Document:

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                                                                     Exhibit 4.5

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                  Intercreditor And Collateral Agency Agreement
                    (FCC License Subsidiary Pledge Agreement)

                          Dated as of January 28, 2003

                                  By and Among

                   The Noteholders Named in Schedule I Hereto,

                   The Bank of New York, as Original Trustee,

                      The Bank of New York, as New Trustee,

                           General Motors Corporation,

                               OnStar Corporation

                                       and

                    The Bank of New York, as Collateral Agent

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                                TABLE OF CONTENTS

<TABLE>
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         <S>                                                                                    <C>
         SECTION 1       DEFINITIONS.............................................................2
         SECTION 2       PRIORITY OF LIENS.......................................................7
              Section 2.1.  Pari Passu Liens of the Secured Parties..............................7
              Section 2.2.  Nonavoidability of Liens.............................................7
              Section 2.3.  No Release of Existing Liens on FCC License Subsidiary
                            Security Agreement Collateral........................................7
         SECTION 3       RELATIONSHIPS AMONG SECURED PARTIES.....................................7
              Section 3.1.  Restrictions on Actions..............................................7
              Section 3.2.  Representations and Warranties.......................................8
              Section 3.3.  Cooperation; Accountings.............................................9
              Section 3.4.  Termination of any Secured Agreement.................................9
              Section 3.5.  Additional Creditors.................................................9
         SECTION 4       APPOINTMENT AND AUTHORIZATION OF COLLATERAL AGENT......................10
         SECTION 5       AGENCY PROVISIONS......................................................10
              Section 5.1.  Delegation of Duties................................................10
              Section 5.2.  Exculpatory Provisions..............................................10
              Section 5.3.  Reliance by Collateral Agent........................................11
              Section 5.4.  Knowledge or Notice of Default, Event of Default....................12
              Section 5.5.  Non-Reliance on Collateral Agent and Other Secured Parties..........12
              Section 5.6.  Indemnification.....................................................12
              Section 5.7.  Collateral Agent in Its Individual Capacity.........................13
              Section 5.8.  Successor Collateral Agent..........................................13
         SECTION 6       ACTIONS BY THE COLLATERAL AGENT........................................14
              Section 6.1.  Duties and Obligations..............................................14
              Section 6.2.  Notification of Default.............................................14
              Section 6.3.  Exercise of Remedies................................................14
              Section 6.4.  Instructions from Secured Parties...................................15
              Section 6.5.  Emergency Actions...................................................15
              Section 6.6.  Changes to Collateral Document......................................15
              Section 6.7.  Release of Collateral...............................................15
              Section 6.8.  Other Actions.......................................................16
              Section 6.9.  Cooperation.........................................................16
              Section 6.10. Distribution of Proceeds of Collateral .............................16
              Section 6.11. Authorized Investments..............................................17
              Section 6.12. Sharing of Proceeds.................................................17
         SECTION 7       BANKRUPTCY PROCEEDINGS.................................................17
         SECTION 8       MISCELLANEOUS..........................................................18
              Section 8.1.  Entire Agreement....................................................18
              Section 8.2.  Notices.............................................................18
              Section 8.3.  Successors and Assigns..............................................18
              Section 8.4.  Consents, Amendment, Waivers........................................18
              Section 8.5.  Governing Law.......................................................18
</TABLE>

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<TABLE>
              <S>                                                                               <C>
              Section 8.6.  Counterparts........................................................18
              Section 8.7.  Sale of Interest....................................................18
              Section 8.8.  Severability........................................................18
              Section 8.9.  Expenses............................................................18
              Section 8.10. Term of Agreement...................................................18
              Section 8.11. Obligations Several.................................................18
              Section 8.12. Trustee Status......................................................19
              Section 8.13. Trust Indenture Act.................................................19
</TABLE>

Schedule I        List of Convertible Notes Noteholders

Schedule II       Notice Addresses

Exhibit A         Form of Joinder by Additional Creditors

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                  INTERCREDITOR AND COLLATERAL AGENCY AGREEMENT
                    (FCC LICENSE SUBSIDIARY PLEDGE AGREEMENT)

          This Intercreditor and Collateral Agency Agreement dated as of January
28, 2003 (this "Agreement") is among (1) the Noteholders named in Schedule I
hereto (collectively, the "Convertible Notes Noteholders"), (2) The Bank of New
York, as Trustee under the Original Indenture (as defined below) (the "Original
Trustee"), (3) The Bank of New York, as Trustee under the New Indenture (as
defined below) (the "New Trustee"), (4) General Motors Corporation ("General
Motors"), (5) OnStar Corporation ("OnStar"), (6) the Additional Creditors (as
defined below) that may from time to time after the date hereof become party
hereto as set forth below (the Convertible Notes Noteholders, the Original
Trustee, the New Trustee, General Motors, OnStar and the Additional Creditors
are collectively referred to as the "Secured Parties") and (7) The Bank of New
York, as collateral agent for the Secured Parties pursuant to this Agreement
(the "Collateral Agent") and acknowledged and agreed to by XM Satellite Radio
Inc., a Delaware corporation (the "Company"). Capitalized terms used herein and
not otherwise defined herein shall have the meanings assigned thereto in
Section 1 below.

                                R E C I T A L S:

          A.   The Company and the Original Trustee have entered into that
certain Indenture dated as of March 15, 2000 (as it may be amended, restated,
supplemented or otherwise modified from time to time, the "Original Indenture"),
pursuant to which the Company issued 14% Senior Secured Notes due 2010 in an
aggregate principal amount of $325,000,000 (the "Original Notes").

          B.   The Company and the New Trustee have entered into that certain
Indenture dated as of the date hereof (as it may be amended, restated,
supplemented or otherwise modified from time to time, the "New Indenture"),
pursuant to which the Company may issue up to $474,200,000 aggregate principal
amount at maturity of its 14% Senior Secured Discount Notes due 2009 (the "New
Notes").

          C.   The Company, XM Satellite Radio Holdings Inc., a Delaware
corporation ("Holdings") and the Convertible Notes Noteholders have entered into
that certain Note Purchase Agreement, dated as of December 21, 2002 (as it may
be amended, restated, supplemented or otherwise modified from time to time, the
"Convertible Note Agreement"), pursuant to which the Company and Holdings are
issuing 10% Senior Secured Discount Convertible Notes due 2009 in an aggregate
principal amount at maturity of up to $415,800,000 (the "Convertible Notes").

          D.   The Company and Holdings have entered into (a) that certain
Credit Agreement with General Motors, dated as of the date hereof (as it may be
amended, restated, supplemented, or otherwise modified from time to time, the
"GM Loan Agreement"), pursuant to which the Company and Holdings may receive
certain advances in an aggregate principal amount not to exceed $100,000,000,
and (b) that certain Note Purchase Agreement with OnStar, dated as of December
21, 2002 (as it may be amended, restated, supplemented, or otherwise modified
from time to time, the "GM Note Agreement"), pursuant to which the Company and
Holdings are issuing Series GM Senior Secured Convertible Notes in the aggregate
principal amount of $89,042,387 (the "GM Convertible Notes").

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          E.   From time to time after the date hereof, the Company may, subject
to the terms and conditions of the Secured Agreements (as defined below), incur
additional indebtedness that is pari passu in right of payment to the other
Secured Agreements (collectively, the "Additional Debt") under agreements
evidencing such Additional Debt (the "Additional Facilities"), which the Company
desires to secure on a senior pari passu basis by the Collateral. Such
Additional Debt shall be permitted to be secured by the Collateral if (x) the
Secured Agreements do not prohibit such Additional Debt from being secured by
the Collateral and (y) the obligees of such Additional Debt (the "Additional
Creditors") execute and deliver a joinder agreement hereto and become a party to
this Agreement pursuant to the requirements of Section 3.5 hereof.

          F.   The Company is entering into the Collateral Document (as defined
below) to secure its obligations from time to time under the agreements
described in Paragraphs A through E above on a senior pari passu basis.

          G.   The Secured Parties desire to appoint The Bank of New York, as
Collateral Agent to act on behalf of the Secured Parties regarding, the
Collateral Document and the Collateral, as more fully provided herein.

          H.   The Secured Parties and the Collateral Agent desire to enter into
this Agreement to provide, among other things, for (a) the appointment, duties
and responsibilities of the Collateral Agent, (b) the respective priorities,
rights and interests of the parties in and to the Collateral, and (c) the
orderly administration of the Collateral.

          Now, Therefore, in consideration of the premises and other good and
valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, the parties hereto hereby agree as follows:

SECTION 1 Definitions.

          The following terms shall have the meanings assigned to them below in
this Section 1 or in the provisions of this Agreement referred to below:

          "Accreted Value" shall have the meaning assigned thereto in the New
Indenture or the Convertible Note Agreement, as applicable.

          "Acting Secured Parties" shall mean, as of any date of determination,
the Secured Parties holding (or, in the case of the Original Trustee and the New
Trustee, acting as trustee for the Original Notes or the New Notes, as
applicable) more than 20% of the sum of (a) the unpaid principal amount of the
Original Notes, (b) the unpaid Accreted Value of the New Notes, (c) the unpaid
Accreted Value of the Convertible Notes, (d) the unpaid principal amount owing
under the GM Convertible Notes, (e) the unpaid principal amount owing under the
GM Loan Agreement, and (f) the unpaid principal amount owing under the
Additional Debt (if any), or, if such debt is issued at a discount, the unpaid
accreted value of such Additional Debt. Any action taken by the Original Trustee
or the New Trustee shall constitute an action on behalf of all of the Original
Holders or New Holders, as applicable, without regard to the percentage of the
Original Holders or New Holders directing or authorizing the Original Trustee or
the New Trustee to take such action.

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          "Additional Creditors" shall have the meaning assigned thereto in the
Recitals hereof.

          "Additional Debt" shall have the meaning assigned thereto in the
Recitals hereof.

          "Additional Facilities" shall have the meaning assigned thereto in the
Recitals hereof.

          "Additional Facility Documents" shall mean all outstanding Additional
Facilities, the Additional Facility Notes, and all other documents, certificates
and instruments relating to, arising out of, or in any way connected therewith.

          "Additional Facility Notes" shall mean the obligations of the Company
which are evidenced by the promissory notes issued under the Additional
Facilities.

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

          "Bankruptcy Proceeding" shall mean, with respect to any Person, a
general assignment of such Person for the benefit of its creditors, or the
institution by or against such Person of any proceeding seeking relief as
debtor, or seeking to adjudicate such Person as bankrupt or insolvent, or
seeking reorganization, arrangement, adjustment or composition of such Person or
its debts, under any law relating to bankruptcy, insolvency, reorganization or
relief of debtors (including the United States Bankruptcy Code 11 U.S.C.
Sections 1 et seq.), or seeking appointment of a receiver, trustee, custodian or
other similar official for such Person or for any substantial part of its
property.

          "Capital Stock" means:

          (1)  in the case of a corporation, corporate stock;

          (2)  in the case of an association or business entity, any and all
shares, interests, participations, rights or other equivalents (however
designated) of corporate stock;

          (3)  in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited); and

          (4)  any other interest or participation that confers on a Person
the right to receive a share of the profits and losses of, or distributions of
assets of, the issuing Person.

          "Cash Equivalent Investments" shall mean,

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          (1)  securities issued or directly and fully guaranteed or insured
by the United States government or any agency or instrumentality thereof
(provided that the full faith and credit of the United States is pledged in
support thereof) having maturities of not more than six months from the date of
acquisition;

          (2)  certificates of deposit and eurodollar time deposits with
maturities of six months or less from the date of acquisition, bankers'
acceptances with maturities not exceeding six months and overnight bank
deposits, in each case, with any domestic commercial bank having capital and
surplus in excess of $500.0 million;

          (3)  repurchase obligations with a term of not more than seven days
for underlying securities of the types described in clauses (1) and (2) above
entered into with any financial institution meeting the qualifications specified
in clause (2) above;

          (4)  commercial paper having one of the two highest ratings obtainable
from Moody's Investors Service, Inc. or Standard & Poor's Rating Services and in
each case maturing within six months after the date of acquisition; and

          (5)  money market funds at least 95% of the assets of which constitute
Cash Equivalent Investments of the kinds described in clauses (1) through (4) of
this definition.

          "Collateral" shall mean the Collateral as defined in the Collateral
Document.

          "Collateral Agent" shall have the meaning assigned thereto in the
preamble hereof.

          "Collateral Document" shall mean the Amended and Restated Security
Agreement, dated of the date hereof, from the Company to the Collateral Agent
relating to the pledge of the Company's shares of FCC License Subsidiary, as the
same shall be amended from time to time in accordance with the terms and
provisions hereof and thereof.

          "Company" shall have the meaning assigned thereto in the preamble
hereof.

          "Convertible Note Agreement" shall have the meaning assigned thereto
in the Recitals hereof.

          "Convertible Notes" shall have the meaning assigned thereto in the
Recitals hereof.

          "Convertible Notes Noteholders" shall have the meaning assigned
thereto in the preamble hereof.

          "Default" shall mean an Event of Default or an event or condition
which with notice or lapse of time or both would constitute an Event of Default.

          "Event of Default" shall mean any "Event of Default" as defined in any
Secured Agreement.

          "FCC License Subsidiary" mean XM Radio Inc., a Delaware corporation.

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          "General Motors" shall have the meaning assigned thereto in the
preamble hereof.

          "GM Convertible Notes" shall have the meaning set forth in the
Recitals hereof.

          "GM Loan Agreement" shall have the meaning set forth in the Recitals
hereof.

          "GM Note Agreement" shall have the meaning set forth in the Recitals
hereof.

          "Grantor" shall mean the Company.

          "Holdings" means XM Satellite Radio Holdings Inc.

          "Lien" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset,
whether or not filed, recorded or otherwise perfected under applicable law,
including any conditional sale or other title retention agreement, any lease in
the nature thereof, any option or other agreement to sell or give a security
interest in and any filing of or agreement to give any financing statement under
the Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

          "New Holder" shall mean each Person in whose name a New Note is
registered.

          "New Indenture" shall have the meaning assigned thereto in the
Recitals hereof.

          "New Notes" shall have the meaning assigned thereto in the Recitals
hereof.

          "OnStar" shall have the meaning assigned thereto in the preamble
hereof.

          "Original Holder" shall mean each Person in whose name an Original
Note is registered.

          "Original Indenture" shall have the meaning assigned thereto in the
Recitals hereof.

          "Original Notes" shall have the meaning assigned thereto in the
Recitals hereof.

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

          "Pro Rata Share" shall mean, in respect of any Secured Party as of any
date of determination, the proportion which the amount of the Secured
Obligations then owing to such Secured Party bears to the aggregate amount of
Secured Obligations then owing to all Secured Parties, it being understood that
in the case of the New Notes, the Convertible Notes and any Additional Facility
Notes that are issued at a discount, the Secured Obligations as of any date of
determination shall include the unpaid accreted value of such notes as of such
date.

