserve Agent will, within one
                Business Day after receipt of such written notice and instruction
                from the
                Trustee, liquidate all Interest Reserve Property then held by it
                and
                release all of the Interest Reserve Property as
                follows:

            

    

     

    
      	(i)          
               	
              first,
                to the Trustee, an amount of Interest Reserve Property in cash equal
                to
                amounts owing to the Trustee in respect of fees and expenses of the
                Trustee under the Indenture;

            

    

     

    
      	(ii)         
               	
              second,
                to the Paying Agent for payment to the holders of the Notes, an amount
                of
                Interest Reserve Property sufficient to pay such accelerated principal
                amount and accrued and unpaid interest, if any, thereon; such release
                of
                Interest Reserve Property to the Paying Agent under the Indenture
                will be
                made by wire transfer of immediately available funds in accordance
                with
                the wire instructions set forth in Section 1.6(b) hereof;
                and

            

    

     

    
      	(iii)        
               	
              third,
                to the Grantor, any Interest Reserve Property remaining after
                distributions in clauses (d)(i) and (ii) above, by wire transfer
                of
                immediately available funds in accordance with the wire instructions
                set
                forth in Section 1.6(a) hereof.

            

    

     

    1.5.
        Addresses.

     

    Notices,
      instructions and other communications will be sent as follows:

     

    
      	(a)             
                	
              to
                Interest Reserve

            

    

    Agent: 

     

    The
      Bank
      of Nova Scotia Trust Company of New York 

    One
      Liberty Plaza

    New
      York,
      NY 10006

    Attn.:
      Vice President

    Telecopier:
      (212) 225-5436

     

    
      	(b)                                                           
                	
               

            

    

    
      to
        Trustee:

    

     

    The
      Bank of Nova Scotia Trust Company of New
      York

    One
      Liberty Plaza

    New
      York,
      NY 10006

    Attn.:
      Corporate Trust Administration

    Telecopier:
      (212) 225-5436

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	(c)                                                               
               	
               

            

    

     

    to
      Grantor:

     

    Canadian
      Satellite Radio Holdings Inc.

    Suite
      2300, P.O. Box 222

    Canada
      Trust Tower, BCE Place

    Attn.:
      Chief Financial Officer

    Telecopier:
      (416) 361-6018

     

    with
      a
      copy to: Stikeman
      Elliott LLP

     

    5300
      Commerce Court West

    199
      Bay
      Street

    Toronto,
      Ontario M5L 1B9

    Attn.:
      Dee Rajpal

    Telecopier:
      (416) 869-5280

     

    
      	(d)                                                              	
               

            

    

    
       

      to
        Initial Purchasers:

       

    

    Bear
      Stearns & Co. Inc.

    RBC
      Dominion Securities Inc. 

    c/o
      Bear
      Stearns & Co. Inc.

    383
      Madison Avenue

    New
      York,
      NY 10179

    Attn.:
      Corporate Finance Department

    Telecopier:
      (212) 272-3092

     

     

    with
      a
      copy to: Latham
      & Watkins LLP

     

    885
      Third
      Avenue, Suite 1000

    New
      York,
      NY 10022

    Attn.:
      Marc D. Jaffe

    Telecopier:
      (212) 906-1200

     

    1.6.
        Wire
      Transfer Instructions.

     

    
      	(a)  	
              All
                cash (including the cash proceeds from liquidation of any Interest
                Reserve
                Property) distributed from the Interest Reserve Account to the Grantor
                will be transferred by wire transfer of immediately available funds
                in
                accordance with the following wire transfer
                instructions:

            

    

     

    
      	
              Bank:

            	
              Canadian
                Imperial Bank of Commerce, Toronto

            
	
              Intermediary
                Bank

            	
              Bank
                of America, New York

            
	
              ABA
                No.:

            	
              026009593

            
	
              Account
                Name:

            	
              Canadian
                Satellite Radio Inc.

            
	
              Account
                No.: (BNF)

            	
              05-45619

            
	
              Transit
                # (BBK)

            	
              //CC001000002

            

    

    

    If,
      upon
      termination of this Agreement and after any required liquidation or distribution
      of Interest Reserve Property for the benefit of any person other than the
      Grantor pursuant to Section 1.4 hereof, any Interest Reserve Property consists
      of assets other than cash and is to be released to the Grantor, the Interest
      Reserve Agent shall liquidate such Interest Reserve Property into cash and
      distribute it to the Grantor pursuant to this Section 1.6(a) unless the Grantor
      has provided a prior written request to the Interest Reserve Agent not to
      liquidate such Interest Reserve Property and to deliver such non-cash Interest
      Reserve Property in kind to the Grantor at such account(s) or location(s)
      specified by the Grantor in such written request. If the Interest Reserve Agent
      receives such a request, it shall deliver such non-cash Interest Reserve
      Property to the Grantor as promptly as practicable. No request by the Grantor
      pursuant to this paragraph shall constitute an “Entitlement Order” or
      instruction with respect to the Interest Reserve Property prior to the
      termination of this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	(b)  	
              All
                cash distributed from the Interest Reserve Account to the Paying
                Agent for
                payment on the Notes will be transferred by wire transfer of immediately
                available funds in accordance with the following wire transfer
                instructions:

            

    

     

    
      	
              Bank:

            	
              The
                Bank of Nova Scotia, NYA

            
	
              ABA
                No.

            	
              026002532

            
	
              F/F/C:

            	
              BNST,
                as Escrow Agent

            
	
              Account
                No.

            	
              03070-17

            
	
              Account
                Name:

            	
              CSR
                Holdings

            
	
              Attention:

            	
              Sharon
                Houzell

            

    

    

    1.7.
        Compensation.

     

    
      	(a)  	
              Upon
                execution of this Agreement, the Grantor will pay the Interest Reserve
                Agent an administration fee of US$3,000, and US$ 3,000 annually in
                advance
                thereafter on each anniversary date plus reasonable out-of-pocket
                expenses
                and disbursements incurred from time to time during the term of this
                Agreement (including the reasonable expenses and disbursements of
                the
                Interest Reserve Agent’s counsel and
                agents).

            

    

     

    
      	(b)  	
              The
                Grantor will pay all activity charges in accordance with the Interest
                Reserve Agent’s fee schedule as then in
                effect.

            

    

     

    
      	(c)  	
              The
                Grantor will be responsible for and will reimburse the Interest Reserve
                Agent upon demand for all reasonable expenses, disbursements and
                advances
                incurred or made by the Interest Reserve Agent for its own account
                in
                connection with this Agreement (including the reasonable expenses
                and
                disbursements of the Interest Reserve Agent’s counsel and
                agents).

            

    

     

    
      	(d)  	
              If
                any reasonable fees, expenses or costs incurred by, or any obligations
                owed to the Interest Reserve Agent (or its counsel) hereunder are
                not paid
                when due, the Interest Reserve Agent may set off such amounts against
                any
                Interest Reserve Property released to the Grantor from the Interest
                Reserve Account in accordance with Section 1.4 hereof. The Interest
                Reserve Agent shall have no right to set off against, and hereby
                waives
                any lien it may otherwise have against, any Interest Reserve Property
                prior to its release from the Interest Reserve Account or which is
                released or to be released to a person other than the Grantor in
                accordance with the terms of this Agreement. Grantor shall remain
                liable
                for any unpaid reasonable fees, expenses or costs incurred by, or
                any
                obligations owed to the Interest Reserve Agent (or its counsel)
                hereunder.

            

    

     

    
      	(e)  	
              The
                obligation of the Grantor in respect of any sum due to the Interest
                Reserve Agent will, notwithstanding any judgment in a currency other
                than
                U.S. dollars, not be discharged until the first Business Day following
                receipt by the Interest Reserve Agent of any sum adjudged to be so
                due in
                such other currency, on which (and only to the extent that) the Interest
                Reserve Agent may in accordance with normal banking procedures purchase
                U.S. dollars with such other currency; if the U.S. dollars so purchased
                are less than the sum originally due to the Interest Reserve Agent
                hereunder, the Grantor agrees, as a separate obligation and
                notwithstanding any such judgment, to indemnify the Interest Reserve
                Agent
                against such loss. If the amount of U.S. dollars so purchased is
                greater
                than the sum originally due to the Interest Reserve Agent hereunder,
                the
                Interest Reserve Agent agrees to pay to the Grantor an amount equal
                to the
                excess amount of the dollars so purchased over the sum originally
                due to
                the Interest Reserve Agent
                hereunder.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	(f)  	
              The
                obligations of the Grantor contained in this Section 1.7 will survive
                the
                termination of this Agreement or the earlier resignation or removal
                of the
                Interest Reserve Agent.

            

    

     

     

    2.
        TERMS
      AND CONDITIONS

     

    2.1.
        Rights,
      Duties and Immunities of Interest Reserve Agent.

     

    
      	(a)  	
              Scope
                of Duties.
                The duties, responsibilities and obligations of the Interest Reserve
                Agent
                will be limited to those expressly set forth herein and no duties,
                responsibilities or obligations will be inferred or implied. The
                Interest
                Reserve Agent will not be required to inquire as to the performance
                or
                observation of any obligation, term or condition under any other
                agreement
                or arrangement to which the Grantor is a party, even though reference
                thereto may be made herein. The Interest Reserve Agent will not be
                required to comply with any direction or instruction (other than
                those
                contained herein or delivered in accordance with this Agreement)
                from the
                Grantor or any entity acting on its behalf. The Interest Reserve
                Agent
                will not be required to, and will not, expend or risk any of its
                own funds
                or otherwise incur any financial liability in the performance of
                any of
                its duties hereunder.

            

    

     

    
      	(b)  	
              Limitation
                on Liability.
                The Interest Reserve Agent will not be liable for any action taken
                or
                omitted or for any loss or injury resulting from its actions or its
                performance or lack of performance of its duties hereunder in the
                absence
                of gross negligence, willful misconduct or bad faith on its part.
                In no
                event will the Interest Reserve Agent be liable (i) for any consequential,
                punitive or special damages, regardless of the form of action and
                whether
                or not any such damages were foreseeable and contemplated, (ii) for
                the
                acts or omissions of its nominees, correspondents, designees, subagents
                or
                subcustodians, so long as the same are selected with due care, (iii)
                for
                an amount in excess of the value of the Interest Reserve Property
                or (iv)
                for any loss (including any shortfall in the funds required to make
                the
                first six interest payments when due with respect to the Notes) resulting
                from the investment or reinvestment of any cash held by it hereunder
                in
                accordance with the terms hereof, including without limitation any
                liability for any delays (not resulting from its gross negligence,
                willful
                misconduct or bad faith) in the investment, reinvestment or liquidation
                of
                the Interest Reserve Property, or any loss of interest or income
                incident
                to any such delay.

            

    

     

    
      	(c)  	
              Further
                Limitation on Liability.
                The Interest Reserve Agent will not incur any liability for not performing
                any act or fulfilling any duty, obligation or responsibility hereunder
                by
                reason of any occurrence beyond the control of the Interest Reserve
                Agent
                (including but not limited to any act or provision of any present
                or
                future law or regulation or governmental authority, any act of God
                or war,
                or the unavailability of the Federal Reserve Bank wire or telex or
                other
                wire or communication facility).

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	(d)  	
              Right
                to Consult Counsel.
                The Interest Reserve Agent may consult with legal counsel of its
                own
                choosing, at the expense of the Grantor in accordance with Section
                1.7
                hereof, as to any matter relating to or arising from this Agreement,
                and
                the Interest Reserve Agent will not incur any liability in acting
                in good
                faith in accordance with any advice from such
                counsel.

            

    

     

    
      	(e)  	
              Duty
                of Care.
                The Interest Reserve Agent will not be under any duty to give the
                Interest
                Reserve Property held by it hereunder any greater degree of care
                than it
                gives its own similar property and will not be required to invest
                any
                funds held hereunder except as directed in accordance with in this
                Agreement. Uninvested funds held hereunder will not earn or accrue
                interest.

