Document:

Registration Rights Agreement dated July 18, 2005

 Exhibit 4.4 
  

EXECUTION COPY 
  
 This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is dated July 18, 2005 by and among WorldSpace, Inc., a Delaware corporation
(the “Company”), and XM Satellite Radio Holdings Inc. (“XM” or the “Investor”). 
  
 WHEREAS: 
  
 A. On this 18th day
of July, 2005, the Company and the Investor have entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”), pursuant to which, on the date hereof, the Company is issuing, and the Investor is purchasing
1,562,000 Common Shares (as defined below) of the Company and a warrant to acquire Common Shares with a value of $37.5 million (as provided therein), (the “Warrant” and together with the Common Shares, the
“Securities”). 
  
 B. In order to induce the
Investor to enter into the Securities Purchase Agreement, the Company has agreed to provide certain registration rights with respect to the Securities on the terms and subject to the conditions set forth herein. 
  
 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in
this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and the Investor hereby agree as follows: 
  
 1. DEFINITIONS. As used in this Agreement, the following terms shall have the following meanings: 
  
 “Agents” has the meaning set forth in Section 5.1.

  
 “Agreement” has the meaning set forth in the
Preamble. 
  
 “Blackout Notice” has the meaning
set forth in Section 2.8. 
  
 “Blackout Period”
has the meaning set forth in Section 2.8. 
  
 “Blue Sky
Filing” has the meaning set forth in Section 5.1. 
  
 “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed. 
  
 “Claims” has the meaning set forth in Section 5.1.

  
 “Common Shares” means the shares of the
Company’s Class A common stock, par value $0.01 per share, purchased by the Investor pursuant to the Securities Purchase Agreement, and any other securities of the Company which may be issued or issuable with respect to, in exchange for, or in
substitution of, such shares of Class A common stock. 
  
 “Company” has the meaning set forth in the Preamble. 

 “Convertible Notes” means the Company’s convertible notes due December 31, 2014.

  
 “Demand Shelf Registration” means a
registration required to be effected by the Company pursuant to Section 2.1. 
  
 “Demand Shelf Registration Effectiveness Deadline” has the meaning set forth in Section 2.1(a). 
  
 “Demand Shelf Registration Filing Deadline” has the meaning set forth in Section 2.1(a). 
  
 “Demand Shelf Registration Statement” means a registration
statement of the Company filed with the SEC pursuant to the Securities Act on Form S-3 in respect of a Demand Shelf Registration pursuant to the provisions of Section 2.1 and all amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference (or deemed to be incorporated by reference) therein and filed pursuant to Rule 415 under the
Securities Act or any successor rule providing for offerings of securities on a continued or delayed basis. 
  
 “Effectiveness Failure” has the meaning set forth in Section 2.6(a). 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and
regulations thereunder, or any successor statute. 
  
 “Filing Failure” has the meaning set forth in Section 2.6(a). 
  
 “Holder” and “Holders” mean the Initial Holder and any other Person holding Registrable Securities to whom the registration rights set forth in this Agreement have been assigned or
transferred in accordance with the terms of this Agreement. For purposes of this Agreement, a Person will be deemed to be a Holder whenever such Person (i) has succeeded to or been assigned or transferred Registrable Securities in accordance with
this Agreement and (ii) holds any Common Shares or Warrants (or securities issued by the Company with respect to, in exchange for, or in substitution of the Warrants) convertible into or exercisable or exchangeable for, Registrable Securities,
whether or not such conversion, exercise or exchange has actually been effected and disregarding any legal restrictions upon the exercise of such rights, and Registrable Securities issuable upon conversion, exchange or exercise of any such security
shall be deemed outstanding for the purposes of this Agreement. 
  
 “Holders’ Counsel” means one firm of counsel (per registration) to the Holders of Registrable Securities participating in such registration, which counsel shall be selected (i) in the case of a Demand Registration, by
the Initiating Holder, and (ii) in all other cases, by the Majority Holders of the Registration. 
  
 “Incidental Registration” means a registration required to be effected by the Company pursuant to Section 2.2. 
  

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 “Incidental Registration Statement” means a registration statement of the Company filed
with the SEC pursuant to the Securities Act in respect of an Incidental Registration pursuant to the provisions of Section 2.2 and all amendments and supplements to such registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference (or deemed to be incorporated by reference) therein. 
  

“Initial Public Offering” means the first public offering of any class of securities of the Company pursuant to a registration
statement filed with and declared effective by the SEC. 
  
 “Initial Holder” means the Investor. 
  
 “Initiating Holder” means the Holder who initiated the Request for a Demand Shelf Registration pursuant to Section 2.1. 
  
 “Inspectors” has the meaning set forth in Section 4.1(g). 
  
 “Investors” has the meaning set forth in the Preamble. 
  
 “Lock-Up Agreement” has the meaning set forth in Section
3.1(b). 
  
 “Maintenance Failure” has the meaning
set forth in Section 2.6(a). 
  
 “Majority
Holders” means the Holders of at least a majority of the outstanding Registrable Securities. 
  
 “Majority Holders of the Registration” means, with respect to a particular registration, one or more Holders of Registrable Securities
who would hold a majority of the Registrable Securities to be included in such registration. 
  
 “NASD” means the National Association of Securities Dealers, Inc. 
  
 “Non-Public Incidental Registration Notice” has the meaning set forth in Section 2.2(a). 
  
 “Non-Public Incidental Registration Notice Period” has the
meaning set forth in Section 2.2(a). 
  
 “Person”
shall mean any individual, firm, partnership, corporation, trust, joint venture, association, joint stock company, limited liability company, unincorporated organization or any other entity or organization, including a government or agency or
political subdivision thereof, and shall include any successor (by merger or otherwise) of such entity. 
  
 “Prospectus” means the prospectus included in a Registration Statement (including, without limitation, any preliminary prospectus and any
prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), and any such Prospectus as amended or supplemented
by any prospectus supplement, and all other 
  

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 amendments and supplements to such Prospectus, including post-effective amendments, and in each case including all
material incorporated by reference (or deemed to be incorporated by reference) therein. 
  
 “Qualified Public Offering” means the first occurrence with respect to the Company of a firm commitment, fully underwritten Initial Public Offering in the United States of Common Shares that is (i)
conducted by a nationally recognized investment banking firm, (ii) has an offering price per share of not less than $7.50, (iii) yields gross proceeds to the Company of not less than $100 million and (iv) after which the Common Shares are listed on
either The New York Stock Exchange, Inc., or the Nasdaq National Market. 
  
 “Qualified Public Offering Lock-Up Period” has the meaning set forth in Section 3.1. 
  
 “Records” has the meaning set forth in Section 4.1(g). 
  
 “Registrable Securities” means (i) the Common Shares, (ii) the Warrant Shares and (iii) any other
securities of the Company (or any successor or assign of the Company, whether by merger, consolidation, sale of assets or otherwise) which may be issued or issuable with respect to, in exchange for, or in substitution of, Registrable Securities
referenced in clauses (i) or (ii) above by reason of any dividend or stock split, combination of shares, merger, consolidation, recapitalization, reclassification, reorganization, sale of assets or similar transaction. As to any particular
Registrable Securities, such securities shall cease to be Registrable Securities when (A) a registration statement with respect to the sale of such securities shall have been declared effective under the Securities Act and such securities shall have
been disposed of in accordance with such registration statement, (B) such securities have been otherwise transferred, a new certificate or other evidence of ownership for them not bearing the legend restricting further transfer shall have been
delivered by the Company and subsequent public distribution of them shall not require registration under the Securities Act, (C) such securities shall have ceased to be outstanding or (D) such securities shall be eligible for resale pursuant to Rule
144(k) of the Securities Act (or any successor provision thereof having similar effect). 
  
 “registration” refers to a registration effected by preparing and filing one or more Registration Statements (as defined below) in compliance with the Securities Act and the declaration or ordering of
effectiveness of such Registration Statement(s) by the SEC. 
  
 “Registration Default Payments” has the meaning set forth in Section 2.6(a). 
  
 “Registration Expenses” means any and all expenses incident to performance of or compliance with this Agreement by the Company and its
Subsidiaries, including, without limitation (i) all SEC, stock exchange, NASD and other registration, listing and filing fees, (ii) all fees and expenses incurred in connection with compliance with state securities or blue sky laws and compliance
with the rules of any stock exchange (including fees and disbursements of counsel in connection with such compliance and the preparation of a blue sky memorandum and legal investment survey), (iii) all expenses of any Persons in preparing or
assisting in preparing, word processing, printing, distributing, mailing and delivering any Registration Statement, any 
  

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 Prospectus, transmittal letters, securities sales agreements, securities certificates and other documents relating to the
performance of or compliance with this Agreement, (iv) the fees and disbursements of counsel for the Company, provided, however, Registration Expenses shall not include discounts and commissions payable to underwriters, selling
brokers, dealer managers or other similar Persons engaged in the distribution of any of the Registrable Securities; and provided further, that in any case where Registration Expenses are not to be borne by the Company, such expenses
shall not include salaries of personnel of the Company or general overhead expenses of the Company, auditing fees, premiums or other expenses relating to liability insurance required by underwriters of the Company or other expenses for the
preparation of financial statements or other data normally prepared by the Company in the ordinary course of its business or which the Company would have incurred in any event; and provided, further, that in the event the Company
shall, in accordance with Section 2.2 hereof, not register any securities with respect to which it had given written notice of its intention to register to Holders, notwithstanding anything to the contrary in the foregoing, all of the costs incurred
by the Holders in connection with such registration shall be deemed to be Registration Expenses. 
  
 “Registration Statement” means any registration statement of the Company filed with the SEC pursuant to the Securities Act which covers
any Registrable Securities and all amendments and supplements to any such Registration Statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated by
reference (or deemed to be incorporated by reference) therein. 
  
 “Request” has the meaning set forth in Section 2.1(a). 
  
 “SEC” means the Securities and Exchange Commission, or any successor agency having jurisdiction to enforce the Securities Act. 
  
 “Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and
regulations thereunder, or any successor statute. 
  
 “Securities Purchase Agreement” has the meaning set forth in the Preamble. 
  
 “Selling Stockholder Shelf Registration” means a registration by the Company under Section 2.3 hereof pursuant to Rule 415 under the
Securities Act or any successor rule providing for offerings of securities on a continuous or delayed basis. 
  
 “Underwriters” means the underwriters, if any, of an offering being registered under the Securities Act. 
  
 “Underwritten Offering” means a sale of securities of the
Company to an Underwriter or Underwriters for reoffering to the public. 
  
 “Underwritten Offering Lock-Up Period” has the meaning set forth in Section 3.1. 
  
 “Violation” has the meaning set forth in Section 5.1. 
  
 “Warrants” has the meaning set forth in the Preamble. 
  

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 “Warrant Shares” means the shares of the Company’s Company’s Class A common
stock, par value $0.01 per share issuable, or other equity securities issued or issuable upon exercise of the Warrants. 
  
 “Withdrawn Demand Shelf Registration” has the meaning set forth in Section 2.1(a). 
  
 “Withdrawn Request” has the meaning set forth in Section
2.1(a). 
  
 2. REGISTRATION UNDER THE SECURITIES ACT.

  
 2.1 Demand Shelf Registration. 
  
 (a) Right to One Demand Shelf Registration. (i) Subject to Section
2.1(b), at any time or from time to time, a Holder shall have the right to request in writing that the Company register all or part of such Holder’s Registrable Securities (a “Request”) (which Request shall specify the amount
of Registrable Securities intended to be disposed of by such Holders and the intended method of disposition thereof) by filing with the SEC a Demand Shelf Registration Statement. As promptly as practicable, but no later than five (5) days after
receipt of a Request, the Company shall give written notice of such requested registration to all Holders of Registrable Securities. The Company shall include in the Demand Shelf Registration (x) the Registrable Securities intended to be disposed of
by the Initiating Holder and (y) the Registrable Securities intended to be disposed of by any other Holder which shall have made a written request (which request shall specify the amount of Registrable Securities to be registered and the intended
method of disposition thereof) to the Company for inclusion thereof in such registration within 20 calendar days after the receipt of such written notice from the Company. The Company shall, as expeditiously as possible following a Request, but in
any event within 90 calendar days (the “Demand Shelf Registration Filing Deadline”), cause to be filed with the SEC a Demand Shelf Registration Statement providing for the registration under the Securities Act of the Registrable
Securities which the Company has been so requested to register by all such Holders, to the extent necessary to permit the disposition of such Registrable Securities so to be registered in accordance with the intended methods of disposition thereof
specified in such Request or further requests. The Company shall use its reasonable best efforts to have such Demand Shelf Registration Statement declared effective by the SEC as soon as practicable thereafter, but in any event within 180 calendar
days following a Request (the “Demand Shelf Registration Effectiveness Deadline”) and to keep such Demand Shelf Registration Statement continuously effective for the period specified in Section 4.1(b). 
  
 (ii) A Request may be withdrawn prior to the filing of the Demand Shelf
Registration Statement by the Initiating Holder of the Registration (a “Withdrawn Request”) and the Demand Shelf Registration Statement may be withdrawn prior to the effectiveness thereof by the Initiating Holder of the Registration
(a “Withdrawn Demand Shelf Registration”), and such withdrawals shall be treated as a Demand Shelf Registration which shall have been effected pursuant to this Section 2.1, unless the Initiating Holder reimburses the Company for its
reasonable out-of-pocket Registration Expenses relating to the preparation and filing of such Demand Shelf Registration Statement (to the extent actually incurred); provided; however, that if a Withdrawn Request or Withdrawn
Registration Statement is made (A) because 
  

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 of a Material Adverse Effect (as defined in the Securities Purchase Agreement), or (B) because of a postponement of such
registration pursuant to Section 2.8, then such withdrawal shall not be treated as a Demand Shelf Registration effected pursuant to this Section 2.1 and the Company shall pay all Registration Expenses in connection therewith. Any Holder requesting
inclusion in a Demand Shelf Registration may, at any time prior to the effective date of the Demand Shelf Registration Statement (and for any reason), revoke such request by delivering written notice to the Company revoking such requested inclusion.

  
 (iii) The registration rights granted pursuant to the
provisions of this Section 2.1 shall be in addition to the registration rights granted pursuant to the other provisions of Section 2 hereof. 
  
 (b) Limitations on Registrations. The right of Holders of Registrable Securities to request a Demand Shelf Registration pursuant to Section 2.1(a)
or Incidental Registrations pursuant to Section 2.2 is subject to the following limitations: 
  
 (i) in no event shall the Company be required to effect the Demand Shelf Registration with respect to the Registrable Securities before the later of (x) the first Business Day following the date that is eighteen
months after the date of this Agreement and (y) the date the Company is first eligible to register equity securities for resale on Form S-3, provided, however, that if the Company does not first become eligible to register securities
on Form S-3 prior to the third anniversary of the date of this Agreement, then the Holders shall be permitted to request the Demand Shelf Registration as long as the Company shall have completed its Initial Public Offering. 
  
