Document:

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                                                                     Exhibit 4.7

                              AMENDED AND RESTATED
                                 AMENDMENT NO. 1
                                       TO
                                RIGHTS AGREEMENT

          THIS AMENDED AND RESTATED AMENDMENT NO. 1 TO RIGHTS AGREEMENT (this
"Amendment") is entered into as of January 22, 2003, between XM SATELLITE RADIO
HOLDINGS INC., a Delaware corporation (the "Company"), and EQUISERVE TRUST
COMPANY, N.A. (the "Rights Agent").

          WHEREAS, the Company and the Rights Agent are party to a Rights
Agreement, dated as of August 2, 2002, as amended (the "Rights Agreement");

          WHEREAS, in accordance with Section 27 of the Rights Agreement, the
Company and the Rights Agent desire to amend the Rights Agreement on the terms
and conditions hereinafter set forth; and

          WHEREAS, for purposes of this Amendment, capitalized terms not
otherwise defined herein shall have the respective meanings set forth in the
Rights Agreement, as amended by this Amendment.

          NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as follows:

          1.   Amendments to Section 1.

               (a)  Section l(a) of the Rights Agreement, relating to the
definition of the term "Acquiring Person," is amended to read in its entirety as
follows:

          "Acquiring Person" shall mean any Person (as such term is hereinafter
          defined) who or which, together with all Affiliates and Associates (as
          such terms are hereinafter defined) of such Person, shall be the
          Beneficial Owner (as such term is hereinafter defined) of 15% or more
          of the shares of Class A Common Stock then outstanding, but shall not
          include (i) the Company, (ii) any Subsidiary of the Company, or (iii)
          any employee benefit plan of the Company or any Subsidiary of the
          Company, or any Person holding shares of Class A Common Stock for or
          pursuant to the terms of any such plan to the extent, and only to the
          extent, of such shares so held. Notwithstanding the foregoing, none of
          American Honda Motor Co., Inc. (together with its Affiliates and
          Associates, "Honda"), Hughes Electronics Corporation (together with
          its Affiliates and Associates, "Hughes") or General Motors Corporation
          (together with its Affiliates and Associates, including OnStar
          Corporation, "GM;" GM, Honda and Hughes, together with their

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          respective Affiliates and Associates, are each referred to sometimes
          hereinafter as a "Qualified Exempt Person"), shall be deemed an
          "Acquiring Person;" provided however, that if after August 2, 2002, in
          the case of Hughes (the "Hughes Exemption Date"), Hughes shall at any
          time beneficially own a number of shares of Class A Common Stock equal
          to or greater than (x) the number of shares of Class A Common Stock
          beneficially owned by Hughes as of the Hughes Exemption Date, plus (y)
          two percent (2%) of the total number of shares Class A Common Stock
          then outstanding, and provided further however, that if after the Debt
          Refinancing Date, any Qualified Exempt Person shall at any time
          beneficially own a number of shares of Class A Common Stock equal to
          or greater than (x) the number of shares of Class A Common Stock
          beneficially owned by such Qualified Exempt Person as of the Debt
          Refinancing Date, plus (y) two percent (2%) of the total number of
          shares of Class A Common Stock then outstanding, then such Qualified
          Exempt Person shall be deemed an "Acquiring Person" hereunder as to
          all of the shares of Class A Common Stock then beneficially owned by
          it and its Affiliates and Associates. For purposes of the above
          calculations, in determining whether GM constitutes an "Acquiring
          Person," it shall be understood that shares of Class A Common Stock
          issued or issuable to GM (i) as payment of interest accrued on the New
          GM Notes, (ii) as payment of interest accrued under the GM Credit
          Facility, (iii) upon conversion of the New GM Notes, (iv) upon
          exercise of the GM Warrant, (v) as payment of subscriber acquisition
          payments under the GM Distribution Agreement or in satisfaction of the
          Company's obligations under any other contract with GM, (vi) in
          connection with the issuance and sale on or prior to the Debt
          Refinancing Date to General Motors Corporation or any of its
          Affiliates and Associates of additional shares of Class A Common Stock
          or securities convertible into or exercisable for Class A Common
          Stock, or (vii) in connection with any agreement prepared to document
          any of the issuances or potential issuances described in clauses (i)
          through (vi) above and the transactions and arrangements contemplated
          thereby, regardless of when such interest accrues, such New GM Notes
          are converted, such GM Warrant is exercised, such subscriber
          acquisition payments or other contractual obligations become payable,
          such shares of Class A Common Stock are sold, or the securities
          convertible or exercisable for shares of Class A Common Stock are
          converted into or exercised for shares of Class A Common Stock, shall
          be deemed to have been outstanding and beneficially owned by GM as of
          the Debt Refinancing Date. For purposes of the above calculations, in
          determining whether any of Honda or Hughes constitutes an "Acquiring
          Person," it shall be understood that shares of Class A Common Stock
          issued or issuable to any of Honda or Hughes upon conversion of the
          New Investor Notes,