            

    

     

    
      	(f)  	
              Collection.
                All funds and other property deposited into the Interest Reserve
                Account
                or otherwise collected for deposit therein will be subject to the
                Interest
                Reserve Agent’s usual collection practices or terms regarding items
                received by the Interest Reserve Agent for deposit or collection.
                The
                Interest Reserve Agent will not be required, or have any duty, to
                notify
                any Person of any payment or maturity under the terms of any instrument
                deposited hereunder, or to take any legal action to enforce payment
                of any
                check, note or security deposited hereunder or to exercise any right
                or
                privilege that may be afforded to the holder of any such
                security.

            

    

     

    
      	(g)  	
              Statements.
                The Interest Reserve Agent will provide to the Grantor, the Trustee
                and
                the Initial Purchasers monthly statements identifying transactions,
                transfers or holdings of Interest Reserve Property, and each such
                statement will be deemed to be correct and final upon receipt thereof
                by
                the Grantor unless the Interest Reserve Agent is notified in writing
                to
                the contrary within 30 Business Days of the date of such
                statement.

            

    

     

    
      	(h)  	
              Disclaimer
                with Respect to Interest Reserve Property.
                The Interest Reserve Agent will not be responsible in any respect
                for the
                form, execution, validity, value or genuineness of documents or securities
                deposited into the Interest Reserve Account or held hereunder, or
                for any
                description therein, or for the identity, authority or rights of
                persons
                executing or delivering or purporting to execute or deliver any such
                document, security or endorsement. The Interest Reserve Agent makes
                no
                representation as to the validity, value, genuineness or the
                collectability of any security or other document or instrument held
                by or
                delivered to it. The Interest Reserve Agent will not be called upon
                to
                advise any party as to the wisdom in selling or retaining or taking
                or
                refraining from any action with respect to any securities or other
                property deposited hereunder.

            

    

     

    
      	(i)  	
              Ambiguity
                or Uncertainty.
                In the event of any ambiguity or uncertainty hereunder or in any
                notice,
                instruction or other communication received by the Interest Reserve
                Agent
                hereunder, the Interest Reserve Agent may, in its sole discretion,
                refrain
                from taking any action other than retaining possession of the Interest
                Reserve Property, unless the Interest Reserve Agent receives written
                instructions, signed by each of the Grantor and the Trustee which
                eliminates such ambiguity or
                uncertainty.

            

    

     

    
      	(j)  	
              Conflicting
                Claims.
                In the event of any dispute between or conflicting claims by or among
                the
                Grantor and/or any other person or entity with respect to any Interest
                Reserve Property, the Interest Reserve Agent will be entitled, in
                its sole
                discretion, to refuse to comply with any and all claims, demands
                or
                instructions with respect to such Interest Reserve Property so long
                as
                such dispute or conflict continues, and the Interest Reserve Agent
                will
                not be or become liable in any way to the Grantor for failure or
                refusal
                to comply with such conflicting claims, demands or instructions.
                The
                Interest Reserve Agent will be entitled to refuse to act until, in
                its
                sole discretion, either (i) such conflicting or adverse claims or
                demands
                have been determined by a final order, judgment or decree of a court
                of
                competent jurisdiction, which order, judgment or decree is not subject
                to
                appeal, or settled by agreement between the conflicting parties as
                evidenced in a writing satisfactory to the Interest Reserve Agent
                or (ii)
                the Interest Reserve Agent has received security or an indemnity
                satisfactory to it sufficient to hold it harmless from and against
                any and
                all Losses (as defined in Section 2.2 hereof) which it may incur
                by reason
                of so acting. The Interest Reserve Agent may, in addition, elect,
                in its
                sole discretion, to commence an interpleader action or seek other
                judicial
                relief or orders as it may deem, in its sole discretion, necessary.
                The
                costs and expenses (including reasonable attorneys’ fees and expenses)
                incurred in connection with such proceeding will be paid by, and
                will be
                solely an obligation of, the
                Grantor.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              (k) 

            	
              Compliance
                with Judicial Orders.
                If at any time the Interest Reserve Agent is served with any judicial
                or
                administrative order, judgment, decree, writ or other form of judicial
                or
                administrative process that in any way affects Interest Reserve Property,
                including but not limited to orders of attachment or garnishment
                or other
                forms of levies or injunctions or stays relating to the transfer
                of
                Interest Reserve Property (an “Order”),
                the Interest Reserve Agent is authorized to comply therewith in any
                manner
                as it or its legal counsel of its own choosing deems appropriate;
                and if
                the Interest Reserve Agent complies with any such Order, the Interest
                Reserve Agent will not be liable to any of the parties hereto or
                to any
                other person or entity even though such Order may be subsequently
                modified
                or vacated or otherwise determined to have been without legal force
                or
                effect.

            

    

     

    
      	(l)  	
              Right
                to Rely on Communications.
                The Interest Reserve Agent will be entitled to conclusively rely
                upon any
                order, judgment, certification, demand, instruction, notice, instrument
                or
                other writing delivered to it hereunder without being required to
                determine the authenticity or the correctness of any fact stated
                therein
                or the propriety or validity or the service thereof. The Interest
                Reserve
                Agent may act in conclusive reliance upon any instrument or signature
                believed by it to be genuine and may assume that any person purporting
                to
                give receipt or advice to make any statement or execute any document
                in
                connection with the provisions hereof has been duly authorized to
                do so.
                When the Interest Reserve Agent acts on any information, instructions,
                communications (including, but not limited to, communications with
                respect
                to the delivery of securities or the wire transfer of funds) sent
                by
                facsimile, email or other form of electronic or data transmission,
                the
                Interest Reserve Agent, absent gross negligence, willful misconduct
                or bad
                faith, will not be responsible or liable in the event such communication
                is not an authorized or authentic communication of the Grantor or
                Trustee,
                as the case may be, or is not in the form the Grantor or Trustee
                sent or
                intended to send (whether due to fraud, distortion or otherwise).
                The
                Grantor will indemnify the Interest Reserve Agent against any loss,
                liability, claim or expense (including legal fees and expenses) it
                may
                incur as a result of acting in accordance with any such
                communication.

            

    

     

    
      	(m)  	
              Right
                to Request Instruction.
                At any time the Interest Reserve Agent may request an instruction
                in
                writing from the Grantor and the Trustee and may, at its own option,
                include in such request the course of action it proposes to take
                and the
                date on which it proposes to act, regarding any matter arising in
                connection with its duties and obligations hereunder. The Interest
                Reserve
                Agent will not be liable for acting in accordance with such a proposal
                on
                or after the date specified therein; provided
                that (i) the specified date will be at least five Business Days after
                each
                of the Grantor and the Trustee receives the Interest Reserve Agent’s
                request for instructions and its proposed course of action and (ii)
                prior
                to so acting, the Interest Reserve Agent has not received the written
                instructions requested.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	(n)  	
              Liability
                for Taxes.
                Except as otherwise set forth herein, the Interest Reserve Agent
                does not
                have any interest in the Interest Reserve Property deposited hereunder
                but
                is serving as holder only and having only possession thereof. The
                Grantor
                will pay or reimburse the Interest Reserve Agent upon request for
                any
                transfer taxes or other taxes relating to the Interest Reserve Property
                incurred in connection herewith and will indemnify and hold harmless
                the
                Interest Reserve Agent with respect to any amounts that it is obligated
                to
                pay in the way of such taxes, in each case to the reasonable satisfaction
                of the Interest Reserve Agent. Any payments of income from the Interest
                Reserve Account will be subject to withholding regulations then in
                force
                with respect to United States taxes. The parties hereto will provide
                the
                Interest Reserve Agent with appropriate W-9 forms for tax I.D. number
                certifications, or W-8 forms for non-resident alien certifications,
                as
                requested. It is understood that the Interest Reserve Agent will
                be
                responsible for income reporting only with respect to income earned
                on
                investment of funds which are a part of the Interest Reserve Property
                and
                is not responsible for any other reporting. The provisions of this
                Section
                2.1(n) will survive the termination of this Agreement or the earlier
                resignation or removal of the Interest Reserve Agent. For greater
                certainty, all income and gains are those of the Grantor for tax
                purposes
                and the Grantor is to report in its tax returns (unless there is
                a Default
                and the Grantor ceases to be the beneficial owner of the Interest
                Reserve
                Account).

            

    

     

    2.2.
        Indemnity.

     

    The
      Grantor will be liable for and will reimburse and indemnify the Interest Reserve
      Agent and hold the Interest Reserve Agent harmless from and against any and
      all
      claims, losses, liabilities, costs, damages or expenses (including reasonable
      attorneys’ fees and expenses) (collectively, “Losses”)
      arising from or in connection with or related to this Agreement or being
      Interest Reserve Agent hereunder (including but not limited to Losses incurred
      by the Interest Reserve Agent in connection with its successful defense, of
      any
      claim of gross negligence or willful misconduct on its part); provided,
      however,
      that
      nothing contained herein will require the Interest Reserve Agent to be
      indemnified for Losses caused by its gross negligence, willful misconduct or
      bad
      faith. The provisions of this Section 2.2 will survive the termination of this
      Agreement or the earlier resignation or removal of the Interest Reserve
      Agent.

     

    2.3.
        Removal
      of Interest Reserve Agent.

     

    
      	(a)  	
              The
                Grantor may, with the consent of the Trustee, remove the Interest
                Reserve
                Agent at any time by giving to the Interest Reserve Agent 15 days’ prior
                notice in writing signed by the Grantor. The Interest Reserve Agent
                may
                resign at any time by giving to the Grantor 15 days’ prior written notice
                thereof.

            

    

     

    
      	(b)  	
              Within
                10 Business Days after giving the foregoing notice of removal to
                the
                Interest Reserve Agent or receiving the foregoing notice of resignation
                from the Interest Reserve Agent, the Grantor and the Trustee will
                jointly
                agree on and appoint a successor Interest Reserve Agent. The Grantor
                will
                cause any successor Interest Reserve Agent to assume the obligations
                of
                the Interest Reserve Agent hereunder or to enter into such other
                interest
                reserve and security agreement as may be acceptable to the Trustee
                in its
                sole discretion. If a successor Interest Reserve Agent has not accepted
                such appointment by the end of such 10-day period or such successor
                Interest Reserve Agent has not become so bound, the Interest Reserve
                Agent
                may, jointly with the Trustee, agree to appoint a replacement Interest
                Reserve Agent with its place of business in the City of New York,
                New
                York, and deliver the Interest Reserve Property to such replacement
                Interest Reserve Agent in the City of New York, New York or may apply
                to a
                court of competent jurisdiction for the appointment of a successor
                Interest Reserve Agent or for other appropriate relief. The costs
                and
                expenses (including reasonable attorneys’ fees and expenses) incurred by
                the Interest Reserve Agent in connection with such proceeding will
                be paid
                by, and be deemed to be solely an obligation of, the
                Grantor.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	(c)  	
              Upon
                receipt of the identity of the successor Interest Reserve Agent,
                the
                Interest Reserve Agent will either deliver the Interest Reserve Property
                then held hereunder to the successor Interest Reserve Agent, less
                the
                Interest Reserve Agent’s fees, costs and expenses or other obligations
                owed to the Interest Reserve Agent, or hold such Interest Reserve
                Property
                (or any portion thereof), pending distribution, until all such fees,
                costs
                and expenses or other obligations owing to the Interest Reserve Agent
                are
                paid. Upon delivery of the Interest Reserve Property to the successor
                Interest Reserve Agent, the Interest Reserve Agent will have no further
                duties, responsibilities or obligations
                hereunder.

            

    

     

    2.4.
        Termination.

     

    This
      Agreement will terminate upon the distribution of all Interest Reserve Property
      from the Interest Reserve Account in accordance with the provisions of Section
      1.4 hereof. Section 1.7 hereof, the provisions of these Terms and Conditions
      and
      the Miscellaneous provisions below will survive termination of this Agreement
      and/or the resignation or removal of the Interest Reserve Agent.