 (ii) in no event shall the Company be required to effect an Incidental
Registration with respect to the Registrable Securities before the first Business Day following the date that is eighteen months after the date of this Agreement. 
  
 (iii) in no event shall the Company be required to effect a Demand Shelf Registration until 180 calendar days after an
Initial Public Offering. 
  
 (iv) in no event shall the Company
be required to effect more than one Demand Shelf Registration pursuant to this Agreement, subject to the provisions of Section 2.1(d) below. 
  
 (c) Effective Registration Statement; Suspension. A Demand Shelf Registration Statement shall not be deemed to have become effective (and the
related registration will not be deemed to have been effected) (i) unless it has been declared effective by the SEC and remains effective in compliance with the provisions of the Securities Act with respect to the disposition of all Registrable
Securities covered by such Demand Shelf Registration Statement for the time period specified in Section 4.1(b) or (ii) if the offering of any Registrable Securities pursuant to such Demand Shelf Registration Statement is interfered with by any stop
order, injunction or other order or requirement of the SEC or any other governmental agency or court. 
  
 (d) Additional Demand Shelf Registration. In the event that, in connection with any exercise by a Holder of the Demand Shelf Registration pursuant
to Section 2.1(a), the Company requests that the Holders participating in the such Demand Shelf Registration not 
  

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 require the Company to register all of the Registrable Securities that such Holders have requested be registered, and all
such Holders agree to the Company’s request, the Company shall permit such Holders to request one further Demand Shelf Registration on the terms and conditions provided in this Agreement. The Company will initiate a single further Demand Shelf
Registration under this Section 2.1(d) upon the Request of a majority of the Holders who had requested some or all of their Registrable Securities be included in the initial Demand Shelf Registration. 
  
 2.2 Incidental Registration. 
  
 (a) Right to Include Registrable Securities in Incidental
Registrations. (i) If the Company at any time or from time to time proposes or is required to register any of its securities under the Securities Act in an Underwritten Offering (other than (x) in connection with its Initial Public Offering or
(y) in a registration on Form S-4 or S-8 or any successor form to such forms or Form S-3 for compensatory, bonus or other similar plans, dividend reinvestment plans and stock purchase plans) whether or not pursuant to registration rights granted to
other holders of its securities and whether or not for sale for its own account, the Company shall deliver prompt written notice (which notice shall be given (i) in the event that the Company has publicly disclosed such proposed registration, at
least thirty (30) calendar days prior to such proposed registration and (ii) in the event that the Company has not publicly disclosed such proposed registration (a “Non-Public Incidental Registration Notice”), no more than ten (10)
Business Days prior to the filing of such proposed registration with the SEC (such period not in excess of ten (10) Business Days, the “Non-Public Incidental Registration Notice Period”)) to all Holders of Registrable Securities of
its intention to undertake such registration, describing in reasonable detail the proposed registration and distribution (including the anticipated range of the proposed offering price, the class and number of securities proposed to be registered
and the distribution arrangements) and of such Holders’ right to participate in such registration under this Section 2.2 as hereinafter provided. All Holders which elect to participate in such proposed registration shall keep the contents of
any Non-Public Incidental Registration Notice confidential prior to the filing of such proposed registration with the SEC and if a Holder has elected not to participate in such proposed registration, the Holder shall keep the contents of any
Non-Public Incidental Registration Notice confidential during the Non-Public Incidental Registration Notice Period. Subject to the other provisions of this paragraph (a) and Section 2.2(b), upon the written request of any Holder made within twenty
(20) calendar days, or in the case of a Non-Public Incidental Registration Notice, within five (5) Business Days, after the receipt of such written notice from the Company (which request shall specify the amount of Registrable Securities to be
registered), the Company shall effect the registration under the Securities Act of all Registrable Securities requested by such Holders to be so registered (an “Incidental Registration”), to the extent required to permit the
disposition of the Registrable Securities so to be registered, by inclusion of such Registrable Securities in the Registration Statement which covers the securities which the Company proposes to register and shall cause such Registration Statement
to become and remain effective with respect to such Registrable Securities in accordance with the registration procedures set forth in Section 4. Immediately upon notification to the Company from the Underwriter of the price at which such securities
are to be sold, the Company shall so advise each participating Holder. The Holders requesting inclusion in an Incidental Registration may, at any time prior to the effective date of the Incidental Registration Statement (and for any reason), revoke
such request by delivering written notice to the Company revoking such requested inclusion. 
  

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 (ii) If at any time after giving written notice of its intention to register any securities and prior to
the effective date of the Incidental Registration Statement filed in connection with such registration, the Company shall determine for any reason not to register or to delay registration of such securities, the Company may, at its election, give
written notice of such determination to each Holder of Registrable Securities and, thereupon, (A) in the case of a determination not to register, the Company shall be relieved of its obligation to register any Registrable Securities in connection
with such registration (but not from its obligation to pay the Registration Expenses incurred in connection therewith), without prejudice, however, to the rights of Holders to cause such registration to be effected as a registration under Section
2.1, and (B) in the case of a determination to delay such registration, the Company shall be permitted to delay the registration of such Registrable Securities for the same period as the delay in registering such other securities; provided,
however, that if such delay shall extend beyond 120 days from the date the Company received a request to include Registrable Securities in such Incidental Registration, then the Company shall again give all Holders the opportunity to
participate therein and shall follow the notification procedures set forth in the preceding paragraph. There is no limitation on the number of such Incidental Registrations pursuant to this Section 2.2 which the Company is obligated to effect.

  
 (iii) The registration rights granted pursuant to the
provisions of this Section 2.2 shall be in addition to the registration rights granted pursuant to the other provisions of Section 2 hereof. 
  
 (b) Priority in Incidental Registration. If the sole or the lead managing Underwriter, as the case may be, in an Incidental Registration, shall
advise the Company in writing (with a copy to each Holder requesting registration) on or before the date five days prior to the date then scheduled for such offering that, in its opinion, the amount of securities (including Registrable Securities)
requested to be included in such registration exceeds the amount which can be sold in such offering without materially interfering with the successful marketing of the securities being offered (such writing to state the basis of such opinion and the
approximate number of such securities which may be included in such offering without such effect), the Company shall include in such registration, to the extent of the number which the Company is so advised may be included in such offering without
such effect, (i) in the case of a registration initiated by the Company, (A) first, the securities that the Company proposes to register for its own account, (B) second, all securities proposed to be registered by holders of
Convertible Notes, (C) third, on a pari passu basis, the Registrable Securities requested to be included in such registration by the Holders, allocated pro rata in proportion to the number of Registrable Securities
requested to be included in such registration by each of them and any securities requested to be included in such registration by any Person to whom rights to participate in any such registration have been granted by the Company, allocated pro rata
in proportion to the number of securities requested to be included in such registration by each of them, (ii) in the case of a registration initiated by a holder of Convertible Notes, (A) first, all of the securities proposed to be registered
by any holders of the Convertible Notes and (B) second, on a pari passu basis, the Registrable Securities requested to be included in such registration by the Holders, allocated pro rata in proportion to the number of
Registrable Securities requested to 
  

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 be included in such registration by each of them and any securities requested to be included in such registration by any
Person to whom rights to participate in any such registration have been granted by the Company, allocated pro rata in proportion to the number of securities requested to be included in such registration by each of them and (iii) in the case of a
registration initiated by a Person other than the Company or a holder of a Convertible Note (A) first, one-third of securities requested to be included in such registration by each holder of a Convertible Note, (B) second, one-third of
the securities proposed to be registered by any Persons initiating such registration, allocated pro rata in proportion to the number of securities requested to be included in such registration by each of them, and (c) third, on a pari
passu basis, any remaining securities requested to be included in such registration by the holders of the Convertible Notes, any remaining securities proposed to be registered by any Person initiating such registration, allocated pro rata in
proportion to the number of securities requested to be included in such registration by each of them and any remaining Registrable Securities requested to be included in such registration by the Holders, allocated pro rata in proportion to the
number of securities requested to be included in such registration by each of them; provided, however, that in the event the Company will not, by virtue of this Section 2.2(b), include in any such registration all of the Registrable
Securities of any Holder requested to be included in such registration, such Holder may, upon written notice to the Company given within three days of the time such Holder first is notified of such matter, reduce the amount of Registrable Securities
it desires to have included in such registration, whereupon only the Registrable Securities, if any, it desires to have included will be so included and the Holders not so reducing shall be entitled to a corresponding increase in the amount of
Registrable Securities to be included in such registration if capacity allows. 
  
 2.3 Shelf Registration. The Company may (but shall have no obligation to) arrange to have declared effective a Selling Stockholder Shelf Registration (on a Form S-3) for a public offering of the resale of all
Registrable Securities held by all Holders at any time and from time to time. Notwithstanding any other provisions of this Agreement to the contrary, the Company shall not be required to effect the Demand Shelf Registration provided under Section
2.1 (or maintain the effectiveness of a Demand Shelf Registration) at any time that such Selling Stockholder Shelf Registration is in effect. 
  
 2.4 Registration of Other Securities. Whenever the Company shall effect a Demand Shelf Registration under this Agreement, no securities other than
(i) the Registrable Securities, (ii) any securities (which are subject to prior priority registration rights) of the holders of Convertible Notes, and (iii) any securities held by other Persons entitled to incidental registration rights, to the
extent that capacity remains for inclusion of such securities shall be covered by such registration unless the Initiating Holder of the Registration shall have consented in writing to the inclusion of the securities covered by this clause (iii).

  
 2.5 Expenses. The Company shall pay all Registration
Expenses in connection with any Registration Statement hereunder, whether or not such registration shall become effective and whether or not all Registrable Securities originally requested to be included in such registration are withdrawn or
otherwise ultimately not included in such registration, except as otherwise provided with respect to a Withdrawn Request and a Withdrawn Demand Shelf Registration in Section 2.1(a). Each Holder shall pay all discounts and commissions payable to
selling brokers, managers or other similar Persons engaged in the distribution of such Holder’s 
  

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 Registrable Securities pursuant to any registration pursuant to this Section 2 pro rata in accordance with the number of
Registrable Securities being sold in the registration by such Holder. 
  
 2.6 Registration Default Penalties. 
  
 (a) If
(i) a Demand Shelf Registration Statement required to be filed by the Company pursuant to this Agreement is (A) not filed with the SEC on or before a Demand Shelf Registration Filing Deadline (a “Filing Failure”) or (B) not declared
effective by the SEC on or before a Demand Shelf Registration Effectiveness Deadline (an “Effectiveness Failure”) or (ii) other than during an allowable Blackout Period hereunder, on any day after the effective date of each such
Demand Shelf Registration Statement on which sales of all of the Registrable Securities required to be included on such Registration Statement cannot be made pursuant to such Registration Statement or otherwise (including, without limitation,
because of a failure to keep such Registration Statement effective, to disclose such information as is necessary for sales to be made pursuant to such Registration Statement or to maintain the listing of the Common Shares) (a “Maintenance
Failure”) then, as partial relief for the damages to any Holder by reason of any such delay in or reduction of its ability to sell the securities (which remedy shall not be exclusive of any other remedies available at law or in equity), the
Company shall pay to each Holder of Registrable Securities relating to such Registration Statement an amount in cash equal to (A) one percent (1.0%) of the aggregate Purchase Price (as such term is defined in the Securities Purchase Agreement) of
the Investor’s securities relating to the Registrable Securities included in such Registration Statement on each of the following dates: (i) the day of a Filing Failure; (ii) the day of an Effectiveness Failure; and (iii) the initial day of a
Maintenance Failure, and (B) two percent (2.0%) of the aggregate Purchase Price of the Investor’s securities relating to the Registrable Securities included in such Registration Statement on each of the following dates: (i) on every thirtieth
day after the day of a Filing Failure and thereafter (pro rated for periods totaling less than thirty days) until such Filing Failure is cured; (ii) on every thirtieth day after the day of an Effectiveness Failure and thereafter (pro rated for
periods totaling less than thirty days) until such Effectiveness Failure is cured; (iii) on every thirtieth day after the initial day of a Maintenance Failure and thereafter (pro rated for periods totaling less than thirty days) until such
Maintenance Failure is cured. The payments to which a holder shall be entitled pursuant to this Section 2.1 are referred to herein as “Registration Default Payments.” Registration Default Payments shall be paid on the earlier of (I)
the last day of the calendar month during which such Registration Default Payments are incurred and (II) the third Business Day after the event or failure giving rise to the Registration Default Payments is cured. In the event the Company fails to
make Registration Default Payments in a timely manner, such Registration Default Payments shall bear interest at the rate of 1.0% per month (prorated for partial months) until paid in full. The postponements described in Section 2.8 shall not
constitute Filing Failures or Effectiveness Failures, as applicable, for a Demand Shelf Registration. Registration Default Payments shall cease to accrue at such time as the Registrable Securities can be sold pursuant to Rule 144(k) of the
Securities Act (or any successor provision thereof having similar effect); provided that the foregoing shall not affect the Company’s obligation to make Registration Default Payments for any period prior to such time. 
  
 2.7 Exercises. Notwithstanding anything to the contrary herein, in
order for any Registrable Securities that are issuable upon the exercise of conversion rights, options or 
  

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 warrants to be included in any registration pursuant to Section 2 hereof, the exercise of such conversion rights, options
or warrants must be effected no later than immediately prior to the closing of any sales under the Registration Statement pursuant to which such Registrable Securities are to be sold or such earlier time as the Company or the Company’s transfer
agent should reasonably determine is necessary so as not to delay the closing. 
  
 2.8 Postponements. The Company shall be entitled to postpone a Demand Shelf Registration and to require the Holders of Registrable Securities to discontinue the disposition of their securities covered by a
Demand Shelf Registration Statement during any Blackout Period (as defined below) (i) if the Board of Directors of the Company determines in good faith that effecting such a registration or continuing such disposition at such time would not be
advisable in light of pending or anticipated corporate developments, or (ii) if the Company is in possession of material, non-public information which the Board of Directors of the Company determines in good faith it is not in the best interests of
the Company to disclose in a registration statement at such time; provided, however, that the Company may only delay a Demand Shelf Registration pursuant to this Section 2.8 by delivery of a Blackout Notice (as defined below) within 30
days of delivery of the request for such Demand Shelf Registration under Section 2.1 and may delay a Demand Shelf Registration and require the Holders of Registrable Securities to discontinue the disposition of their securities covered by a Demand
Shelf Registration Statement only for two (2) periods of up to 30 days or one period of up to 45 days (or such earlier time as such transaction is consummated or no longer proposed or the material information has been made public) in any 12 month
period (the “Blackout Period”). The Company shall promptly notify the Holders in writing (a “Blackout Notice”) of any decision to postpone a Demand Shelf Registration Statement or to discontinue sales of Registrable
Securities covered by a Demand Shelf Registration Statement pursuant to this Section 2.8 and shall include a general statement (which statement shall not include any material, non-public information) of the reason for such postponement, an
approximation of the anticipated delay and an undertaking by the Company promptly to notify the Holders as soon as the Demand Shelf Registration may be effected or sales of Registrable Securities covered by a Demand Shelf Registration Statement may
resume. In making any such determination to initiate or terminate a Blackout Period, the Company shall not be required to consult with or obtain the consent of any Holder, and any such determination shall be the Company’s sole responsibility.
Each Holder shall treat all notices received from the Company pursuant to this Section 2.8 in the strictest confidence and shall not disseminate such information. If the Company shall postpone the filing of a Demand Shelf Registration Statement
pursuant to a Blackout Period, the Holders who were to participate therein shall have the right to withdraw the request for registration. Any such withdrawal shall be made by giving written notice to the Company within 30 days after receipt of the
Blackout Notice. 
  