                                       -2-

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          regardless of when such New Investor Notes are converted, shall be
          deemed to have been outstanding and beneficially owned by Honda or
          Hughes, as applicable, as of the Debt Refinancing Date.
          Notwithstanding the foregoing, no Person shall become an "Acquiring
          Person" as the result of an acquisition of shares of Class A Common
          Stock by the Company which, by reducing the number of shares of Class
          A Common Stock outstanding, increases the proportionate number of
          shares of Class A Common Stock beneficially owned by such Person to
          15% or more of the shares of Class A Common Stock then outstanding (or
          in the case of a Qualified Exempt Person, increases the proportionate
          number of shares of Class A Common Stock beneficially owned as of the
          date hereof by an additional 2%); provided, however, that if a Person
          shall become the Beneficial Owner of 15% or more of the Class A Common
          Stock then outstanding (or in the case of a Qualified Exempt Person,
          increases the proportionate number of shares of Class A Common Stock
          beneficially owned as of the date hereof by an additional 2%) by
          reason of share purchases by the Company and shall, after such share
          purchases by the Company, become the Beneficial Owner of any
          additional shares of Class A Common Stock, then such Person shall be
          deemed to be an "Acquiring Person" if such Person is then the
          Beneficial Owner of 15% or more of the Class A Common Stock then
          outstanding. Notwithstanding the foregoing, if the Board of Directors
          of the Company determines in good faith that a Person who would
          otherwise be an "Acquiring Person," as defined pursuant to the
          foregoing provisions of this paragraph (a), has become such
          inadvertently, without any intention of changing or influencing
          control of the Company, and such Person divests as promptly as
          practicable a sufficient number of shares of Class A Common Stock so
          that such Person would no longer be an "Acquiring Person," then such
          Person shall not be deemed an "Acquiring Person" for any purposes of
          this Agreement unless and until such Person shall again become an
          "Acquiring Person;" provided, that, to the extent the parties (the
          "Members") to either the Shareholders' Agreement (as defined herein)
          or the Director Agreement (as defined herein) could be deemed a
          "group" (as such term is used in Rule 13d-5 of the general Rules and
          Regulations under the Exchange Act (as defined herein)), no Member
          shall be deemed an "Acquiring Person" for any purpose of this
          Agreement unless and until such Member becomes the Beneficial Owner of
          15% or more of the shares of Class A Common Stock then outstanding
          without including the number of shares Beneficially Owned by the other
          Members.

               (b)  Section 1 of the Rights Agreement is amended by adding the
following additional definitions at the end thereof:

                                       -3-

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          (ii) "Debt Refinancing Date" shall mean the closing date of the
          transactions contemplated by that certain Note Purchase Agreement,
          dated as of December 21, 2002, by and among XM Satellite Radio Inc.,
          the Company and OnStar Corporation, an Affiliate of General Motors
          Corporation ("OnStar") and that certain Note Purchase Agreement, dated
          as of December 21, 2002, by and among XM Satellite Radio Inc., the
          Company and certain investors named therein, as amended by Amendment
          No. 1, dated as of January 16, 2003.