     

     

    3.
        MISCELLANEOUS

     

    3.1.
        Notices.

     

    All
      notices and other communications under this Agreement will be in writing in
      English and will be deemed given (i) on the date of delivery when delivered
      personally, or (ii) on the next Business Day after delivery to a recognized
      overnight courier or mailed first class (postage prepaid) or when sent by
      facsimile to the parties (which facsimile copy will be followed by delivery
      of
      an original by other method of delivery) at the addresses set forth in Section
      1.5 hereof (or to such other address as a party may have specified by notice
      given to the other parties pursuant to this provision). Whenever under the
      terms
      hereof the time for giving a notice or performing an act falls upon a day that
      is not a Business Day, such time will be extended to the next Business Day.
      Attached as Schedule
      3.1
      hereto
      and made a part hereof is a list of those persons initially entitled to give
      notices, instructions and other communications to the Trustee and/or the
      Interest Reserve Agent on behalf of the Grantor hereunder (each such
      representative, and “Authorized
      Person”).
      Schedule 3.1 may be amended from time to time by written notice from the Grantor
      to the Interest Reserve Agent and the Trustee, with a copy to the Initial
      Purchasers.

     

    3.2.
        Representations
      and Warranties.

     

    The
      Grantor hereby represents and warrants (a) that this Agreement has been duly
      authorized, executed and delivered on its behalf and constitutes its legal,
      valid and binding obligation and (b) that the execution, delivery and
      performance of this Agreement by the Grantor do not and will not violate any
      applicable law or regulation.

     

    3.3.
        Governing
      Law; Consent to Jurisdiction; Construction.

     

    
      	(A)  	
              THIS
                AGREEMENT WILL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS
                OF THE
                STATE OF NEW YORK, WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES
                OF
                CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF
                ANOTHER
                JURISDICTION WOULD BE REQUIRED
                THEREBY.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	(b)  	
              The
                Interest Reserve Agent’s jurisdiction for purposes of Sections 8-110 and
                9-304 of the Code will be the State of New
                York.

            

    

     

    
      	(c)  	
              Each
                party hereto irrevocably agrees that any legal action or proceeding
                arising out of or based upon this Agreement or the transactions
                contemplated hereby will be brought in the federal courts located
                in the
                Borough of Manhattan in the City of New York, and irrevocably submits
                to
                the exclusive jurisdiction of such courts in any such action or
                proceeding. The parties hereby irrevocably and unconditionally waive
                any
                objection to the laying of venue of any lawsuit, action or other
                proceeding in any such court, and hereby further irrevocably and
                unconditionally waive and agree not to plead or claim in any such
                court
                that any such lawsuit, action or other proceeding brought in any
                such
                court has been brought in an inconvenient forum. The parties further
                agree
                that service of any process, summons, notice or document by certified
                or
                registered mail, return receipt requested, to such party’s address set
                forth in Section 1.5 hereof (or directed to it at the address last
                specified for notices hereunder) will be effective service of process
                for
                any lawsuit, action or other proceeding brought in any such court,
                and
                such service will be deemed completed 10 days after the same is so
                mailed;
                provided that the Grantor and the Guarantor hereby appoint CT Corporation
                System of New York, New York, as their respective agent for service
                of
                process in any lawsuit, action or proceeding arising out of or based
                upon
                this Agreement or the transaction contemplated hereby. Each party
                hereto
                hereby waives the right to trial by jury in any such lawsuit, action
                or
                other proceeding.

            

    

     

    
      	(d)  	
              Time
                is of the essence in this
                Agreement.

            

    

     

    
      	(e)  	
              Except
                as set forth in Section 1.2(c), capitalized terms that are used but
                not
                defined in this Agreement have the meanings assigned to them in the
                Indenture. The term “will” as used in this Agreement shall be interpreted
                to express a command. The term “or” is not exclusive. Words in the
                singular include the plural and words in the plural include the
                singular.

            

    

     

    3.4.
        Rights
      and Remedies.

     

    The
      rights and remedies conferred upon the parties hereto and the Initial Purchasers
      will be cumulative, and the exercise or waiver of any such right or remedy
      will
      not preclude or inhibit the exercise of any additional rights or remedies.
      The
      waiver of any right or remedy hereunder will not preclude the subsequent
      exercise of such right or remedy.

     

    3.5.
        Benefit
      of the Parties.

     

    This
      Agreement will be binding upon the parties hereto and each of their successors
      and assigns. This Agreement will inure solely to the benefit of the parties
      hereto, the Initial Purchasers and (subject to Section 3.6 hereof) each of
      their
      respective successors and assigns, and no other person will have or be construed
      to have any legal or equitable right, remedy or claim under, in respect of,
      or
      by virtue of this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.6.
        Assignment.

     

    This
      Agreement and the rights and obligations hereunder of parties hereto may not
      be
      assigned except with the prior written consent of the other parties hereto
      and
      the Initial Purchasers, and any purported assignment without such consent will
      be null and void.

     

    3.7.
        Merger.

     

    This
      Agreement constitutes the entire agreement of the parties hereto with respect
      to
      the subject matter contained herein and supersedes all prior oral or written
      agreements in regard thereto.

     

    3.8.
        Amendment.

     

    Except
      as
      otherwise permitted herein, this Agreement may be amended, supplemented or
      otherwise modified only by a written amendment signed by all the parties hereto
      and the Initial Purchasers, and no waiver of any provision hereof will be
      effective unless expressed in a writing signed by all of the parties hereto
      and
      the Initial Purchasers.

     

    3.9.
        Severability.

     

    The
      invalidity, illegality or unenforceability of any provision of this Agreement
      will in no way affect the validity, legality or enforceability of any other
      provision, and if any provision is held to be enforceable as a matter of law,
      the other provisions will not be affected thereby and will remain in full force
      and effect.

     

    3.10.
        Headings
      and Captions.

     

    The
      headings and captions included in this Agreement are included solely for
      convenience of reference and will have no effect on the interpretation or
      operation of this Agreement.

     

    3.11.
        Counterparts.

     

    This
      Agreement may be executed in one or more counterparts, each of which
      counterpart, when so executed and delivered, will be deemed to be an original
      and all such counterparts together will constitute one and the same
      instrument.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, each of the parties has caused this Agreement to be executed
      by
      a duly authorized officer as of the day and year first written
      above.

     

    Canadian
      Satellite Radio Holdings Inc.,

     

    as
      Grantor

     

    By:
      /s/
      Michael Washinushi

    Name:
      Michael Washinushi

    Title:
      Chief Financial Officer

     

     

     

    Canadian
      Satellite Radio Inc.

     

    By:
      /s/
      Michael Washinushi

    
      
        

      

    

    Name:
      Michael Washinushi

    Title:
      Chief Financial Officer

     

    The
      Bank of Nova Scotia

    Trust
      Company of New York,

    as
      Interest Reserve Agent

     

    By:
      /s/
      Warren A. Goshine

    
      
 Name:
      Warren A. Goshine

    Title:
      Vice President

     

    The
      Bank of Nova Scotia

    Trust
      Company of New York,

    as
      Trustee

     

    By:
      /s/
      Warren A. Goshine

    
      

    

    Name:
      Warren A. Goshine

    Title:
      Vice President

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      3.1*

     

    The
      following persons are entitled to give notices, instructions and other
      communications to the Interest Reserve Agent on behalf of the
      Grantor:

     

    
      	
               

              Name

            	 	
               

              Title

            
	
               

              John
                I. Bitove

            	 	
               

              Chairman
                and Chief Executive Officer

            
	
               

              Stephen
                Tapp

            	 	
               

              President
                and Chief Operating Officer

            
	
               

              Michael
                Washinushi

            	 	
               

              Chief
                Financial Officer, Treasurer and Secretary

            
	
               

              Stewart
                Lyons

            	 	
               

              Executive
                Vice President

            

    

    

    

    

    * This
      Schedule 3.1 may be amended from time to time by written notice from the Grantor
      to the Interest Reserve Agent and the Trustee.Exhibit 4.4

    
      
        

      

    

     

    Execution
      Copy

     

    

     

    

    EXHIBIT
      4.4

    

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    by
      and among

    

    CANADIAN
      SATELLITE RADIO HOLDINGS INC.

    

    THE
      GUARANTOR PARTY HERETO

    

    and

    

    BEAR,
      STEARNS & CO. INC.

    RBC
      CAPITAL MARKETS CORPORATION

    

    

    

    

    

    

    February
      10, 2006

     

    

    

    

    

    

      
 

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    This
      Registration Rights Agreement (this “Agreement”)
      is
      made and entered into as of February 10, 2006 by and among Canadian Satellite
      Radio Holdings Inc., a corporation incorporated under the laws of the Province
      of Ontario, Canada (the “Company”),
      Canadian Satellite Radio Inc., a corporation incorporated under the laws of
      the
      Province of Ontario, Canada (“CSR
      Inc.”),
      and
      Bear, Stearns & Co. Inc. and RBC Capital Markets Corporation (the
“Initial
      Purchasers”).
      The
      Initial Purchasers have agreed to purchase the Company’s 12.75% Senior Notes due
      2014 (the “Notes”)
      pursuant to the Purchase Agreement (as defined below).

     

    This
      Agreement is made pursuant to the Purchase Agreement, dated February 7, 2006,
      (the “Purchase
      Agreement”),
      by
      and among the Company, CSR Inc. and the Initial Purchasers. In order to induce
      the Initial Purchasers to purchase the Notes, the Company has agreed to provide
      the registration rights set forth in this Agreement. The execution and delivery
      of this Agreement is a condition to the obligations of the Initial Purchasers
      set forth in Section 10(p) of the Purchase Agreement. Capitalized terms used
      herein and not otherwise defined shall have the meaning assigned to them in
      the
      Indenture (the “Indenture”),
      dated
      February 10, 2006, among the Company, CSR Inc. and The Bank of Nova Scotia
      Trust
      Company of New York, as Trustee, relating to the Notes and the Exchange Notes
      (as defined below). 

     

    The
      payment of principal of, premium and liquidated damages, if any, and interest
      on
      the Initial Notes and the Exchange Notes will be fully and unconditionally
      guaranteed on a senior unsecured basis, jointly and severally by (i) the
      Company’s sole subsidiary, CSR Inc. and (ii) any subsidiary of the Company
      formed or acquired after the Closing Date (as defined below) that executes
      an
      additional guarantee in accordance with the terms of the Indenture, and
      respective successors and assigns of the subsidiaries of the Company referred
      to
      in (i) and (ii) above (collectively, the “Guarantors”),
      pursuant to their guarantees (the “Guarantees”).
      

     

    The
      parties hereby agree as follows:

     

    SECTION
      1.   DEFINITIONS

     

    As
      used
      in this Agreement, the following capitalized terms shall have the following
      meanings:

     

    Affiliate:
      As
      defined in Rule 144 of the Securities Act.

     

    Broker-Dealer:
      Any
      broker or dealer registered under the Exchange Act.

     

    Certificated
      Securities:
      Definitive Notes, as defined in the Indenture.

     

    Closing
      Date:
      The
      date hereof.

     

    Commission:
      The
      United States Securities and Exchange Commission.

     

    Consummate:
      An
      Exchange Offer shall be deemed “Consummated” for purposes of this Agreement upon
      the occurrence of (a) the filing and effectiveness under the Securities Act
      of
      the Exchange Offer Registration Statement relating to the Exchange Notes to
      be
      issued in the Exchange Offer, (b) the maintenance of such Exchange Offer
      Registration Statement continuously effective and the keeping of the Exchange
      Offer open for a period not less than the period required pursuant to Section
      3(b) hereof and (c) the delivery by the Company to the Registrar under the
      Indenture of Exchange Notes in the same aggregate principal amount as the
      aggregate principal amount of Notes tendered by Holders thereof pursuant to
      the
      Exchange Offer.

     

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Consummation
      Deadline:
      As
      defined in Section 3(b) hereof.

     

    Effectiveness
      Deadline:
      As
      defined in Sections 3(a) and 4(a) hereof.

     

    Exchange
      Act:
      The
      United States Securities Exchange Act of 1934, as amended. 