          "Required Secured Parties" shall mean, as of any date of
determination, the Secured Parties holding (or, in the case of the Original
Trustee and the New Trustee, acting as trustee for the Original Notes or the New
Notes, as applicable) more than 50% of the sum of (a)

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the unpaid principal amount of the Original Notes, (b) the unpaid Accreted Value
of the New Notes, (c) the unpaid Accreted Value of the Convertible Notes, (d)
the unpaid principal amount owing under the GM Convertible Notes, (e) the unpaid
principal amount owing under the GM Loan Agreement, and (f) the unpaid principal
amount owing under the Additional Debt (if any), or, if such debt is issued at a
discount, the unpaid accreted value of such Additional Debt. Any action taken by
the Original Trustee or the New Trustee shall constitute an action on behalf of
all of the Original Holders or New Holders, as applicable, without regard to the
percentage of the Original Holders or New Holders directing or authorizing the
Original Trustee or the New Trustee to take such action.

          "Secured Agreements" shall mean the Collateral Document, the Original
Indenture, the Original Notes, the New Indenture, the New Notes, the Convertible
Note Agreement, the Convertible Notes, the GM Note Agreement, the GM Convertible
Notes, the GM Loan Agreement, the Additional Facility Documents and all other
documents, certificates and instruments relating to, arising out of, or in any
way connected therewith.

          "Secured Obligations" shall mean all indebtedness, liabilities and
other obligations, now or hereafter existing or arising, and whether due or to
become due, absolute or contingent, liquidated or unliquidated, determined or
undetermined, of the Grantor to any one or more of the Collateral Agent and the
Secured Parties under the Secured Agreements, including without limitation all
principal in respect of the Original Notes, the New Notes (including all
principal at maturity), the Convertible Notes (including all principal at
maturity), the GM Convertible Notes, the GM Loan Agreement and any Additional
Facility (including, in the case of any such indebtedness issued at a discount,
all principal at maturity), all interest accrued thereon, and all costs and
expenses due under the Secured Agreements. For the purpose of determining the
"Secured Obligations" and for all other purposes of this Agreement, all
indebtedness, liabilities and other obligations of the Grantor owing to (i) the
Original Holders shall be deemed to constitute indebtedness, liabilities and
other obligations of the Grantor held by and owing to the Original Trustee and
(ii) the New Holders shall be deemed to constitute indebtedness, liabilities and
other obligations of the Grantor held by and owing to the New Trustee.

          "Secured Parties" shall have the meaning assigned thereto in the
preamble hereof.

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

          (1)  any corporation, association or other business entity of which
more than 50% of the total voting power of shares of Capital Stock entitled
(without regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by such Person or one or more of the other Subsidiaries
of that Person (or a combination thereof); and

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

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          "TIA" means the Trust Indenture Act of 1939, as in effect on the date
the Original Indenture was qualified thereunder and (ii) with respect to the New
Indenture, the Trust Indenture Act of 1939, as in effect on the date the New
Indenture is qualified thereunder.

SECTION 2 Priority Of Liens.

     Section 2.1.   Pari Passu Liens of the Secured Parties. All Liens now or
hereafter existing in favor of the Collateral Agent or any Secured Party on any
Collateral of the Grantor to secure the Secured Obligations of the Grantor shall
be pari passu at all times, regardless of the time or order of attachment or
perfection, any provisions to the contrary in the Collateral Document
notwithstanding or any other circumstances whatsoever.

     Section 2.2.   Nonavoidability of Liens. The pari passu treatment of all
Liens specified in Section 2.1 is expressly conditioned upon the nonavoidability
and perfection of the Lien to which another Lien is made pari passu and, if the
Lien to which another Lien is made pari passu is not perfected or is avoided,
for any reason, then the pari passu treatment provided for in Section 2.1 shall
not be effective as to the particular Collateral which is the subject of the
unperfected or avoided lien.

     Section 2.3.   No Release of Existing Liens on FCC License Subsidiary
Security Agreement Collateral. The parties hereto (a) confirm the continuing
validity, effectiveness, enforceability, perfection and priority of the liens
created under that certain Security Agreement, dated as of March 15, 2000 (the
"Original FCC License Subsidiary Security Agreement"), from the Company to The
Bank of New York, as Collateral Agent, providing for, among other things, the
pledge of stock of the FCC License Subsidiary and (b) acknowledge and agree that
the amendment and restatement of the Original FCC License Subsidiary Security
Agreement in connection with the execution and delivery of this Agreement shall
in no event constitute a release of any of the collateral thereunder.

SECTION 3 Relationships Among Secured Parties.

     Section 3.1.   Restrictions on Actions. Each Secured Party agrees that, so
long as any Secured Obligations are outstanding or any Secured Party has any
commitment to extend credit in respect thereof pursuant to the terms of any
Secured Agreement, the provisions of this Agreement shall provide the exclusive
method by which any Secured Party may exercise rights and remedies with respect
to the Collateral under the Collateral Document and under applicable law
relating to the rights and remedies of secured creditors. Therefore, each
Secured Party shall, for the mutual benefit of all Secured Parties, except as
permitted under this Agreement, refrain from exercising any rights or remedies
with respect to the Collateral under the Collateral Document, or under
applicable law relating to the rights and remedies of secured creditors, which
have or may have arisen or which may arise as a result of a Default or Event of
Default or otherwise, except for delivering notices hereunder, provided,
however, that nothing contained in this Section 3.1 shall prevent any Secured
Party from exercising or enforcing any other right or remedy available to any
Secured Party under any Secured Agreement including, without limitation,
accelerating the maturity of the Secured Obligations under such Secured
Agreement, terminating any commitments to lend additional money to the Company
under such Secured Agreement in accordance with the terms thereof, exercising
its rights under any guarantees granted thereunder, imposing a default rate of
interest as provided in such Secured Agreement, commencement of

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any legal proceedings, whether at law or in equity, to enforce any of the
Secured Agreements, raising any defenses in any action in which it has been made
a party defendant or has been joined as a third party, except that the
Collateral Agent may, but shall not be obligated to, direct and control any
defense directly relating to the Collateral or the Collateral Document, which
shall be governed by the provisions of this Agreement.

     Section 3.2.   Representations and Warranties. (a) Each of the Secured
Parties represents and warrants to the other parties hereto that:

                    (1)  It (i) is either (x) a corporation duly organized,
     existing and in good standing under the laws of the jurisdiction of its
     incorporation or (y) a national banking association duly incorporated and
     existing under the laws of the United States of America or a state-licensed
     branch of a foreign bank, and (ii) has all requisite power (corporate or
     otherwise) to own its property and conduct its business as now conducted
     and as presently contemplated.

                    (2)  The execution, delivery and performance by such Secured
     Party of this Agreement has been authorized by all necessary proceedings
     (corporate or otherwise) and does not and will not contravene any provision
     of law, its charter or by-laws or any amendment thereof, or of any
     indenture, agreement, instrument or undertaking binding upon such Secured
     Party.

                    (3)  The execution, delivery and performance by such Secured
     Party of this Agreement will result in a valid and legally binding
     obligation of such Secured Party enforceable in accordance with its terms.

               (b)  The Collateral Agent hereby represents and warrants as of
the date hereof that:

                    (1)  The Collateral Agent is a banking corporation validly
     existing and in good standing under the laws of the State of New York.

                    (2)  The Collateral Agent has full power, authority and
     legal right under the applicable laws pertaining to its banking powers to
     execute, deliver, and perform this Agreement and has taken all necessary
     action to authorize the execution, delivery and performance by it of this
     Agreement.

                    (3)  Execution, delivery and performance by the Collateral
     Agent of this Agreement will not contravene any law, rule or regulation of
     the United States or any United States governmental authority or agency
     regulating the Collateral Agent's banking activities or any judgment or
     order applicable to or binding on the Collateral Agent and will not
     contravene or result in any breach of, or constitute a default under, the
     Collateral Agent's constitutive documents or the provision of any
     indenture, mortgage, contract or other agreement to which it is a party or
     by which it or any of its properties is bound.

                    (4)  Execution, delivery and performance by the Collateral
     Agent of this Agreement will not require the authorization, consent, or
     approval of, the giving of notice to, the filing or registration with, or
     the taking of any other action in respect of, any

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     United States governmental authority or agency regulating the banking
     activities of the Collateral Agent.

                    (5)  This Agreement has been duly executed and delivered by
     the Collateral Agent and constitutes the legal, valid, and binding
     agreement of the Collateral Agent, enforceable in accordance with its
     terms, subject to bankruptcy, insolvency, fraudulent conveyance and similar
     laws affecting creditors' rights generally, and general principles of
     equity (regardless of whether the application of such principles is
     considered in a proceeding in equity or at law).

     Section 3.3.   Cooperation; Accountings. Each of the parties hereto will,
upon the reasonable request of another party, from time to time execute and
deliver or cause to be executed and delivered such further instruments, and do
and cause to be done such further acts as may be necessary or proper to carry
out more effectively the provisions of this Agreement. The Secured Parties agree
to provide to each other and the Collateral Agent, upon reasonable requests a
statement of (i) all payments received in respect of Secured Obligations and
(ii) all Secured Obligations owing under the Secured Agreements. In addition,
the Collateral Agent shall be entitled to rely conclusively on the information
contained in any note register maintained by the Company or Holdings pursuant to
the requirements of any Secured Agreement.

     Section 3.4.   Termination of any Secured Agreement. (a) Upon (i) the final
payment in full of all Secured Obligations owing to any Secured Party, or, in
the case of the Secured Obligations owing to the Original Trustee or the New
Trustee, satisfaction of the condition set forth in Section 3.4(b) and (ii) the
termination of any further commitments, if any, of such Secured Party to lend
under any Secured Agreement, such Secured Party shall promptly notify the
Collateral Agent thereof and such Secured Party shall immediately cease to be a
party to this Agreement; provided, however, if all or any part of any payments
to such Secured Party (or any Original Holders or New Holders on behalf of whom
such Secured Party is acting) are invalidated or set aside or required to be
paid or repaid to any Person in any Bankruptcy Proceeding or otherwise
(including, without limitation, any payment required to be made by such Secured
Party to one or more of the other Secured Parties pursuant to Section 6.12),
then this Agreement shall be renewed as of such date and shall thereafter
continue in full force and effect to the extent of the Secured Obligations so
invalidated, set aside, paid or repaid. Notwithstanding the termination of any
Secured Party as a party to this Agreement pursuant to this Section 3.4, this
Agreement shall continue to be in full force and effect with respect to all
remaining Secured Parties that have not ceased to be parties to this Agreement.

               (b)  For the purpose of Section 3.4(a)(i) above, (i) the final
payment in full of all Secured Obligations owing to the Original Trustee shall
be deemed to have occurred upon the defeasance of the Original Notes and the
Original Indenture as provided in Section 8.02 of the Original Indenture or upon
the satisfaction of the conditions set forth in Article Twelve of the Original
Indenture, and (ii) the final payment in full of all Secured Obligations owing
to the New Trustee shall be deemed to have occurred upon the defeasance of the
New Notes and the New Indenture as provided in Section 8.02 of the New Indenture
or upon the satisfaction of the conditions set forth in Article Twelve of the
New Indenture.

     Section 3.5.   Additional Creditors. Additional Creditors may, upon
compliance with the relevant provisions of the Secured Agreements, become
"Secured Parties" hereunder by

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executing and delivering to the Collateral Agent and to each of the then
existing Secured Parties (a) a joinder agreement in the form attached hereto as
Exhibit A and (b) a copy of the Additional Facility or Additional Facilities to
which such Person is a party. Upon the execution and delivery of any such copy
of this Agreement by any such Person, such Person, shall, upon delivery thereof
to the then existing Secured Parties, thereafter become a Secured Party for all
purposes of this Agreement.

SECTION 4 Appointment And Authorization Of Collateral Agent.

               (a)  Each Secured Party hereby irrevocably designates and
appoints The Bank of New York as the Collateral Agent of such Secured Party
under this Agreement and the Collateral Document, and each Secured Party hereby
irrevocably authorizes The Bank of New York as the Collateral Agent for such
Secured Party to execute and enter into the Collateral Document and all other
instruments relating to the Collateral Document and (i) to take action on its
behalf and exercise such powers and use such discretion as are expressly
permitted hereunder and under the Collateral Document and all instruments
relating hereto and thereto and (ii) to exercise such powers and perform such
duties as are, in each case, expressly delegated to the Collateral Agent by the
terms hereof and thereof together with such other powers and discretion as are
reasonably incidental hereto and thereto.

               (b)  Notwithstanding any provision to the contrary elsewhere in
this Agreement or the Collateral Document, the Collateral Agent shall not have
any duties or responsibilities except those expressly set forth herein or
therein or any fiduciary relationship with any Secured Party, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities shall
be read into this Agreement or the Collateral Document or otherwise exist
against the Collateral Agent.

SECTION 5 Agency Provisions.

     Section 5.1.   Delegation of Duties. The Collateral Agent may exercise its
powers and execute any of its duties under this Agreement and the Collateral
Document by or through employees, agents or attorneys-in-fact and shall be
entitled to take and to rely on advice of counsel of its selection concerning
all matters pertaining to such powers and duties. The Collateral Agent shall not
be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care. The Collateral Agent may
utilize the services of such Persons as the Collateral Agent in its sole
discretion may determine, and all reasonable fees and expenses of such Persons
shall be borne by the Company.

     Section 5.2.   Exculpatory Provisions. Neither the Collateral Agent nor any
of the Collateral Agent's officers, directors, employees, agents,
attorneys-in-fact or Affiliates shall be (a) liable for any action taken or
omitted to be taken by it or such Person under or in connection with this
Agreement or the Collateral Document or any Collateral (except for its or such
Person's own gross negligence or willful misconduct), or (b) responsible in any
manner to any of the Secured Parties for any recitals, statements,
representations or warranties made by the Grantor, any officer thereof or any
other Person contained in, or made or deemed made in connection with, any
Secured Agreement or the Collateral Document or in any certificate, report,
statement or other document referred to or provided for in, or received by the
Collateral Agent under or in connection with, this Agreement, any Secured
Agreement, or the Collateral Document, or for the

                                     - 10 -

<PAGE>

due execution, legality, value, validity, effectiveness, genuineness,
enforceability or sufficiency of any Secured Agreement or the Collateral
Document or any other document or instrument furnished pursuant thereto or of
any of the Collateral or for any failure of the Grantor to perform its
obligations under such documents. With respect to any information or actions the
Collateral Agent is permitted to request under the Collateral Document at the
written request of the Acting Secured Parties, the Collateral Agent shall
request such information or actions concerning the Collateral as the Acting
Secured Parties shall direct in writing and shall provide to the Secured Parties
the information concerning the Collateral that is provided to the Collateral
Agent by the Company in response to such request. The Collateral Agent shall be
under no obligation to the Secured Parties to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, statements made
in, or conditions of any Secured Agreement or the Collateral Document, or unless
requested to do so by Acting Secured Parties in writing, to inspect the property
(including the books and records) of the Grantor. Notwithstanding anything in
this Agreement to the contrary, the Collateral Agent shall not be required to
expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.