          (jj) "GM Distribution Agreement" shall mean the Second Amended and
          Restated Distribution Agreement, expected to be dated as of the Debt
          Refinancing Date, by and among the Company, XM Satellite Radio Inc.
          and OnStar.

          (kk) "New GM Notes" shall mean the 10% Senior Secured Convertible
          Notes due December 31, 2009 issuable to OnStar in connection with the
          transactions expected to be closing on the Debt Refinancing Date.

          (11) "New Investor Notes" shall mean the 10% Senior Secured Discount
          Convertible Notes due December 31, 2009 issuable under that certain
          Note Purchase Agreement, dated as of December 21, 2002, by and among
          XM Satellite Radio Inc., the Company and certain investors named
          therein (as amended by Amendment No. 1, dated as of January 16, 2003),
          including Honda and Hughes, and shall include such additional 10%
          Senior Secured Discount Convertible Notes due December 31, 2009 issued
          as payment of interest thereunder.

          (mm) "GM Warrant" shall mean the warrant to purchase 10,000,000 shares
          of Class A Common Stock issuable to General Motors Corporation in
          connection with the transactions expected to be closing on the Debt
          Refinancing Date.

          (nn) "GM Credit Facility" shall mean the Credit Agreement, expected to
          be dated as of the Debt Refinancing Date, between XM Satellite Radio
          Inc. and General Motors Corporation.

          (oo) "Director Agreement" shall mean the Agreement, expected to be
          dated as of the Debt Refinancing Date, among the Company and certain
          investors named therein, relating to certain corporate governance
          matters including designation of director nominees.

                                       -4-

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               (c)  Section l(z) of the Rights Agreement, relating to the
definition of the term "Shareholders' Agreement," is amended to read in its
entirety as follows:

          "Shareholders' Agreement" shall mean the Amended and Restated
          Shareholders Agreement, dated as of August 8, 2000, by and among the
          Company and the parties named therein, and, from and after the Debt
          Refinancing Date, that certain Second Amended and Restated
          Shareholders and Noteholders Agreement, dated as of the Debt
          Refinancing Date, by and among the Company and the parties named
          therein, in each case, as amended from time to time.

          2.   Amendments to Section 21.

          Section 21 is hereby amended by adding the following sentence after
the end of the first sentence:

          "In the event the transfer agency relationship in effect between the
          Company and the Rights Agent terminates, the Rights Agent will be
          deemed to resign automatically on the effective date of such
          termination; and any required notice will be sent by the Company."

          3.   Addition of Section 35.

          A new Section 35 is added to read as follows:

          "Notwithstanding anything to the contrary contained herein, the Rights
          Agent shall not be liable for any delays or failures in performance
          resulting from acts beyond its reasonable control including, without
          limitation, acts of God, terrorist acts, shortage of supply,
          breakdowns or malfunctions, interruptions or malfunction of computer
          facilities, or loss of data due to power failures or mechanical
          difficulties with information storage or retrieval systems, labor
          difficulties, war, or civil unrest.

          4.   Benefits. Nothing in the Rights Agreement, as amended by this
Amendment, shall be construed to give to any Person other than the Company, the
Rights Agent and the registered holders of the Rights Certificates (and, prior
to the Distribution Date, the registered holders of the Common Stock) any legal
or equitable right, remedy or claim under the Rights Agreement, as amended by
this Amendment; but the Rights Agreement, as amended by this Amendment, shall be
for the sole and exclusive benefit of the Company, the Rights Agent and the
registered holders of the Rights Certificates (and, prior to the Distribution
Date, registered holders of the Common Stock).

                                       -5-

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          5.   Descriptive Headings. Descriptive headings of the several
Sections of this Amendment are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.

          6.   Governing Law. This Amendment shall be deemed to be a contract
made under the laws of the State of Delaware and for all purposes shall be
governed by and construed in accordance with the laws of such State.