     

    Exchange
      Notes:
      The
      Company’s 12.75% Senior Notes due 2014 and the related subsidiary guarantees to
      be issued pursuant to the Indenture: (i) in the Exchange Offer or (ii) as
      contemplated by Section 4 hereof.

     

    Exchange
      Offer:
      The
      exchange and issuance by the Company of a principal amount of Exchange Notes
      (which shall be registered pursuant to the Exchange Offer Registration
      Statement) equal to the outstanding principal amount of Notes that are tendered
      by such Holders in connection with such exchange and issuance, and evidencing
      the same continuing indebtedness.

     

    Exchange
      Offer Registration Statement:
      The
      Registration Statement relating to the Exchange Offer, including the related
      Prospectus.

     

    Exempt
      Resales:
      The
      transactions in which the Initial Purchasers propose to sell the Notes to
      certain “qualified institutional buyers,” as such term is defined in Rule 144A
      under the Securities Act and pursuant to Regulation S under the Securities
      Act.

     

    Filing
      Deadline:
      As
      defined in Sections 3(a) and 4(a) hereof.

     

    Holders:
      As
      defined in Section 2 hereof.

     

    Prospectus:
      The
      prospectus included in a Registration Statement at the time such Registration
      Statement is declared effective, as amended or supplemented by any prospectus
      supplement and by all other amendments thereto, including post-effective
      amendments, and all material incorporated by reference into such
      Prospectus.

     

    Recommencement
      Date:
      As
      defined in Section 6(d) hereof.

     

    Registration
      Default:
      As
      defined in Section 5 hereof.

     

    Registration
      Statement:
      Any
      registration statement of the Company and the Guarantors relating to (a) an
      offering of Exchange Notes pursuant to an Exchange Offer or (b) the registration
      for resale of Transfer Restricted Securities pursuant to the Shelf Registration
      Statement, in each case, (i) that is filed pursuant to the provisions of this
      Agreement and (ii) including the Prospectus included therein, all amendments
      and
      supplements thereto (including post-effective amendments) and all exhibits
      and
      material incorporated by reference therein.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Regulation
      S:
      Regulation S promulgated under the Securities Act.

     

    Rule
      144:
      Rule
      144 promulgated under the Securities Act.

     

    Securities
      Act:
      The
      United States Securities Act of 1933, as amended.

     

    Shelf
      Registration Statement:
      As
      defined in Section 4 hereof.

     

    Suspension
      Notice:
      As
      defined in Section 6(d) hereof.

     

    TIA:
      The
      Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb) as in effect on
      the
      date of the Indenture.

     

    Transfer
      Restricted Securities:
      Each
      (A) Note, until the earliest to occur of (i) the date on which such Note is
      exchanged in the Exchange Offer for an Exchange Note which is entitled to be
      resold to the public by the Holder thereof without complying with the prospectus
      delivery requirements of the Securities Act, (ii) the date on which such Note
      has been disposed of in accordance with a Shelf Registration Statement (and
      the
      purchasers thereof have been issued Exchange Notes), or (iii) the date on
      which such Note is distributed to the public pursuant to Rule 144 under the
      Securities Act and each (B) Exchange Note held by a Broker Dealer until the
      date
      on which such Exchange Note is disposed of by a Broker-Dealer pursuant to the
      “Plan of Distribution” contemplated by the Exchange Offer Registration Statement
      (including the delivery of the Prospectus contained therein).

     

    SECTION
      2.   HOLDERS

     

    A
      Person
      is deemed to be a holder of Transfer Restricted Securities (each, a
“Holder”)
      whenever such Person owns Transfer Restricted Securities.

     

    SECTION
      3.   REGISTERED
      EXCHANGE OFFER

     

    (a)  Unless
      the Exchange Offer shall not be permitted by applicable federal law or
      Commission policy, the Company and the Guarantors shall (i) cause the Exchange
      Offer Registration Statement to be filed with the Commission as soon as
      practicable after the Closing Date, but in no event later than 90 days after
      the
      Closing Date (such 90th day being the “Filing
      Deadline”),
      (ii)
      use all commercially reasonable efforts to cause such Exchange Offer
      Registration Statement to be declared effective by the Commission at the
      earliest possible time, but in no event later than 270 days after the Closing
      Date (such 270th day being the “Effectiveness
      Deadline”),
      (iii)
      in connection with the foregoing, (A) file all pre-effective amendments to
      such
      Exchange Offer Registration Statement as may be necessary in order to cause
      the
      Exchange Offer Registration Statement to be declared effective, (B) file, if
      applicable, a post-effective amendment to such Exchange Offer Registration
      Statement pursuant to Rule 430A under the Securities Act and (C) cause all
      necessary filings, if any, in connection with the registration and qualification
      of the Exchange Notes to be made under the Blue Sky laws of such jurisdictions
      as are necessary to permit Consummation of the Exchange Offer, and (iv) upon
      the
      effectiveness of such Exchange Offer Registration Statement, commence and
      Consummate the Exchange Offer. The Exchange Offer shall be on the appropriate
      form permitting (i) registration of the Exchange Notes to be offered in exchange
      for the Notes that are Transfer Restricted Securities and (ii) resales of
      Exchange Notes by Broker-Dealers that tendered into the Exchange Offer Notes
      that such Broker-Dealer acquired for its own account as a result of market
      making activities or other trading activities (other than Notes acquired
      directly from the Company or any of its Affiliates) as contemplated by Section
      3(c) below.

     

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (b)  The
      Company and the Guarantors shall use their respective commercially reasonable
      efforts to cause the Exchange Offer Registration Statement to be effective
      continuously, and shall keep the Exchange Offer open for a period of not less
      than the minimum period required under applicable federal and state securities
      laws to Consummate the Exchange Offer; provided,
      however,
      that in
      no event shall such period be less than 20 business days. The Company and the
      Guarantors shall cause the Exchange Offer to comply with all applicable federal
      and state securities laws. No securities other than the Exchange Notes shall
      be
      included in the Exchange Offer Registration Statement. The Company and the
      Guarantors shall use all commercially reasonable efforts to cause the Exchange
      Offer to be Consummated on the earliest practicable date after the Exchange
      Offer Registration Statement has become effective, but in no event later than
      45
      days thereafter (such 45th day being the “Consummation
      Deadline”).

     

    (c)  The
      Company shall include a “Plan of Distribution” section in the Prospectus
      contained in the Exchange Offer Registration Statement and indicate therein
      that
      any Broker-Dealer who holds Transfer Restricted Securities that were acquired
      for the account of such Broker-Dealer as a result of market-making activities
      or
      other trading activities (other than Notes acquired directly from the Company
      or
      any Affiliate of the Company), may exchange such Transfer Restricted Securities
      pursuant to the Exchange Offer. Such “Plan of Distribution” section shall also
      contain all other information with respect to such sales by such Broker-Dealers
      that the Commission may require in order to permit such sales pursuant thereto,
      but such “Plan of Distribution” shall not name any such Broker-Dealer or
      disclose the amount of Transfer Restricted Securities held by any such
      Broker-Dealer, except to the extent required by the Commission as a result
      of a
      change in policy, rules or regulations after the date of this Agreement. See
      the
      Shearman & Sterling no-action letter (available July 2, 1993).

     

    Because
      such Broker-Dealer may be deemed to be an “underwriter” within the meaning of
      the Securities Act and must, therefore, deliver a prospectus meeting the
      requirements of the Securities Act in connection with its initial sale of any
      Exchange Notes received by such Broker-Dealer in the Exchange Offer, the Company
      and the Guarantors shall permit the use of the Prospectus contained in the
      Exchange Offer Registration Statement by such Broker-Dealer to satisfy such
      prospectus delivery requirement. To the extent necessary to ensure that the
      prospectus contained in the Exchange Offer Registration Statement is available
      for sales of Exchange Notes by Broker-Dealers, the Company and the Guarantors
      agree to use their respective commercially reasonable efforts to keep the
      Exchange Offer Registration Statement continuously effective, supplemented,
      amended and current as required by and subject to the provisions of Section
      6(a)
      and (c) hereof and in conformity with the requirements of this Agreement, the
      Securities Act and the policies, rules and regulations of the Commission as
      announced from time to time, for a period of 180 days from the Consummation
      Deadline or such shorter period as will terminate when all Transfer Restricted
      Securities covered by such Registration Statement have been sold pursuant
      thereto. The Company and the Guarantors shall provide sufficient copies of
      the
      latest version of such Prospectus to such Broker-Dealers, promptly upon request,
      and in no event later than one day after such request, at any time during such
      period.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    SECTION
      4.   SHELF
      REGISTRATION

     

    (a)  Shelf
      Registration.
      If (i)
      the Company and the Guarantors are not (A) required to file the Exchange Offer
      Registration Statement or (B) permitted to Consummate the Exchange Offer because
      the Exchange Offer is not permitted by applicable law or Commission policy
      or
      (ii) if any Holder of Transfer Restricted Securities shall notify the Company
      within 20 business days following the Consummation Deadline that (A) such Holder
      was prohibited by law or Commission policy from participating in the Exchange
      Offer; (B) such Holder may not resell the Exchange Notes acquired by it in
      the
      Exchange Offer to the public without delivering a prospectus and the Prospectus
      contained in the Exchange Offer Registration Statement is not appropriate or
      available for such resales by such Holder; or (C) such Holder is a Broker-Dealer
      and holds Notes acquired directly from the Company or any of its Affiliates,
      then the Company and the Guarantors shall file a Shelf Registration Statement
      (as defined below) to cover resales of the Notes by Holders of the Notes who
      satisfy certain conditions relating to the provision of information in
      connection with the Shelf Registration Statement. If obligated to file a Shelf
      Registration Statement, the Company and the Guarantors shall use all
      commercially reasonable efforts to:

     

    (x)
      file,
      on or prior to 30 days after the earlier of (i) the date on which the Company
      determines that the Exchange Offer Registration Statement cannot be filed as
      a
      result of clause (a)(i) above and (ii) the date on which the Company receives
      the notice specified in clause (a)(ii) above, (such earlier date, the
“Filing
      Deadline”),
      a
      shelf registration statement pursuant to Rule 415 under the Securities Act
      (which may be an amendment to the Exchange Offer Registration Statement (the
      “Shelf
      Registration Statement”)),
      relating to all Transfer Restricted Securities, and 

     

    (y)
      cause
      such Shelf Registration Statement to be declared effective by the Commission
      on
      or prior to 90 days after the Filing Deadline for the Shelf Registration
      Statement (such 90th day the “Effectiveness
      Deadline”).
      

     

    If,
      after
      the Company and the Guarantors have filed an Exchange Offer Registration
      Statement that satisfies the requirements of Section 3(a) above, the Company
      and
      the Guarantors are required to file and make effective a Shelf Registration
      Statement solely because the Exchange Offer is not permitted under applicable
      federal law (i.e., clause (a)(i) above), then the filing of the Exchange Offer
      Registration Statement shall be deemed to satisfy the requirements of clause
      (x)
      above; provided
      that, in
      such event, the Company and the Guarantors shall remain obligated to meet the
      Effectiveness Deadline set forth in clause (y).

     

    To
      the
      extent necessary to ensure that the Shelf Registration Statement is available
      for sales of Transfer Restricted Securities by the Holders thereof entitled
      to
      the benefit of this Section 4(a) and the other securities required to be
      registered therein pursuant to Section 6(b)(ii) hereof, the Company and the
      Guarantors shall use their respective commercially reasonable efforts to keep
      any Shelf Registration Statement required by this Section 4(a) continuously
      effective, supplemented, amended and current as required by and subject to
      the
      provisions of Sections 6(b) and (c) hereof and in conformity with the
      requirements of this Agreement, the Securities Act and the policies, rules
      and
      regulations of the Commission as announced from time to time, for a period
      of at
      least two years (as extended pursuant to Section 6(c)(ii) hereof) following
      the
      Closing Date, or such shorter period as will terminate at such time there are
      no
      longer any Transfer Restricted Securities outstanding.