     Section 5.3.   Reliance by Collateral Agent. The Collateral Agent shall be
entitled to conclusively rely, and shall be fully protected and shall incur no
liability in acting and relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype
message, statement, order or other document reasonably believed by it to be
genuine and correct and to have been signed, sent or made by the proper Person
or Persons and upon advice of its legal counsel (which shall not also be counsel
to the Company), written advice of legal counsel to the Company that is required
pursuant to the New Indenture, or upon advice of independent accountants and
other experts selected by the Collateral Agent. Without limiting the generality
of the foregoing, the Collateral Agent may treat the payee of any Convertible
Note, any GM Convertible Note or any Additional Facility Note as the registered
holder thereof until it receives notice or otherwise has actual knowledge that
such payee is no longer the registered holder of such Convertible Note, GM
Convertible Note or Additional Facility Note. Notwithstanding anything to the
contrary contained herein or in the Collateral Document, the Collateral Agent
shall be fully justified in failing or refusing to take action under this
Agreement or the Collateral Document (including, without limitation, the
exercise of any rights or remedies under, or the entering into of any agreement
amending, modifying, supplementing, waiving any provision of, or the giving of
consent pursuant to, the Collateral Document) unless it shall first receive
instructions as contemplated by Section 6 from the Required Secured Parties or
the Acting Secured Parties, as applicable, and it shall first be indemnified to
its reasonable satisfaction by the relevant Secured Parties against any and all
liability and expense which may be incurred by it by reason of taking,
continuing to take or refraining from taking any such action. The Collateral
Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement and the Collateral Document in accordance with the
provisions of Section 6.5 and in accordance with written instructions pursuant
to Section 6.4 of the Required Secured Parties or the Acting Secured Parties, as
applicable, and such instructions and any action taken or failure to act
pursuant thereto shall be binding upon all the relevant Secured Parties.

                                     - 11 -

<PAGE>

     Section 5.4.   Knowledge or Notice of Default, Event of Default. The
Collateral Agent shall not be deemed to have actual, constructive, direct or
indirect knowledge or notice of the occurrence of any Default or Event of
Default unless and until the Collateral Agent has received written notice from a
Secured Party or the Company referring to applicable Secured Agreement,
describing such Default or Event of Default and stating that it is a "notice of
default" or a "notice of event of default", setting forth in reasonable detail
the facts and circumstances thereof and stating that the Collateral Agent may
rely on such notice without further inquiry; provided that if the Collateral
Agent hereunder is party to any Secured Agreement, the Collateral Agent shall be
deemed to have actual knowledge and notice of the occurrence of any Default or
Event of Default under such Secured Agreement if such Collateral Agent, in its
capacity as a Secured Party, has actual knowledge of such Default or Event of
Default or has declared an Event of Default under such Secured Agreement. The
Collateral Agent shall have no obligation or duty prior to or after receiving
any such notice to inquire whether a Default or Event of Default has in fact
occurred and shall be entitled to conclusively rely, and shall be fully
protected in so relying, on any such notice furnished to it.

     Section 5.5.   Non-Reliance on Collateral Agent and Other Secured Parties.
Each Secured Party expressly acknowledges that, except as expressly set forth in
this Agreement, neither the Collateral Agent nor any of the Collateral Agent's
officers, directors, employees, agents, attorneys-in-fact or Affiliates has made
any representations or warranties to it and that no act by the Collateral Agent
hereafter taken, including any review of the affairs of the Grantor, shall be
deemed to constitute any representation or warranty by the Collateral Agent to
any Secured Party. Each Secured Party represents that it has, independently and
without reliance upon the Collateral Agent or any other Secured Party, and based
on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, operations, property,
financial and other condition and credit-worthiness of the Grantor and made its
own decision to enter into this Agreement and any Secured Agreement to which it
is party. Each Secured Party also represents that it will, independently and
without reliance upon the Collateral Agent or any other Secured Party, and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under any Secured Agreement, the Collateral Document and this
Agreement, and to make such investigation as it deems necessary to inform itself
as to the business, operations, property, financial and other condition and
credit-worthiness of the Grantors. Except for notices, reports and other
documents expressly required to be furnished to the Secured Parties by the
Collateral Agent hereunder, the Collateral Agent shall not have any duty or
responsibility to provide the Secured Parties with any credit or other
information concerning the business, operations, property, financial and other
condition or credit-worthiness of the Grantor which may come into the possession
of the Collateral Agent or any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates.

     Section 5.6.   Indemnification. The Secured Parties agree to indemnify the
Collateral Agent in its capacity as such (to the extent not reimbursed by the
Company, but without limiting any obligation of the Company to do so) ratably in
accordance with the Secured Parties' Pro Rata Shares, against, and hold the
Collateral Agent harmless from, any and all liabilities, obligations, losses,
claims, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever, which may be imposed on,
incurred by, or asserted against the Collateral Agent, in any way relating to or
arising out of this Agreement or the Collateral

                                     - 12 -

<PAGE>

Document or the transactions contemplated hereby or thereby or any action taken
or omitted by the Collateral Agent in connection with any of the foregoing;
provided that no Secured Party shall be liable to the Collateral Agent for any
portion of such liabilities, obligations, losses, claims, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements to the extent they
are found by a final decision of a court of competent jurisdiction to have
resulted from the Collateral Agent's gross negligence or willful misconduct or
any action taken or omitted to be taken that is not substantially in accordance
with reasonable instructions issued by the Required Secured Parties or the
Acting Secured Parties in accordance with Section 6.4(a). The agreements in this
Section 5.6 shall survive the payment of the Secured Obligations.

     Section 5.7.   Collateral Agent in Its Individual Capacity. The Bank of New
York and its Affiliates may make loans to and generally engage in any kind of
business with the Company or any other Grantor as though such Person was not the
Collateral Agent hereunder and without any duty to account therefor to the
Secured Parties. With respect to any debt issued to it and advances made by it
under a Secured Agreement, if any, The Bank of New York shall have the same
rights and powers under this Agreement as any Secured Party and may exercise the
same as though it were not the Collateral Agent, and the terms "Secured Party"
and "Secured Parties" shall include The Bank of New York in its individual
capacity. Any Person which succeeds The Bank of New York as Collateral Agent
shall have the same rights as The Bank of New York under this Section 5.7 with
respect to debt issued to it and advances made by it under any Secured
Agreement.

     Section 5.8.   Successor Collateral Agent.

               (a)  The Collateral Agent may resign at any time upon thirty
days' notice to the Secured Parties and the Company and may be removed at any
time, with or without cause, by the Required Secured Parties by written notice
delivered to the Company, the Collateral Agent and the Secured Parties. After
any resignation or removal hereunder of the Collateral Agent, the provisions of
this Section 5 shall continue to inure to its benefit as to any actions taken or
omitted to be taken by it in connection with its role as Collateral Agent
hereunder while it was the Collateral Agent under this Agreement and it shall be
entitled to be paid promptly when due any amounts owing to it pursuant to
Section 5.6.

               (b)  Upon receiving notice of any such resignation or removal, a
successor Collateral Agent shall be appointed by the Required Secured Parties;
provided, however, that such successor Collateral Agent shall be (i) a bank or
trust company having a combined capital and surplus of at least $100,000,000,
subject to supervision or examination by a federal or state banking authority;
and (ii) authorized under the laws of the jurisdiction of its incorporation or
organization to assume the functions of the Collateral Agent. If the appointment
of such successor shall not have become effective (as hereafter provided) (x)
within such thirty day period after the Collateral Agent's notice of resignation
or (y) upon removal of the Collateral Agent, then the Collateral Agent or any
Secured Party may, at the expense of the Secured Parties according to their Pro
Rata Shares, petition a court of competent jurisdiction for the appointment of a
successor Collateral Agent. Such court shall, after such notice as it may deem
proper, appoint a successor Collateral Agent meeting the qualifications
specified in this Section 5.8(b). The Secured Parties hereby consent to such
petition and appointment so long as such criteria are met.

                                     - 13 -

<PAGE>

               (c)  The resignation or removal of a Collateral Agent and the
appointment of a successor Collateral Agent pursuant to this Section 5.8 shall
become effective upon (i) the acceptance of the appointment as Collateral Agent
hereunder by a successor Collateral Agent and (ii) the execution and delivery of
such documents or instruments as are necessary to transfer to such Collateral
Agent the rights and obligations of the Collateral Agent under the Collateral
Document, including, without limitation, the delivery and recordation of all
amendments, instruments, deed of trusts, financing statements, continuation
statements and other documents necessary to maintain the perfection of the
security interests held by the Collateral Agent hereunder and under the
Collateral Document. Copies of each such document or instrument shall be
delivered to all Secured Parties. Upon such effective appointment, the successor
Collateral Agent shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Collateral Agent and the retiring
Collateral Agent shall be discharged from its rights, powers, privileges and
duties under this Agreement and the Collateral Document; provided, however, that
the provisions of this Section 5 shall continue to inure to the retiring
Collateral Agent's benefit as to any actions taken or omitted to be taken by it
in connection with its role as Collateral Agent hereunder while it was the
Collateral Agent under this Agreement.

SECTION 6 Actions By The Collateral Agent.

     Section 6.1.   Duties and Obligations. The duties and obligations of the
Collateral Agent are only those set forth in this Agreement and in the
Collateral Document.

     Section 6.2.   Notification of Default. If the Collateral Agent has been
notified in a writing conforming to the requirements of Section 5.4 by any
Secured Party that a Default or an Event of Default has occurred, the Collateral
Agent shall furnish to the Secured Parties and the Company a copy of such
written notice. The failure of any Secured Party having knowledge of the
occurrence of a Default or an Event of Default to notify the Collateral Agent or
any Secured Party of such occurrence, however, does not constitute a waiver of
such Default or Event of Default by the Secured Parties. Upon receipt of a
notice conforming to the requirements of Section 5.4 from a Secured Party of the
occurrence of an Event of Default, the Collateral Agent shall (in addition to
the action required by the first sentence of this Section 6.2) promptly (and in
any event no later than ten Business Days after receipt of such notice) issue a
notice of default (a "Notice of Default") to all Secured Parties. Such Notice of
Default shall indicate the nature of such Event of Default. The Notice of
Default may request instructions from the Secured Parties and shall specify the
date on which responses are due in order to be timely within Section 6.4.

     Section 6.3.   Exercise of Remedies. Except as otherwise provided in
Section 6.4 and Section 6.5, the Collateral Agent shall take only such actions
and exercise only such remedies under the Collateral Document as are directed in
written instructions delivered to the Collateral Agent as required under Section
6.4 and signed by the Required Secured Parties. In the event that the Collateral
Agent shall determine in good faith that taking the actions specified in such
instructions is contrary to law, it may refrain (and shall be fully protected in
so refraining) from taking such action and shall promptly give notice of such
fact to each of the Secured Parties. In the event that instructions received by
the Collateral Agent are in its good faith judgment ambiguous or conflict with
other instructions received by the Collateral Agent, the Collateral Agent (a)
shall promptly notify the Secured Parties of such ambiguity or conflict and
request clarifying instructions, and (b) may either (1) delay taking any such
action or exercising any such remedy pending the receipt of such clarifying
instructions (and shall be fully protected in so delaying) or

                                     - 14 -

<PAGE>

(2) take such actions as it is entitled to take under Section 6.5, provided that
in taking such actions the Collateral Agent shall act with such care as a
reasonably prudent person accords his own property.

     Section 6.4.   Instructions from Secured Parties.

               Notwithstanding anything express or implied to the contrary in
the Collateral Document:

               (a)  remedies and other actions to be taken under the Collateral
     Document or applicable law with respect to the Collateral shall be directed
     in writing by the Required Secured Parties (or, in the case of the requests
     for information and actions to be taken at the direction of the Acting
     Secured Parties pursuant to Section 5.2, by the Acting Secured Parties);
     and

               (b)  if any Secured Party does not respond in a timely manner to
     any notice (including, without limitation, a Notice of Default) from the
     Collateral Agent or request for instructions within the time period
     specified by the Collateral Agent in such notice or request for
     instructions (which shall be a minimum of five Business Days), the Secured
     Obligations held by such Secured Party which would otherwise be included in
     a determination of Required Secured Parties or Acting Secured Parties, as
     applicable, shall not be included in the determination of Required Secured
     Parties or Acting Secured Parties, as applicable, for purposes of such
     notice or request for instructions. Any action taken or not taken without
     the vote of such Secured Party or Secured Parties under this Section 6.4
     shall nevertheless be binding on such Secured Party or Secured Parties.

     Section 6.5.   Emergency Actions. If the Collateral Agent has asked the
Secured Parties for instruction and the Required Secured Parties or Acting
Secured Parties, as applicable, have not yet responded to such request, the
Collateral Agent shall be authorized to take, but shall not be required to take,
and shall in no event have any liability for the taking, any delay in taking or
the failure to take, such actions (other than any action described or permitted
under Section 6.7) with regard to a Default or Event of Default which the
Collateral Agent, in good faith, believes to be reasonably required to promote
and protect the interests of the Secured Parties and to preserve the value of
the Collateral and shall give the Secured Parties appropriate notice of such
action; provided that once instructions with respect to such request have been
received by the Collateral Agent from the Required Secured Parties or Acting
Secured Parties, as applicable, the actions of the Collateral Agent shall be
governed thereby and the Collateral Agent shall not take any further action
which would be contrary thereto.

     Section 6.6.   Changes to Collateral Document. Any term of the Collateral
Document may be amended, and the performance or observance by the parties to the
Collateral Document of any term of the Collateral Document may be waived (either
generally or in a particular instance and either retroactively or
prospectively), with the written consent of the Required Secured Parties;
provided, however, that any amendment or waiver pursuant to this Section 6.6
shall apply equally to the interests of all Secured Parties under the Collateral
Document.

     Section 6.7.   Release of Collateral. (a) Subject to Section 314(d) of the
TIA (to the extent applicable) release of any Collateral by the Collateral Agent
from the Lien of the

                                     - 15 -

<PAGE>

Collateral Document shall be permitted with the written consent of all of the
Secured Parties; provided, however, that the written consent of any Secured
Party to the release of Collateral by the Collateral Agent shall not be
required, and the Lien of the Collateral Document shall automatically be
released with respect to any assets that the Grantor disposes of pursuant to a
disposition that is permitted under each of the Secured Agreements.

               (b)  Subject to Section 314(d) of the TIA (to the extent
applicable), the Collateral Agent shall provide a written release of any Lien on
any Collateral if it shall have received an officer's certificate from the
Company certifying that all conditions precedent to such release hereunder have
been satisfied. Upon compliance with the foregoing sentence, the Collateral
Agent shall execute, deliver or acknowledge any reasonably requested instruments
of termination, satisfaction or release to evidence the release of any
Collateral permitted to be released pursuant to this Agreement.

     Section 6.8.   Other Actions. The Collateral Agent shall have the right to
take such actions, or omit to take such actions, hereunder and under the
Collateral Document not inconsistent with the written instructions delivered
pursuant to Section 6.3 of the Required Secured Parties or otherwise not
inconsistent with the terms of this Agreement, including actions the Collateral
Agent deems necessary or appropriate to perfect or continue the perfection of
the Liens on the Collateral for the benefit of the Secured Parties. Except as
otherwise provided by applicable law, the Collateral Agent shall have no duty as
to any Collateral, the collection or protection of the Collateral or any income
therefrom (including any duty to ascertain or take action with respect to calls,
conversions, exchanges, maturities, tenders or other matters relative to any
Collateral, whether or not the Collateral Agent has or is deemed to have
knowledge of such matters), nor as to the preservation of rights against prior
parties, nor as to the preservation of rights pertaining to the Collateral
beyond the safe custody of any Collateral in the Collateral Agent's actual
possession.

     Section 6.9.   Cooperation. To the extent that the exercise of the rights,
powers and remedies of the Collateral Agent in accordance with this Agreement
requires that any action be taken by any Secured Party, such Secured Party shall
take such action and cooperate with the Collateral Agent to ensure that the
rights, powers and remedies of all Secured Parties are exercised in full.