          7.   Other Terms Unchanged. The Rights Agreement, as amended by this
Amendment, shall remain and continue in full force and effect and is in all
respects agreed to, ratified and confirmed hereby. Any reference to the Rights
Agreement after the date first set forth above shall be deemed to be a reference
to the Rights Agreement, as amended by this Amendment.

          8.   Counterparts. This Amendment may be executed in any number of
counterparts. It shall not be necessary that the signature of or on behalf of
each party appears on each counterpart, but it shall be sufficient that the
signature of or on behalf of each party appears on one or more of the
counterparts. All counterparts shall collectively constitute a single agreement.
It shall not be necessary in any proof of this Amendment to produce or account
for more than a number of counterparts containing the respective signatures of
or on behalf of all of the parties.

          9.   Severability. If any term, provision, covenant or restriction of
this Amendment is held by a court of competent jurisdiction or other authority
to be invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Amendment shall remain in full force and
effect and shall in no way be affected, impaired or invalidated.

                            [Signature Pages Follow]

                                       -6-

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          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be duly executed and attested, all as of the day and year first above written.

Attest:                                 XM SATELLITE RADIO HOLDINGS INC.

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

Attest:                                 EQUISERVE TRUST COMPANY, N.A.

By: /s/ Adam Thornton                   By: /s/ Tyler Haymes
    ----------------------------------     -------------------------------------
    Name: Adam Thornton                 Name: Tyler Haymes
    Title: Account Manager              Title: Managing Director

                                       -7-<PAGE>

                                                                    Exhibit 4.10

                                 [Face of Note]
--------------------------------------------------------------------------------

FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED, AND THE RULES AND REGULATIONS THEREUNDER, THIS NOTE IS BEING
ISSUED WITH ORIGINAL ISSUE DISCOUNT; YOU MAY CONTACT GREGORY COLE, THE TREASURER
OF XM SATELLITE RADIO INC., AT 1500 ECKINGTON PLACE, N.E., WASHINGTON, D.C.
20002, TELEPHONE NUMBER: (202) 380-4000, WHO WILL PROVIDE YOU WITH ANY REQUIRED
INFORMATION REGARDING THE ORIGINAL ISSUE DISCOUNT.

                                                          CUSIP/CINS 98375Y AG 1

                   14% Senior Secured Discount Notes due 2009

No. 1                                                           $437,956,784

                             XM SATELLITE RADIO INC.

promises to pay to Cede & Co.

or registered assigns,

the principal sum of Four Hundred Thirty-Seven Million Nine Hundred Fifty-Six
Thousand Seven Hundred Eighty Four

Dollars on December 31, 2009.

Interest Payment Dates:  December 31 and June 30 (beginning on June 30, 2006)

Record Dates:  December 15 and June 15

Dated:  January 28, 2003

                               XM SATELLITE RADIO INC.

                               By: /s/ Hugh Panero
                                   ---------------------------------------------
                                   Name: Hugh Panero
                                   Title: President and Chief Executive Officer

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

                                                      (SEAL)

This is one of the Notes referred to
in the within-mentioned Indenture:

THE BANK OF NEW YORK
 as Trustee

By: /s/ John Guiliano
    ------------------------------------
            Authorized Signatory

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

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UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC AND ANY PAYMENT IS MADE TO CEDE
& CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC, ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.

UNLESS AND UNTIL THIS CERTIFICATE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
CERTIFICATED FORM, THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY
DTC TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF
DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH
SUCCESSOR.

                                 [Back of Note]

                   14% Senior Secured Discount Notes due 2009

          Capitalized terms used herein shall have the meanings assigned to them
in the Indenture referred to below unless otherwise indicated.