     

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (b)  Provision
      by Holders of Certain Information in Connection with the Shelf Registration
      Statement.
      No
      Holder of Transfer Restricted Securities may include any of its Transfer
      Restricted Securities in any Shelf Registration Statement pursuant to this
      Agreement unless and until such Holder furnishes to the Company in writing,
      within 10 business days after receipt of a request therefor, the information
      specified in Item 507 or Item 508 of Regulation S-K, as applicable, of the
      Securities Act for use in connection with any Shelf Registration Statement
      or
      Prospectus or preliminary Prospectus included therein. No Holder of Transfer
      Restricted Securities shall be entitled to liquidated damages pursuant to
      Section 5 hereof unless and until such Holder shall have provided all such
      information in the required times. Each selling Holder agrees to promptly
      furnish additional information required to be disclosed in order to make the
      information previously furnished to the Company by such Holder not materially
      misleading.

     

    SECTION
      5.   LIQUIDATED
      DAMAGES

     

    If
      (i)
      any Registration Statement required by this Agreement is not filed with the
      Commission on or prior to the applicable Filing Deadline, (ii) any such
      Registration Statement has not been declared effective by the Commission on
      or
      prior to the applicable Effectiveness Deadline, (iii) the Exchange Offer has
      not
      been Consummated on or prior to the Consummation Deadline or (iv) any
      Registration Statement required by this Agreement is filed and declared
      effective but shall thereafter cease to be effective or fail to be usable for
      its intended purpose without being succeeded immediately by a post-effective
      amendment to such Registration Statement that cures such failure and that is
      itself declared effective immediately after filing such post-effective amendment
      to such Registration Statement (each such event referred to in clauses (i)
      through (iv), a “Registration
      Default”),
      then
      the Company and the Guarantors hereby jointly and severally agree to pay to
      each
      Holder of Transfer Restricted Securities affected thereby liquidated damages
      in
      an amount equal to $0.05 per week per $1,000 in principal amount of Transfer
      Restricted Securities held by such Holder for each week or portion thereof
      that
      the Registration Default continues for the first 90-day period immediately
      following the occurrence of such Registration Default. The amount of the
      liquidated damages shall increase by an additional $0.05 per week per $1,000
      in
      principal amount of Transfer Restricted Securities with respect to each
      subsequent 90-day period until all Registration Defaults have been cured, up
      to
      a maximum amount of liquidated damages of $0.50 per week per $1,000 in principal
      amount of Transfer Restricted Securities; provided
      that the
      Company and the Guarantors shall in no event be required to pay liquidated
      damages for more than one Registration Default at any given time.
      Notwithstanding anything to the contrary set forth herein, (1) upon filing
      of
      the Exchange Offer Registration Statement (and/or, if applicable, the Shelf
      Registration Statement), in the case of (i) above, (2) upon the effectiveness
      of
      the Exchange Offer Registration Statement (and/or, if applicable, the Shelf
      Registration Statement), in the case of (ii) above, (3) upon Consummation of
      the
      Exchange Offer, in the case of (iii) above, or (4) upon the filing of a
      post-effective amendment to the Registration Statement or an additional
      Registration Statement that causes the Exchange Offer Registration Statement
      (and/or, if applicable, the Shelf Registration Statement) to again be declared
      effective or made usable in the case of (iv) above, the liquidated damages
      payable with respect to the Transfer Restricted Securities as a result of such
      clause (i), (ii), (iii) or (iv), as applicable, shall cease. 

     

    All
      accrued liquidated damages shall be paid to the Holders entitled thereto, in
      the
      manner provided for the payment of interest in the Indenture, on each Interest
      Payment Date, as more fully set forth in the Indenture and the Notes.
      Notwithstanding the fact that any securities for which liquidated damages are
      due cease to be Transfer Restricted Securities, all obligations of the Company
      and the Guarantors to pay liquidated damages with respect to securities shall
      survive until such time as such obligations with respect to such securities
      shall have been satisfied in full.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    SECTION
      6.   REGISTRATION
      PROCEDURES

     

    (a)  Exchange
      Offer Registration Statement.
      In
      connection with the Exchange Offer, the Company and the Guarantors shall (x)
      comply with all applicable provisions of Section 6(c) below, (y) use their
      respective commercially reasonable efforts to effect such exchange and to permit
      the resale of Exchange Notes by Broker-Dealers that tendered in the Exchange
      Offer Notes that such Broker-Dealer acquired for its own account as a result
      of
      its market making activities or other trading activities (other than Notes
      acquired directly from the Company or any of its Affiliates) being sold in
      accordance with the intended method or methods of distribution thereof, and
      (z)
      comply with all of the following provisions:

     

    (i)  If,
      following the date hereof there has been announced a change in Commission policy
      with respect to exchange offers such as the Exchange Offer, that in the
      reasonable opinion of counsel to the Company raises a substantial question
      as to
      whether the Exchange Offer is permitted by applicable federal law, the Company
      and the Guarantors hereby agree to seek a no-action letter or other favorable
      decision from the Commission allowing the Company and the Guarantors to
      Consummate an Exchange Offer for such Transfer Restricted Securities. The
      Company and the Guarantors hereby agree to pursue the issuance of such a
      decision to the Commission staff level. In connection with the foregoing, the
      Company and the Guarantors hereby agree to take all such other reasonable
      actions as may be requested by the Commission or otherwise required in
      connection with the issuance of such decision, including without limitation
      (A)
      participating in telephonic conferences with the Commission, (B) delivering
      to
      the Commission staff an analysis prepared by counsel to the Company setting
      forth the legal bases, if any, upon which such counsel has concluded that such
      an Exchange Offer should be permitted and (C) diligently pursuing a resolution
      (which need not be favorable) by the Commission staff.

     

    (ii)  As
      a
      condition to its participation in the Exchange Offer, each Holder of Transfer
      Restricted Securities (including, without limitation, any Holder who is a Broker
      Dealer) shall furnish, upon the request of the Company, prior to the
      Consummation of the Exchange Offer, a written representation to the Company
      and
      the Guarantors (which may be contained in the letter of transmittal contemplated
      by the Exchange Offer Registration Statement) to the effect that (A) it is
      not
      an Affiliate of the Company, (B) it is not engaged in, and does not intend
      to
      engage in, and has no arrangement or understanding with any person to
      participate in, a distribution of the Exchange Notes to be issued in the
      Exchange Offer and (C) it is acquiring the Exchange Notes in its ordinary course
      of business. As a condition to its participation in the Exchange Offer each
      Holder using the Exchange Offer to participate in a distribution of the Exchange
      Notes shall acknowledge and agree that, if the resales are of Exchange Notes
      obtained by such Holder in exchange for Notes acquired directly from the Company
      or an Affiliate thereof, it (1) could not, under Commission policy as in effect
      on the date of this Agreement, rely on the position of the Commission enunciated
      in Morgan
      Stanley and Co., Inc.
      (available June 5, 1991) and Exxon
      Capital Holdings Corporation
      (available May 13, 1988), as interpreted in the Commission’s letter to
Shearman
      & Sterling
      dated
      July 2, 1993, and similar no-action letters (including, if applicable, any
      no-action letter obtained pursuant to clause (i) above), and (2) must comply
      with the registration and prospectus delivery requirements of the Securities
      Act
      in connection with a secondary resale transaction and that such a secondary
      resale transaction must be covered by an effective registration statement
      containing the selling security holder information required by Item 507 or
      508,
      as applicable, of Regulation S-K.

     

    (iii)  Prior
      to
      effectiveness of the Exchange Offer Registration Statement, the Company and
      the
      Guarantors shall provide a supplemental letter to the Commission (A) stating
      that the Company and the Guarantors are registering the Exchange Offer in
      reliance on the position of the Commission enunciated in Exxon
      Capital Holdings Corporation
      (available May 13, 1988), Morgan
      Stanley and Co., Inc.
      (available June 5, 1991) as interpreted in the Commission’s letter to
Shearman
      & Sterling
      dated
      July 2, 1993, and, if applicable, any no-action letter obtained pursuant to
      clause (i) above, (B) including a representation that neither the Company nor
      any of the Guarantors has entered into any arrangement or understanding with
      any
      Person to distribute the Exchange Notes to be received in the Exchange Offer
      and
      that, to the best of the Company’s and the Guarantors’ information and belief,
      each Holder participating in the Exchange Offer is acquiring the Exchange Notes
      in its ordinary course of business and has no arrangement or understanding
      with
      any Person to participate in the distribution of the Exchange Notes received
      in
      the Exchange Offer and (C) any other undertaking or representation required
      by
      the Commission as set forth in any no-action letter obtained pursuant to clause
      (i) above, if applicable.

     

    (b)  Shelf
      Registration Statement.
      In
      connection with the Shelf Registration Statement, the Company and the Guarantors
      shall (i) comply with all the provisions of Section 6(c) below and use their
      respective commercially reasonable efforts to effect such registration to permit
      the sale of the Transfer Restricted Securities being sold in accordance with
      the
      intended method or methods of distribution thereof (as indicated in the
      information furnished to the Company pursuant to Section 4(b) hereof), and
      pursuant thereto the Company and the Guarantors will prepare and file with
      the
      Commission a Registration Statement relating to the registration on any
      appropriate form under the Securities Act, which form shall be available for
      the
      sale of the Transfer Restricted Securities in accordance with the intended
      method or methods of distribution thereof within the time periods and otherwise
      in accordance with the provisions hereof, and

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (ii) issue,
      upon the request of any Holder or purchaser of Notes covered by any Shelf
      Registration Statement contemplated by this Agreement, Exchange Notes having
      an
      aggregate principal amount equal to the aggregate principal amount of Notes
      sold
      pursuant to the Shelf Registration Statement and surrendered to the Company
      for
      cancellation; the Company shall register Exchange Notes on the Shelf
      Registration Statement for this purpose and issue the Exchange Notes to the
      purchaser(s) of securities subject to the Shelf Registration Statement in the
      names as such purchaser(s) shall designate.

     

    (c)  General
      Provisions.
      In
      connection with any Registration Statement and any related Prospectus required
      by this Agreement, the Company and the Guarantors shall:

     

    (i)  use
      their
      respective commercially reasonable efforts to keep such Registration Statement
      continuously effective and provide all requisite financial statements for the
      period specified in Section 3 or 4 of this Agreement, as applicable. Upon the
      occurrence of any event that would cause any such Registration Statement or
      the
      Prospectus contained therein (A) to contain an untrue statement of material
      fact
      or omit to state any material fact necessary to make the statements therein
      not
      misleading or (B) not to be effective and usable for resale of Transfer
      Restricted Securities during the period required by this Agreement, the Company
      and the Guarantors shall file promptly an appropriate amendment to such
      Registration Statement curing such defect, and, if Commission review is
      required, use their respective commercially reasonable efforts to cause such
      amendment to be declared effective as soon as practicable.