 2.9 Preparation, Investigation. In
connection with the preparation and filing of each Registration Statement, the Company will give the Holders of Registrable Securities to be sold under such Registration Statement and their respective counsel and accountants, drafts and final copies
of such Registration Statement, each Prospectus included therein or filed with the SEC and each amendment thereof or supplement thereto (subject to such Holder agreeing to keep confidential any confidential information including, if applicable, the
existence of such draft Registration Statement until the filing thereof), at least four (4) Business Days prior to the filing thereof with the SEC, and will give each of them such access to its books and records and such opportunities to discuss the
business of the Company with its officers and the independent public 
  

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 accountants who have certified its financial statements as shall be necessary, in the opinion of such Holders and such
counsel, to conduct a reasonable investigation within the meaning of the Securities Act. 
  
 2.10 Termination of Registration Rights. The rights and obligations under this Agreement, other than the rights and obligations under Sections 5, 6.1 and 6.3 through 6.19 hereunder, shall terminate with respect
to a Holder’s Common Shares or Warrant Shares, as applicable, upon the earlier of (x) when such Holder is eligible to sell such Common Shares or Warrant Shares, as applicable, in a sale pursuant to Rule 144(k) of the Securities Act (or any
successor provision having similar effect) and (y) the date that such Common Shares or Warrant Shares, as applicable, shall have ceased to be Registrable Securities. 
  
 3. HOLDBACK ARRANGEMENTS. 
  

3.1 Restrictions on Sale. 
  
 (a) The Company agrees, if timely requested in writing by the sole or lead managing Underwriter in a Qualified Public Offering, not to (i) sell, offer to
sell, contract or agree to sell, hypothecate, hedge, pledge, grant any option to purchase or otherwise dispose of or agree to dispose of, directly or indirectly, any Registrable Securities or warrants or other rights to purchase Registrable
Securities, or file or cause to be declared effective a registration statement under the Securities Act relating to the offer and sale of any shares of Registrable Securities, or (ii) enter into any swap or other arrangement that transfers to
another, in whole or in part, any of the economic consequences of ownership of Registrable Securities, or warrants or other rights to purchase Registrable Securities, whether any such transaction is to be settled by delivery of such securities, in
cash or otherwise; and 
  
 (b) Each Holder agrees, if timely
requested in writing by the sole or lead managing Underwriter in a Qualified Public Offering or in any Underwritten Public Offering (other than a Qualified Public Offering) in which such Holder has been permitted to include Registrable Securities
not to (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree to dispose of, directly or indirectly, or file (or participate in the filing of) a registration statement
with the SEC in respect of, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules and regulations of
the SEC promulgated thereunder with respect to, any Common Shares of the Company or any securities convertible into or exercisable or exchangeable for Common Shares, or warrants or other rights to purchase Common Shares, (ii) enter into any swap or
other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of Common Shares or any securities convertible into or exercisable or exchangeable for Common Shares, or warrants or other rights to
purchase Common Stock, whether any such transaction is to be settled by delivery of Common Shares or such other securities, in cash or otherwise, or (iii) publicly announce an intention to effect any transaction specified in clause (i) or (ii) and
(iv) waives any rights the Holder may have to require registration of Common Shares or any securities convertible into or exercisable or exchangeable for Common Shares, or warrants or other rights to purchase Common Shares (the agreements contained
in clauses (a) and (b) of this Section 3.1, collectively, the “Lock-Up Agreement”), during the time period 
  

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 reasonably requested by the sole or lead managing Underwriter: (x) not to exceed 180 days, beginning on the effective
date of the Registration Statement for such Qualified Public Offering (except as part of such Qualified Public Offering or pursuant a registration on Form S-4) without the prior written consent of the sole or lead managing Underwriter (the
“Qualified Public Offering Lock-Up Period”) and (y) not to exceed 90 days beginning on the effective date of the Registration Statement for any Underwritten Offering (other than a Qualified Public Offering), except as part of such
Underwritten Offering or pursuant a registration on Form S-4, without the prior written consent of the sole or lead managing Underwriter (the “Underwritten Offering Lock-Up Period”); provided, however, that if (i)
during the period that begins on the date that is fifteen (15) calendar days plus three (3) Business Days before the last day of the Qualified Public Offering Lock-Up Period and ends on the last day of the Qualified Public Offering Lock-Up Period or
Underwritten Offering Lock-Up Period, as applicable, the Company issues an earnings release or material news or a material event relating to the Company occurs, or (ii) prior to the expiration of the Qualified Public Offering Lock-Up Period or
Underwritten Offering Lock-Up Period, as applicable, the Company announces that it will release earnings results during the sixteen (16) day period beginning on the last day of the Qualified Public Offering Lock-Up Period or Underwritten Offering
Lock-Up Period, as applicable, the restrictions imposed shall continue to apply until the expiration of the date that is fifteen (15) calendar days plus three (3) Business Days after the date on which the issuance of the earnings release or the
material news or material event occurs. Notwithstanding the foregoing, (i) the Lock-Up Agreement shall not restrict any Holder from transferring any securities to any Person who agrees to be bound by the provisions hereof and (ii) the Holders of
Registrable Securities shall not be obligated to enter into the Lock-Up Agreement unless (A) all officers and directors of the Company and all Persons holding at least five percent (5%) of the Company’s voting securities enter into
substantially similar agreements, with the agreement of the Holder’s being on no more onerous terms than any other agreements entered into by any other Person, and (B) the Lock-Up Agreement is explicitly conditioned on the Holder receiving the
benefits of any release or modification of such agreement for any other Person subject to such an agreement or similar agreement. 
  
 4. REGISTRATION PROCEDURES. 
  
 4.1 Obligations of the Company. Whenever the Company is required to effect the registration of Registrable Securities under the Securities Act
pursuant to Section 2 of this Agreement, the Company shall, as expeditiously as practicable: 
  
 (a) Prepare and file with the SEC (promptly, and in any event within the specified time frames) the requisite Registration Statement to effect such registration, which Registration Statement shall comply as to form in
all material respects with the requirements of the applicable form and include all financial statements required by the SEC to be filed therewith, and the Company shall use its reasonable best efforts to cause such Registration Statement to become
effective as soon as practicable, but in any event, subject to Section 2.8, within the time frames specified herein; provided, however, that before filing a Registration Statement or Prospectus or any amendments or supplements thereto,
or comparable statements under securities or blue sky laws of any jurisdiction, the Company shall (i) provide Holders’ Counsel with an adequate and appropriate opportunity to participate in the preparation of such Registration Statement and
each Prospectus included therein (and each amendment or supplement thereto or comparable statement) to be filed with the SEC, which documents shall be 
  

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 subject to the review and comment of Holders’ Counsel, and (ii) not file any such Registration Statement or
Prospectus (or amendment or supplement thereto or comparable statement) with the SEC to which Holder’s Counsel or any Majority Holders of the Registration shall have reasonably objected on the grounds that such filing does not comply in all
material respects with the requirements of the Securities Act or of the rules or regulations thereunder. 
  
 (b) Prepare and file with the SEC such amendments and supplements to such Registration Statement and the Prospectus used in connection therewith as may be
necessary (i) to keep such Registration Statement effective, and (ii) to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such Registration Statement, in each case until such
time as all of such Registrable Securities have been disposed of in accordance with the intended methods of disposition by the seller(s) thereof set forth in such Registration Statement; provided, such period need not extend beyond the time
periods provided herein, including as set forth in Section 2.10, and which periods, in any event, shall terminate when all Registrable Securities covered by such Registration Statement have been sold (but not before the expiration of the 90 day
period referred to in Section 4(3) of the Securities Act and Rule 174 thereunder, if applicable). 
  
 (c) Furnish, without charge, to each selling Holder of such Registrable Securities such number of copies of such Registration Statement, each amendment
and supplement thereto (in each case including all exhibits), and the Prospectus included in such Registration Statement (including each preliminary Prospectus) in conformity with the requirements of the Securities Act, and other documents, as such
selling Holder may reasonably request in order to facilitate the public sale or other disposition of the Registrable Securities owned by such selling Holder (the Company hereby consenting to the use in accordance with applicable law of each such
Registration Statement (or amendment or post-effective amendment thereto) and each such Prospectus (or preliminary prospectus or supplement thereto) by each such selling Holder of Registrable Securities in connection with the offering and sale of
the Registrable Securities covered by such Registration Statement or Prospectus). 
  
 (d) Prior to any public offering of Registrable Securities, use its reasonable best efforts to register or qualify all Registrable Securities and other securities covered by such Registration Statement under such
other securities or blue sky laws of such U.S. jurisdictions as any selling Holder of Registrable Securities covered by such Registration Statement may reasonably request to enable such selling Holder to consummate the disposition in such
jurisdictions of the Registrable Securities owned by such selling Holder and to continue such registration or qualification in effect in each such jurisdiction for as long as such Registration Statement remains in effect (including through new
filings or amendments or renewals), and do any and all other acts and things which may be necessary or advisable to enable any such selling Holder to consummate the disposition in such jurisdictions of the Registrable Securities owned by such
selling Holder; provided, however, that the Company shall not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 4.1(d), (ii) subject itself
to taxation in any such jurisdiction, or (iii) consent to general service of process in any such jurisdiction. 
  
 (e) Use its reasonable best efforts to obtain all other approvals, consents, exemptions or authorizations from such U.S. governmental agencies or
authorities as may be necessary to enable the selling Holders of such Registrable Securities to consummate the disposition of such Registrable Securities. 
  

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 (f) Promptly notify Holders’ Counsel and each Holder of Registrable Securities covered by such
Registration Statement: (i) when the Registration Statement, any pre-effective amendment, the Prospectus or any prospectus supplement related thereto or post-effective amendment to the Registration Statement has been filed and, with respect to the
Registration Statement or any post-effective amendment, when the same has become effective, (ii) of any request by the SEC or any state securities or blue sky authority for amendments or supplements to the Registration Statement or the Prospectus
related thereto or for additional information, (iii) of the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement or the initiation or threat of any proceedings for that purpose, (iv) of the receipt by the
Company of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the securities or blue sky laws of any jurisdiction or the initiation of any proceeding for such purpose, (v) of the
existence of any fact of which the Company becomes aware or the happening of any event which results in (A) the Registration Statement containing an untrue statement of a material fact or omitting to state a material fact required to be stated
therein or necessary to make any statements therein not misleading, or (B) the Prospectus included in such Registration Statement containing an untrue statement of a material fact or omitting to state a material fact required to be stated therein or
necessary to make any statements therein, in the light of the circumstances under which they were made, not misleading, and (vi) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be
appropriate or that there exists circumstances not yet disclosed to the public which make further sales under such Registration Statement inadvisable pending such disclosure and post-effective amendment; and, if the notification relates to an event
described in any of the clauses (ii) through (vi) of this Section 4.1(f), the Company shall promptly, subject to Section 2.8, prepare a supplement or post-effective amendment to such Registration Statement or related Prospectus or any document
incorporated therein by reference or file any other required document so that (1) such Registration Statement shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading, and (2) as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, such Prospectus shall not include an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (and shall furnish to each such Holder a reasonable number of copies of such Prospectus so
supplemented or amended); and if the notification relates to an event described in clause (iii) of this Section 4.1(f), the Company shall take all reasonable action required to prevent the entry of such stop order or to remove it if entered.

  
 (g) Subject to receipt of confidentiality agreements
acceptable to the Company, make available for inspection by any selling Holder of Registrable Securities, Holders’ Counsel and any attorney, accountant or other agent retained by any such seller (each, an “Inspector” and,
collectively, the “Inspectors”), all financial and other records, pertinent corporate documents and properties of the Company and any subsidiaries thereof as may be in existence at such time (collectively, the
“Records”) as shall be necessary, in the reasonable opinion of such Holders’ counsel, to enable them to exercise their due diligence responsibility and to conduct a reasonable investigation within the meaning of the Securities
Act, and cause the 
  

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 Company’s and any subsidiaries’ officers, directors and employees, and the independent public accountants of
the Company, to supply all information reasonably requested by any such Inspectors in connection with such Registration Statement. 
  
 (h) Provide a CUSIP number for all Registrable Securities and provide and cause to be maintained a transfer agent and registrar for all such Registrable
Securities covered by such Registration Statement not later than the effectiveness of such Registration Statement. 
  
 (i) Otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the SEC and any other governmental agency or
authority having jurisdiction over the offering, and make available to its security holders, as soon as reasonably practicable but no later than 90 days after the end of any 12-month period, an earnings statement commencing with the first day of the
Company’s calendar month next succeeding each sale of Registrable Securities after the effective date of a Registration Statement, which statement shall cover such 12-month periods, in a manner which satisfies the provisions of Section 11(a) of
the Securities Act and Rule 158 thereunder. 
  
 (j) Use its
reasonable best efforts to cause all such Registrable Securities to be listed (i) on each national securities exchange on which the Company’s securities are then listed or (ii) if securities of the Company are not at the time listed on any
national securities exchange (or if the listing of Registrable Securities is not permitted under the rules of each national securities exchange on which the Company’s securities are then listed), on a national securities exchange designated by
the Majority Holders of the Registration. 
  
 (k) Keep each
selling Holder of Registrable Securities reasonably advised in writing as to the initiation and progress of any registration under Section 2 hereunder. 
  
 (l) Cooperate with each selling Holder of Registrable Securities and their respective counsel in connection with any filings required to be made with the
NASD. 
  
 (m) Furnish to each Holder participating in the offering
without charge, (i) at least one manually-signed copy of the Registration Statement and any post-effective amendments thereto, including financial statements and schedules, all documents incorporated therein by reference and all exhibits (including
those deemed to be incorporated by reference), (ii) upon the effectiveness of any Registration Statement, ten (10) copies of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of
copies as such Holder may reasonably request) and (iii) such other documents, including copies of any preliminary or final prospectus, as such Holder may reasonably request from time to time in order to facilitate the disposition of the Registrable
Securities owned by such Holder. 
  
 (n) Cooperate with the
selling Holders of Registrable Securities to facilitate the timely preparation and delivery of certificates not bearing any restrictive legends representing the Registrable Securities to be sold, and cause such Registrable Securities to be issued in
such denominations and registered in such names in accordance with the instructions of the selling Holders of Registrable Securities at least three Business Days prior to any sale of Registrable Securities. 
  