     Section 6.10.  Distribution of Proceeds of Collateral.

               (a)  Upon any realization upon the Collateral, the Secured
Parties agree that the proceeds thereof shall be applied (i) first, to the
amounts owing to the Collateral Agent, solely in its capacity as Collateral
Agent, by the Grantor or the Secured Parties pursuant to this Agreement or the
Collateral Document; (ii) second, to reimburse the Secured Parties for any
amounts paid under Section 5.6 hereof; (iii) third, to the payment of all
amounts of accrued and unpaid interest which constitute Secured Obligations;
(iv) fourth, to all amounts of principal outstanding (or, if applicable, unpaid
accreted value) in respect of the Secured Obligations; (v) fifth, to all other
Secured Obligations then owing to the Secured Parties; and (vi) sixth, the
balance, if any, shall be returned to the Company or such other Persons as are
entitled thereto. All applications of such proceeds pursuant to clauses (ii)
through (v) above shall be allocated among the Secured Parties on the basis of
their respective Pro Rata Shares.

                                     - 16 -

<PAGE>

               (b)  Upon the request of the Collateral Agent prior to any
distribution under this Section 6.10, each Secured Party shall provide to the
Collateral Agent certificates, in form and substance reasonably satisfactory to
the Collateral Agent, setting forth the respective amounts referred to in
Section 6.10(a), that each such Secured Party believes it is entitled to
receive.

     Section 6.11.  Authorized Investments. Any and all funds held by the
Collateral Agent in its capacity as Collateral Agent, whether pursuant to any
provision of this Agreement or the Collateral Document, shall to the extent
feasible within a reasonable time be invested by the Collateral Agent in Cash
Equivalent Investments that are specified in writing by the Company; provided,
however, that upon the receipt of notice of a Default or Event of Default
pursuant to Section 5.4, such investment shall be invested as specified in
writing by the Required Secured Parties. Prior to making such investment or to
the extent it is not feasible to invest such funds in Cash Equivalent
Investments, the Collateral Agent shall hold any such funds in an interest
bearing account. Any interest earned on such funds shall be disbursed to the
Secured Parties in accordance with Section 6.10(a). The Collateral Agent shall
have no duty to place funds held and invested pursuant to this Section 6.11 in
investments which provide a maximum return. The Collateral Agent shall not be
responsible for any loss, fee, tax or other damages with respect to any funds
invested in accordance with this Section 6.11.

     Section 6.12.  Sharing of Proceeds. If, despite the provisions of this
Agreement, any Secured Party shall receive any payment or other recovery in
excess of its portion of payments on account of the Secured Obligations to which
it is then entitled in accordance with this Agreement, such Secured Party shall
hold such payment or other recovery in trust for the benefit of all Secured
Parties hereunder for distribution in accordance with Section 6.10(a).

SECTION 7 Bankruptcy Proceedings.

          The following provisions shall apply during any Bankruptcy Proceeding
of the Grantor:

          (a)  The Collateral Agent shall represent all Secured Parties in
connection with all matters directly relating to the Collateral, including
without limitation, use, sale or lease of Collateral, use of cash collateral,
relief from the automatic stay and adequate protection. The Collateral Agent
shall act on the instructions of the Required Secured Parties; provided that
subject to Section 2.2, such instructions by the Required Secured Parties shall
not treat any Secured Party differently with respect to its rights in the
Collateral from any other Secured Party; and provided further that if action is
required prior to the time such instructions are received or if the Required
Secured Parties fail to give instructions with respect to any matter, the
Collateral Agent shall be authorized to act, or refrain from acting, in
accordance with Section 6.5.

          (b)  Each Secured Party shall be free to act independently on any
issue not directly relating to the Collateral, including without limitation,
matters relating to appointment of a trustee, conversion of a case, filing of
claims, and plans of reorganization. Each Secured Party shall give prior notice
to the Collateral Agent of any such action to the extent that such notice is
possible. If such prior notice is not given, such Secured Party shall give
prompt notice following any such action.

                                     - 17 -

<PAGE>

SECTION 8 Miscellaneous.

     Section 8.1.   Entire Agreement. This Agreement represents the entire
agreement among the Collateral Agent, the Secured Parties and the Grantor in
respect of the subject matter hereof.

     Section 8.2.   Notices. Notices hereunder shall be given to the Secured
Parties at their addresses as set forth on Schedule II hereto or at such other
address as may be designated by each in a written notice to the other parties
hereto.

     Section 8.3.   Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the Collateral Agent and each of the Secured Parties
and their respective successors and assigns, whether so expressed or not, and,
in particular, shall inure to the benefit of and be enforceable by and against
any future holder or holders of any Secured Obligations, and the term "Secured
Party" shall include any such subsequent holder of Secured Obligations, wherever
the context permits.

     Section 8.4.   Consents, Amendment, Waivers. All amendments, waivers or
consents of any provision of this Agreement shall be effective only if the same
shall be in writing and signed by the Collateral Agent and all of the Secured
Parties.

     Section 8.5.   Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without giving
effect to any conflicts of law principles other than New York General
Obligations Law Sections 5-1401 and 5-1402.

     Section 8.6.   Counterparts. This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one Agreement, and
any of the parties hereto may execute this Agreement by signing any such
counterpart.

     Section 8.7.   Sale of Interest. No Secured Party will sell, transfer or
otherwise dispose of any interest in the Secured Obligations unless such
purchaser or transferee shall agree, in writing, to be bound by the terms of
this Agreement.

     Section 8.8.   Severability. In case any one or more of the provisions
contained in this Agreement shall be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
of this Agreement shall not in any way be affected or impaired thereby.

     Section 8.9.   Expenses. Without limiting the indemnification obligations
of the Secured Parties to the Collateral Agent pursuant to Section 5.6, in the
event of any litigation to enforce this Agreement, the prevailing party shall be
entitled to its reasonable attorney's fees and expenses (including the allocated
costs of in-house counsel).

     Section 8.10.  Term of Agreement. This Agreement shall terminate when the
conditions set forth in Section 3.4(a) have been satisfied with respect to all
of the Secured Parties, or when the Collateral Agent and all of the other
Secured Parties mutually agree in a writing to terminate this Agreement,
whichever occurs earlier.

     Section 8.11.  Obligations Several. The obligations of the Secured Parties
and the Collateral Agent hereunder are several. The failure of any Secured Party
or the Collateral Agent

                                     - 18 -

<PAGE>

to carry out its obligations hereunder shall not relieve any other Secured Party
or the Collateral Agent of any obligation hereunder, nor shall any Secured Party
or the Collateral Agent be responsible for the obligations of, or any action
taken or omitted by, any other Person hereunder. Nothing contained in this
Agreement shall be deemed to cause any Secured Party or the Collateral Agent to
be considered a partner of or joint venturer with any other Secured Party, the
Collateral Agent, or the Grantor.

     Section 8.12.  Trustee Status. Notwithstanding any term herein to the
contrary, it is hereby expressly agreed and acknowledged that the agreements set
forth herein by each of the Original Trustee and the New Trustee are made solely
in its capacity as trustee with respect to the Original Notes or New Notes, as
applicable (and not in its individual commercial capacity, except to the extent
that it is or becomes a New Holder or Original Holder). Neither the Original
Trustee nor the New Trustee shall have any duties, obligations, or
responsibilities to any Secured Party under this Agreement except as expressly
set forth herein. Nothing in this Agreement shall be construed to operate as a
waiver by the Original Trustee or the New Trustee with respect to any Grantor,
any Original Holder or any New Holder, of the benefit of any exculpatory
provisions, presumptions, indemnities, protections, benefits, immunities or
reliance rights contained in the Original Indenture or the New Indenture, and,
by its acknowledgment hereof, each Grantor expressly agrees that as between it
on the one hand and the Original Trustee and the New Trustee on the other hand,
the Original Trustee and the New Trustee shall have such benefit with respect to
all actions or omissions by the Original Trustee or the New Trustee pursuant to
this Agreement. For all purposes of this Agreement, each of the Original Trustee
and the New Trustee may (a) rely in good faith, as to matters of fact, on any
representation of fact believed by it to be true (without any duty of
investigation) and that is contained in a written certificate of any authorized
representative of the Company or of a Secured Party; (b) rely in good faith, as
to matters of law, on any advice received from its legal counsel or an opinion
of its counsel, counsel to the Company or counsel to any Secured Party, and
shall have no liability for any action or omission taken in reliance thereon;
and (c) assume in good faith (without any duty of investigation), and rely upon,
the genuineness, due authority, validity, and accuracy of any certificate,
instrument, notice, or other document believed by it in good faith to be genuine
and presented by the proper person.

     Section 8.13.  Trust Indenture Act. To the extent applicable, if any
provision of this Agreement limits, qualifies or conflicts with the duties
imposed on the Original Trustee, the New Trustee or the Collateral Agent by the
TIA, the TIA shall control. Any action required to be taken in order to comply
with the TIA shall be taken by the Original Trustee, the New Trustee and the
Collateral Agent, as applicable.

                                     - 19 -

<PAGE>

          In Witness Whereof, each of the parties hereto has caused this
Agreement to be executed as of the date first above written.

                                  The Bank of New York, as Collateral Agent

                                  By: /s/ John Guiliano
                                      ------------------------------------------
                                  Name: John Guiliano
                                        ----------------------------------------
                                  Its: Vice President
                                       -----------------------------------------

                                  The Bank of New York, as Original Trustee

                                  By: /s/ John Guiliano
                                      ------------------------------------------
                                  Name: John Guiliano
                                        ----------------------------------------
                                  Its: Vice President
                                       -----------------------------------------

                                  The Bank of New York, as New Trustee

                                  By: /s/ John Guiliano
                                      ------------------------------------------
                                  Name: John Guiliano
                                        ----------------------------------------
                                  Its: Vice President
                                       -----------------------------------------

<PAGE>

                                  General Motors Corporation

                                  By:/s/ R. J. Harries
                                     -------------------------------------------
                                  Name: R. J. Harries
                                       -----------------------------------------
                                  Its:
                                      ------------------------------------------

                                  OnStar Corporation

                                  By: /s/ Kenneth D. Enborg
                                     -------------------------------------------
                                  Name:   Kenneth D. Enborg
                                       -----------------------------------------
                                  Its: Vice President and General Counsel
                                      ------------------------------------------

                                  SF CAPITAL PARTNERS, LTD, a British Virgin
                                  Islands Company

                                  By:      /s/ Brian H. Davidson
                                     -------------------------------------------
                                  Name:  Brian H. Davidson
                                         ---------------------------------------
                                  Its:  Authorized Signatory
                                        ----------------------------------------

                                         /s/ A.R. Sanchez, Jr.
                                  ----------------------------------------------
                                  A.R. Sanchez, Jr.

                                  PRISM PARTNERS I, L.P.
                                  By Weintraub Capital Management LLC, its
                                  Investment Manager

                                  By:     /s/ Jerald Weintraub
                                     -------------------------------------------
                                  Name:  Jerald Weintraub
                                         ---------------------------------------
                                  Its:  Managing Partner
                                        ----------------------------------------

                                  PRISM PARTNERS OFFSHORE FUND
                                  By Weintraub Capital Management LLC, Its
                                  Investment Manager

                                  By:      /s/ Jerald Weintraub
                                     -------------------------------------------
                                  Name:  Jerald Weintraub
                                         ---------------------------------------
                                  Its:  Managing Partner
                                        ----------------------------------------

<PAGE>

                                  PRISM PARTNERS II OFFSHORE FUND
                                  By Weintraub Capital Management LLC, its
                                  Investment Manager

                                  By:      /s/ Jerald Weintraub
                                     -------------------------------------------
                                  Name:  Jerald Weintraub
                                         ---------------------------------------
                                  Its:  Managing Partner
                                        ----------------------------------------

                                  HUGHES ELECTRONICS CORPORATION

                                  By:      /s/ Patrick T. Doyle
                                     -------------------------------------------
                                  Name:  Patrick T. Doyle
                                         ---------------------------------------
                                  Its:  Vice President, Treasurer and Controller
                                        ----------------------------------------

                                           /s/ Micahel W. Harris
                                  ----------------------------------------------
                                  Michael W. Harris

                                           /s/ John Dealy
                                  ----------------------------------------------
                                  John Dealy

                                  COLUMBIA CAPITAL EQUITY PARTNERS II
                                    (QP), L.P.
                                  By Columbia Capital Equity Partners III, L.P.,
                                     its General Partner

                                  By:      /s/ James B. Fleming, Jr.
                                     -------------------------------------------
                                  Name: James B. Fleming, Jr.
                                        ----------------------------------------
                                  Its: Vice President
                                       -----------------------------------------

<PAGE>

                                  COLUMBIA CAPITAL EQUITY PARTNERS III
                                    (QP), L.P.
                                  By Columbia Capital Equity Partners III, L.P.,
                                     its General Partner

                                  By:      /s/ James B. Fleming, Jr.
                                     -------------------------------------------
                                  Name: James B. Fleming, Jr.
                                        ----------------------------------------
                                  Its: Vice President
                                       -----------------------------------------

                                  COLUMBIA XM RADIO PARTNERS, LLC
                                  By Columbia Capital L.L.C., its Managing
                                     Member

                                  By:      /s/ James B. Fleming, Jr.
                                     -------------------------------------------
                                  Name: James B. Fleming, Jr.
                                        ----------------------------------------
                                  Its: Vice President
                                       -----------------------------------------

                                  COLUMBIA XM SATELLITE PARTNERS III,
                                     LLC

                                  By:      /s/ James B. Fleming, Jr.
                                     -------------------------------------------
                                  Name: James B. Fleming, Jr.
                                        ----------------------------------------
                                  Its: Vice President
                                       -----------------------------------------

                                  BLACK BEAR FUND I, L.P., a California
                                     Limited Partnership
                                  By Eastbourne Capital Managment, L.L.C., its
                                     general partner

                                  By:      /s/ Eric. M. Sippel
                                     -------------------------------------------
                                  Name:  Eric M. Sippel
                                         ---------------------------------------
                                  Its: Chief Operating Officer
                                       -----------------------------------------

<PAGE>

                                  BLACK BEAR FUND II, L.L.C., a California
                                     limited liability company

                                  By Eastbourne Capital Managment, L.L.C., its
                                     manager

                                  By:      /s/ Eric. M. Sippel
                                     -------------------------------------------
                                  Name:  Eric M. Sippel
                                         ---------------------------------------
                                  Its: Chief Operating Officer
                                       -----------------------------------------

                                  BLACK BEAR OFFSHORE MASTER
                                     FUND LIMITED, a Cayman Islands
                                     exempted company
                                  By Eastbourne Capital Managment, L.L.C., its
                                     investment adviser and attorney in fact

                                  By:      /s/ Eric. M. Sippel
                                     -------------------------------------------
                                  Name:  Eric M. Sippel
                                         ---------------------------------------
                                  Its: Chief Operating Officer
                                       -----------------------------------------

                                  AMERICAN HONDA MOTOR CO., INC., a
                                     California corporation

                                  By:      /s/ Thomas G. Elliott
                                     -------------------------------------------
                                  Name:  Thomas G. Elliott
                                         ---------------------------------------
                                  Its:  Executive Vice President
                                        ----------------------------------------

                                  AVDAN PARTNERS, L.P.