     

    (ii)  prepare
      and file with the Commission such amendments and post-effective amendments
      to
      the applicable Registration Statement as may be necessary to keep such
      Registration Statement effective for the applicable period set forth in Section
      3 or 4 hereof, as the case may be; cause the Prospectus to be supplemented
      by
      any required Prospectus supplement, and as so supplemented to be filed pursuant
      to Rule 424 under the Securities Act, and to comply fully with Rules 424, 430A
      and 462, as applicable, under the Securities Act in a timely manner; and comply
      with the provisions of the Securities Act with respect to the disposition of
      all
      securities covered by such Registration Statement during the applicable period
      in accordance with the intended method or methods of distribution by the sellers
      thereof set forth in such Registration Statement or supplement to the
      Prospectus;

     

    (iii)  advise
      each Holder promptly and, if requested by such Holder, confirm such advice
      in
      writing, (A) when the Prospectus or any Prospectus supplement or post-effective
      amendment has been filed, and, with respect to any applicable Registration
      Statement or any post-effective amendment thereto, when the same has become
      effective, (B) of any request by the Commission for amendments to the
      Registration Statement or amendments or supplements to the Prospectus or for
      additional information relating thereto, (C) of the issuance by the Commission
      of any stop order suspending the effectiveness of the Registration Statement
      under the Securities Act or of the suspension by any state securities commission
      of the qualification of the Transfer Restricted Securities for offering or
      sale
      in any jurisdiction, or the initiation of any proceeding for any of the
      preceding purposes, (D) of the existence of any fact or the happening of any
      event that makes any statement of a material fact made in the Registration
      Statement, the Prospectus, any amendment or supplement thereto or any document
      incorporated by reference therein untrue, or that requires the making of any
      additions to or changes in the Registration Statement in order to make the
      statements therein not misleading, or that requires the making of any additions
      to or changes in the Prospectus in order to make the statements therein, in
      the
      light of the circumstances under which they were made, not misleading. If at
      any
      time the Commission shall issue any stop order suspending the effectiveness
      of
      the Registration Statement, or any state securities commission or other
      regulatory authority shall issue an order suspending the qualification or
      exemption from qualification of the Transfer Restricted Securities under state
      securities or Blue Sky laws, the Company and the Guarantors shall use their
      respective commercially reasonable efforts to obtain the withdrawal or lifting
      of such order at the earliest possible time;

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (iv)  subject
      to Section 6(c)(i), if any fact or event contemplated by Section 6(c)(iii)(D)
      above shall exist or have occurred, prepare a supplement or post-effective
      amendment to the Registration Statement or related Prospectus or any document
      incorporated therein by reference or file any other required document so that,
      as thereafter delivered to the purchasers of Transfer Restricted Securities,
      the
      Prospectus will not contain an untrue statement of a material fact or omit
      to
      state any material fact necessary to make the statements therein, in the light
      of the circumstances under which they were made, not misleading;

     

    (v)  if
      requested in writing by an Initial Purchaser or a Holder, furnish to each
      Holders in connection with such exchange or sale, if any, before filing with
      the
      Commission, copies of any Registration Statement or any Prospectus included
      therein or any amendments or supplements to any such Registration Statement
      or
      Prospectus (including all documents incorporated by reference after the initial
      filing of such Registration Statement), which documents will be subject to
      the
      review and comment of such Holders in connection with such sale, if any, for
      a
      period of at least five Business Days, and the Company will not file any such
      Registration Statement or Prospectus or any amendment or supplement to any
      such
      Registration Statement or Prospectus (including all such documents incorporated
      by reference) to which such Holders shall reasonably object within five Business
      Days after the receipt thereof. A Holder shall be deemed to have reasonably
      objected to such filing if such Registration Statement, amendment, Prospectus
      or
      supplement, as applicable, as proposed to be filed, contains an untrue statement
      of a material fact or omit to state any material fact necessary to make the
      statements therein not misleading or fails to comply with the applicable
      requirements of the Securities Act;

     

    (vi)  promptly
      prior to the filing of any document that is to be incorporated by reference
      into
      a Shelf Registration Statement or Prospectus, provide copies of such document
      to
      each Holder that made a request in writing described in (v) above in connection
      with such exchange or sale, if any, make the Company’s and the Guarantors’
representatives available for discussion of such document and other customary
      due diligence matters, and include such information in such document prior
      to
      the filing thereof as such Holders may reasonably request;

     

    (vii)  for
      a
      reasonable period of time prior to the filing of a Shelf Registration Statement,
      make available, at reasonable times, for inspection by each Holder and any
      attorney or accountant retained by such Holders, all financial and other
      records, pertinent corporate documents of the Company and the Guarantors and
      cause the Company’s and the Guarantors’ officers, directors and employees to
      supply all information reasonably requested by any such Holder, attorney or
      accountant in connection with such Shelf Registration Statement or any
      post-effective amendment thereto subsequent to the filing thereof and prior
      to
      its effectiveness;

     

    (viii)  if
      requested by any Holders in connection with such exchange or sale, promptly
      include in any Shelf Registration Statement or Prospectus, pursuant to a
      supplement or post-effective amendment if necessary, such information as such
      Holders may reasonably request to have included therein, including, without
      limitation, information relating to the “Plan of Distribution” of the Transfer
      Restricted Securities; and make all required filings of such Prospectus
      supplement or post-effective amendment as soon as practicable after the Company
      is notified of the matters to be included in such Prospectus supplement or
      post-effective amendment;

     

    (ix)  furnish
      to each Holder in connection with such exchange or sale, without charge, at
      least one copy of the Shelf Registration Statement, as first filed with the
      Commission, and of each amendment thereto, including all documents incorporated
      by reference therein and all exhibits (including exhibits incorporated therein
      by reference);

     

    (x)  deliver
      to each Holder without charge, as many copies of the Prospectus included in
      the
      Shelf Registration Statement (including each preliminary prospectus) and any
      amendment or supplement thereto as such Persons reasonably may request; the
      Company and the Guarantors hereby consent to the use (in accordance with law)
      of
      the Prospectus included in the Shelf Registration Statement and any amendment
      or
      supplement thereto by each selling Holder in connection with the offering and
      the sale of the Transfer Restricted Securities covered by the Prospectus
      included in the Shelf Registration Statement or any amendment or supplement
      thereto;

     

    (xi)  upon
      the
      reasonable request of any Holder, enter into such agreements (including
      underwriting agreements) and make such representations and warranties and take
      all such other actions in connection therewith in order to expedite or
      facilitate the disposition of the Transfer Restricted Securities pursuant to
      any
      applicable Shelf Registration Statement contemplated by this Agreement as may
      be
      reasonably requested by any Holder in connection with any sale or resale
      pursuant to any applicable Shelf Registration Statement. In such connection,
      the
      Company and the Guarantors shall:

     

    (A)
        upon
      the
      reasonable request of any underwriter, furnish (or in the case of paragraphs
      (2)
      and (3), use its commercially reasonable efforts to cause to be furnished),
      upon
      the effectiveness of the Shelf Registration Statement:

     

     

    
      
        
        

      

      
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    (1)
        a
      certificate, dated such date, signed on behalf of the Company and each Guarantor
      by (x) the President or any Vice President and (y) a principal financial or
      accounting officer of the Company and such Guarantor, confirming, as of the
      date
      thereof, the matters set forth in Sections 10(a), (b), (c), (d), (e) and (f)
      of
      the Purchase Agreement and such other similar matters as such Holders may
      reasonably request;

     

    (2)
        an
      opinion, dated the date of effectiveness of the Shelf Registration Statement
      of
      counsel for the Company and the Guarantors covering matters to the effect set
      forth on Exhibit
      B-1
      and
Exhibit
      B-2
      to the
      Purchase Agreement and such other matters as such Holder may reasonably request,
      and in any event including a statement to the effect that such counsel has
      participated in conferences with officers and other representatives of the
      Company and the Guarantors, representatives of the independent public
      accountants for the Company and the Guarantors and have considered the matters
      required to be stated therein and the statements contained therein, although
      such counsel has not independently verified the accuracy, completeness or
      fairness of such statements; and that such counsel advises that, on the basis
      of
      the foregoing (relying as to materiality to the extent such counsel deems
      appropriate upon the statements of officers and other representatives of the
      Company and the Guarantors) and without independent check or verification),
      no
      facts came to such counsel’s attention that caused such counsel to believe that
      the applicable Shelf Registration Statement, at the time such Registration
      Statement or any post-effective amendment thereto became effective contained
      an
      untrue statement of a material fact or omitted to state a material fact required
      to be stated therein or necessary to make the statements therein not misleading,
      or that the Prospectus contained in such Shelf Registration Statement as of
      its
      date contained an untrue statement of a material fact or omitted to state a
      material fact necessary in order to make the statements therein, in the light
      of
      the circumstances under which they were made, not misleading. Without limiting
      the foregoing, such counsel may state further that such counsel assumes no
      responsibility for, and has not independently verified, the accuracy,
      completeness or fairness of the financial statements, notes and schedules and
      other financial data included in any Registration Statement contemplated by
      this
      Agreement or the related Prospectus; and

     

    (3)
        a
      customary comfort letter, dated the date of effectiveness of the Shelf
      Registration Statement from the Company’s independent accountants, in the
      customary form and covering matters of the type customarily covered in comfort
      letters to underwriters in connection with underwritten offerings, and affirming
      the matters set forth in the comfort letters delivered pursuant to Section
      10(k)
      of the Purchase Agreement; and

     

    (B)
        deliver
      such other documents and certificates as may be reasonably requested by the
      selling Holders to evidence compliance with the matters covered in clause (A)
      above and with any customary conditions contained in the any agreement entered
      into by the Company and the Guarantors pursuant to this clause
      (xi);

     

    (xii)  prior
      to
      any public offering of Transfer Restricted Securities, cooperate with the
      selling Holders and their counsel in connection with the registration and
      qualification of the Transfer Restricted Securities under the securities or
      Blue
      Sky laws of such jurisdictions as the selling Holders may request and do any
      and
      all other acts or things necessary or advisable to enable the disposition in
      such jurisdictions of the Transfer Restricted Securities covered by the
      applicable Registration Statement; provided,
      however,
      that
      neither the Company nor any Guarantor shall be required to register or qualify
      as a foreign corporation where it is not now so qualified or to take any action
      that would subject it to the service of process in suits or to taxation, other
      than as to matters and transactions relating to the Registration Statement,
      in
      any jurisdiction where it is not now so subject;

     

    (xiii)  in
      connection with any sale of Transfer Restricted Securities that will result
      in
      such securities no longer being Transfer Restricted Securities, cooperate with
      the Holders to facilitate the timely preparation and delivery of certificates
      representing Transfer Restricted Securities to be sold and not bearing any
      restrictive legends; and to register such Transfer Restricted Securities in
      such
      denominations and such names as the selling Holders may request at least two
      Business Days prior to such sale of Transfer Restricted Securities;

    
      
        
        

      

      
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    (xiv)  use
      their
      respective commercially reasonable efforts to cause the disposition of the
      Transfer Restricted Securities covered by the Registration Statement to be
      registered with or approved by such other governmental agencies or authorities
      as may be necessary to enable the seller or sellers thereof to consummate the
      disposition of such Transfer Restricted Securities, subject to the proviso
      contained in clause (xii) above;

     

    (xv)  provide
      a
      CUSIP number for all Transfer Restricted Securities not later than the effective
      date of a Registration Statement covering such Transfer Restricted Securities
      and provide the Trustee under the Indenture with printed certificates for the
      Transfer Restricted Securities which are in a form eligible for deposit with
      the
      Depository Trust Company;

     

    (xvi)  otherwise
      use their respective commercially reasonable efforts to comply with all
      applicable rules and regulations of the Commission, and with regard to any
      Shelf
      Registration Statement for which an underwriter has been engaged, use their
      commercially reasonable efforts to make generally available to its security
      holders, as soon as practicable, a consolidated earnings statement meeting
      the
      requirements of Rule 158 under the Securities Act (which need not be audited)
      covering a twelve-month period beginning after the effective date of the
      Registration Statement (as such term is defined in paragraph (c) of Rule 158
      under the Securities Act);

     

    (xvii)  cause
      the
      Indenture to be qualified under the TIA not later than the effective date of
      the
      first Registration Statement required by this Agreement and, in connection
      therewith, cooperate with the Trustee and the Holders to effect such changes
      to
      the Indenture as may be required for such Indenture to be so qualified in
      accordance with the terms of the TIA; and execute and use its commercially
      reasonable efforts to cause the Trustee to execute, all documents that may
      be
      required to effect such changes and all other forms and documents required
      to be
      filed with the Commission to enable such Indenture to be so qualified in a
      timely manner; and

     

    (xviii)  unless
      otherwise available through the Commission’s EDGAR System provide promptly to
      each Holder, upon request, each document filed with the Commission pursuant
      to
      the requirements of Section 13 or Section 15(d) of the Exchange
      Act.