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 (o) If requested by any selling Holder of Registrable Securities, promptly incorporate in a prospectus
supplement or post-effective amendment such information concerning such Holder of Registrable Securities as such Holder reasonably requests to be included therein and as is appropriate in the reasonable judgment of the Company; make all required
filings of such Prospectus supplement or post-effective amendment as soon as practicable after being notified of the matters to be incorporated in such Prospectus supplement or post-effective amendment; 
  
 (p) In an Underwritten Offering in which a Holder is participating pursuant
to Section 2.2 hereof, use its reasonable best efforts to provide copies of opinions of Company counsel and “Cold Comfort” letters from the Company’s independent public accountants who have certified the Company’s financial
statements included or incorporated by reference in the Registration Statement for such Underwritten Offering, on the same basis and to the same extent that such materials are provided to other selling stockholders participating in such Underwritten
Offering. 
  
 (q) Use its reasonable best efforts to take all
other steps necessary to expedite or facilitate the registration and disposition of the Registrable Securities contemplated hereby. 
  
 4.2 Seller Information. As a condition to inclusion of the Holder’s Registrable Securities, the Company may require each selling Holder of
Registrable Securities as to which any registration is being effected to furnish to the Company such information regarding such Holder, such Holder’s Registrable Securities and such Holder’s intended method of disposition or any other
information requested by the SEC as the Company may from time to time reasonably request in writing; provided that such information shall be used only in connection with such registration. It shall be a condition precedent to the obligations
of the Company to complete the registration pursuant to this Agreement with respect to the Registrable Securities of a particular Holder that such Holder shall execute such documents in connection with such registration as the Company may reasonably
request, including questionnaires, in a timely manner. 
  
 4.3
Notice to Discontinue. Each Holder of Registrable Securities agrees by acquisition of such Registrable Securities that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 4.1(f)(ii)
through (vi), such Holder shall forthwith discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until such Holder’s receipt of the copies of the supplemented or amended
prospectus contemplated by Section 4.1(f) and, if so directed by the Company, such Holder shall 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 Registrable Securities which is current at the time of receipt of such notice. If the Company shall give any such notice, the Company shall extend the period during which such Registration Statement shall be maintained
effective pursuant to this Agreement (including, without limitation, the period referred to in Section 4.1(b)) by the number of days during the period from and including the date of the giving of such notice pursuant to Section 4.1(f) to and
including the date when the Holder shall have received the copies of the supplemented or amended prospectus contemplated by and meeting the requirements of Section 4.1(f). 
  

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 5. INDEMNIFICATION; CONTRIBUTION. 
  
 5.1 Indemnification by the Company. The Company agrees to indemnify and hold harmless, to the fullest extent
permitted by law, each Holder, its officers, directors, partners, members, shareholders, employees, affiliates and agents (collectively, “Agents”) and each Person who controls such Holder (within the meaning of the Securities Act)
and its Agents with respect to each registration which has been effected pursuant to this Agreement, against any and all losses, claims, judgments, fines, penalties, charges, amounts paid in settlement, damages or liabilities, joint or several,
actions or proceedings (whether commenced or threatened) in respect thereof, and expenses (as incurred or suffered and including, but not limited to, any and all expenses incurred in investigating, preparing or defending any litigation or
proceeding, whether commenced or threatened, and the reasonable fees, disbursements and other charges of legal counsel) in respect thereof (collectively, “Claims”), insofar as such Claims arise out of or are based upon (i) any
untrue or alleged untrue statement of a material fact contained in any Registration Statement or Prospectus (including any preliminary, final or summary prospectus and any amendment or supplement thereto) related to any such registration or in any
filing prepared or executed by the Company (or based upon written information furnished by or on behalf of the Company expressly for use in such filing) in connection with the qualification of the offering under the securities or other “blue
sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or any omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements
therein (in the case of any such Prospectus (including any preliminary, final or summary prospectus and any amendment or supplement thereto), in the light of the circumstances under which they were made) not misleading or (ii) any violation of this
Agreement (the matters in the foregoing clauses (i) through (ii) being, collectively, “Violations”); provided, however, that the Company will not be liable in any such case to the extent that any such Claims arise out
of or are based upon a Violation which occurs in reliance on any untrue statement or alleged untrue statement of a material fact or omission or alleged omission of a material fact so made in reliance upon and in conformity with written information
furnished to the Company in an instrument duly executed by such Holder specifically stating that it was expressly for use therein. Notwithstanding the foregoing, the indemnification contained in this Section 5.1 shall not apply if the untrue
statement or omission of material fact contained in the preliminary prospectus was corrected in the final prospectus, as then amended or supplemented, if such final prospectus was timely made available by the Company pursuant to Section 4.1(c). Such
indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any Person who may be entitled to indemnification pursuant to this Section 5 and shall survive the transfer of securities by such Holder and
termination of this Agreement. 
  
 5.2 Indemnification by
Holders. Each Holder, if Registrable Securities held by it are included in the securities as to which a registration is being effected, agrees to, severally and not jointly, indemnify and hold harmless, to the fullest extent permitted by law,
the Company, its directors and officers, each other Person who participates as an Underwriter in the offering or sale of such securities and its Agents, each Person who controls the Company (within the meaning of the Securities Act) and its Agents
against any and all Claims, insofar as such Claims arise out of or are based upon any untrue or alleged untrue statement of a material fact contained in any Registration Statement or Prospectus (including any preliminary, final or summary prospectus
and any amendment or supplement thereto) related to such registration, or any 
  

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 omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the
statements therein (in the case of any such Prospectus (including any preliminary, final or summary prospectus and any amendment or supplement thereto), in the light of the circumstances under which they were made) not misleading, to the extent, but
only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company in an instrument duly executed by such Holder
specifically stating that it was expressly for use therein; provided, however, that the aggregate amount which any such Holder shall be required to pay pursuant to this Section 5.2 shall in no event be greater than the amount of the
net proceeds received by such Holder upon the sale of the Registrable Securities pursuant to the Registration Statement giving rise to such Claims less all amounts previously paid by such Holder with respect to any such Claims. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on behalf of such indemnified party and shall survive the transfer of such securities by such Holder or Underwriter and termination of this Agreement. 
  
 5.3 Conduct of Indemnification Proceedings. Promptly after receipt by
an indemnified party of notice of any Claim or the commencement of any action or proceeding involving a Claim under this Section 5, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party pursuant to
Section 5, (i) notify the indemnifying party in writing of the Claim or the commencement of such action or proceeding; provided, that the failure of any indemnified party to provide such notice shall not relieve the indemnifying party of its
obligations under this Section 5, except to the extent the indemnifying party is materially and actually prejudiced thereby and shall not relieve the indemnifying party from any liability which it may have to any indemnified party otherwise than
under this Section 5, and (ii) permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party; provided, however, that any indemnified party shall have the right to
employ separate counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless (A) the indemnifying party has agreed in writing to pay such fees and
expenses, (B) the indemnifying party shall have failed to assume the defense of such claim and employ counsel reasonably satisfactory to such indemnified party within 10 days after receiving notice from such indemnified party that the indemnified
party believes it has failed to do so, (C) in the reasonable judgment of any such indemnified party, based upon advice of counsel, a conflict of interest may exist between such indemnified party and the indemnifying party with respect to such claims
(in which case, if the indemnified party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such
claim on behalf of such indemnified party) or (D) such indemnified party is a defendant in an action or proceeding which is also brought against the indemnifying party and reasonably shall have concluded that there may be one or more legal defenses
available to such indemnified party which are not available to the indemnifying party. No indemnifying party shall be liable for any settlement of any such claim or action effected without its written consent, which consent shall not be unreasonably
withheld. In addition, without the consent of the indemnified party (which consent shall not be unreasonably withheld), no indemnifying party shall be permitted to consent to entry of any judgment with respect to, or to effect the settlement or
compromise of any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action or claim), 
  

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 unless such settlement, compromise or judgment (1) includes an unconditional release of the indemnified party from all
liability arising out of such action or claim, (2) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party, and (3) does not provide for any action on the part of any
party other than the payment of money damages which is to be paid in full by the indemnifying party. 
  
 5.4 Contribution. If the indemnification provided for in Section 5.1 or 5.2 from the indemnifying party for any reason is unavailable to (other
than by reason of exceptions provided therein), or is insufficient to hold harmless, an indemnified party hereunder in respect of any Claim, then the 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 Claim in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, in connection with the
actions which resulted in such Claim, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether any action in
question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. If, however, the foregoing allocation is not permitted by applicable law, then each indemnifying party shall contribute to the amount
paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults but also the relative benefits of the indemnifying party and the indemnified party as well as any other relevant equitable
considerations. 
  
 The parties hereto agree that it would not be
just and equitable if contribution pursuant to this Section 5.4 were determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the immediately preceding
paragraph. The amount paid or payable by a party as a result of any Claim referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth in Section 5.3, any legal or other fees, costs or expenses
reasonably incurred by such party in connection with any investigation or proceeding. Notwithstanding anything in this Section 5.4 to the contrary, no indemnifying party (other than the Company) shall be required pursuant to this Section 5.4 to
contribute any amount in excess of the net proceeds received by such indemnifying party from the sale of the Registrable Securities pursuant to the Registration Statement giving rise to such Claims, less all amounts previously paid by such
indemnifying party with respect to such Claims. 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. 
  
 5.5 Other Indemnification.
Indemnification similar to that specified in the preceding Sections 5.1 and 5.2 (with appropriate modifications) shall be given by the Company and each selling Holder of Registrable Securities with respect to any required registration or other
qualification of securities under any Federal or state law or regulation of any governmental authority, other than the Securities Act. The indemnity agreements contained herein shall be in addition to any other rights to indemnification or
contribution which any indemnified party may have pursuant to law or contract. 
  

 - 21 - 

 5.6 Indemnification Payments. The indemnification and contribution required by this Section 5
shall be made by periodic payments of the amount thereof during the course of any investigation or defense, as and when bills are received or any expense, loss, damage or liability is incurred; provided that if a final nonappealable determination is
made that the party receiving such expense payments was not entitled to such payments pursuant to the provisions of this Section 5, then the party receiving such expense payments shall return such expense payments to the party that made such
payments. 
  
 6. GENERAL. 
  
 6.1 Adjustments Affecting Registrable Securities. The Company agrees
that it shall not effect or permit to occur any combination or subdivision of shares which would adversely affect the ability of the Holder of any Registrable Securities to include such Registrable Securities in any registration contemplated by this
Agreement or the marketability of such Registrable Securities in any such registration. 
  
 6.2 Registration Rights to Others. If the Company shall at any time hereafter provide to any holder of any securities of the Company rights with respect to the registration of such securities under the
Securities Act, such rights shall not be in conflict with or adversely affect any of the rights provided in this Agreement to the Holders. 
  
 6.3 Availability of Information; Rule 144; Rule 144A; Other Exemptions. So long as the Company shall not have filed a registration statement
pursuant to Section 12 of the Exchange Act or a registration statement pursuant to the requirements of the Securities Act, the Company shall, at any time and from time to time, upon the request of any Holder of Registrable Securities and upon the
request of any Person designated by such Holder as a prospective purchaser of any Registrable Securities and subject to the receipt by the Company of confidentiality agreements as may reasonably be requested by the Company, furnish in writing to
such Holder or such prospective purchaser, as the case may be, a statement as of a date not earlier than 12 months prior to the date of such request of the nature of the business of the Company and the products and services it offers and copies of
the Company’s most recent balance sheet and profit and loss and retained earnings statements, together with similar financial statements for such part of the two preceding fiscal years as the Company shall have been in operation, all such
financial statements to be audited to the extent audited statements are reasonable available, provided that, in any event the most recent financial statements so furnished shall include a balance sheet as of a date less than 16 months prior
to the date of such request, statements of profit and loss and retained earnings for the 12 months preceding the date of such balance sheet, and, if such balance sheet is not as of a date less than 6 months prior to the date of such request,
additional statements of profit and loss and retained earnings for the period from the date of such balance sheet to a date less than 6 months prior to the date of such request. If the Company shall have filed a registration statement pursuant to
the requirements of Section 12 of the Exchange Act or a registration statement pursuant to the requirements of the Securities Act, the Company covenants that it shall timely file any reports required to be filed by it under the Securities Act or the
Exchange Act (including, but not limited to, the reports under Sections 13 and 15(d) of the Exchange Act referred to in subparagraph (c) of Rule 144 under the Securities Act), and that it shall take such further action as any Holder of Registrable
Securities may reasonably request, all to the extent required from time to time to enable such Holder to sell Registrable Securities 
  

 - 22 - 

 without registration under the Securities Act within the limitation of the exemption provided by Rule 144 under the
Securities Act, as such rule may be amended from time to time. Upon the request of any Holder of Registrable Securities, the Company shall deliver to such Holder a written statement as to whether it has complied with such requirements. 

 
 6.4 Nominees for Beneficial Owners. In the event that any
Registrable Securities are held by a nominee for the beneficial owner thereof, the beneficial owner thereof may, at its election in writing delivered to the Company, be treated as the Holder of such Registrable Securities for purposes of any request
or other action by any Holder or Holders of Registrable Securities pursuant to this Agreement or any determination of any number or percentage of shares of Registrable Securities held by any Holder or Holders of Registrable Securities contemplated
by this Agreement. If the beneficial owner of any Registrable Securities so elects, the Company may require assurances reasonably satisfactory to it of such owner’s beneficial ownership of such Registrable Securities. 
  
 6.5 No Inconsistent Agreements. The Company will not hereafter enter
into any agreement which is inconsistent with the rights granted to the Holders in this Agreement. 
  
 6.6 Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the
sending party); or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

  

	
	If to the Company to:
	
	WorldSpace, Inc.
	2400 N Street, NW
	Washington, DC 20037
	Facsimile: (202) 969-6560
	Attention: Donald J. Frickel, Esq.
	
	with a copy (for informational purposes only) to:
	
	Coudert Brothers LLP
	1114 Avenue of the Americas
	New York, New York 10036-7703
	Facsimile: (212) 626-4120
	Attention: Jeffrey E. Cohen, Esq.

  

 - 23 - 

	
	If to the Investor to:
	
	XM Satellite Radio Holdings Inc.
	1500 Eckington Place, NE
	Washington D.C., 20002
	Facsimile: (202) 380-4534
	
	Attention: Joseph M. Titlebaum, Esq.
	
	with a copy (for informational purposes only) to:
	
	Hogan & Hartson LLP
	555 13th Street, NW
	Washington, D.C. 20004
	Facsimile: (202) 637-5910
	
	Attention: Steven M. Kaufman, Esq.

  
 , or to such other address and/or
facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five days prior to the effectiveness of such change. If a notice provided for hereunder is delivered via
facsimile, such notice shall be valid only if an original hard copy is delivered to a U.S. address provided by such Investor to which overnight delivery by standard courier can be made, within 24 hours of the time such facsimile is delivered.
Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile
number and an image of the first page of such transmission or (C) provided by a courier or overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery
service in accordance with clause (i), (ii) or (iii) above, respectively. 
  
 6.7 No Waiver. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof. 

 
 6.8 Governing Law; Jurisdiction; Jury Trial. All questions
concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed 
  

 - 24 - 

 herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is
not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. If any provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY. 
  