                                  By:     /s/ Mark B. Friedman
                                     -------------------------------------------
                                  Name:       Mark B. Friedman, President
                                              MBF Capital Management, Inc.
                                              Its Managing General Partner

                                           /s/ Paul Greenwald
                                  ----------------------------------------------
                                  Paul Greenwald

<PAGE>

                                  AEA XM Investors IA LLC
                                  By: XM Investors IA LP,
                                      its Sole Member
                                      By: AEA XM Investors Inc.,
                                          its General Partner

                                          By:   /s/ Christine J. Smith
                                              --------------------------
                                               Christine J. Smith
                                               Vice President

                                  AEA XM Investors IIA LLC
                                  By: XM Investors IIA LP,
                                      its Sole Member
                                      By: AEA XM Investors Inc.,
                                          its General Partner

                                          By:   /s/ Christine J. Smith
                                              --------------------------
                                               Christine J. Smith
                                               Vice President

                                  BAYSTAR CAPITAL II, L.P., a Delaware limited
                                    partnership
                                  By BayStar Capital Management, LLC, its
                                    general partner

                                  By:    /s/ Lawrence Goldfarb
                                         -------------------------------
                                  Name:  Lawrence Goldfarb
                                  Title: Managing Member

                                  BAYSTAR INTERNATIONAL II, Ltd., a British
                                     Virgin Islands exempt company
                                  By BayStar Capital Management, LLC., its
                                     investment manager

                                  By:    /s/ Lawrence Goldfarb
                                         -------------------------------
                                  Name:  Lawrence Goldfarb
                                  Title: Managing Member

                                  ROYAL BANK OF CANADA

                                  By its agent, RBC
                                  Dominion Securities Corporation

                                  By:    /s/ Steven C. Milke
                                     -----------------------------------
                                  Name: Steven C. Milke
                                  Title: Managing Director

                                  By:    /s/ Richard J. Tavoso
                                     -----------------------------------
                                  Name:  Richard J. Tavoso
                                  Title: Managing Director

                                  EVEREST CAPITAL MASTER FUND L.P.
                                  By Everest Capital Limited, its general
                                  partner

                                  By:    /s/ Malcolm Stott
                                         -------------------------------
                                  Name:  Malcolm Stott
                                  Title: Chief Operating Officer

                                  BY: /s/ Eric Graham
                                      ----------------------------------
                                  ERIC GRAHAM
                                  PRINCIPAL

                                  EVEREST CAPITAL SENIOR DEBT FUND L.P.
                                  By Everest Capital Limited, its general
                                  partner

                                  By:    /s/ Malcolm Stott
                                         -------------------------------
                                  Name:  Malcolm Stott
                                  Title: Chief Operating Officer

                                  BY: /s/ Eric Graham
                                      ----------------------------------
                                  ERIC GRAHAM
                                  PRINCIPAL

                                   /s/ George Haywood
                                  --------------------------------------
                                  GEORGE HAYWOOD

                                  HEARST COMMUNICATIONS, INC., a
                                     Delaware corporation

                                  By:    /s/ Kenneth A. Bronfin
                                         -------------------------------
                                  Name:  Kenneth A. Bronfin
                                  Title: President, Hearst Interactive Media,
                                          a division of Hearst Communications,
                                          Inc.

                                  SUPERIUS SECURITIES GROUP, INC.
                                  MONEY PURCHASE PLAN

                                  By:    /s/ James Hudgins
                                         -------------------------------
                                  Name:  James Hudgins
                                  Title: Trustee

                                  US TRUST COMPANY

                                  By:    /s/ David Williams
                                         -------------------------------
                                  Name:  David J. Williams
                                  Title: Managing Director

                                  NEERA SINGH and RAJENDRA SINGH JTWROS

                                        /s/ Neera Singh
                                  --------------------------------------

                                        /s/ Rajendra Singh
                                  --------------------------------------

                                  HERSH RAJ SINGH EDUCATIONAL TRUST
                                  By:

                                        /s/ Neera Singh
                                  --------------------------------------
                                  Name:  Neera Singh
                                  Title: Trustee

                                        /s/ J. T. Westermeier
                                  --------------------------------------
                                  Name:  J. T. Westermeier
                                  Title: Co-Trustee

                                  SAMIR RAJ SINGH EDUCATIONAL TRUST
                                  By:

                                        /s/ Neera Singh
                                  --------------------------------------
                                  Name:  Neera Singh
                                  Title: Trustee

                                        /s/ J. T. Westermeier
                                  --------------------------------------
                                  Name:  J. T. Westermeier
                                  Title: Co-Trustee

The undersigned hereby acknowledges and agrees to the foregoing Agreement.

                                  XM Satellite Radio Inc.

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

<PAGE>

                                   SCHEDULE I

                          CONVERTIBLE NOTES NOTEHOLDERS

AEA XM Investors IA LLC

AEA XM Investors IIA LLC

Columbia Capital Equity Partners II (QP), L.P.

Columbia XM Radio Partners, LLC

Columbia Capital Equity Partners III (QP), L.P.

Columbia XM Satellite Partners III, LLC

Hughes Electronics Corporation

Black Bear Fund I, L.P.

Black Bear Fund II, L.L.C.

Black Bear Offshore Master Fund Limited

George Haywood

Hearst Communications, Inc.

BayStar Capital II, L.P.

BayStar International II, Ltd.

American Honda Motor Co., Inc.

Superius Securities Group, Inc. Money Purchase Plan

John Dealy

Avdan Partners, L.P.

Michael W. Harris

Paul Greenwald

SF Capital Partners, Ltd.

Neera Singh and Rajendra Singh JTWROS

Hersh Raj Singh Educational Trust

Samir Raj Singh Educational Trust

Royal Bank of Canada

A.R. Sanchez, Jr.

Everest Capital Master Fund L.P.

Everest Capital Senior Debt Fund L.P.

Prism Partners I, L.P.

Prism Partners Offshore Fund

Prism Partners II Offshore Fund

U.S. Trust Company

<PAGE>

                                   SCHEDULE II

                                NOTICE ADDRESSES

AEA
  AEA XM Investors IA LLC
  c/o AEA Investors Inc.
  65 E 55th Street
  New York, New York 10022
  Attention: General Counsel
  Fax: 212-702-0518

  AEA XM Investors IIA LLC
  c/o AEA Investors Inc.
  65 E 55th Street
  New York, New York 10022
  Attention: General Counsel
  Fax: 212-702-0518

Columbia Capital
  Columbia Capital Equity Partners II (QP), L.P.
  c/o Columbia Capital, LLC
  201 North Union Street, Suite 300
  Alexandria, VA 22314
  Attention: James B. Fleming
  Fax: 703-519-5870

  Columbia XM Radio Partners, LLC
  c/o Columbia Capital, LLC
  201 North Union Street, Suite 300
  Alexandria, VA 22314
  Attention: James B. Fleming
  Fax: 703-519-5870

  Columbia Capital Equity Partners III (QP), L.P.
  c/o Columbia Capital, LLC
  201 North Union Street, Suite 300
  Alexandria, VA 22314
  Attention: James B. Fleming
  Fax: 703-519-5870

  Columbia XM Satellite Partners III, LLC
  c/o Columbia Capital, LLC
  201 North Union Street, Suite 300
  Alexandria, VA 22314
  Attention: James B. Fleming
  Fax: 703-519-5870

<PAGE>

  Hughes Electronics Corporation
  200 N. Sepulveda Boulevard
  El Segundo, California 90245
  Attention: Graham Jenner
  Fax: 310-640-1734

  Eastbourne Capital Management, L.L.C.
    Black Bear Fund I, L.P.
    c/o Eastbourne Capital Management, L.L.C.
    1101 Fifth Avenue, Suite 160
    San Rafael, California 94901
    Attention:  Eric M. Sippel, Chief Operating Officer
    Fax: 415-448-1246

    Black Bear Fund II, L.L.C.
    c/o Eastbourne Capital Management, L.L.C.
    1101 Fifth Avenue, Suite 160
    San Rafael, California 94901
    Attention:  Eric M. Sippel, Chief Operating Officer
    Fax: 415-448-1246

    Black Bear Offshore Master Fund Limited
    c/o Eastbourne Capital Management, L.L.C.
    1101 Fifth Avenue, Suite 160
    San Rafael, California 94901
    Attention:  Eric M. Sippel, Chief Operating Officer
    Fax: 415-448-1246

  George Haywood
  c/o Cronin & Vris, LLP
  380 Madison Avenue
  24th Floor
  New York, New York 10017
  Fax: 718-832-8292

  Hearst Communications, Inc.
  c/o Hearst Interactive Media
  959 Eighth Avenue
  New York, New York 10019
  Attn: President, Hearst Interactive Media
  Fax: 212-582-7739

<PAGE>

  BayStar Group
    BayStar Capital II, LP
    c/o BayStar Capital Management, LLC
    80 E. Sir Francis Drake Blvd., Suite 2B
    Larkspur, California 94939
    Fax: 415-834-4681

    BayStar International II, Ltd.
    c/o BayStar Capital Management, LLC
    80 E. Sir Francis Drake Blvd., Suite 2B
    Larkspur, California 94939
    Fax: 415-834-4681

  American Honda Motor Co., Inc.
  1919 Torrance Blvd.
  Torrance, California 90501-2746
  Attention: Shinichi Sakamoto
  Fax: 310-783-2210

  Superius Securities Group, Inc. Money Purchase Plan
  94 Grand Ave.
  Englewood, New Jersey 07631
  Fax: 201-568-9392

  John Dealy
  c/o XM Satellite Radio Holdings Inc.
  1500 Eckington Place, NE
  Washington, District of Columbia 20002-2194
  Fax: 202-380-4534

  Avdan Partners, L.P.
  100 Shoreline Highway, Suite 185-A
  Mill Valley, California 94941
  Fax: 415-239-3946

  Michael W. Harris
  c/o Harris & Panels
  120 East Washington Street
  Suite 511
  Syracuse, New York 13202
  Fax: 315-472-2481

  Paul Greenwald
  c/o Harris & Panels
  120 East Washington Street
  Suite 511
  Syracuse, New York 13202

<PAGE>

  Fax: 315-472-2481

  SF Capital Partners, Ltd.
  c/o Staro Asset Management, LLC
  3600 South Lake Drive
  St. Francis, Wisconsin 53235
  Attention:  Brian H. Davidson
  Fax: 414-294-4416

  Neera Singh and Rajendra Singh JTWROS
  7925 Jones Branch Drive
  Suite 6400
  McLean, Virginia 22102
  Attn: General Counsel
  Fax: 703-873-4501

  Hersh Raj Singh Educational Trust
  7925 Jones Branch Drive
  Suite 6400
  McLean, Virginia 22102
  Attn: General Counsel
  Fax: 703-873-4501

  Samir Raj Singh Educational Trust
  7925 Jones Branch Drive
  Suite 6400
  McLean, Virginia 22102
  Attn: General Counsel
  Fax: 703-873-4501

  A.R. Sanchez, Jr.
  1920 Sandman
  Laredo, Texas 78041
  Fax: 956-722-1017

  The Bank of New York
  101 Barclay Street, Floor 8 West
  New York, NY  10286
  Telecopier No.:  (212) 815-3272
  Attention: Corporate Trust Administration

  General Motors Corporation
  c/o General Motors Corporation
  100 Renaissance Center
  Detroit, MI 48265-1000
  Fax No.: 313-665-4978
  Attention: General Counsel

  OnStar Corporation
  c/o General Motors Corporation
  100 Renaissance Center
  Detroit, MI 48265-1000
  Fax No.: (313) 665-4978
  Attention: General Counsel

  Royal Bank of Canada
  c/o RBC Dominion Securities Corporation
  165 Broadway
  One Liberty Plaza
  New York, NY 10006
  Attention: Michael Frommer
  Fax 212-858-7439

  Everest Capital Master Fund LP
  c/o Everest Capital Limited
  The Bank of Butterfield Building, 6th floor
  65 Front Street
  Hamilton HM 12, Bermuda
  Fax No.: (441) 292-2285

  Everest Capital Senior Debt Fund LP
  c/o Everest Capital Limited
  The Bank of Butterfield Building, 6th floor
  65 Front Street
  Hamilton HM 12, Bermuda
  Fax No.: (441) 292-2285

  Prism Partners Offshore Fund
  c/o Weintraub Capital Management LLC
  44 Montgomery Street, Suite 4100
  San Francisco, CA 94104

  Prism Partners I, L.P.
  c/o Weintraub Capital Management LLC
  44 Montgomery Street, Suite 4100
  San Francisco, CA 94104

  Prism Partners II Offshore Fund
  c/o Weintraub Capital Management LLC
  44 Montgomery Street, Suite 4100
  San Francisco, CA 94104

  U.S. Trust Company
  P.O. Box 200
  Essex, Connecticut 06426

<PAGE>

                                    Exhibit A
                                       TO
                             Intercreditor Agreement

                                     FORM OF

                        JOINDER BY ADDITIONAL CREDITOR[S]

          Pursuant to Section 3.5 of the Intercreditor and Collateral Agency
Agreement (FCC License Subsidiary Pledge Agreement), dated as of January 28,
2003, by and among the Noteholders named in Schedule I thereto, The Bank of New
York, as New Trustee, The Bank of New York, as Original Trustee, General Motors
Corporation, OnStar Corporation and The Bank of New York, as Collateral Agent
(the "Agreement"), the undersigned hereby acknowledge[s] and agree[s] to the
Agreement (capitalized terms used herein having the respective meanings assigned
thereto in the Agreement) and execute[s] and deliver[s] this joinder to the
Agreement and agree[s] to become a party thereto with all the rights, benefits
and obligations of a Secured Party thereunder as of the date hereof. Without
limiting the foregoing, the undersigned hereby represent[s] and warrant[s] to
the other parties to the Agreement to the effect set forth in Section 3.2(a) of
the Agreement.

          The undersigned [has] [have] entered into the following facility with
the Company [insert description of Additional Facility].

          The undersigned's address for notices under the Agreement is as
follows:

Dated: _______________

                                     [ADDITIONAL CREDITOR(S)]

                                     By
                                        ----------------------------------------
                                        Its
                                            ------------------------------------<PAGE>

                                                                     Exhibit 4.6

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

                                WARRANT AGREEMENT

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

                        XM Satellite Radio Holdings Inc.

                                    as Issuer

                                       and

                              The Bank of New York

                                as Warrant Agent

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

                                January 28, 2003

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

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

<PAGE>

          WARRANT AGREEMENT dated as of January 28, 2003 between XM Satellite
Radio Holdings Inc. ("Holdings"), and The Bank of New York, as Warrant Agent
(the "Warrant Agent").

          WHEREAS, Holdings proposes to issue common stock purchase warrants, as
hereinafter described (the "Warrants"), to purchase up to an aggregate of
25,514,960 shares of Class A Common Stock, par value $.01 per share (the "Class
A Common Stock"), of Holdings (the Class A Common Stock issuable on exercise of
the Warrants being referred to herein as the "Warrant Shares"), in connection
with an offer to exchange a combination of (i) an aggregate of $1,459 principal
amount at maturity of the 14% Senior Secured Discount Notes due 2009 (the
"Notes") issued by Holdings and XM Satellite Radio Inc., a wholly-owned
subsidiary of Holdings (the "Company"), as joint obligors, (ii) $70 in cash and
(iii) one Warrant entitling the holder thereof to purchase 85 Warrant Shares,
for each $1,000 in principal amount of the Company's $325,000,000 outstanding
14% Senior Secured Notes due 2010 tendered for exchange.