     

    (d)  Restrictions
      on Holders.
      Each
      Holder agrees by acquisition of a Transfer Restricted Security that, upon
      receipt of the notice referred to in Section 6(c)(iii)(C) or any notice from
      the
      Company of the existence of any fact of the kind described in Section
      6(c)(iii)(D) hereof (in each case, a “Suspension
      Notice”),
      such
      Holder will forthwith discontinue disposition of Transfer Restricted Securities
      pursuant to the applicable Registration Statement until (i) such Holder has
      received copies of the supplemented or amended Prospectus contemplated by
      Section 6(c)(iv) hereof, or (ii) such Holder is advised in writing by the
      Company that the use of the Prospectus may be resumed, and has received copies
      of any additional or supplemental filings that are incorporated by reference
      in
      the Prospectus (in each case, the “Recommencement
      Date”).
      Each
      Holder receiving a Suspension Notice hereby agrees that it will either (i)
      destroy any Prospectuses, other than permanent file copies, then in such
      Holder’s possession which have been replaced by the Company with more recently
      dated Prospectuses or (ii) deliver to the Company (at the Company’s expense) all
      copies, other than permanent file copies, then in such Holder’s possession of
      the Prospectus covering such Transfer Restricted Securities that was current
      at
      the time of receipt of the Suspension Notice. The time period regarding the
      effectiveness of such Registration Statement set forth in Section 3 or 4 hereof,
      as applicable, shall be extended by a number of days equal to the number of
      days
      in the period from and including the date of delivery of the Suspension Notice
      to the date of delivery of the Recommencement Date.

     

    
      
        
        

      

      
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    SECTION
      7.   REGISTRATION
      EXPENSES

     

    (a)  All
      expenses incident to the Company’s and the Guarantors’ performance of or
      compliance with this Agreement will be borne by the Company, regardless of
      whether a Registration Statement becomes effective, including without
      limitation: (i) all registration and filing fees and expenses; (ii) all fees
      and
      expenses of compliance with federal securities and state Blue Sky or securities
      laws; (iii) all expenses of printing (including printing certificates for the
      Exchange Notes to be issued in the Exchange Offer and printing of Prospectuses,
      messenger and delivery services and telephone; (iv) all fees and disbursements
      of counsel for the Company, the Guarantors and in the case of a Shelf
      Registration Statement, the Holders of Transfer Restricted Securities; (v)
      all
      application and filing fees in connection with listing the Exchange Notes on
      a
      national securities exchange or automated quotation system pursuant to the
      requirements hereof; and (vi) all fees and disbursements of independent
      certified public accountants of the Company and the Guarantors (including the
      expenses of any special audit and comfort letters required by or incident to
      such performance).

     

    The
      Company will, in any event, bear its and the Guarantors’ internal expenses
      (including, without limitation, all salaries and expenses of its officers and
      employees performing legal or accounting duties), the expenses of any annual
      audit and the fees and expenses of any Person, including special experts,
      retained by the Company or the Guarantors.

     

    (b)  In
      connection with any Registration Statement required by this Agreement
      (including, without limitation, the Exchange Offer Registration Statement and
      the Shelf Registration Statement), the Company and the Guarantors will reimburse
      the Initial Purchasers and the Holders of Transfer Restricted Securities who
      are
      tendering Notes into in the Exchange Offer and/or selling or reselling Notes
      or
      Exchange Notes pursuant to the “Plan of Distribution” contained in the Exchange
      Offer Registration Statement or the Shelf Registration Statement, as applicable,
      for the reasonable fees and disbursements of not more than one counsel, who
      shall be Latham & Watkins LLP, unless another firm shall be chosen by the
      Holders of a majority in principal amount of the Transfer Restricted Securities
      for whose benefit such Registration Statement is being prepared.

     

    SECTION
      8.   INDEMNIFICATION

     

    (a)  The
      Company and the Guarantors agree, jointly and severally, to indemnify and hold
      harmless each Holder, its directors, officers and each Person, if any, who
      controls such Holder (within the meaning of Section 15 of the Securities Act
      or
      Section 20 of the Exchange Act), from and against any and all losses, claims,
      damages, liabilities, judgments, (including without limitation, any legal or
      other expenses incurred in connection with investigating or defending any
      matter, including any action that could give rise to any such losses, claims,
      damages, liabilities or judgments) caused by any untrue statement or alleged
      untrue statement of a material fact contained in any Registration Statement,
      preliminary prospectus or Prospectus (or any amendment or supplement thereto)
      provided by the Company to any Holder or any prospective purchaser of Exchange
      Notes or registered Notes, or caused by any omission or alleged omission to
      state therein a material fact required to be stated therein or necessary to
      make
      the statements therein not misleading, except insofar as such losses, claims,
      damages, liabilities or judgments are caused by an untrue statement or omission
      or alleged untrue statement or omission that is based upon information relating
      to any of the Holders furnished in writing to the Company by any of the Holders.
      

     

    (b)  Each
      Holder of Transfer Restricted agrees, severally and not jointly, to indemnify
      and hold harmless the Company and the Guarantors, and their respective directors
      and officers, and each person, if any, who controls (within the meaning of
      Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company,
      or the Guarantors to the same extent as the foregoing indemnity from the Company
      and the Guarantors set forth in section (a) above, but only with reference
      to
      information relating to such Holder furnished in writing to the Company by
      such
      Holder expressly for use in any Registration Statement. In no event shall any
      Holder, its directors, officers or any Person who controls such Holder be liable
      or responsible for any amount in excess of the amount by which the total amount
      received by such Holder with respect to its sale of Transfer Restricted
      Securities pursuant to a Registration Statement exceeds (i) the amount paid
      by
      such Holder for such Transfer Restricted Securities and (ii) the amount of
      any
      damages that such Holder, its directors, officers or any Person who controls
      such Holder has otherwise been required to pay by reason of such untrue or
      alleged untrue statement or omission or alleged omission.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (c)  In
      case
      any action shall be commenced involving any person in respect of which indemnity
      may be sought pursuant to Section 8(a) or 8(b) (the “indemnified
      party”),
      the
      indemnified party shall promptly notify the person against whom such indemnity
      may be sought (the “indemnifying
      person”)
      in
      writing and the indemnifying party shall assume the defense of such action,
      including the employment of counsel reasonably satisfactory to the indemnified
      party and the payment of all fees and expenses of such counsel, as incurred
      (except that in the case of any action in respect of which indemnity may be
      sought pursuant to both Sections 8(a) and 8(b), a Holder shall not be required
      to assume the defense of such action pursuant to this Section 8(c), but may
      employ separate counsel and participate in the defense thereof, but the fees
      and
      expenses of such counsel, except as provided below, shall be at the expense
      of
      the Holder). Any indemnified party shall have the right to employ separate
      counsel in any such action and participate in the defense thereof, but the
      fees
      and expenses of such counsel shall be at the expense of the indemnified party
      unless (i) the employment of such counsel shall have been specifically
      authorized in writing by the indemnifying party, (ii) the indemnifying party
      shall have failed to assume the defense of such action or employ counsel
      reasonably satisfactory to the indemnified party or (iii) the named parties
      to
      any such action (including any impleaded parties) include both the indemnified
      party and the indemnifying party, and the indemnified party shall have been
      advised by such counsel that there may be one or more legal defenses available
      to it which are different from or additional to those available to the
      indemnifying party (in which case the indemnifying party shall not have the
      right to assume the defense of such action on behalf of the indemnified party).
      In any such case, the indemnifying party shall not, in connection with any
      one
      action or separate but substantially similar or related actions in the same
      jurisdiction arising out of the same general allegations or circumstances,
      be
      liable for the fees and expenses of more than one separate firm of attorneys
      (in
      addition to any local counsel) for all indemnified parties and all such fees
      and
      expenses shall be reimbursed as they are incurred. Such firm shall be designated
      in writing by a majority of the Holders, in the case of the parties indemnified
      pursuant to Section 8(a), and by the Company and Guarantors, in the case of
      parties indemnified pursuant to Section 8(b). The indemnifying party shall
      indemnify and hold harmless the indemnified party from and against any and
      all
      losses, claims, damages, liabilities and judgments by reason of any settlement
      of any action (i) effected with its written consent or (ii) effected without
      its
      written consent if the settlement is entered into more than twenty business
      days
      after the indemnifying party shall have received a request from the indemnified
      party for reimbursement for the fees and expenses of counsel (in any case where
      such fees and expenses are at the expense of the indemnifying party) and, prior
      to the date of such settlement, the indemnifying party shall have failed to
      comply with such reimbursement request. No indemnifying party shall, without
      the
      prior written consent of the indemnified party, effect any settlement or
      compromise of, or consent to the entry of judgment with respect to, any pending
      or threatened action in respect of which the indemnified party is or could
      have
      been a party and indemnity or contribution may be or could have been sought
      hereunder by the indemnified party, unless such settlement, compromise or
      judgment (i) includes an unconditional release of the indemnified party from
      all
      liability on claims that are or could have been the subject matter of such
      action and (ii) does not include a statement as to or an admission of fault,
      culpability or a failure to act, by or on behalf of the indemnified
      party.

     

    (d)  To
      the
      extent that the indemnification provided for in this Section 8 is unavailable
      to
      an indemnified party in respect of any losses, claims, damages, liabilities
      or
      judgments referred to therein, then each indemnifying party, in lieu of
      indemnifying such indemnified party, shall contribute to the amount paid or
      payable by such indemnified party as a result of such losses, claims, damages,
      liabilities or judgments (i) in such proportion as is appropriate to reflect
      the
      relative benefits received by the Company and the Guarantors, on the one hand,
      and the Holders, on the other hand, from their sale of Transfer Restricted
      Securities or (ii) if the allocation provided by clause 8(d)(i) is not permitted
      by applicable law, in such proportion as is appropriate to reflect not only
      the
      relative benefits referred to in clause 8(d)(i) above but also the relative
      fault of the Company and the Guarantors, on the one hand, and of the Holder,
      on
      the other hand, in connection with the statements or omissions which resulted
      in
      such losses, claims, damages, liabilities or judgments, as well as any other
      relevant equitable considerations. The relative fault of the Company and the
      Guarantors, on the one hand, and of the Holder, on the other hand, shall be
      determined by reference to, among other things, whether the untrue or alleged
      untrue statement of a material fact or the omission or alleged omission to
      state
      a material fact relates to information supplied by the Company or such
      Guarantors, on the one hand, or by the Holder, on the other hand, and the
      parties’ relative intent, knowledge, access to information and opportunity to
      correct or prevent such statement or omission. The amount paid or payable by
      a
      party as a result of the losses, claims, damages, liabilities and judgments
      referred to above shall be deemed to include, subject to the limitations set
      forth in the second paragraph of Section 8(a), any legal or other fees or
      expenses reasonably incurred by such party in connection with investigating
      or
      defending any action or claim.

     

    The
      Company, the Guarantors and each Holder agree that it would not be just and
      equitable if contribution pursuant to this Section 8(d) were determined by
      pro
      rata allocation (even if the Holders were treated as one entity for such
      purpose) or by any other method of allocation which does not take account of
      the
      equitable considerations referred to in the immediately preceding paragraph.
      The
      amount paid or payable by an indemnified party as a result of the losses,
      claims, damages, liabilities or judgments referred to in the immediately
      preceding paragraph shall be deemed to include, subject to the limitations
      set
      forth above, any legal or other expenses reasonably incurred by such indemnified
      party in connection with investigating or defending any matter, including any
      action that could have given rise to such losses, claims, damages, liabilities
      or judgments. Notwithstanding the provisions of this Section 8, no Holder,
      its
      directors, its officers or any Person, if any, who controls such Holder shall
      be
      required to contribute, in the aggregate, any amount in excess of the amount
      by
      which the total received by such Holder with respect to the sale of Transfer
      Restricted Securities pursuant to a Registration Statement exceeds (i) the
      amount paid by such Holder for such Transfer Restricted Securities and (ii)
      the
      amount of any damages which such Holder has otherwise been required to pay
      by
      reason of such untrue or alleged untrue statement or omission or alleged
      omission. No person guilty of fraudulent misrepresentation (within the meaning
      of Section 11(f) of the Securities Act) shall be entitled to contribution from
      any person who was not guilty of such fraudulent misrepresentation. The Holders’
obligations to contribute pursuant to this Section 8(c) are several in
      proportion to the respective principal amount of Transfer Restricted Securities
      held by each Holder hereunder and not joint.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    SECTION
      9.   RULE
      144A AND RULE 144

     

    The
      Company and the Guarantors agree with each Holder, for so long as any Transfer
      Restricted Securities remain outstanding and during any period in which the
      Company or the Guarantors (i) are not subject to Section 13 or 15(d) of the
      Exchange Act, to make available, upon request of any Holder, to such Holder
      or
      beneficial owner of Transfer Restricted Securities in connection with any sale
      thereof and any prospective purchaser of such Transfer Restricted Securities
      designated by such Holder or beneficial owner, the information required by
      Rule
      144A(d)(4) under the Securities Act in order to permit resales of such Transfer
      Restricted Securities pursuant to Rule 144A, and (ii) are subject to Section
      13
      or 15 (d) of the Exchange Act, to make all filings required thereby in a timely
      manner in order to permit resales of such Transfer Restricted Securities
      pursuant to Rule 144.