 6.9 Entire Agreement. This Agreement, the
other Transaction Documents (as defined in the Securities Purchase Agreement) and the instruments referenced herein and therein constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There are
no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein. This Agreement, the other Transaction Documents and the instruments referenced herein and therein supersede all prior agreements and
understandings among the parties hereto with respect to the subject matter hereof and thereof. 
  
 6.10 Successors and Assigns. 
  
 (a) This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns (including any permitted transferee of Registrable Securities). Any Holder may assign its rights
and obligations under this Agreement to any transferee of Registrable Securities; provided, however, if any such transferee shall take and hold Registrable Securities, such transferee shall promptly notify the Company and by taking and holding such
Registrable Securities such permitted transferee shall automatically be entitled to receive the benefits of and be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement as if it were a
party hereto (and shall, for all purposes, be deemed a Holder under this Agreement). Except as provided above or otherwise permitted by this Agreement, neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by
reason hereof shall be assignable by any Holder or by the Company without the consent of the other parties hereto. 
  
 (b) Each party hereto agrees that no succession and no assignment or transfer of any rights hereunder or of any Registrable Securities shall create any
new right in any Person to initiate more than the single Demand Shelf Registration provided for in Section 2.1(a) and (b) and the single additional Demand Shelf Registration under the circumstances described in Section 2.1(d) or to obligate the
Company to issue notices hereunder to additional Person(s), except to the extent that the Company shall have received actual notice of such transfer to such Person. 
  

 - 25 - 

 6.11 Headings. The headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof. 
  
 6.12
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the
other party; provided that a facsimile signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature. 
  
 6.13 Further Assurances. Each party shall do and perform, or cause to
be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated hereby. 
  
 6.14 Consents. All consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise specified in this Agreement, by the Majority Holders.

  
 6.15 No Strict Construction. The language used in this
Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of strict construction will be applied against any party. 
  
 6.16 No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their
respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 
  
 6.17 Amendments and Waivers. The provisions of this Agreement may not be amended, modified, supplemented or terminated, and waivers or consents to
departures from the provisions hereof may not be given, (i) solely in connection with (A) the extension of the Demand Shelf Registration Lock-Up Period or the extension of the Qualified Public Offering Lock-Up Period or (B) any modification to the
rights or manner of the Holder’s participation in the Demand Registration, without the written consent of the Company and Holders of at least seventy-five percent (75%) of the outstanding Registrable Securities and (ii) otherwise, without the
written consent of the Company and the Majority Holders; provided, however, that no such amendment, modification, supplement, waiver or consent to departure shall reduce the aforesaid percentage of Registrable Securities without the
written consent of all of the Holders of Registrable Securities; and provided further, that nothing herein shall prohibit any amendment, modification, supplement, termination, waiver or consent to departure the effect of which is
limited only to those Holders who have agreed in writing to such amendment, modification, supplement, termination, waiver or consent to departure. 
  
 6.18 Remedies; Specific Performance. The parties hereto acknowledge that money damages would not be an adequate remedy at law if any party fails to
perform in any material respect any of its obligations hereunder, and accordingly agree that each party, in addition to any other remedy to which it may be entitled at law or in equity, shall be entitled to seek to compel 
  

 - 26 - 

 specific performance of the obligations of any other party under this Agreement, without the posting of any bond, in
accordance with the terms and conditions of this Agreement in any court of the United States or any State thereof having jurisdiction, and if any action should be brought in equity to enforce any of the provisions of this Agreement, none of the
parties hereto shall raise the defense that there is an adequate remedy at law. Except as otherwise provided by law, a delay or omission by a party hereto in exercising any right or remedy accruing upon any such breach shall not impair the right or
remedy or constitute a waiver of or acquiescence in any such breach. No remedy shall be exclusive of any other remedy. All available remedies shall be cumulative. 
  
 6.19 Independent Nature of Investors’ Obligations and Rights. The obligations of each Investor under any
Transaction Document are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor under any Transaction Document. Nothing contained
herein or in any other Transaction Document, and no action taken by any Investor pursuant hereto or thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a
presumption that the Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Investor confirms that it has independently participated in the
negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors. Each Investor shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this
Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose. 
  
 [Signature Page Follows] 
  

 - 27 - 

 IN WITNESS WHEREOF, the Investor and the Company have caused this Registration Rights Agreement to
be duly executed as of the date first written above. 
  

			
	COMPANY:
	
	WORLDSPACE, INC.
		
	By:	 	 /S/    ANDENET T.
RAS-WORK

	Name:	 	Andenet T. Ras-Work
	Title:	 	COO

 IN WITNESS WHEREOF, the Investor and the Company have caused this Registration Rights Agreement to
be duly executed as of the date first written above. 
  

			
	INVESTOR:
	
	XM SATELLITE RADIO HOLDINGS INC.
		
	By:	 	 /S/    JOSEPH M. TITLEBAUM

	Name:	 	Joseph M. Titlebaum
	Title:	 	Executive Vice President,
Secretary & General Counsel

 EXHIBIT A 
  

PLAN OF DISTRIBUTION 
  
 We are registering certain shares of our Class A Common Stock, including Common Shares issuable upon exercise of the Warrants to permit the resale of such
Common Shares by the holders of the Warrants from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale by the selling stockholders of Common Shares. We will bear all fees and expenses incident to our
obligation to register such Common Shares. 
  
 The selling
stockholders or their permitted successors may sell all or a portion of the Common Shares beneficially owned by them and offered hereby from time to time directly or through one or more underwriters, broker-dealers or agents. If the Common Shares
are sold through underwriters or broker-dealers, the selling stockholders will be responsible for underwriting discounts or commissions or agent’s commissions. The Common Shares may be sold in one or more transactions at fixed prices, at
prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block transactions, 
  

	 	•	 	on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale; 

  

	 	•	 	in the over-the-counter market; 

  

	 	•	 	in transactions otherwise than on these exchanges or systems or in the over-the-counter market; 

  

	 	•	 	through the writing of options, whether such options are listed on an options exchange or otherwise; 

  

	 	•	 	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; 

  

	 	•	 	block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

  

	 	•	 	purchases by a broker-dealer as principal and resale by the broker-dealer for its account; 

  

	 	•	 	an exchange distribution in accordance with the rules of the applicable exchange; 

  

	 	•	 	privately negotiated transactions; 

  

	 	•	 	short sales; 

  

	 	•	 	sales pursuant to Rule 144; 

	 	•	 	broker-dealers may agree with the selling securityholders to sell a specified number of such shares at a stipulated price per share; 

  

	 	•	 	a combination of any such methods of sale; and 

  

	 	•	 	any other method permitted pursuant to applicable law. 

  
 If the selling stockholders effect such transactions by selling Common Shares to or through underwriters, broker-dealers or agents, such underwriters,
broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling stockholders or commissions from purchasers of Common Shares for whom they may act as agent or to whom they may sell as principal
(which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those customary in the types of transactions involved). In connection with sales of Common Shares or otherwise, the selling
stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of Common Shares in the course of hedging in positions they assume and deliver this prospectus in
connection with some or all of those sales and use the Common Shares covered by this prospectus to close out any short position created in connection with those sales. The selling stockholders may also sell Common Shares short and deliver Common
Shares covered by this prospectus to close out short positions and to return borrowed shares in connection with such short sales. The selling stockholders may also loan or pledge Common Shares to broker-dealers or other financial institutions that
in turn may sell such shares using this prospectus. 
  
 The
selling stockholders may pledge or grant a security interest in some or all of the Warrants or Common Shares owned by them, including to support a derivative or hedging position, and, if they default in the performance of their secured obligations,
the pledgees or secured parties may offer and sell the Common Shares from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b) or other applicable provision of the Securities Act of 1933, as amended,
amending, if necessary, the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus. The selling stockholders also may transfer and donate Common Shares in other
circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus. 
  
 The selling stockholders and any broker-dealer participating in the distribution of the Common Shares may be deemed to be
“underwriters” within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions or discounts under the Securities Act. At the
time a particular offering of Common Shares is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of Common Shares being offered and the terms of the offering, including the name or names of any
broker-dealers or agents, any discounts, commissions and other terms constituting compensation from the selling stockholders and any discounts, commissions or concessions allowed or reallowed or paid to broker-dealers. 
  
 Under the securities laws of some states, the Common Shares may be sold in
such states only through registered or licensed brokers or dealers. In addition, in some states Common Shares may not be sold unless such shares have been registered or qualified for sale in such state or an exemption from registration or
qualification is available and is complied with. 

 Any securities covered by this prospectus that qualify for sale pursuant to Rule 144 of the Securities
Act may be sold under Rule 144 or any other available exemption rather than pursuant to this prospectus. There can be no assurance that any selling stockholder will sell any or all of the Common Shares registered pursuant to the shelf registration
statement, of which this prospectus forms a part. 
  
 To the
extent required, the number of Common Shares to be sold, the name of the selling securityholder, the respective purchase prices and public offering prices, the names of any agent, dealer or underwriter, and any applicable commissions or discounts
with respect to a particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement of which this prospectus is a part. 
  
 The selling stockholders and any other person participating in such
distribution will be subject to applicable provisions of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, including, without limitation, Regulation M of the Exchange Act, which may limit the timing of
purchases and sales of any of the Common Shares by the selling stockholders and any other participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the Common Shares to engage in market-making
activities with respect to the Common Shares. All of the foregoing may affect the marketability of the Common Shares and the ability of any person or entity to engage in market-making activities with respect to the Common Shares. 
  
 We will pay all expenses of the registration of the Common Shares pursuant to
the registration rights agreement, estimated to be $[    ] in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities or “blue sky” laws;
provided, however, that a selling stockholder will pay all underwriting discounts and selling commissions, if any. We will indemnify the selling stockholders against liabilities, including some liabilities under the Securities Act, in accordance
with the registration rights agreements, or the selling stockholders will be entitled to contribution. We may be indemnified by the selling stockholders against civil liabilities, including liabilities under the Securities Act, that may arise from
any written information furnished to us by the selling stockholder specifically for use in this prospectus, in accordance with the related registration rights agreements, or we may be entitled to contribution. 
  
 Once sold under the shelf registration statement, of which this prospectus
forms a part, the Common Shares will be freely tradable in the hands of persons other than our affiliates.Royalty Agreement dated as of September 30, 2003

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

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

  

  
 TABLE OF CONTENTS

  

					
	 	  	 	  	Page

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

  

 i 

  
 TABLE OF CONTENTS

  

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

  
 EXHIBITS 
  

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

  

 - ii - 

  
 ROYALTY AGREEMENT 

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

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

  

 1 

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

  

 - 2 - 

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

  

 - 3 - 

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

  

 - 4 - 

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

  

 - 5 - 

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

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

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

 - 6 - 

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

 - 7 - 

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

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

 - 9 - 

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

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

 - 10 - 

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

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

  

 - 11 - 

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

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

  

 - 12 - 

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

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

 Jeddah 21573 
 Saudi Arabia

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

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

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

  

 - 13 - 

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

 - 14 - 

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

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

 - 15 - 

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

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

 - 16 - 

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

			
	 WORLDSPACE, INC.

		
	By:	 	 /s/    NOAH A. SAMARA

	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

	
	 WORLDSPACE INTERNATIONAL NETWORK INC.

		
	By:	 	 /s/    NOAH A. SAMARA

	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

	
	 WORLDSPACE SATELLITE COMPANY LTD.

		
	By:	 	 /s/    NOAH A. SAMARA

	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

	
	 STONEHOUSE CAPITAL LTD.

		
	By:	 	 /s/    ABDULRAHMAN BIN
MAHFOUZ

	 	 	 Abdulrahman Bin Mahfouz

		
	By:	 	 /s/    SULTAN BIN
MAHFOUZ

	 	 	 Sultan Bin Mahfouz

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

	
	
	 /s/    NOAH A. SAMARA

	 Noah A. Samara

  

 - 17 - 

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

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

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

  

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

  

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

  

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

  

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

  

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

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

  

 2 

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

 3 

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

 4 

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

 5 

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

  

 6 

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

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

 7 

 For the [Depositary Bank]: 
  

					
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	 	  	 	  	 

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

 8 

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

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

 9 

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

			
	WORLDSPACE, INC.
		
	By: 	 	 
	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

  

			
	WORLDSPACE INTERNATIONAL NETWORK INC.
		
	By: 	 	 
	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

  

			
	WORLDSPACE SATELLITE COMPANY LTD.
		
	By: 	 	 
	 	 	 Noah A. Samara

	 	 	 Chairman and Chief Executive Officer

  

			
	STONEHOUSE CAPITAL LTD.
		
	By: 	 	 
	 	 	 Abdulrahman Bin Mahfouz

		
	By: 	 	 
	 	 	 Sultan Bin Mahfouz

  

			
	 [BANK]

		
	By: 	 	 

  

 10 

 EXHIBIT B 
  
 FUNDING EXPENDITURE PLAN 
  

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

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

 Washington, D.C. 20004-2623 
  

	 	Re:	Restructuring and Royalty Agreements 

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

  

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

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

  

	
	 Yours sincerely,

	
	 
	 Donald J. Frickel
 SVP & General Counsel

  

 Funding Expenditure Plan 
  

 WorldSpace Funding Expenditure Plan 
  
 WORLDSPACE INC. 
  

							
	 COSTS AND EXPENSES        

	  	YEAR 1

	 	YEAR 2

	 	YEAR 3

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

  
 [logo]
WORLDSPACE®
                                        
                                        
                                        
             
  

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

  
  

 August 2003 
  
 [Logo] 
  
 WORLDSPACE® 
  
 Use of Proceeds

  

 Proprietary & Confidential 

 Use of Proceeds 
  
 Summary Use of Proceeds 
 $ in millions 
  

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

	 Total Cash Required
	  	“*”
	 	  	

  
 A. Summary of Use of Proceeds

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

									
	 	  	Year 1

	 	Year 2

	 	Year 3

	 	Total to B.E.

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

	 Total
	  	“*”	 	“*”	 	“*”	 	“*”

  
 Subscriber Acquisition Costs (SAC)

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

 Proprietary & Confidential 
  

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

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

 Proprietary & Confidential 
  

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

 C. Fixed Costs 
  
 Content 
 $ in millions 
  

									
	 	  	Year 1

	 	Year 2

	 	Year 3

	 	Total to B.E.

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

	 Total
	  	“*”	 	“*”	 	“*”	 	“*”

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

									
	 	  	Year 1

	 	Year 2

	 	Year 3

	 	Total to B.E.

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

	 Total
	  	“*”	 	“*”	 	“*”	 	“*”

  
 Headcount (Year 1 breakdown)

  

					
	 	  	 	 	%

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

	 	  	“*”	 	“*”

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

  

 Proprietary & Confidential 
  

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

 D. Capital Expenditures 
 $ in millions 
  

									
	 	  	Year 1

	 	Year 2

	 	Year 3

	 	Total to B.E.