          WHEREAS, Holdings desires the Warrant Agent to act on behalf of
Holdings, and the Warrant Agent is willing so to act, in connection with the
issuance of Warrant Certificates (as defined below) and other matters as
provided herein;

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

          SECTION 1.  DEFINITIONS.

          "Affiliate" of any specified Person means (A) any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person and (B) any director, officer or
employee of such specified person. For purposes of this definition "control"
(including, with correlative meanings, the terms "controlling," "controlled by"
and "under common control with") as used with respect to any Person, shall mean
the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise.

          "Applicable Procedures" means, with respect to any transfer or
exchange of or for beneficial interests in any Global Warrant, the rules and
procedures of the Depositary that apply to such transfer or exchange.

          "Commercially Reasonable Efforts" when used with respect to any
obligation to be performed or term or provision to be observed hereunder, means
such efforts as a prudent Person seeking the benefits of such performance or
action would make, use, apply or exercise to preserve, protect or advance its
(i.e., a holder's) rights or interests; provided that such efforts do not
require the Person whose performance or observance is required hereunder to
incur a material financial cost or a substantial risk of material liability
unless such cost or liability (i) would customarily be incurred in the course of
performance or observance of the relevant obligation, term or provision, (ii) is
caused by or results from the wrongful act or negligence of the Person whose
performance or observance is required hereunder or (iii) is not excessive or
unreasonable in view of the rights or interests to be preserved, protected or
advanced. Such efforts may include, without limitation, the expenditure of such
funds and retention by such Person of such accountants, attorneys or other
experts or advisors as may be necessary or appropriate to effect the relevant
action; the undertaking of any special audit or internal investigation that may
be necessary or appropriate to effect the relevant action; and the commencement,
termination or settlement of any action, suit or proceeding involving the Person
whose performance or observance is required hereunder to the extent necessary or
appropriate to effect the relevant action.

<PAGE>

          "Commission" means the United States Securities and Exchange
Commission or any other federal agency at the time administering the Securities
Act or the Exchange Act, whichever is the relevant statute for a particular
purpose.

          "Definitive Warrant" means a certificated Warrant registered in the
name of the holder thereof and issued in accordance with Section 3.6 hereof, in
the form of Exhibit A hereto except that such Warrant shall not bear the Global
Warrant Legend and shall not have the "Schedule of Exchanges of Interests in the
Global Warrant" attached thereto.

          "Depositary" means, with respect to the Warrants issuable or issued in
whole or in part in global form, the Person specified in Section 3.3 hereof as
the Depositary with respect to the Warrants, and any and all successors thereto
appointed as Depositary hereunder and having become such pursuant to the
applicable provision of this Agreement.

          "Disinterested Director" means, in connection with any issuance of
securities that give rise to a determination of the Fair Market Value thereof,
each member of the Board of Directors of Holdings who is not an officer,
employee, director or other Affiliate of the party to whom Holdings is proposing
to issue the securities giving rise to such determination.

          "Exchange Act" means the Securities Exchange Act of 1934, as amended.

          "Global Warrants" means warrants issued in global form, substantially
in the form of Exhibit A hereto, issued in accordance with Section 3.1(b)
hereof.

          "Global Warrant Legend" means the legend set forth in Section 3.6(f),
which is required to be placed on all Global Warrants issued under this Warrant
Agreement.

          "holder" means, with respect to any Warrant (including a Global
Warrant), the Person who is the registered holder thereof in the register of the
Warrants maintained pursuant to Section 3.3 hereof.

          "Indirect Participant" means a Person who holds a beneficial interest
in a Global Warrant through a Participant.

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

          "Participant" means, with respect to the Depositary, a Person who has
an account with the Depositary.

          "Person" means a natural person, a corporation, a partnership, a
trust, a joint venture, any regulatory authority or any other entity or
organization.

          "Registrable Securities" means the Warrant Shares issuable upon
exercise of the Warrants. Any Registrable Securities will cease to be
registrable hereunder when (a) a registration statement covering such
Registrable Securities has been declared effective by the Commission and such
Registrable Securities have been sold pursuant to such effective registration
statement or (b) the related Warrants shall have ceased to be outstanding.

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

                                        3

<PAGE>

          "Shelf Registration Statement" means a registration statement pursuant
to Rule 415 under the Securities Act, as such rule may be amended from time to
time, or any successor rule or regulation under the Securities Act.

          "Warrant Custodian" means, with respect to a Global Warrant, the
Person appointed to serve as custodian of such Global Warrant for the
Depositary.

          SECTION 2.  APPOINTMENT OF WARRANT AGENT. Holdings hereby appoints the
Warrant Agent to act as agent for Holdings in accordance with the instructions
set forth hereinafter in this Agreement, and the Warrant Agent hereby accepts
such appointment.

          SECTION 3.  WARRANT CERTIFICATES.

          3.1.    Form and Dating.

          (a)     General.

          The Warrants and the Warrant Agent's certificate of authentication
shall be substantially in the form of Exhibit A hereto (the "Warrant
Certificates"). The Warrants may have notations, legends or endorsements
required by law, stock exchange rule or usage. Each Warrant shall be dated the
date of its authentication. The Warrant Certificates shall be in a machine
printable format and in a form reasonably satisfactory to the Warrant Agent.

          The terms and provisions contained in the Warrants shall constitute,
and are hereby expressly made, a part of this Warrant Agreement. Holdings and
the Warrant Agent, by their execution and delivery of this Warrant Agreement,
expressly agree to such terms and provisions and to be bound thereby. However,
to the extent any provision of any Warrant conflicts with the express provisions
of this Warrant Agreement, the provisions of this Warrant Agreement shall govern
and be controlling.

          (b)     Global Warrants.

          Warrants issued in global form shall be substantially in the form of
Exhibit A attached hereto (including the Global Warrant Legend thereon and the
"Schedule of Exchanges of Interests in the Global Warrant" attached thereto).
Warrants issued in definitive form shall be substantially in the form of Exhibit
A attached hereto (but without the Global Warrant Legend thereon and without the
"Schedule of Exchanges of Interests in the Global Warrant" attached thereto).
Each Global Warrant shall represent such of the outstanding Warrants as shall be
specified therein and each shall provide that it shall represent the number of
outstanding Warrants from time to time endorsed thereon and that the number of
outstanding Warrants represented thereby may from time to time be reduced or
increased, as appropriate, to reflect exchanges and redemptions. Any endorsement
of a Global Warrant to reflect the amount of any increase or decrease in the
number of outstanding Warrants represented thereby shall be made by the Warrant
Agent or the Warrant Custodian, at the direction of the Warrant Agent, in
accordance with instructions given by the holder thereof as required by Section
3.6 hereof.

          3.2.    Execution and Authentication. Two Officers shall sign the
Warrants for Holdings by manual or facsimile signature.

          If an Officer whose signature is on a Warrant no longer holds that
office at the time a Warrant is authenticated, the Warrant shall nevertheless be
valid.

                                        4

<PAGE>

          A Warrant shall not be valid until authenticated by the manual
signature of the Warrant Agent. The signature shall be conclusive evidence that
the Warrant has been authenticated under this Warrant Agreement.

          The Warrant Agent shall, upon a written order of Holdings signed by
two Officers (a "Warrant Authentication Order"), authenticate Warrants for
original issue up to the number stated in the preamble hereto.

          The Warrant Agent may appoint an authenticating agent acceptable to
Holdings to authenticate Warrants. An authenticating agent may authenticate
Warrants whenever the Warrant Agent may do so. Each reference in this Warrant
Agreement to authentication by the Warrant Agent includes authentication by such
agent. An authenticating agent has the same rights as the Warrant Agent to deal
with Holdings or an Affiliate of Holdings.

          3.3.    Warrant Registrar and Warrant Paying Agent. Holdings shall
maintain an office or agency where Warrants may be presented for registration of
transfer or for exchange ("Warrant Registrar") and an office or agency where
Warrants may be presented for exercise ("Warrant Paying Agent"). The Warrant
Registrar shall keep a register of the Warrants and of their transfer and
exchange. Holdings may appoint one or more co-Warrant Registrars and one or more
additional Warrant Paying Agents. The term "Warrant Registrar" includes any
co-Warrant Registrar and the term "Warrant Paying Agent" includes any additional
Warrant Paying Agent. Holdings may change any Warrant Paying Agent or Warrant
Registrar without notice to any holder. Holdings shall notify the Warrant Agent
in writing of the name and address of any Warrant Paying Agent not a party to
this Warrant Agreement. If Holdings fails to appoint or maintain another entity
as Warrant Registrar or Warrant Paying Agent, the Warrant Agent shall act as
such. Holdings or any of its Subsidiaries may act as Warrant Paying Agent or
Warrant Registrar.

          Holdings initially appoints The Depository Trust Company ("DTC") to
act as Depositary with respect to the Global Warrants.

          Holdings initially appoints the Warrant Agent to act as the Warrant
Registrar and Warrant Paying Agent and to act as Warrant Custodian with respect
to the Global Warrants.

          3.4.    Funds Held by Warrant Paying Agent. Holdings shall require
each Warrant Paying Agent other than the Warrant Agent to agree in writing that
the Warrant Paying Agent will hold in trust for the benefit of holders or the
Warrant Agent all money held by the Warrant Paying Agent for the payment of
liquidated damages, if any, on the Warrants, and will notify the Warrant Agent
of any default by Holdings in making any such payment. While any such default
continues, the Warrant Agent may require a Warrant Paying Agent to pay all money
held by it to the Warrant Agent. Holdings at any time may require a Warrant
Paying Agent to pay all money held by it, in its capacity as Warrant Paying
Agent, to the Warrant Agent. Upon payment over to the Warrant Agent, the Warrant
Paying Agent (if other than Holdings or a Subsidiary) shall have no further
liability for the money. If Holdings or a Subsidiary acts as Warrant Paying
Agent, it shall segregate and hold in a separate trust fund for the benefit of
the holders all money held by it as Warrant Paying Agent. Upon any bankruptcy or
reorganization proceedings relating to Holdings, the Warrant Agent shall serve
as Warrant Paying Agent for the Warrants.

          3.5.    Holder Lists. The Warrant Agent shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of all holders. If the Warrant Agent is not the Warrant
Registrar, Holdings shall furnish to the Warrant Agent at such times as the
Warrant Agent may reasonably request in writing, a list in such form and as of
such date as the Warrant Agent may reasonably require of the names and addresses
of the holders.

                                        5

<PAGE>

          3.6.    Transfer and Exchange.

          (a)     Transfer and Exchange of Global Warrants.

          A Global Warrant may not be transferred as a whole except by the
Depositary to a nominee of the Depositary, by a nominee of the Depositary to the
Depositary or to another nominee of the Depositary, or by the Depositary or any
such nominee to a successor Depositary or a nominee of such successor
Depositary. All Global Warrants will be exchanged by Holdings for Definitive
Warrants if (i) Holdings delivers to the Warrant Agent notice from the
Depositary that it is unwilling or unable to continue to act as Depositary or
that it is no longer a clearing agency registered under the Exchange Act and, in
either case, a successor Depositary is not appointed by Holdings within 120 days
after the date of such notice from the Depositary or (ii) Holdings in its sole
discretion determines that the Global Warrants (in whole but not in part) should
be exchanged for Definitive Warrants and delivers a written notice to such
effect to the Warrant Agent. Upon the occurrence of either of the preceding
events in (i) or (ii) above, Definitive Warrants shall be issued in such names
as the Depositary shall instruct the Warrant Agent. Global Warrants also may be
replaced, in whole or in part, as provided in Section 3.7 hereof. Every Warrant
authenticated and delivered in exchange for, or in lieu of, a Global Warrant or
any portion thereof, pursuant to this Section 3.6 or Section 3.7 or 3.10 hereof,
shall be authenticated and delivered in the form of, and shall be, a Global
Warrant. A Global Warrant may not be exchanged for another Warrant other than as
provided in this Section 3.6(a). However, beneficial interests in a Global
Warrant may be transferred and exchanged as provided in Section 3.6(b) or (c)
hereof.

          (b)     Transfer and Exchange of Beneficial Interests in the Global
Warrants.

          The transfer and exchange of beneficial interests in the Global
Warrants shall be effected through the Depositary, in accordance with the
provisions of this Warrant Agreement and the Applicable Procedures. Transfers of
beneficial interests in the Global Warrants also shall require compliance with
either subparagraph (i) or (ii) below, as applicable:

                  (i)    Transfer of Beneficial Interests in the Same Global
          Warrant. Beneficial interests in any Global Warrant may be transferred
          to Persons who take delivery thereof in the form of a beneficial
          interest in a Global Warrant. No written orders or instructions shall
          be required to be delivered to the Warrant Registrar to effect the
          transfers described in this Section 3.6(b)(i).

                  (ii)   All Other Transfers and Exchanges of Beneficial
          Interests in Global Warrants. In connection with all transfers and
          exchanges of beneficial interests that are not subject to Section
          3.6(b)(i) above, the transferor of such beneficial interest must
          deliver to the Warrant Registrar either (A) (1) a written order from a
          Participant or an Indirect Participant given to the Depositary in
          accordance with the Applicable Procedures directing the Depositary to
          credit or cause to be credited a beneficial interest in another Global
          Warrant in an amount equal to the beneficial interest to be
          transferred or exchanged and (2) instructions given in accordance with
          the Applicable Procedures containing information regarding the
          Participant account to be credited with such increase or (B) (1) a
          written order from a Participant or an Indirect Participant given to
          the Depositary in accordance with the Applicable Procedures directing
          the Depositary to cause to be issued a Definitive Warrant in an amount
          equal to the beneficial interest to be transferred or exchanged and
          (2) instructions given by the Depositary to the Warrant Registrar
          containing information regarding the Person in whose name such
          Definitive Warrant shall be registered to effect the transfer or
          exchange referred to in (B)(1) above. Upon satisfaction of all of the
          requirements for transfer or exchange of beneficial

                                        6

<PAGE>

          interests in Global Warrants contained in this Warrant Agreement and
          the Warrants, or otherwise applicable provisions under the Securities
          Act, the Warrant Agent shall adjust the number of the relevant Global
          Warrant(s) pursuant to Section 3.6(g) hereof.

          (c)     Transfer or Exchange of Beneficial Interests in Global
Warrants for Definitive Warrants.

          If any holder of a beneficial interest in a Global Warrant proposes to
exchange such beneficial interest for a Definitive Warrant or to transfer such
beneficial interest to a Person who takes delivery thereof in the form of a
Definitive Warrant, then, upon satisfaction of the conditions set forth in
Section 3.6(b)(ii) hereof, the Warrant Agent shall order the amount of the
applicable Global Warrant to be reduced accordingly pursuant to Section 3.6(g)
hereof, and Holdings shall execute and, upon receipt of a Warrant Authentication
Order, the Warrant Agent shall authenticate and deliver to the Person designated
in the instructions a Definitive Warrant in the appropriate amount. Any
Definitive Warrant issued in exchange for a beneficial interest pursuant to this
Section 3.6(c) shall be registered in such name or names and in such authorized
denomination or denominations as the holder of such beneficial interest shall
instruct the Warrant Registrar through instructions from the Depositary and the
Participant or Indirect Participant. The Warrant Agent shall deliver such
Definitive Warrants to the Persons in whose names such Warrants are so
registered.