          1. Interest. XM Satellite Radio Inc., a Delaware corporation (the
"Company"), promises to pay interest on the principal amount of this Note at 14%
per annum from January 1, 2006 until maturity. The Company will pay interest
semi-annually in arrears on December 31 and June 30, of each year, or if any
such day is not a Business Day, on the next succeeding Business Day (each an
"Interest Payment Date"); provided that no interest shall be payable prior to
June 30, 2006. Interest on the Notes will accrue from the most recent date to
which interest has been paid or, if no interest has been paid, from January 1,
2006. The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal and premium, if any,
from time to time on demand at a rate that is 1% per annum in excess of the rate
then in effect; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest
(without regard to any applicable grace periods) from time to time on demand at
the same rate to the extent lawful. Interest will be computed on the basis of a
360-day year of twelve 30-day months.

          2. Method of Payment. The Company will pay interest on the Notes
(except defaulted interest) to the Persons who are registered Holders of Notes
at the close of business on the December 15 or June 15 next preceding the
Interest Payment Date, even if such Notes are canceled after such record date
and on or before such Interest Payment Date, except as provided in Section 2.12
of the Indenture with respect to defaulted interest. The Notes will be payable
as to principal, premium, if any, and interest at the office or agency of the
Company maintained for such purpose within or without the City and State of New
York, or, at the option of the Company, payment of interest may be made by check
mailed to the Holders at their addresses set forth in the register of Holders,
and provided that payment by wire transfer of immediately available funds will
be required with respect to principal of and interest and premium, if any, on
all global Notes and all other Notes the Holders owning $1.0 million or more in
aggregate principal amount thereof which shall have provided wire transfer
instructions to the Company or the Paying Agent. Such payment shall be in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts.

          3. Paying Agent and Registrar. Initially, The Bank of New York, the
Trustee under the Indenture, will act as Paying Agent and Registrar. The Company
may change any Paying Agent or Registrar without notice to any Holder. The
Company or any of its Subsidiaries may act in any such capacity.

                                        2

<PAGE>

          4. Indenture and Security Agreements. The Company issued the Notes
under an Indenture dated as of January 28, 2003 ("Indenture") between the
Company, the Parent Guarantor named therein, XM Equipment Leasing LLC, any other
Subsidiary Guarantor made a party thereto, and the Trustee. The terms of the
Notes include those stated in the Indenture and those made part of the Indenture
by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code
Sections 77aaa-77bbbb). The Notes are subject to all such terms, and Holders are
referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the indenture shall govern and be controlling. The
Notes are secured obligations of the Company limited to $474,182,582 in
aggregate principal amount at maturity. The Notes are secured by a pledge of the
Collateral pursuant to the Security Agreements referred to in the Indenture.

          5. Optional Redemption.

          (a) Except as set forth in subparagraph (b) of this Paragraph 5, the
Company shall not have the option to redeem the Notes prior to January 1, 2006.
Thereafter, the Company shall have the option to redeem the Notes, in whole or
in part, upon not less than 30 nor more than 60 days' notice, at the redemption
prices (expressed as percentages of Accrued Value) set forth below plus accrued
and unpaid interest thereon to the applicable redemption date, if redeemed
during the twelve-month period beginning on January 1 of the years indicated
below:

          Year                                                      Percentage
          ----                                                      ----------
          2006.................................................        107.000%
          2007.................................................        104.667%
          2008.................................................        102.333%
          2009 and thereafter..................................        100.000%

          (b) At any time prior to January 1, 2006, the Company may on any one
or more occasions redeem up to 35% of the aggregate principal amount at maturity
of Notes issued under the Indenture at a redemption price of 114% of the
Accreted Value thereof, plus accrued and unpaid interest to the redemption date,
with the net cash proceeds of one or more equity offerings by the Company or any
parent corporation of the Company the net proceeds of which are contributed to
the common equity of the Company (other than an offering of Disqualified Stock);
provided that at least 65% of the aggregate principal amount at maturity of the
Notes issued under this Indenture remains outstanding immediately after the
occurrence of such redemption (excluding Notes held by the Company and its
Subsidiaries) and that such redemption occurs within 90 days of the date of the
closing of such equity offering.