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

	 Total
	  	“*”	 	“*”	 	“*”	 	“*”

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

 Proprietary & Confidential 
  

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

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

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

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

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

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

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

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

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

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

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

 Royalty Agreement 
 Exhibit D 
 Financial Model 
  
 TABLE OF CONTENTS 
  

			
	1.	 	 SUMMARY MODEL

		
	2.	 	 WORLDSPACE MAIN MODEL

		
	3.	 	 EUROPEAN MOBILE MODEL

  

  
 WorldSpace Financial Model Summary
Projections 
 Summary ($ in Millions) 
  
 INDICATIVE FINANCIALS 
  

									
	 	  	2003

	  	2004

	  	 
	 Receiver Sales (000s)
	  	 	 	  	 	 	  	 
	 *
	  	 	*	  	 	*	  	 
	 	  	
	
	  	
	
	  	 
	 Total
	  	 	273.5	  	 	805.2	  	 
	 *
	  	 	 	  	 	 	  	 
	 *
	  	 	*	  	 	*	  	 
	 	  	
	
	  	
	
	  	 
	 Net Revenues (in US$
million)                                       
                                        
                                        
                     *

	 Subscription
	  	$	2.0	  	$	20.4	  	 
	 *
	  	 	*	  	 	*	  	 
	 Other
	  	 	5.4	  	 	12.0	  	 
	 *
	  	 	*	  	 	*	  	 
	 	  	
	
	  	
	
	  	 
	 Total
	  	$	7.6	  	$	33.8	  	 
	 *
	  	 	*	  	 	*	  	 
	 Cap Ex
	  	$	10.4	  	$	32.8	  	 
	 *
	  	 	*	  	 	*	  	 

  

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

  

  
 WorldSpace Summary Model

 Income Statement Summary ($ in Millions) 
  
 Currency Conversion Euros to Dollars             1.1 
  

											
	 	  	2003

	 	    	2004

	 	 	 
	 Gross Revenue
	  	$	22.5	 	    	$	77.8	 	 	 
	 Net Revenue
	  	 	7.6	 	    	 	33.8	 	 	 
	 *
	  	 	*	 	    	 	*	 	 	 
	 G&A Costs
	  	$	50.2	 	    	$	56.4	 	 	 
	 *
	  	 	*	 	    	 	*	 	 	 
	 Depreciation
	  	$	53.0	 	    	$	55.8	 	 	 
	 Amortization
	  	 	0.0	 	    	 	0.0	 	 	 
	 *
	  	 	*	 	    	 	*	 	 	 
	 Interest Expense
	  	$	42.6	 	    	$	18.5	                                       
                             	 	        *
	 Interest Income
	  	 	0.3	 	    	 	0.2	 	 	 
	 	  	
	
	
	    	
	
	
	 	 
	 Pre-Extra Item
Income                                       
     
	  	($	148.3	)	    	($	121.0	)	 	 
	 Extraordinary Item
	  	 	0.0	 	    	 	0.0	 	 	 
	 	  	
	
	
	    	
	
	
	 	 
	 Pre-Tax Income
	  	($	148.3	)	    	($	121.0	)	 	 
	 Income Taxes
	  	 	6.0	 	    	 	0.0	 	 	 
	 	  	
	
	
	    	
	
	
	 	 
	 Net Income
	  	($	154.3	)	    	($	121.0	)	 	 
	 *
	  	 	*	 	    	 	*	 	 	 

  

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

  

  
 WorldSpace 
 Balance Sheet ($ in Millions) 
  
 Currency Conversion Euros to Dollars             1.1 
  

																	
	 	  	2002

	 	 	2003

	 	 	2004

	 	 	 	  	 
	 Assets
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 
	 Cash and Cash Equivalents
	  	$	2.8	 	 	$	7.6	 	 	$	7.6	 	 	 	  	 
						
	 *
	  	 	*	 	 	 	*	 	 	 	*	 	 	 	  	 
						
	 Inventories
	  	$	3.8	 	 	$	4.0	 	 	$	6.5	 	 	 	  	 
	 Other Current Assets
	  	$	10.7	 	 	$	8.9	 	 	$	7.0	 	 	 	  	 
	 	  	
	
	
	 	
	
	
	 	
	
	
	 	 	  	 
	 Total Current Assets
	  	$	22.5	 	 	$	28.8	 	 	$	35.0	 	 	 	  	 
						
	 PP&E – Network, net
	  	$	576.7	 	 	$	530.4	 	 	$	485.0	 	 	 	  	 
	 PP&E – Other, net
	  	$	15.7	 	 	$	19.4	 	 	$	41.7	 	 	 	  	 
	 Deferred Financing Costs, net
	  	$	26.7	 	 	$	28.1	 	 	$	28.1	 	 	 	  	 
						
	 *
	  	 	*	 	 	 	*	 	 	 	*	 	 	 	  	 
	 	  	
	
	
	 	
	
	
	 	
	
	
	 	 	  	 
	 Total Assets
	  	$	648.00	 	 	$	613.1	 	 	$	596.2	 	 	 	  	 
						
	 Liabilities
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	  	                                       
                 *
						
	 *
	  	 	*	 	 	 	*	 	 	 	*	 	 	 	  	 
	 Other Current Liabilities
	  	$	9.8	 	 	$	9.8	 	 	$	9.8	 	 	 	  	 
	 	  	
	
	
	 	
	
	
	 	
	
	
	 	 	  	 
	 Total Current Liabilities
	  	$	66.7	 	 	$	52.1	 	 	$	48.4	 	 	 	  	 
	 *
	  	 	*	 	 	 	*	 	 	 	*	 	 	 	  	 
	 LT Debt
	  	$	1,820.7	 	 	$	188.5	 	 	$	198.6	 	 	 	  	 
	 *
	  	 	*	 	 	 	*	 	 	 	*	 	 	 	  	 
	 	  	
	
	
	 	
	
	
	 	
	
	
	 	 	  	 
	 Total Liabilities
	  	$	1,895.4	 	 	$	339.9	 	 	$	444.0	 	 	 	  	 
						
	 Preferred Stock
	  	$	0.0	 	 	$	0.0	 	 	$	0.0	 	 	 	  	 
						
	 Equity
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 
	 Common Stock
	  	$	0.1	 	 	$	0.1	 	 	$	0.1	 	 	 	  	 
	 Paid in Capital
	  	$	81.3	 	 	$	81.3	 	 	$	81.3	 	 	 	  	 
	 Gain from Debt Restructuring            
	  	$	0.0	 	 	$	1,674.0	 	 	$	1,674.0	 	 	 	  	 
	 Retained Earnings
	  	($	1,328.9	)	 	($	1,482.3	)	 	($	1,603.3	)	 	 	  	 
	 	  	
	
	
	 	
	
	
	 	
	
	
	 	 	  	 
	 Total Equity
	  	($	1,247.4	)	 	$	273.2	 	 	$	152.2	 	 	 	  	 
						
	 Total Liabilities and Equity
	  	$	648.0	 	 	$	613.1	 	 	$	596.2	 	 	 	  	 
						
	 *
	  	 	*	 	 	 	*	 	 	 	*	 	 	 	  	 

  

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

  

  
 WorldSpace Summary Model

 Cash Flow Statement ($ in Millions) 
 Currency
Conversion Euros to Dollars             1.1 
  

																
	 	  	2003

	 	 	2004

	 	 	 	  	 	  	 	 
	 Operating Activities
	  	 	 	 	 	 	 	 	 	 	  	 	  	 	 
	 Net Income
	  	($	154.3	)	 	($	121.0	)	 	 	  	 	  	 	 
	 Depreciation
	  	 	53.0	 	 	 	55.8	 	 	 	  	 	  	 	 
	 Amortization
	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 	 
						
	 *
	  	 	*	 	 	 	*	 	 	 	  	 	  	 	 
						
	 Cash Flow from Operating Activities
	  	($	76.2	)	 	($	56.7	)	 	 	  	 	  	 	 
						
	 Investing Activities
	  	 	 	 	 	 	 	 	 	 	  	 	  	 	 
	 Capital Expenditures
	  	($	10.4	)	 	($	32.8	)	 	 	  	 	  	 	 
	 *
	  	 	*	 	 	 	*	 	 	 	  	 	  	 	 
						
	 Cash Flow From Investing Activities
	  	($	10.4	)	 	($	32.8	)	 	 	  	 	  	                                       
             	*
						
	 Cash Flow Available for Financing
Activities            
	  	($	86.6	)	 	($	89.5	)	 	 	  	 	  	 	 
						
	 Financing Activities
	  	 	 	 	 	 	 	 	 	 	  	 	  	 	 
	 *
	  	 	*	 	 	 	*	 	 	 	  	 	  	 	 
	 Proceeds from/(Repayment of) LT Debt
	  	$	0.0	 	 	($	8.2	)	 	 	  	 	  	 	 
	 Issue/ (Purchase) of Common Stock
	  	$	0.0	 	 	$	0.0	 	 	 	  	 	  	 	 
	 Proceeds from Stock Options Issued
	  	$	0.0	 	 	$	0.0	 	 	 	  	 	  	 	 
	 Dividends
	  	$	0.0	 	 	$	0.0	 	 	 	  	 	  	 	 
	 Issue/ (Purchase) of Preferred stock
	  	$	0.0	 	 	$	0.0	 	 	 	  	 	  	 	 
	 	  	
	
	
	 	
	
	
	 	 	  	 	  	 	 
	 Cash Flow from Financing Activities
	  	$	91.4	 	 	$	89.5	 	 	 	  	 	  	 	 
						
	 Net Change in Cash
	  	$	4.8	 	 	($	0.0	)	 	 	  	 	  	 	 
	 Beginning Cash Balance
	  	 	2.8	 	 	 	7.6	 	 	 	  	 	  	 	 
	 	  	
	
	
	 	
	
	
	 	 	  	 	  	 	 
	 Ending Cash Balance
	  	$	7.6	 	 	$	7.6	 	 	 	  	 	  	 	 

  

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

  

  
 WORLDSPACE INC.

  

													
	 COSTS AND EXPENSES

	  	Year 1

	  	Year 2

	  	 	  	 	  	 
	 *
	  	 	*	  	 	*	  	 	  	 	  	 
	 CAPEX
	  	$	10,400,000	  	$	32,783,333	  	 	  	 	  	 
						
	 *
	  	 	*	  	 	*	  	 	  	 	  	 
						
	 NET REVENUES
	  	$	7,618,908	  	$	33,791,081	  	 	  	 	  	                                       
         *
	 Subscription Audio &
Multimedia                
	  	 	1,962,289	  	 	20,445,453	  	 	  	 	  	 
	 *
	  	 	*	  	 	*	  	 	  	 	  	 
	 Other
	  	$	5,435,702	  	$	12,012,862	  	 	  	 	  	 
	 *
	  	 	*	  	 	*	  	 	  	 	  	 

  

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

  

 WorldSpace 
 Model Breakout 
  

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

  

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

  

										
	 Country Selection

	  	 	 	 	 	  	 Business Lines

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

  

			
	 	 	Check
	 	 	    4

  

  
 WorldSpace Financial Model Summary
Projections 
 Summary ($ in Millions) 
  
 INDICATIVE FINANCIALS 
  

													
	 	  	2003

	  	2004

	  	 	  	 	  	 
	 Receiver Sales (000s)
	  	 	 	  	 	 	  	 	  	 	  	 
	 *
	  	 	*	  	 	*	  	 	  	 	  	 
	 	  	
	
	  	
	
	  	 	  	 	  	 
	 Total
	  	 	273.5	  	 	805.2	  	 	  	 	  	 
	 *
	  	 	*	  	 	*	  	 	  	 	  	 
	 	  	
	
	  	
	
	  	 	  	 	  	 
	 Net Revenues (in US$
million)                    
	  	 	 	  	 	 	  	 	  	 	  	 
	 Subscriptions
	  	$	2.0	  	$	20.4	  	 	  	 	  	                                       
                             *
	 *
	  	 	*	  	 	*	  	 	  	 	  	 
	 Other
	  	 	5.4	  	 	12.0	  	 	  	 	  	 
	 	  	
	
	  	
	
	  	 	  	 	  	 
	 Total
	  	$	7.6	  	$	33.8	  	 	  	 	  	 
	 *
	  	 	*	  	 	*	  	 	  	 	  	 
	 CapEx
	  	$	6.0	  	$	13.4	  	 	  	 	  	 
	 *
	  	 	*	  	 	*	  	 	  	 	  	 

  

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

  

  
 * 
  

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

  

 Pages 9-16 

  
 WorldSpace 
 Detailed Income Statement (Units in Millions) 
  

													
	 	  	2003

	  	2004

	  	 	  	 	  	 
	 Gross Revenue
	  	 	 	  	 	 	  	 	  	 	  	 
	 Receiver Sales
	  	 	16.4	  	 	48.3	  	 	  	 	  	 
	 *
	  	 	*	  	 	*	  	 	  	 	  	 
	 	  	
	
	  	
	
	  	 	  	 	  	 
	 Total
	  	 	22.5	  	 	77.8	  	 	  	 	  	 
	 Netting Expenses
	  	 	 	  	 	 	  	 	  	 	  	                                       
         *
	 Receiver
COGS                                       
 
	  	 	14.8	  	 	43.5	  	 	  	 	  	 
	 *
	  	 	*	  	 	*	  	 	  	 	  	 
	 Net Revenue
	  	 	 	  	 	 	  	 	  	 	  	 
	 Receiver Sales
	  	 	1.6	  	 	4.8	  	 	  	 	  	 
	 *
	  	 	*	  	 	*	  	 	  	 	  	 
	 	  	
	
	  	
	
	  	 	  	 	  	 
	 Total
	  	$	7.6	  	$	33.8	  	 	  	 	  	 
	 *
	  	 	*	  	 	*	  	 	  	 	  	 

  

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

  

  
 * 
  

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

  

 Page 18 

  
 WorldSpace 
 Income Statement ($ in Millions) 
  

															
	 	  	2003

	 	 	2004

	 	 	 	  	 	  	 
	 Gross Revenue
	  	$	22.5	 	 	$	77.8	 	 	 	  	 	  	 
	 Net Revenue
	  	 	7.6	 	 	 	33.8	 	 	 	  	 	  	 
						
	 *
	  	 	*	 	 	 	*	 	 	 	  	 	  	 
						
	 G&A Costs
	  	$	48.2	 	 	$	49.1	 	 	 	  	 	  	 
						
	 *
	  	 	*	 	 	 	*	 	 	 	  	 	  	 
	 Depreciation
	  	$	52.7	 	 	$	53.8	 	 	 	  	 	  	 
	 Amortization
	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 *
	  	 	*	 	 	 	*	 	 	 	  	 	  	                                       
         *
						
	 Interest Expense
	  	$	42.6	 	 	$	18.5	 	 	 	  	 	  	 
	 Interest Income
	  	 	0.1	 	 	 	0.1	 	 	 	  	 	  	 
	 	  	
	
	
	 	
	
	
	 	 	  	 	  	 
	 Pre-Extra Item
Income                    
	  	($	146.0	)	 	($	111.8	)	 	 	  	 	  	 
						