          (d)     Transfer and Exchange of Definitive Warrants for Beneficial
Interests.

          A holder of a Definitive Warrant may exchange such Warrant for a
beneficial interest in a Global Warrant or transfer such Definitive Warrants to
a Person who takes delivery thereof in the form of a beneficial interest in a
Global Warrant at any time. Upon receipt of a request for such an exchange or
transfer, the Warrant Agent shall cancel the applicable Definitive Warrant and
increase or cause to be increased the number of one of the Global Warrants.

          (e)     Transfer and Exchange of Definitive Warrants for Definitive
Warrants.

          Upon request by a holder of Definitive Warrants and such holder's
compliance with the provisions of this Section 3.6(e), the Warrant Registrar
shall register the transfer or exchange of Definitive Warrants. Prior to such
registration of transfer or exchange, the requesting holder shall present or
surrender to the Warrant Registrar the Definitive Warrants duly endorsed or
accompanied by a written instruction of transfer in form satisfactory to the
Warrant Registrar duly executed by such holder or by his attorney, duly
authorized in writing.

          (f)     Legends.

          The following legend shall appear on the face of all Global Warrants
issued under this Warrant Agreement unless specifically stated otherwise in the
applicable provisions of this Warrant Agreement.

                  THIS GLOBAL WARRANT IS HELD BY THE DEPOSITARY (AS DEFINED IN
     THE WARRANT AGREEMENT GOVERNING THIS WARRANT) OR ITS NOMINEE IN CUSTODY FOR
     THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY
     PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE WARRANT AGENT MAY MAKE
     SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 3.1(a) or
     3.6(g) OF THE WARRANT AGREEMENT, (II) THIS GLOBAL WARRANT MAY BE EXCHANGED
     IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 3.6(a) OF THE WARRANT
     AGREEMENT, (III) THIS GLOBAL

                                        7

<PAGE>

     WARRANT MAY BE DELIVERED TO THE WARRANT AGENT FOR CANCELLATION PURSUANT TO
     SECTION 3.6(g) OR 3.11 OF THE WARRANT AGREEMENT AND (IV) THIS GLOBAL
     WARRANT MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
     CONSENT OF HOLDINGS.

          (g)     Cancellation and/or Adjustment of Global Warrants.

          At such time as all beneficial interests in a particular Global
Warrant have been exchanged for Definitive Warrants or a particular Global
Warrant has been redeemed, repurchased or canceled in whole and not in part,
each such Global Warrant shall be returned to or retained and canceled by the
Warrant Agent in accordance with Section 3.11 hereof. At any time prior to such
cancellation, if any beneficial interest in a Global Warrant is exchanged for or
transferred to a Person who will take delivery thereof in the form of a
beneficial interest in another Global Warrant or for Definitive Warrants, the
amount of Warrants represented by such Global Warrant shall be reduced
accordingly and an endorsement shall be made on such Global Warrant by the
Warrant Agent or by the Depositary at the direction of the Warrant Agent to
reflect such reduction; and if the beneficial interest is being exchanged for or
transferred to a Person who will take delivery thereof in the form of a
beneficial interest in another Global Warrant, such other Global Warrant shall
be increased accordingly and an endorsement shall be made on such Global Warrant
by the Warrant Agent or by the Depositary at the direction of the Warrant Agent
to reflect such increase.

          (h)     General Provisions Relating to Transfers and Exchanges.

                  (i)    To permit registrations of transfers and exchanges,
          Holdings shall execute and the Warrant Agent shall authenticate Global
          Warrants and Definitive Warrants upon Holdings' order or at the
          Warrant Registrar's request.

                  (ii)   No service charge shall be made to a holder of a
          beneficial interest in a Global Warrant or to a holder of a Definitive
          Warrant for any registration of transfer or exchange, but Holdings may
          require payment by a holder of a beneficial interest in a Global
          Warrant or a holder of a Definitive Warrant of a sum sufficient to
          cover any transfer tax or similar governmental charge payable in
          connection therewith (other than any such transfer taxes or similar
          governmental charge payable upon exchange or transfer pursuant to
          Section 3.10 hereof).

                  (iii)  All Global Warrants and Definitive Warrants issued upon
          any registration of transfer or exchange of Global Warrants or
          Definitive Warrants shall be the duly authorized, executed and issued
          warrants for Class A Common Stock of Holdings, not subject to any
          preemptive rights, and entitled to the same benefits under this
          Warrant Agreement, as the Global Warrants or Definitive Warrants
          surrendered upon such registration of transfer or exchange.

                  (iv)   Prior to due presentment for the registration of a
          transfer of any Warrant, the Warrant Agent, any Warrant Paying Agent
          and Holdings may deem and treat the Person in whose name any Warrant
          is registered as the absolute owner of such Warrant for the purpose of
          receiving payment of principal of and interest on such Warrants and
          for all other purposes, and none of the Warrant Agent, any Warrant
          Paying Agent or Holdings shall be affected by notice to the contrary.

                  (v)    The Warrant Agent shall authenticate Global Warrants
          and Definitive Warrants in accordance with the provisions of Section
          3.2 hereof.

                                        8

<PAGE>

          (i)     All certifications, certificates and other documents required
to be submitted to the Warrant Registrar pursuant to this Section 3.6 to effect
a registration of transfer or exchange may be submitted by facsimile.

          3.7.    Replacement Warrants. If any mutilated Warrant is surrendered
to the Warrant Agent or Holdings and the Warrant Agent receives evidence to its
satisfaction of the destruction, loss or theft of such Warrant, Holdings shall
issue and the Warrant Agent, upon receipt of a Warrant Authentication Order,
shall authenticate a replacement Warrant if the Warrant Agent's requirements are
met. An indemnity bond must be supplied by the holder that is sufficient in the
judgment of the Warrant Agent and Holdings to protect Holdings, the Warrant
Agent, any Warrant Paying Agent and any authenticating agent from any loss that
any of them may suffer if a Warrant is replaced. Holdings may charge for its
expenses in replacing a Warrant.

          Every replacement Warrant is an additional warrant of Holdings and
shall be entitled to all of the benefits of this Warrant Agreement equally and
proportionately with all other Warrants duly issued hereunder.

          3.8.    Outstanding Warrants. The Warrants outstanding at any time are
all the Warrants authenticated by the Warrant Agent except for those canceled by
it, those delivered to it for cancellation, those reductions in the interest in
a Global Warrant effected by the Warrant Agent in accordance with the provisions
hereof, and those described in this Section as not outstanding. Except as set
forth in Section 3.9 hereof, a Warrant does not cease to be outstanding because
Holdings or an Affiliate of Holdings holds the Warrant.

          If a Warrant is replaced pursuant to Section 3.7 hereof, it ceases to
be outstanding unless the Warrant Agent receives proof satisfactory to it that
the replaced Warrant is held by a bona fide purchaser.

          3.9.    Treasury Warrants. In determining whether the holders of the
required amount of Warrants have concurred in any direction, waiver or consent,
Warrants owned by Holdings, or by any Person directly or indirectly controlling
or controlled by or under direct or indirect common control with Holdings, shall
be considered as though not outstanding, except that for the purposes of
determining whether the Warrant Agent shall be protected in relying on any such
direction, waiver or consent, only Warrants that a responsible officer of the
Warrant Agent actually knows are so owned shall be so disregarded.

          3.10.   Temporary Warrants. Until certificates representing Warrants
are ready for delivery, Holdings may prepare and the Warrant Agent, upon receipt
of a Warrant Authentication Order, shall authenticate temporary Warrants.
Temporary Warrants shall be substantially in the form of certificated Warrants
but may have variations that Holdings considers appropriate for temporary
Warrants and as shall be reasonably acceptable to the Warrant Agent. Without
unreasonable delay, Holdings shall prepare and the Warrant Agent shall
authenticate definitive Warrants in exchange for temporary Warrants.

          Holders of temporary Warrants shall be entitled to all of the benefits
of this Warrant Agreement.

          3.11.   Cancellation. Holdings at any time may deliver Warrants to the
Warrant Agent for cancellation. The Warrant Registrar and Warrant Paying Agent
shall forward to the Warrant Agent any Warrants surrendered to them for
registration of transfer, exchange or payment. The Warrant Agent and no one else
shall cancel all Warrants surrendered for registration of transfer, exchange,
payment,

                                        9

<PAGE>

replacement or cancellation. Such canceled Warrants shall be disposed of by the
Warrant Agent in accordance with its customary procedures, with evidence of such
disposal provided promptly to Holdings. Holdings may not issue new Warrants to
replace Warrants that it has paid or that have been delivered to the Warrant
Agent for cancellation.

          SECTION 4.  TERMS OF WARRANTS; EXERCISE OF WARRANTS.

          4.1.    Subject to the terms of this Agreement, each Warrant holder
shall have the right, which may be exercised during the period commencing at the
opening of business on January 28, 2003 and until 5:00 p.m., New York City time
on December 31, 2009 (the "Exercise Period"), to receive from Holdings the
number of fully paid and nonassessable Warrant Shares which the holder may at
the time be entitled to receive on exercise of such Warrants and payment of the
exercise price (the "Exercise Price") then in effect for such Warrant Shares.
Subject to adjustment as provided herein, the Exercise Price shall be $3.18 per
Warrant Share. Holdings shall give to the Depositary and to the Warrant Agent 15
days' prior written notice of the Expiration Date (as defined below) and of any
other information required by the Depositary at such time, all in accordance
with the procedures of the Depositary as then in effect. Each Warrant not
exercised prior to 5:00 p.m., New York City time, on December 31, 2009 (the
"Expiration Date") shall become void and all rights thereunder and all rights in
respect thereof under this agreement shall cease as of such time. No adjustments
as to dividends will be made upon exercise of the Warrants.

          4.2.    In order to exercise all or any of the Warrants represented by
a Warrant Certificate, (i) in the case of Definitive Warrants, the holder
thereof must surrender for exercise the Warrant Certificate to Holdings at the
office of the Warrant Agent at its New York corporate trust office set forth in
Section 17 hereof, (ii) in the case of a book-entry interest in a Global
Warrant, the exercising Participant whose name appears on a securities position
listing of the Depositary as the holder of such book-entry interest must comply
with the Depositary's procedures relating to the exercise of such book-entry
interest in such Global Warrant and (iii) in the case of both Global Warrants
and Definitive Warrants, the holder thereof or the Participant, as applicable,
must (a) deliver to Holdings at the office of the Warrant Agent the form of
election to purchase on the reverse thereof duly filled in and signed, which
signature shall be a medallion guaranteed by an institution which is a member of
a Securities Transfer Association recognized signature guarantee program, and
(b) make payment to the Warrant Agent for the account of Holdings of the
Exercise Price for the number of Warrant Shares in respect of which such
Warrants are then exercised. If a registration statement relating to the Warrant
Shares is then in effect, and the making of offers and sales of the Warrant
Shares thereunder has not been suspended or terminated in accordance with
Section 16 hereof (the periods in which such conditions are met being referred
to herein as "Registered Periods"), payment of the aggregate Exercise Price
shall be made by a holder either (i) in cash, by wire transfer or by certified
or official bank check payable to the order of Holdings or (ii) through a
Cashless Exercise, in the manner provided in Section 4.3 hereof. At all times
other than during Registered Periods, payment of the aggregate Exercise Price
shall be made by a holder of Warrants only by Cashless Exercise. Holdings shall
promptly notify the Warrant Agent, who shall in turn promptly notify each
registered holder of a Warrant Certificate in accordance with the provisions of
Section 10 hereof of the existence, and any subsequent suspension or
termination, of a Registered Period. In the absence of a notice from Holdings
that a Registered Period is in existence, the Warrant Agent shall only accept
payment of the Exercise Price in the form of a Cashless Exercise.

          4.3.    Subject to compliance with this Section 4, a holder shall have
the right to exercise its Warrants without any payment in cash or by certified
or official bank check (a "Cashless Exercise"), in which event Holdings shall
issue to such holder a number of Warrant Shares computed using the formula:

                                       10

<PAGE>

                                N x (M - E)
                      X =   ---------------------
                                    M
where:

          X       =      the number of Warrant Shares to be issued to such
                         holder.

          N       =      the number of Warrant Shares in respect of which such
                         Warrants then are being exercised by such holder.

          M       =      the Fair Market Value (as defined in Section 8.7
                         herein) per share of Class A Common Stock calculated as
                         of the date on which the notice of exercise is
                         delivered in accordance with the terms of Section 4.2
                         hereof.

          E       =      the Exercise Price then in effect.

          4.4.    Subject to the provisions of Section 5 hereof, upon compliance
with Section 4.2 hereof, Holdings shall deliver or cause to be delivered with
all reasonable dispatch, to or upon the written order of the holder and in such
name or names as the holder or Participant may designate, a certificate or
certificates for the number of whole Warrant Shares issuable upon the exercise
of such Warrants or other securities or property to which such holder is
entitled hereunder, together with cash as provided in Section 9 hereof; provided
that if any consolidation, merger or lease or sale of assets is proposed to be
effected by Holdings as described in Section 8.13 hereof, or a tender offer or
an exchange offer for shares of Class A Common Stock shall be made, upon such
surrender of Warrants and payment of the Exercise Price as aforesaid, Holdings
shall, as soon as possible, but in any event not later than two business days
thereafter, deliver or cause to be delivered the full number of Warrant Shares
issuable upon the exercise of such Warrants in the manner described in this
sentence or other securities or property to which such holder is entitled
hereunder, together with cash as provided in Section 9 hereof. Such certificate
or certificates shall be deemed to have been issued and any person so designated
to be named therein shall be deemed to have become a holder of record of such
Warrant Shares as of the date of the surrender of such Warrants and payment of
the Exercise Price.

          4.5.    Subject to the provisions of this Sections 4 and 14 hereof,
the Warrants shall be exercisable, at the election of the holders thereof,
either in full or from time to time in part. If less than all the Warrants
represented by a Definitive Warrant are exercised, such Definitive Warrant shall
be surrendered and a new Definitive Warrant of the same tenor and for the number
of Warrants which were not exercised shall be executed by Holdings and delivered
to the Warrant Agent and the Warrant Agent shall countersign the new Definitive
Warrant, registered in such name or names as may be directed in writing by the
holder, and shall deliver the new Definitive Warrant to the Person or Persons
entitled to receive the same. The Warrant Agent shall make such notations on
Schedule A to each Global Warrant as are required to reflect any change in the
number of Warrants represented by such Global Warrant resulting from any
exercise in accordance with the terms hereof.

          4.6.    All Warrant Certificates surrendered upon exercise of Warrants
shall be canceled by the Warrant Agent. Such canceled Warrant Certificates shall
then be disposed of by the Warrant Agent in accordance with its customary
procedures, with evidence of such disposal provided promptly to Holdings. The
Warrant Agent shall account promptly to Holdings with respect to Warrants
exercised and concurrently pay to Holdings all monies received by the Warrant
Agent for the purchase of the Warrant Shares through the exercise of such
Warrants.

                                       11

<PAGE>

          4.7.    The Warrant Agent shall keep copies of this Agreement and any
notices given or received hereunder available for inspection by the holders
during normal business hours at its office. Holdings shall supply the Warrant
Agent from time to time with such numbers of copies of this Agreement as the
Warrant Agent may request.