          6. Mandatory Redemption.

          Except as set forth in paragraph 7 below, the Company shall not be
required to make mandatory redemption payments with respect to the Notes.

          7. Repurchase at Option Holder.

          (a) If there is a Change of Control, the Company shall be required to
make an offer (a "Change of Control Offer") to repurchase all or any part (equal
to $1,000 or an integral multiple thereof) of each Holder's Notes at a purchase
price equal to 101% of the Accreted Value thereof plus accrued and unpaid
interest to the date of purchase (the "Change of Control Payment"). Within 30
days following any Change of Control, the Company shall mail a notice to each
Holder setting forth the procedures governing the Change of Control Offer as
required by the Indenture.

          (b) If the Company or a Restricted Subsidiary consummates any Asset
Sale, within five days of each date on which the aggregate amount of Excess
Proceeds exceeds $10 million, the Company shall commence an Asset Sale Offer
pursuant to Section 3.09 of the Indenture to all Holders of Notes and all
holders of Pari Passu Indebtedness containing provisions similar to those set
forth in the Indenture with respect to offers to purchase

                                       3

<PAGE>

or redeem with the proceeds of sales of assets to purchase the maximum principal
amount (or, if applicable, accreted value) of Notes and such other Pari Passu
Indebtedness that may be purchased out of the Excess Proceeds at an offer price
in cash in an amount equal to 100% of the Accreted Value thereof (or principal
amount, if applicable, of such other Indebtedness) plus accrued and unpaid
interest to the date fixed for the closing of such offer, in accordance with the
procedures set forth in Section 3.09 of the Indenture. To the extent that the
aggregate Accreted Value of Notes tendered pursuant to an Asset Sale Offer is
less than the Excess Proceeds, the Company may use such difference for any
purpose not otherwise prohibited by the Indenture. If the aggregate Accreted
Value of Notes and principal amount (or, if applicable, accreted value) of such
other Pari Passu Indebtedness tendered into such Asset Sale Offer exceeds the
amount of Excess Proceeds, the Trustee shall select the Notes and such other
Pari Passu Indebtedness to be purchased on a pro rata basis based on the
Accreted Value of Notes and principal amount (or, if applicable, accreted value)
of such other Pari Passu Indebtedness tendered. Holders of Notes that are the
subject of an offer to purchase will receive an Asset Sale Offer from the
Company prior to any related purchase date and may elect to have such Notes
purchased by completing the form entitled "Option of Holder to Elect Purchase"
on the reverse of the Notes.

          8. Notice of Redemption. Notice of redemption will be mailed at least
30 days but not more than 60 days before the redemption date to each Holder
whose Notes are to be redeemed at its registered address. Notes in denominations
larger than $1,000 may be redeemed in part but only in whole multiples of
$1,000, unless all of the Notes held by a Holder are to be redeemed. On and
after the redemption date interest ceases to accrue on Notes or portions thereof
called for redemption.

          9. Denominations, Transfer, Exchange. The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000. The
transfer of Notes may be registered and Notes may be exchanged as provided in
the Indenture. The Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and the
Company may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Company need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for
the unredeemed portion of any Note being redeemed in part. Also, the Company
need not exchange or register the transfer of any Notes for a period of 15 days
before the mailing of a notice of redemption of Notes to be redeemed or during
the period between a record date and the corresponding Interest Payment Date.