	 Extraordinary Item
	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 Pre-Tax Income
	  	($	146.0	)	 	($	111.8	)	 	 	  	 	  	 
						
	 Income Taxes (1)
	  	 	6.0	 	 	 	0.0	 	 	 	  	 	  	 
	 Net Income
	  	($	152.0	)	 	($	111.8	)	 	 	  	 	  	 
						
	 *
	  	 	*	 	 	 	*	 	 	 	  	 	  	 

  
 Note(1) $6 Million tax liability in
2003 is tied to Alternative Minimum Tax from the use of NOL’s 
  

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

  

  
 WorldSpace 
 Balance Sheet ($ in Millions) 
  

																			
	 	  	2002

	 	 	2003

	 	 	2004

	 	 	 	  	 	  	 
	 Assets
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 
	 Cash and Cash Equivalents
	  	$	2.8	 	 	$	2.1	 	 	$	2.1	 	 	 	  	 	  	 
							
	 *
	  	 	*	 	 	 	*	 	 	 	*	 	 	 	  	 	  	 
	 Inventories
	  	 	3.8	 	 	 	4.0	 	 	 	6.5	 	 	 	  	 	  	 
	 Other Current Assets
	  	 	10.7	 	 	 	8.9	 	 	 	7.0	 	 	 	  	 	  	 
	 	  	
	
	
	 	
	
	
	 	
	
	
	 	 	  	 	  	 
	 Total Current Assets
	  	$	22.5	 	 	$	23.3	 	 	$	29.5	 	 	 	  	 	  	 
							
	 PP&E – Network, net
	  	$	576.7	 	 	$	530.4	 	 	$	485.0	 	 	 	  	 	  	 
	 PP&E – Other, net
	  	 	15.7	 	 	 	15.3	 	 	 	20.2	 	 	 	  	 	  	 
	 Deferred Financing Costs, net
	  	 	26.7	 	 	 	28.1	 	 	 	28.1	 	 	 	  	 	  	 
	 *
	  	 	*	 	 	 	*	 	 	 	*	 	 	 	  	 	  	 
							
	 Total Assets
	  	$	648.0	 	 	$	603.5	 	 	$	569.2	 	 	 	  	 	  	 
							
	 Liabilities
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 
	 *
	  	 	*	 	 	 	*	 	 	 	*	 	 	 	  	 	  	 
							
	 Other Current Liabilities
	  	 	9.8	 	 	 	9.8	 	 	 	9.8	 	 	 	  	 	  	                                       
         *
	 	  	
	
	
	 	
	
	
	 	
	
	
	 	 	  	 	  	 
	 Total Current Liabilities
	  	$	66.7	 	 	$	51.9	 	 	$	47.8	 	 	 	  	 	  	 
	 *
	  	 	*	 	 	 	*	 	 	 	*	 	 	 	  	 	  	 
	 LT Debt
	  	 	1,820.7	 	 	 	188.5	 	 	 	198.6	 	 	 	  	 	  	 
	 *
	  	 	*	 	 	 	*	 	 	 	*	 	 	 	  	 	  	 
	 Total Liabilities
	  	$	1,895.4	 	 	$	328.1	 	 	$	405.6	 	 	 	  	 	  	 
							
	 Preferred Stock
	  	$	0.0	 	 	$	0.0	 	 	$	0.0	 	 	 	  	 	  	 
							
	 Equity
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	  	 
	 Common Stock
	  	$	0.1	 	 	$	0.1	 	 	$	0.1	 	 	 	  	 	  	 
	 Paid in Capital
	  	$	81.3	 	 	$	81.3	 	 	$	81.3	 	 	 	  	 	  	 
	 Gain From Debt
Restructuring                    
	  	$	0.0	 	 	 	1674.0	 	 	$	1,674.0	 	 	 	  	 	  	 
	 Retained Earnings
	  	 	(1,328.9	)	 	 	(1,480.1	)	 	 	(1,591.9	)	 	 	  	 	  	 
	 	  	
	
	
	 	
	
	
	 	
	
	
	 	 	  	 	  	 
	 Total Equity
	  	($	1,247.4	)	 	$	275.4	 	 	$	163.6	 	 	 	  	 	  	 
							
	 Total Liabilities and Equity
	  	$	648.0	 	 	$	603.5	 	 	$	569.2	 	 	 	  	 	  	 

  

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

  

  
 WorldSpace 
 Cash Flow Statement ($ in Millions) 
  

															
	 	  	2003

	 	 	2004

	 	 	 	  	 	  	 
	 Operating Activities
	  	 	 	 	 	 	 	 	 	 	  	 	  	 
	 Net Income
	  	($	152.0	)	 	($	111.8	)	 	 	  	 	  	 
	 Depreciation
	  	 	52.7	 	 	 	53.8	 	 	 	  	 	  	 
	 Amortization
	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 *
	  	 	*	 	 	 	*	 	 	 	  	 	  	 
						
	 Cash Flow from Operating Activities
	  	($	74.4	)	 	($	49.9	)	 	 	  	 	  	 
						
	 Investing Activities
	  	 	 	 	 	 	 	 	 	 	  	 	  	 
	 Capital Expenditures
	  	($	6.0	)	 	($	13.4	)	 	 	  	 	  	 
	 *
	  	 	*	 	 	 	*	 	 	 	  	 	  	 
						
	 Cash Flow from Investing Activities
	  	($	6.0	)	 	($	13.4	)	 	 	  	 	  	 
						
	 Cash Flow Available for Financing
Activities                    
	  	($	80.4	)	 	($	63.3	)	 	 	  	 	  	 
						
	 Financing Activities
	  	 	 	 	 	 	 	 	 	 	  	 	  	                                       
 *
	 *
	  	 	*	 	 	 	*	 	 	 	  	 	  	 
	 Proceeds from/Repayment of) LT Debt
	  	 	0.0	 	 	 	(8.2	)	 	 	  	 	  	 
	 Issue/ (Purchase) of Common Stock
	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 Proceeds from Stock Options Issued
	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 Dividends
	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 Issue / (Purchase) of Preferred Stock
	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 	  	
	
	
	 	
	
	
	 	 	  	 	  	 
	 Cash Flow from Financing Activities
	  	$	79.7	 	 	$	63.3	 	 	 	  	 	  	 
						
	 Net Change in Cash
	  	($	0.7	)	 	($	0.0	)	 	 	  	 	  	 
	 Beginning Cash Balance
	  	 	2.8	 	 	 	2.1	 	 	 	  	 	  	 
	 	  	
	
	
	 	
	
	
	 	 	  	 	  	 
	 Ending Cash Balance
	  	$	2.1	 	 	$	2.1	 	 	 	  	 	  	 

  

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

  

  
 WorldSpace 
 Working Capital Schedule ($ in Millions) 
  

															
	 	  	2002

	  	2003

	  	2004

	  	 	  	 	  	 
	 Net Revenue
	  	 	  	$	7.6	  	$	33.8	  	 	  	 	  	 
	 Subscription Revenue
	  	 	  	 	2.0	  	 	20.4	  	 	  	 	  	 
	 *
	  	 	  	 	*	  	 	*	  	 	  	 	  	 
	 Receiver Revenue
	  	 	  	 	16.4	  	 	48.3	  	 	  	 	  	 
	 *
	  	 	  	 	*	  	 	*	  	 	  	 	  	 
							
	 G&A
	  	 	  	 	48.2	  	 	49.1	  	 	  	 	  	 
	 COGS Receivers
	  	 	  	 	14.8	  	 	43.5	  	 	  	 	  	                                       
 *
							
	 *
	  	 	  	 	*	  	 	*	  	 	  	 	  	 
							
	 Working Capital
Balances                    
	  	 	  	 	 	  	 	 	  	 	  	 	  	 
	 *
	  	*	  	 	*	  	 	*	  	 	  	 	  	 
							
	 Inventories
	  	3.8	  	 	4.0	  	 	6.5	  	 	  	 	  	 
	 Other Current Assets
	  	10.7	  	 	8.9	  	 	7.0	  	 	  	 	  	 
	 	  	
	  	
	
	  	
	
	  	 	  	 	  	 
	 *
	  	*	  	 	*	  	 	*	  	 	  	 	  	 
	 Other Current Liabilities
	  	9.8	  	 	9.8	  	 	9.8	  	 	  	 	  	 
	 	  	
	  	
	
	  	
	
	  	 	  	 	  	 
	 *
	  	*	  	 	*	  	 	*	  	 	  	 	  	 

  

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

  

  
 WorldSpace 
 Working Capital Schedule ($ in Millions) 
  

																
	 	  	2002

	  	2003

	  	2004

	  	 	  	 	  	 
	 *
	  	 	 	  	 	*	  	 	*	  	 	  	 	  	 
							
	 Other Long-Term Items
	  	 	 	  	 	 	  	 	 	  	 	  	 	  	                                       
 *
	 Deferred Financing Costs,
net                    
	  	$	26.7	  	$	28.1	  	$	28.1	  	 	  	 	  	 
							
	 *
	  	 	*	  	 	*	  	 	*	  	 	  	 	  	 

  

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

  

  
 WorldSpace 
 Network Depreciation Schedule ($ in Millions) 
  

																
	 	  	 	  	2003

	  	2004

	  	 	  	 	  	 
	 Net Revenue
	  	 	 	  	$	7.6	  	$	33.8	  	 	  	 	  	 
	 Capital Expenditures
	  	 	 	  	 	4.0	  	 	5.4	  	 	  	 	  	 
	 *
	  	 	 	  	 	*	  	 	*	  	 	  	 	  	 
	 Beginning Network PP&E, net
	  	 	 	  	$	576.7	  	$	530.4	  	 	  	 	  	 
	 Capital Expenditures, net of
Additions                    
	  	 	 	  	 	4.0	  	 	5.4	  	 	  	 	  	 
	 Depreciation
	  	 	 	  	 	50.3	  	 	50.7	  	 	  	 	  	 
	 *
	  	 	 	  	 	*	  	 	*	  	 	  	 	  	                                       
 *
	 Ending Network PP&E, net
	  	$	576.7	  	$	530.4	  	$	485.0	  	 	  	 	  	 
							
	 *
	  	 	*	  	 	*	  	 	*	  	 	  	 	  	 
							
	 Total Depreciation Expense
	  	 	 	  	$	50.3	  	$	50.7	  	 	  	 	  	 
							
	 *
	  	 	*	  	 	*	  	 	*	  	 	  	 	  	 
							
	 Total CapEx
	  	 	 	  	$	4.0	  	$	5.4	  	 	  	 	  	 

  

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

  

  
 WorldSpace 
 Other Depreciation Schedule ($ in Millions) 
  

																				
	 	  	 	  	 	  	2003

	  	 	  	2004

	  	 	  	 	  	 
	 Net Revenue
	  	 	 	  	 	  	$	7.6	  	 	  	$	33.8	  	 	  	 	  	 
	 Capital Expenditures
	  	 	 	  	 	  	 	2.0	  	 	  	 	8.0	  	 	  	 	  	 
	 *
	  	 	 	  	 	  	 	*	  	 	  	 	*	  	 	  	 	  	 
	 Beginning Other PP&E, net
	  	 	 	  	 	  	$	15.7	  	 	  	$	15.3	  	 	  	 	  	 
	 Capital Expenditures, net of Additions            
	  	 	 	  	 	  	 	2.0	  	 	  	 	8.0	  	 	  	 	  	 
	 Depreciation
	  	 	 	  	 	  	 	2.4	  	 	  	 	3.1	  	 	  	 	  	                                       
 *
	 *
	  	 	 	  	 	  	 	*	  	 	  	 	*	  	 	  	 	  	 
	 Ending Other PP&E, net
	  	$	15.7	  	 	  	$	15.3	  	 	  	 	20.2	  	 	  	 	  	 
									
	 *
	  	 	*	  	 	  	 	*	  	 	  	 	*	  	 	  	 	  	 
									
	 Total Depreciation Expense
	  	 	 	  	 	  	$	2.4	  	 	  	$	3.1	  	 	  	 	  	 
									
	 *
	  	 	*	  	 	  	 	*	  	 	  	 	*	  	 	  	 	  	 

  

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

  

  
 WorldSpace 
 Amortization Schedule ($ in Millions) 
  

															
	 	  	 	  	2003

	  	2004

	  	 	  	 	  	 
	 Net Revenue
	  	 	  	$	7.6	  	$	33.8	  	 	  	 	  	 
	 *
	  	 	  	 	*	  	 	*	  	 	  	 	  	 
							
	 Amortization
	  	 	  	 	0.0	  	 	0.0	  	 	  	 	  	                                       
 *
	 *
	  	*	  	 	*	  	 	*	  	 	  	 	  	 
							
	 Total Amortization
Expense                    
	  	 	  	$	0.0	  	$	0.0	  	 	  	 	  	 
							
	 *
	  	*	  	 	*	  	 	*	  	 	  	 	  	 

  

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

  

  
 WorldSpace 
 Debt Schedule ($ in Millions) 
  

																		
	 	  	2002

	  	2003

	 	 	2004

	 	 	 	  	 	  	 
	 *
	  	 	 	  	 	*	 	 	 	*	 	 	 	  	 	  	 
	 Issue / (Purchase) of Common Stock
	  	 	 	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 Proceeds from Stock Options Issued
	  	 	 	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 Dividends
	  	 	 	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 Issue / (Purchase) of Preferred Stock
	  	 	 	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 *
	  	 	 	  	 	*	 	 	 	*	 	 	 	  	 	  	 
							
	Long-Term Debt Balances	  	 	 	  	 	 	 	 	 	 	 	 	 	  	 	  	 
	 Industrial Development 1
	  	$	79.2	  	 	87.5	 	 	 	96.7	 	 	 	  	 	  	 
	 Industrial Development 2
	  	 	12.2	  	 	12.8	 	 	 	13.4	 	 	 	  	 	  	 
	 Saifcom Establishment
	  	 	7.8	  	 	8.2	 	 	 	0.0	 	 	 	  	 	  	 
	 2001 Convertible Loan
	  	 	72.3	  	 	80.0	 	 	 	88.4	 	 	 	  	 	  	 
	 Stonehouse Debt
	  	 	1,649.2	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 Other
	  	 	0.0	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	                    *
	 	  	
	
	  	
	
	
	 	
	
	
	 	 	  	 	  	 
	 Total Long-Term Debt
	  	 	1,820.7	  	$	188.5	 	 	$	198.6	 	 	 	  	 	  	 
	 *
	  	 	*	  	 	*	 	 	 	*	 	 	 	  	 	  	 
							
	Long-Term Debt (Repayments) / Borrowings	  	 	 	  	 	 	 	 	 	 	 	 	 	  	 	  	 
	 Industrial Development 1
	  	 	 	  	$	0.0	 	 	$	0.0	 	 	 	  	 	  	 
	 Industrial Development 2
	  	 	 	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 Saifcom Establishment
	  	 	 	  	 	0.0	 	 	 	(8.2	)	 	 	  	 	  	 
	 2001 Convertible Loan
	  	 	 	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 Stonehouse Debt Restructuring (no cash effect)
	  	 	 	  	 	(1,649.2	)	 	 	0.0	 	 	 	  	 	  	 
	 Other
	  	 	 	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 	  	 	 	  	
	