     

    SECTION
      10.   MISCELLANEOUS

     

    (a)  Remedies.
      The
      Company and the Guarantors acknowledge and agree that any failure by the Company
      and/or the Guarantors to comply with their respective obligations under Sections
      3 and 4 hereof may result in material irreparable injury to the Initial
      Purchasers or the Holders for which there is no adequate remedy at law, that
      it
      will not be possible to measure damages for such injuries precisely and that,
      in
      the event of any such failure, the Initial Purchasers or any Holder may obtain
      such relief as may be required to specifically enforce the Company’s and the
      Guarantors’ obligations under Sections 3 and 4 hereof. The Company and the
      Guarantors further agree to waive the defense in any action for specific
      performance that a remedy at law would be adequate.

     

    (b)  No
      Inconsistent Agreements.
      Neither
      the Company nor any Guarantor will, on or after the date of this Agreement,
      enter into any agreement with respect to its securities that is inconsistent
      with the rights granted to the Holders in this Agreement or otherwise conflicts
      with the provisions hereof. Neither the Company nor any Guarantor has previously
      entered into any agreement granting any registration rights with respect to
      its
      securities to any Person except for that certain registration rights agreement
      dated as of December 5, 2005 among the Company, CSR Inc., XM Satellite Radio
      Holdings Inc. and General Motors Canada Limited.
      The
      rights granted to the Holders hereunder do not in any way conflict with and
      are
      not inconsistent with the rights granted to the holders of the Company’s and the
      Guarantors’ securities under any agreement in effect on the date
      hereof.

     

    (c)  Amendments
      and Waivers.
      The
      provisions of this Agreement may not be amended, modified or supplemented,
      and
      waivers or consents to or departures from the provisions hereof may not be
      given
      unless (i) in the case of Section 5 hereof and this Section 10(c)(i), the
      Company has obtained the written consent of Holders of all outstanding Transfer
      Restricted Securities and (ii) in the case of all other provisions hereof,
      the
      Company has obtained the written consent of Holders of a majority of the
      outstanding principal amount of Transfer Restricted Securities (excluding
      Transfer Restricted Securities held by the Company or its Affiliates).
      Notwithstanding the foregoing, a waiver or consent to departure from the
      provisions hereof that relates exclusively to the rights of Holders whose
      Transfer Restricted Securities are being tendered pursuant to the Exchange
      Offer, and that does not affect directly or indirectly the rights of other
      Holders whose Transfer Restricted Securities are not being tendered pursuant
      to
      such Exchange Offer, may be given by the Holders of a majority of the
      outstanding principal amount of Transfer Restricted Securities subject to such
      Exchange Offer.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (d)  Third
      Party Beneficiary.
      The
      Holders shall be third party beneficiaries to the agreements made hereunder
      between the Company and the Guarantors, on the one hand, and the Initial
      Purchasers, on the other hand, and shall have the right to enforce such
      agreements directly to the extent they may deem such enforcement necessary
      or
      advisable to protect its rights or the rights of Holders hereunder.

     

    (e)  Notices.
      All
      notices and other communications provided for or permitted hereunder shall
      be
      made in writing by hand-delivery, first-class mail (registered or certified,
      return receipt requested), telex, telecopier, or air courier guaranteeing
      overnight delivery:

     

    (i)  if
      to a
      Holder, at the address set forth on the records of the Registrar under the
      Indenture, with a copy to the Registrar under the Indenture; and

     

    (ii)  if
      to the
      Company or the Guarantors:

    

    Canadian
      Satellite Radio Holdings Inc.

    Suite
      2300, P.O. Box 222

    Canada
      Trust Tower, BCE Place

    161
      Bay
      Street

    Toronto,
      Ontario M57 2S1 Canada

    Attn.:
      Chief Financial Officer

    Telecopier:
      (416) 361-6018

    

    With
      a
      copy to: 

    

    Stikeman
      Elliott LLP

    5300
      Commerce Court West

    199
      Bay
      Street

    Toronto,
      Ontario M5L 1B9 Canada

    Attn.:
      Dee Rajpal

    Telecopier:
      (416) 869-5280

    

    (iii)  if
      to the
      Initial Purchasers:

    

    Bear
      Stearns & Co. Inc.

    RBC
      Capital Markets Corporation

    c/o
      Bear
      Stearns & Co. Inc.

    383
      Madison Avenue

    New
      York,
      NY 10179

    Attn.:
      Corporate Finance Department

    Telecopier:
      (212) 272-3092

    

    with
      a
      copy to:

    

    Latham
      & Watkins LLP

    885
      Third
      Avenue, Suite 1000

    New
      York,
      NY 10022

    Attn.:
      Marc D. Jaffe

    Telecopier:
      (212) 906-1200

    

    All
      such
      notices and communications shall be deemed to have been duly given at the time
      delivered by hand, if personally delivered; five Business Days after being
      deposited in the mail, postage prepaid, if mailed; when receipt acknowledged,
      if
      telecopied; and on the next business day, if timely delivered to an air courier
      guaranteeing overnight delivery.

     

    Copies
      of
      all such notices, demands or other communications shall be concurrently
      delivered by the Person giving the same to the Trustee at the address specified
      in the Indenture.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (f)  Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      assigns of each of the parties, including without limitation and without the
      need for an express assignment, subsequent Holders; provided,
      that
      nothing herein shall be deemed to permit any assignment, transfer or other
      disposition of Transfer Restricted Securities in violation of the terms hereof
      or of the Purchase Agreement or the Indenture. If any transferee of any Holder
      shall acquire Transfer Restricted Securities in any manner, whether by operation
      of law or otherwise, such Transfer Restricted Securities shall be held subject
      to all of the terms of this Agreement, and by taking and holding such Transfer
      Restricted Securities such Person shall be conclusively deemed to have agreed
      to
      be bound by and to perform all of the terms and provisions of this Agreement,
      including the restrictions on resale set forth in this Agreement and, if
      applicable, the Purchase Agreement, and such Person shall be entitled to receive
      the benefits hereof.

     

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

     

    (h)  Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    (i)  Consent
      to Jurisdiction.
      Each
      party irrevocably agrees that any legal suit, action or proceeding arising
      out
      of or based upon this Addendum or the transactions contemplated hereby
      (“Related
      Proceedings”)
      may be
      instituted in the federal courts of the United States of America located in
      the
      City of New York or the courts of the State of New York in each case located
      in
      the Borough of Manhattan in the City of New York (collectively, the
“Specified
      Courts”),
      and
      irrevocably submits to the exclusive jurisdiction (except for proceedings
      instituted in regard to the enforcement of a judgment of any such court (a
      “Related
      Judgment”),
      as to
      which such jurisdiction is non-exclusive) of such courts in any such suit,
      action or proceeding. The parties further agree that service of any process,
      summons, notice or document by mail to such party’s address set forth above
      shall be effective service of process for any lawsuit, action or other
      proceeding brought in any such court. The parties hereby irrevocably and
      unconditionally waive any objection to the laying of venue of any lawsuit,
      action or other proceeding in the Specified Courts, and hereby further
      irrevocably and unconditionally waive and agree not to plead or claim in any
      such court that any such lawsuit, action or other proceeding brought in any
      such
      court has been brought in an inconvenient forum. Each party not located in
      the
      United States hereby irrevocably appoints CT Corporation System of New York,
      New
      York, which currently maintains a New York City office at 111 Eighth Avenue,
      New
      York, New York 10011, United States of America, as its authorized agent (the
      “Authorized
      Agent”)
      to
      receive service of process or other legal summons for purposes of any such
      action or proceeding that may be instituted in any state or federal court in
      the
      City and State of New York. The Company and the Guarantors agree that service
      of
      process upon the Authorized Agent and written notice of such service to the
      Company shall be deemed, in every respect, effective service of process upon
      the
      Company. 

     

    (j)  Obligation
      Currency.
      The
      obligation of the Company or the Guarantors in respect of any sum due to any
      Initial Purchaser or Holder shall, notwithstanding any judgment in a currency
      other than U.S. dollars, not be discharged until the first business day,
      following receipt by such Initial Purchaser or Holder, as the case may be,
      of
      any sum adjudged to be so due in such other currency, on which (and only to
      the
      extent that) such Initial Purchaser or the Holder, as the case may be, may
      in
      accordance with normal banking procedures purchase U.S. dollars with such other
      currency; if the U.S. dollars so purchased are less than the sum originally
      due
      to such Initial Purchaser hereunder, the Company and the Guarantors agree,
      as a
      separate obligation and notwithstanding any such judgment, to indemnify such
      Initial Purchaser or Holder, as the case may be, against such loss. If the
      U.S.
      dollars so purchased are greater than the sum originally due to such Initial
      Purchaser hereunder, such Initial Purchaser agrees to pay to the Company an
      amount equal to the excess of the dollars so purchased over the sum originally
      due to such Initial Purchaser hereunder.

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (k)  Governing
      Law.
      THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICT OF LAW RULES
      THEREOF.

     

    (l)  Severability.
      In the
      event that any one or more of the provisions contained herein, or the
      application thereof in any circumstance, is held invalid, illegal or
      unenforceable, the validity, legality and enforceability of any such provision
      in every other respect and of the remaining provisions contained herein shall
      not be affected or impaired thereby.

     

    (m)  Entire
      Agreement.
      This
      Agreement is intended by the parties as a final expression of their agreement
      and intended to be a complete and exclusive statement of the agreement and
      understanding of the parties hereto in respect of the subject matter contained
      herein. There are no restrictions, promises, warranties or undertakings, other
      than those set forth or referred to herein with respect to the registration
      rights granted with respect to the Transfer Restricted Securities. This
      Agreement supersedes all prior agreements and understandings between the parties
      with respect to such subject matter.

     

     

     

     

     

     

     

     

    [Signature
      Pages Follow]

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the date first
      written above.

     

     

     

    
      	 	 	 
	 	
              CANADIAN
                SATELLITE RADIO HOLDINGS
                INC.

            
	 
 	 
 	 
 
	
            	By:  	/s/ Michael
              Washinushi 
	 	
              

              Name:
                Michael Washinushi 

            
	 	Title:
              Chief Financial Officer 

    

     

     

    
      	 	 	 
	 	CANADIAN
              SATELLITE RADIO INC
	 
 	 
 	 
 
	 	By:  	/s/ Michael
              Washinushi 
	 	
              

              Name:
                Michael Washinushi 

            
	 	Title:
              Chief Financial Officer 

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    
 

    Accepted
      and agreed to as of the
      date
      first above written:

     

    
      	 	 	 
	 	
              BEAR,
                STEARNS & CO. INC.

            
	 
 	 
 	 
 
	 	By:  	/s/ Dominick
              Petrosino
	 	
              
Name:
              Dominick Petrosino
	 	
              Title:
                Senior Managing Director

            

    

     

     

    
      	 	 	 
	 	RBC
              CAPITAL MARKETS CORPORATION
	 
 	 
 	 
 
	 	By:  	/s/ Nicholas
              P. Daifotis
	 	
              

              Name:
                Nicholas P. Daifotis

            
	 	
              Title:
                Managing Director

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