          10. Persons Deemed Owners. The registered Holder of a Note may be
treated as its owner for all purposes.

          11. Amendment, Supplement and Waiver. Subject to certain exceptions,
the Indenture, the Notes, the Indenture Guarantees, the Security Agreements and
the Intercreditor Agreements may be amended or supplemented with the consent of
the Holders of at least a majority in principal amount at maturity of the then
outstanding Notes and Additional Notes, if any, voting as a single class, and
any existing default or compliance with any provision of the Indenture, the
Notes, the Indenture Guarantees, the Security Agreements or the Intercreditor
Agreements may be waived with the consent of the Holders of a majority in
principal amount at maturity of the then outstanding Notes and Additional Notes,
if any, voting as a single class. Notwithstanding the foregoing, (a) each of the
Security Agreements may also be amended pursuant to the terms of the applicable
Intercreditor Agreement without the consent of the Holders of at least a
majority in principal amount at maturity of the Notes, and (b) any existing
default or event of default under either of the Security Agreements, and
compliance with any provision of either of the Security Agreements, may be
waived pursuant to the terms of the applicable Intercreditor Agreement without
the consent of the Holders of at least a majority in principal amount at
maturity of the Notes. Without the consent of any Holder of a Note, the
Indenture, the Notes, the Indenture Guarantees, the Security Agreements and the
Intercreditor Agreements may be amended or supplemented to cure any ambiguity,
defect or inconsistency, to provide for uncertificated Notes in addition to or
in place of certificated Notes or to alter the provisions of Article 2 of the
Indenture (including the related definitions) in a manner that does not
materially adversely affect any Holder, to provide for the assumption of the
Company's obligations to Holders of the Notes by a successor to the Company
pursuant to Article 5 of the Indenture, to make any change that would provide
any additional rights or benefits to the Holders of the Notes or that does not
adversely affect the legal rights under the Indenture of any such Holder, to
comply with the requirements of

                                       4

<PAGE>

the SEC or in order to effect or maintain the qualification of the Indenture
under the Trust Indenture Act, to provide for the Issuance of Additional Notes
in accordance with the limitations set forth in the Indenture, or to add a
Subsidiary Guarantor.

          12. Defaults and Remedies. Events of Default include: (i) default for
30 days in the payment when due of interest on the Notes; (ii) default in
payment when due of principal of or premium, if any, on the Notes (including in
connection with an offer to purchase), (iii) failure by the Company to comply
with the provisions of Section 5.01 of the Indenture, the failure by the Company
to make or consummate a Change of Control Offer in accordance with the
provisions of Section 4.14 of the Indenture or the failure of the Company to
make or consummate an Asset Sale Offer in accordance with the provisions of
Section 4.10 of the Indenture; (iv) failure by the Company or any of its
Restricted Subsidiaries, for 60 days after notice to the Company by the Trustee
or the Holders of at least 25% in principal amount at maturity of the Notes
(including Additional Notes, if any) then outstanding voting as a single class
to comply with certain other agreements in the Indenture, the Notes, the
Security Agreements or the Intercreditor Agreements; (v) default under certain
other agreements relating to Indebtedness of the Company which default results
in the acceleration of such Indebtedness prior to its express maturity; (vi)
certain final judgments for the payment of money that remain undischarged for a
period of 60 days; (vii) certain events of bankruptcy or insolvency with respect
to the Company or any of its Significant Subsidiaries; (viii) the Security
Agreements or the Intercreditor Agreements shall be held in any judicial
proceeding to be unenforceable or invalid or shall cease for any reason to be in
full force and effect and (ix) any Indenture Guarantee shall be held in a
judicial proceeding to be enforceable or invalid or shall cease for any reason
to be in full force and effect. If any Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount at
maturity of the then outstanding Notes may declare the Accreted Value of the
Notes to be due and payable. Notwithstanding the foregoing, in the case of an
Event of Default arising from certain events of bankruptcy or insolvency, the
Accreted Value of all outstanding Notes will become due and payable without
further action or notice. Holders may not enforce the Indenture or the Notes
except as provided in the Indenture. Subject to certain limitations, Holders of
a majority in principal amount at maturity of the then outstanding Notes may
direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders of the Notes notice of any continuing Default or Event of
Default (except a Default or Event of Default relating to the payment of
principal or interest) if it determines that withholding notice is in their
interest. The Holders of a majority in aggregate principal amount at maturity of
the Notes then outstanding by notice to the Trustee may on behalf of the Holders
of all of the Notes waive any existing Default or Event of Default and its
consequences under the Indenture except a continuing Default or Event of Default
in the payment of interest on, or the principal of, the Notes. The Company is
required to deliver to the Trustee annually a statement regarding compliance
with the Indenture, and the Company is required upon becoming aware of any
Default or Event of Default, to deliver to the Trustee a statement specifying
such Default or Event of Default.