	
	 	
	
	
	 	 	  	 	  	 
	 Total Long-Term Debt (Repayments) / Borrowings        
	  	 	 	  	$	0.0	 	 	($	8.2	)	 	 	  	 	  	 
	 *
	  	 	 	  	 	*	 	 	 	*	 	 	 	  	 	  	 
	 Cash Available after All Debt Repayments / (Borrowings)
	  	 	 	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 *
	  	 	 	  	 	*	 	 	 	*	 	 	 	  	 	  	 

  

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

  

  
 WorldSpace 
 Interest Schedule ($ in Millions) 
  

																								
	 	  	2002

	  	2003

	 	 	2004

	 	 	 	  	 	  	 	  	 	 	 	  	 
	Debt Balances	  	 	 	  	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Industrial Development 1
	  	$	79.2	  	$	87.5	 	 	$	96.7	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Industrial Development 2
	  	 	12.2	  	 	12.8	 	 	 	13.4	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Saifcom Establishment
	  	 	7.8	  	 	8.2	 	 	 	0.0	 	 	 	  	 	  	 	  	 	 	 	  	 
	 2001 Convertible Loan
	  	 	72.3	  	 	80.0	 	 	 	88.4	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Stonehouse Debt
	  	 	1,649.2	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Other
	  	 	0.0	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 	  	 	 	 	  	 
	 *
	  	 	*	  	 	*	 	 	 	*	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Cash and Cash Equivalents
	  	 	2.8	  	 	2.1	 	 	 	2.1	 	 	 	  	 	  	 	  	 	 	 	  	 
	 *
	  	 	*	  	 	*	 	 	 	*	 	 	 	  	 	  	 	  	 	 	 	  	 
										
	Average Balances	  	 	 	  	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Industrial Development 1
	  	 	 	  	$	83.3	 	 	$	92.1	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Industrial Development 2
	  	 	 	  	 	12.5	 	 	 	13.1	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Saifcom Establishment
	  	 	 	  	 	8.0	 	 	 	4.1	 	 	 	  	 	  	 	  	 	 	 	  	 
	 2001 Convertible Loan
	  	 	 	  	 	76.2	 	 	 	84.2	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Stonehouse Debt
	  	 	 	  	 	824.6	 	 	 	0.0	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Other
	  	 	 	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 	  	 	 	 	  	 
	 *
	  	 	 	  	 	*	 	 	 	*	 	 	 	  	 	  	 	  	                            *	 	 	  	 
	 Cash and Cash Equivalents
	  	 	 	  	 	2.4	 	 	 	2.1	 	 	 	  	 	  	 	  	 	 	 	  	 
	 *
	  	 	 	  	 	*	 	 	 	*	 	 	 	  	 	  	 	  	 	 	 	  	 
										
	Interest Rates	  	 	 	  	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Industrial Development 1
	  	 	 	  	 	10.0	%	 	 	10.0	%	 	 	  	 	  	 	  	 	 	 	  	 
	 Industrial Development 2
	  	 	 	  	 	5.0	%	 	 	5.0	%	 	 	  	 	  	 	  	 	 	 	  	 
	 Saifcom Establishment
	  	 	 	  	 	5.0	%	 	 	5.0	%	 	 	  	 	  	 	  	 	 	 	  	 
	 2001 Convertible Loan
	  	 	 	  	 	10.0	%	 	 	10.0	%	 	 	  	 	  	 	  	 	 	 	  	 
	 Stonehouse Debt
	  	 	 	  	 	3.1	%	 	 	3.1	%	 	 	  	 	  	 	  	 	 	 	  	 
	 Other
	  	 	 	  	 	4.1	%	 	 	4.1	%	 	 	  	 	  	 	  	 	 	 	  	 
	 *
	  	 	 	  	 	*	 	 	 	*	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Cash and Cash Equivalents
	  	 	 	  	 	4.0	%	 	 	4.0	%	 	 	  	 	  	 	  	 	 	 	  	 
	 *
	  	 	 	  	 	*	 	 	 	*	 	 	 	  	 	  	 	  	 	 	 	  	 
										
	Interest Expenses	  	 	 	  	 	 	 	 	 	 	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Industrial Development 1
	  	 	 	  	$	8.3	 	 	$	9.2	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Industrial Development 2
	  	 	 	  	 	0.6	 	 	 	0.7	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Saifcom Establishment
	  	 	 	  	 	0.4	 	 	 	0.2	 	 	 	  	 	  	 	  	 	 	 	  	 
	 2001 Convertible Loan
	  	 	 	  	 	7.6	 	 	 	8.4	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Stonehouse Debt
	  	 	 	  	 	25.6	 	 	 	0.0	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Other
	  	 	 	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 	  	 	 	 	  	 
	 *
	  	 	 	  	 	*	 	 	 	*	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Sub-Total
	  	 	 	  	 	42.6	 	 	 	18.5	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Other Interest Expense from Non-Debt Sources            
	  	 	 	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 	  	 	 	 	  	 
	 	  	 	 	  	
	
	
	 	
	
	
	 	 	  	 	  	 	  	 	 	 	  	 
	 Total Interest Expense
	  	 	 	  	$	42.6	 	 	$	18.5	 	 	 	  	 	  	 	  	 	 	 	  	 
	 Interest Income
	  	 	 	  	 	0.1	 	 	 	0.1	 	 	 	  	 	  	 	  	                            *	 	 	  	 
	 Restricted Cash Income
	  	 	 	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 	  	 	 	 	  	 
	 	  	 	 	  	
	
	
	 	
	
	
	 	 	  	 	  	 	  	 	 	 	  	 
	 Net Interest Expense
	  	 	 	  	$	42.5	 	 	$	18.4	 	 	 	  	 	  	 	  	 	 	 	  	 

  

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

  

  
 WorldSpace Summary Model

 Shareholders’ Equity Schedule ($ in Millions) 
  

															
	 	  	2003

	 	 	2004

	 	 	 	  	 	  	 
	Common Stock	  	 	 	 	 	 	 	 	 	 	  	 	  	 
	 Beginning Balance
	  	$	0.1	 	 	$	0.1	 	 	 	  	 	  	 
	 Proceeds from Stock
Issuance                        
	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 	  	
	
	
	 	
	
	
	 	 	  	 	  	 
	 Ending Balance
	  	$	0.1	 	 	$	0.1	 	 	 	  	 	  	 
						
	Retained Earnings	  	 	 	 	 	 	 	 	 	 	  	 	  	 
	 Beginning Balance
	  	($	1,328.9	)	 	($	1,480.1	)	 	 	  	 	  	 
	 Net Income
	  	 	(152.0	)	 	 	(111.8	)	 	 	  	 	  	 
	 *
	  	 	*	 	 	 	*	 	 	 	  	 	  	 
	 Other
	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 	  	
	
	
	 	
	
	
	 	 	  	 	  	 
	 Ending Balance
	  	($	1,480.1	)	 	($	1,591.9	)	 	 	  	 	  	 
						
	Share Issuance of Options	  	 	 	 	 	 	 	 	 	 	  	 	  	                                    *
	 Shares Issued under Options
	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
	 Strike Price
	  	$	0.00	 	 	$	0.00	 	 	 	  	 	  	 
	 	  	
	
	
	 	
	
	
	 	 	  	 	  	 
	 Proceeds Received
	  	 	0.0	 	 	 	0.0	 	 	 	  	 	  	 
						
	Dividends	  	 	 	 	 	 	 	 	 	 	  	 	  	 
	 Total Dividends Paid
	  	$	0.0	 	 	$	0.0	 	 	 	  	 	  	 
	 Net Income
	  	 	(152.0	)	 	 	(111.8	)	 	 	  	 	  	 
	 	  	
	
	
	 	
	
	
	 	 	  	 	  	 
	 Dividend Payout Ratio
	  	 	0.0	%	 	 	0.0	%	 	 	  	 	  	 
						
	Preferred Stock	  	 	 	 	 	 	 	 	 	 	  	 	  	 
	 Beginning Balance
	  	$	0.0	 	 	$	0.0	 	 	 	  	 	  	 
	 Proceeds from Issuance
	  	 	 	 	 	 	 	 	 	 	  	 	  	 
	 	  	
	
	
	 	
	
	
	 	 	  	 	  	 
	 Ending Balance
	  	$	0.00	 	 	$	0.00	 	 	 	  	 	  	 

  

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

  

  
 * 
  

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

  

 Pages 30-100 

 EXHIBIT E 
  
 ANNUAL OPERATING BUDGET 
  

  
 WorldSpace Annual
Operating Plan (Expense Budget) 1/3 
  

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

  

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

  

  
 WorldSpace Annual
Operating Plan (Expense Budget) 2/3 
  

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

  

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

  

  
 WorldSpace Annual
Operating Plan (Expense Budget) 3/3 
  

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

  

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

  

 EXHIBIT F 
  
 OPERATING AND MARKETING PLAN 
  

  
 Annual Operating Plan 
  

  

 WorldSpace Annual Operating Plan (Expense Budget) 1/3 
  

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

  

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

  

 WorldSpace Annual Operating Plan (Expense Budget) 2/3 
  

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

  

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

  

 WorldSpace Annual Operating Plan (Expense Budget) 3/3 
  

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

  

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

  

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

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

  

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

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

  

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

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

  

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

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

  

 WorldSpace Annual Operating Plan 
  
 Revenue Summary 
  
 * 
  
 Proprietary & Confidential 
  

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

  

 WorldSpace Annual Operating Plan 
  
 * 
  
 Proprietary & Confidential 
  

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

  

 [Logo] 
  
 WorldSpace Corporation 
  
 Global Marketing Plan 
  
 August 2003 
  

 CONTENTS 
  

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

  

 i 

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

  

	 	1.	Generate “*” in receiver sales in 2003 

 Ramp up
receiver sales to achieve “*” in 2004 
  

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

 Ramp up enterprise sales to achieve “*” on 2004 
  

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

  
 Key Initiatives 
  

	 	•	 	Drive orders to a few key receiver manufacturer partners 

  

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

  

	 	•	 	Launch Mobile service 

  

	 	•	 	Target, win, and leverage reference enterprise accounts 

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

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

  

 3 

 XM, Sirius, and WorldSpace: A Comparison 
  

							
	 	  	XM

	 	Sirius

	 	WorldSpace

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

  

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

  

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

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

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

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

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

  
  

 4 
  
  

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

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

  

 5 

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

  

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

  

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

  

	 	•	 	Currently in discussions to buy/absorb Global Radio 

  

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

  

 6 

 * 
  

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

  

 7 

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

							
	 Regions

	  	 Market Assessment

	  	 Target Client Categories

	  	 Solution

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

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

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

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

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

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

 8 

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

  
 Positioning 
  
 WorldSpace offers the following key differentiators: 
  

	 	•	 	Low Cost one to Many Communication 

  

	 	•	 	Huge Geographic Coverage/Market Reach 

  

	 	•	 	Independent of Costly Terrestrial Infrastructure 

  

	 	•	 	Availability of Low Cost Subscriber Units 

  

	 	•	 	Mobility 

  

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

  

	 	•	 	Quality of sound 

  

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

  

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

  

 9 

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

 10 

 * 
  
 Terms Defined 
  

			
	 Capacity Price
	  	 Fee for satellite capacity usage

		
	 Service Charge
	  	 Fee per receiver

		
	 CUG
	  	 Encrypted delivery of client specific content

		
	 Capacity Lease
	  	 Lease of satellite capacity for broadcasters

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

		
	 Subscription
	  	 Term used specifically for consumer business

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

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

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

  

 11 

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

					
	 Region

	  	 Partners

	  	 End Client/Solution

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

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

	 	•	 	Direct sales 

  

	 	•	 	Events, trade shows and conferences 

  

	 	•	 	Inserts in industry publications 

  

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

  

	 	•	 	Direct marketing (mail, email) 

  

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

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

  
 * 
  

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

  

 12 

 EXHIBIT G 

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

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

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

  

 i 

 TABLE OF CONTENTS 
  
 EXHIBITS 
  

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

  

 ii 

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

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

  

 1 

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

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

  

 2 

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

  

 3 

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

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

  

 4 

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

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

  

 5 

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

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

  

 6 

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

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

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

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

  

 7 

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

  

 8 

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

  

 9 

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

 

 10 

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

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

 11 

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

 12 

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

  

 13 

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

 14 

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

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

	 	 	 Chairman and Chief Executive Officer

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

	 	 	 Chairman and Chief Executive Officer

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

	 	 	 Chairman and Chief Executive Officer

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

  

 15 

  
 FIRST AMENDMENT

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

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

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

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

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

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

  

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

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

  

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

	3.	Replace Section 5.05 of the Royalty Agreement with: 

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

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

  

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

  

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

  

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

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

			
	 STONEHOUSE CAPITAL LIMITED

		
	 By:
	 	 /s/    ABDULRAHMAN BIN
MAHFOUZ

	 Name:
	 	 Abdulrahman Bin Mahfouz

		
	 By:
	 	 /s/    SULTAN BIN
MAHFOUZ

	 Name:
	 	 Sultan Bin Mahfouz

  

			
	 WORLDSPACE, INC.

		
	 By:
	 	 /s/    NOAH A. SAMARA

	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

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

	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

	
	 WORLDSPACE SATELLITE COMPANY, LTD.

		
	 By:
	 	 /s/    NOAH A. SAMARA

	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

  

  
 SECOND AMENDMENT

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

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

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

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

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

  

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

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

  

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

 
 (Signature page follows) 
  

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

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

	 Title:
	 	 Chairman and Chief Executive Officer

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

	 Title:
	 	 Chairman and Chief Executive Officer

	
	 WORLDSPACE SATELLITE COMPANY, LTD.

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

	 Title:
	 	 Chairman and Chief Executive Officer

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

	 Title:
	 	 Chairman and Chief Executive Officer

  

			
	 	  	 Addendum A
 (Exhibit H to the
 Restructuring Agreement)

  
 WorldSpace, Inc.
Shareholders 
  

			
	 Shareholder

	 	 Residence

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

  

 THIRD AMENDMENT 
 TO 
  
 ROYALTY AGREEMENT 
  
 AMONG

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

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

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

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

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

  

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

  

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

  

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

  

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

  

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

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

			
	 STONEHOUSE CAPITAL LIMITED

		
	 By:
	 	 /s/ Abdulrahman Bin Mahfouz/CS

	 Name:
	 	 Abdulrahman Bin Mahfouz

		
	 By:
	 	 /s/ Sultan Bin Mahfouz/CS

	 Name:
	 	 Sultan Bin Mahfouz

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

	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

	
	 WORLDSPACE SATELLITE COMPANY, LTD.

		
	 By:
	 	 /s/ Noah A. Samara

	 Name:
	 	 Noah A. Samara

	 Title:
	 	 Chairman and Chief Executive Officer

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