          13. Trustee Dealings with Company. The Trustee, in its individual or
any other capacity, may make loans to, accept deposits from, and perform
services for the Company or its Affiliates, and may otherwise deal with the
Company or its Affiliates, as if it were not the Trustee.

          14. No Recourse Against Others. A director, officer, employee,
incorporator or stockholder, of the Company, the Parent Guarantor or any
Subsidiary Guarantor, as such, shall not have any liability for any obligations
of the Company, the Parent Guarantor or such Subsidiary Guarantor under the
Notes, the Indenture, the Indenture Guarantees, the Security Agreements or the
Intercreditor Agreements or for any claim based on, in respect of, or by reason
of, such obligations or their creation. Each Holder by accepting a Note waives
and releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes.

          15. Authentication. This Note shall not be valid until authenticated
by the manual signature of the Trustee or an authenticating agent.

          16. Abbreviations. Customary abbreviations may be used in the name of
a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).

                                       5

<PAGE>

          17. CUSIP Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption as a convenience to Holders. No representation is made
as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

          18. Parent Guarantor and Subsidiary Guarantors. Payment of Accreted
Value of, premium, if any, and interest (including interest on overdue Accreted
Value, premium, if any, and interest, if lawful) is unconditionally guaranteed
by the Parent Guarantor and each Subsidiary Guarantor pursuant to Article 11 of
the Indenture.

          The Company will furnish to any Holder upon written request and
without charge a copy of the Indenture. Requests may be made to:

          XM Satellite Radio Inc.
          1500 Eckington Place, N.E.
          Washington, D.C. 20002
          Telecopier No.: (202) 380-4534
          Attention: Joseph Titlebaum / General Counsel

                                       6

<PAGE>

                                 Assignment Form

     To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to: __________________________________
                                                (Insert assignee's legal name)

________________________________________________________________________________
                  (Insert assignee's soc. sec. or tax I.D. no.)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
              (Print or type assignee's name, address and zip code)

and irrevocably appoint ________________________________________________________
to transfer this Note on the books of the Company. The agent may substitute
another to act for him.

Date: _______________

                                Your Signature:
                                                --------------------------------
                                              (Sign exactly as your name appears
                                                   on the face of this Note)

Signature Guarantee*:
                      --------------------

*    Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                        7

<PAGE>

                       Option of Holder to Elect Purchase

     If you want to elect to have this Note purchased by the Company pursuant to
Section 4.10 or 4.14 of the Indenture, check the appropriate box below:

                   [ ]Section 4.10          [ ]Section 4.14

     If you want to elect to have only part of the Note purchased by the Company
pursuant to Section 4.10 or Section 4.14 of the Indenture, state the amount you
elect to have purchased:

                               $_____________

Date:  _______________

                                Your Signature:
                                                --------------------------------
                                              (Sign exactly as your name appears
                                                   on the face of this Note)

                                Tax Identification No.:
                                                        ------------------------

Signature Guarantee*:
                      --------------------

*    Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                        8

<PAGE>

              SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

     The following exchanges of a part of this global Note for an interest in
another global Note or for a definitive Note, or exchanges of a part of another
global Note or definitive Note for an interest in this global Note, have been
made:

<TABLE>
<CAPTION>
                       Amount of decrease in   Amount of increase in       Principal Amount
                        Principal Amount at     Principal Amount at      at Maturity of this        Signature of
                              Maturity               Maturity           Global Note following   authorized signatory
                              of this                of this                such decrease          of Trustee or
    Date of Exchange        Global Note            Global Note              (or increase)          Note Custodian
    ----------------   ----------------------  ---------------------    ---------------------   --------------------
    <S>                      <C>                    <C>                     <C>                     <C>

</TABLE>

                                        9

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