          SECTION 5.  PAYMENT OF TAXES. Holdings will pay all documentary stamp
taxes attributable to the initial issuance of Warrant Shares upon the exercise
of Warrants; provided, however, that Holdings shall not be required to pay any
tax or taxes which may be payable in respect of any transfer involved in the
issue of any Warrant Certificates or any certificates for Warrant Shares in a
name other than that of the registered holder of a Warrant Certificate
surrendered upon the exercise of a Warrant, and Holdings shall not be required
to issue or deliver such Warrant Certificate or certificates for Warrant Shares
unless or until the person or persons requesting the issuance thereof shall have
paid to Holdings the amount of such tax or shall have established to the
satisfaction of Holdings that such tax has been paid.

          SECTION 6.  RESERVATION OF WARRANT SHARES.

          6.1.    Holdings will at all times reserve and keep available, free
from preemptive rights, out of the aggregate of its authorized but unissued
Class A Common Stock or its authorized and issued Class A Common Stock held in
its treasury, for the purpose of enabling it to satisfy any obligation to issue
Warrant Shares upon exercise of Warrants, the maximum number of shares of Class
A Common Stock which may then be deliverable upon the exercise of all
outstanding Warrants.

          6.2.    Holdings or, if appointed, the transfer agent for the Class A
Common Stock (the "Transfer Agent") and every subsequent transfer agent for any
shares of Holdings' capital stock issuable upon the exercise of any of the
rights of purchase aforesaid will be irrevocably authorized and directed at all
times to reserve such number of authorized shares as shall be required for such
purpose. Holdings will keep a copy of this Agreement on file with the Transfer
Agent and with every subsequent transfer agent for any shares of Holdings'
capital stock issuable upon the exercise of the rights of purchase represented
by the Warrants. The Warrant Agent is hereby irrevocably authorized to
requisition from time to time from such Transfer Agent the stock certificates
required to honor outstanding Warrants upon exercise thereof in accordance with
the terms of this Agreement. Holdings will supply such Transfer Agent with duly
executed certificates for such purposes and will provide or otherwise make
available any cash which may be payable as provided in Section 9. Holdings will
furnish such Transfer Agent a copy of all notices of adjustments and
certificates related thereto, transmitted to each holder pursuant to Section 10
hereof.

          6.3.    Before taking any action which would cause an adjustment
pursuant to Section 8 hereof to reduce the Exercise Price below the then par
value (if any) of the Warrant Shares, Holdings will take any corporate action
which may, in the opinion of its counsel (which may be counsel employed by
Holdings), be necessary in order that Holdings may validly and legally issue
fully paid and nonassessable Warrant Shares at the Exercise Price as so
adjusted.

          6.4.    Holdings covenants that all Warrant Shares which may be issued
upon exercise of Warrants will, upon issue, be fully paid, nonassessable, free
of preemptive rights and free from all taxes (other than as contemplated by
Section 5 hereof), liens, charges and security interests with respect to the
issue thereof.

          SECTION 7.  OBTAINING STOCK EXCHANGE LISTINGS. Holdings will from time
to time take all action which may be necessary so that the Warrant Shares,
immediately upon their issuance upon the exercise of Warrants, will be listed on
the principal securities exchanges and markets within the United States of
America, if any, on which other shares of Class A Common Stock are then listed.

                                       12

<PAGE>

          SECTION 8.  ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES
ISSUABLE. The Exercise Price and the number of Warrant Shares issuable upon the
exercise of each Warrant are subject to adjustment from time to time upon the
occurrence of the events enumerated in this Section 8. For purposes of this
Section 8 "Common Stock" means shares now or hereafter authorized of any class
of common stock of Holdings and any other stock of Holdings, however designated,
that has the right (subject to any prior rights of any class or series of
preferred stock) to participate in any distribution of the assets or earnings of
Holdings without limit as to per share amount.

          8.1.    Adjustment for Change in Capital Stock. If Holdings (i) pays a
dividend or makes a distribution on its Common Stock in shares of its Common
Stock, (ii) subdivides its outstanding shares of Common Stock into a greater
number of shares, (iii) combines its outstanding shares of Common Stock into a
smaller number of shares, (iv) makes a distribution on its Common Stock in
shares of its capital stock other than Common Stock or (v) issues by
reclassification of its Common Stock any shares of its capital stock, then the
Exercise Price in effect immediately prior to such action shall be
proportionately adjusted so that the holder of any Warrant thereafter exercised
may receive the aggregate number and kind of shares of capital stock of Holdings
which he would have owned immediately following such action if such Warrant had
been exercised immediately prior to such action.

          The adjustment shall become effective immediately after the record
date in the case of a dividend or distribution and immediately after the
effective date in the case of a subdivision, combination or reclassification.
If, after an adjustment, a holder of a Warrant upon exercise of it may receive
shares of two or more classes of capital stock of Holdings, Holdings shall
determine the allocation of the adjusted Exercise Price between the classes of
capital stock. After such allocation, the exercise privilege and the Exercise
Price of each class of capital stock shall thereafter be subject to adjustment
on terms comparable to those applicable to Common Stock in this Section 8. Such
adjustment shall be made successively whenever any event listed above shall
occur.

          8.2.    Adjustment for Rights Issue. If Holdings distributes any
rights, options or warrants to all holders of any class of its Common Stock
entitling them for a period expiring within 45 days after the record date
mentioned below to purchase shares of Common Stock at a price per share less
than the Fair Market Value (as defined herein) per share on that record date,
the Exercise Price shall be adjusted in accordance with the formula:

                      O + N x P
                          -----
          E' = E x          M
                  ----------------
                        O + N

where:

    E' =  the adjusted Exercise Price.

    E  =  the current Exercise Price.

    O  =  the number of shares of Class A Common Stock outstanding on the record
          date (including the number of shares of Class A Common Stock issuable
          upon exercise, conversion or exchange of securities outstanding and
          vested on the date hereof convertible or exchangeable for Class A
          Common Stock on the date hereof).

    N  =  the number of additional shares of Common Stock offered.

    P  =  the offering price per share of the additional shares.

                                       13

<PAGE>

    M  =  the Fair Market Value per share of Class A Common Stock on the record
          date.

          The adjustment shall be made successively whenever any such rights,
options or warrants are issued and shall become effective immediately after the
record date for the determination of stockholders entitled to receive the
rights, options or warrants. If at the end of the period during which such
rights, options or warrants are exercisable, not all rights, options or warrants
shall have been exercised, the Exercise Price shall be immediately readjusted to
what it would have been if "N" in the above formula had been the number of
shares actually issued.

          8.3.    Adjustment for Other Distributions. If Holdings distributes to
all holders of any class of its Common Stock any of its assets or debt
securities or any rights or warrants to purchase debt securities, assets or
other securities of Holdings, the Exercise Price shall be adjusted in accordance
with the formula:

          E' = E x M - F
                   -----
                     M

where:

    E' =  the adjusted Exercise Price.

    E  =  the current Exercise Price.

    M  =  the Fair Market Value per share of Class A Common Stock on the record
          date mentioned below.

    F  =  the fair market value on the record date of the assets, securities,
          rights or warrants to be distributed in respect of one share of Common
          Stock as determined in good faith by the Board of Directors of
          Holdings (the "Board of Directors").

                  The adjustment shall be made successively whenever any such
distribution is made and shall become effective immediately after the record
date for the determination of stockholders entitled to receive the distribution.

                  This Section 8.3 does not apply to cash dividends or cash
distributions paid out of consolidated current or retained earnings as shown on
the books of Holdings prepared in accordance with generally accepted accounting
principles. Also, this Section 8.3 does not apply to rights, options or warrants
referred to in Section 8.2 hereof.

          8.4.    Adjustment for Common Stock Issue. If Holdings issues shares
of Common Stock for a consideration per share less than the Fair Market Value
per share on the date Holdings fixes the offering price of such additional
shares, the Exercise Price shall be adjusted in accordance with the formula:

                         P
                         -
          E' = E x O  +  M
                   -------
                      A
where:

    E' =  the adjusted Exercise Price.

                                       14

<PAGE>

    E =   the then current Exercise Price.

    O =   the number of shares of Class A Common Stock outstanding immediately
          prior to the issuance of such additional shares (including the number
          of shares of Class A Common Stock issuable upon exercise, conversion
          or exchange of securities outstanding and vested on the date hereof
          convertible or exchangeable for Class A Common Stock on the date
          hereof).

    P =   the aggregate consideration received for the issuance of such
          additional shares.

    M =   the Fair Market Value per share of Class A Common Stock on the date of
          issuance of such additional shares.

    A =   the number of shares of Class A Common Stock outstanding immediately
          after the issuance of such additional shares (including the number of
          shares of Class A Common Stock issuable upon exercise, conversion or
          exchange of securities outstanding and vested on the date hereof
          convertible or exchangeable for Class A Common Stock on the date
          hereof).

          The adjustment shall be made successively whenever any such issuance
is made, and shall become effective immediately after such issuance.

          This Section 8.4 does not apply to:

                  (i)    any of the transactions described in Sections 8.2 and
          8.3 hereof,

                  (ii)   the exercise of warrants, or the conversion or exchange
          of other securities convertible or exchangeable, for Common Stock,

                  (iii)  Common Stock issued to Holdings' employees under bona
          fide employee benefit plans adopted by the Board of Directors and
          approved by the holders of Common Stock when required by law, if such
          Common Stock would otherwise be covered by this subsection (d) (but
          only to the extent that the aggregate number of shares excluded hereby
          and issued after the date of this Warrant Agreement shall not exceed
          15% of the Common Stock outstanding at the time of the adoption or
          amendment of each such plan, exclusive of antidilution adjustments
          thereunder),

                  (iv)   Common Stock issued upon the exercise of rights or
          warrants issued to the holders of Common Stock,

                  (v)    Common Stock issued to shareholders of any person which
          merges into Holdings in proportion to their stock holdings of such
          person immediately prior to such merger, upon such merger, or

                  (vi)   the issuance of shares of Common Stock pursuant to
          rights, options or warrants which were originally issued in a
          Non-Affiliate Sale (as defined below) together with one or more other
          securities as part of a unit at a price per unit.

          8.5.    Adjustment for Convertible Securities Issue. If Holdings
issues any securities convertible into or exchangeable for Common Stock (other
than securities issued in transactions described in Sections 8.2 and 8.3 hereof)
for a consideration per share of Common Stock initially deliverable upon

                                       15

<PAGE>

conversion or exchange of such securities less than the Fair Market Value per
share on the date of issuance of such securities, the Exercise Price shall be
adjusted in accordance with this formula:

                        P
                        -
          E' = E x  O + M
                    -----
                    O + D

where:

    E' =  the adjusted Exercise Price.

    E  =  the then current Exercise Price.

    O  =  the number of shares of Class A Common Stock outstanding immediately
          prior to the issuance of such securities (including the number of
          shares of Class A Common Stock issuable upon exercise, conversion or
          exchange of securities outstanding and vested on the date hereof
          convertible or exchangeable for Class A Common Stock on the date
          hereof).

    P  =  the aggregate consideration received for the issuance of such
          securities.

    M  =  the Fair Market Value per share of Class A Common Stock on the date of
          issuance of such securities.

    D  =  the maximum number of shares deliverable upon conversion or in
          exchange for such securities at the initial conversion or exchange
          rate.

          The adjustment shall be made successively whenever any such issuance
is made, and shall become effective immediately after such issuance.

          If all of the Common Stock deliverable upon conversion or exchange of
such securities have not been issued when such securities are no longer
outstanding, then the Exercise Price shall promptly be readjusted to the
Exercise Price which would then be in effect had the adjustment upon the
issuance of such securities been made on the basis of the actual number of
shares of Common Stock issued upon conversion or exchange of such securities.

          This Section 8.5 does not apply to convertible securities issued to
shareholders of any Person which merges into Holdings, or with a subsidiary of
Holdings, in proportion to their stock holdings of such Person immediately prior
to such merger, upon such merger.

          8.6.    Consideration Received. For purposes of any computation
respecting consideration received pursuant to Sections 8.4 and 8.5 hereof the
following shall apply:

                  (i)    in the case of the issuance of shares of Common Stock
          for cash, the consideration shall be the amount of such cash, provided
          that in no case shall any deduction be made for any commissions,
          discounts or other expenses incurred by Holdings for any underwriting
          of the issue or otherwise in connection therewith;

                  (ii)   in the case of the issuance of shares of Common Stock
          for a consideration in whole or in part other than cash, the
          consideration other than cash shall be deemed to be the fair market
          value thereof as determined in good faith by the Board of

                                       16

<PAGE>

          Directors (irrespective of the accounting treatment thereof), whose
          determination shall be conclusive, and described in a Board resolution
          which shall be filed with the Warrant Agent; and

                  (iii)  in the case of the issuance of securities convertible
          into or exchangeable for shares of Common Stock, the aggregate
          consideration received therefor shall be deemed to be the
          consideration received by Holdings for the issuance of such securities
          plus the additional consideration, if any, to be received by Holdings
          upon the conversion or exchange thereof (the consideration in each
          case to be determined in the same manner as provided in clauses (i)
          and (ii) of this Section 8.6).

          8.7.    Fair Market Value. For purposes of this Agreement, "Fair
Market Value" means: (A) the average over the 10 trading days ending on the date
immediately preceding the date of such determination of the last reported sale
price, or, if no such sale takes place on any such day, the closing bid price,
in either case as reported for consolidated transactions on the principal
national securities exchange (including the NASDAQ National Market) on which
such security is listed or admitted for trading; provided, however, that if any
event that results in an adjustment of the Exercise Price occurs during the
period beginning on the first day of such 10-day period and ending on the date
immediately preceding the date of determination, the Fair Market Value as
determined pursuant to the foregoing will be appropriately adjusted to reflect
the occurrence of such event or (B) if such security is not listed on any
exchange or admitted for trading on the NASDAQ Stock Market, the Fair Market
Value shall be (1) in connection with a sale to a party that is not an Affiliate
of Holdings in an arm's length transaction (a "Non-Affiliate Sale"), the price
per security at which such security is sold and (2) in connection with any sale
to an Affiliate of Holdings, (a) the last price per security at which such
security was sold in a Non-Affiliate Sale within the three-month period
preceding such date of determination or (b) if clause (a) is not applicable, the
fair market value of such security determined in good faith by (i) a majority of
the Board of Directors, including a majority of the Disinterested Directors, and
approved in a board resolution delivered to the Warrant Agent or (ii) a
nationally recognized investment banking, appraisal or valuation firm, which is
not an Affiliate of Holdings, in each case, taking into account, among other
factors deemed relevant by the Board of Directors or such investment banking,
appraisal or valuation firm, the trading price and volume of such security on
any national securities exchange or automated quotation system on which such
security is traded.

          8.8.    When De Minimis Adjustment May Be Deferred. No adjustment in
the Exercise Price need be made unless the adjustment would require an increase
or decrease of at least 1.0% in the Exercise Price. Any adjustments that are not
made shall be carried forward and taken into account in any subsequent
adjustment. All calculations under this Section 8 shall be made to the nearest
cent or to the nearest 1/100th of a share, as the case may be.

          8.9.    When No Adjustment Required. No adjustment need be made for a
transaction referred to Sections 8.1, 8.2, 8.3, 8.4 or 8.5 hereof, if holders
are to participate in the transaction on a basis and with notice that the Board
of Directors determines to be fair and appropriate in light of the basis and
notice on which holders of Class A Common Stock participate in the transaction.
No adjustment need be made for (i) rights to purchase Class A Common Stock
pursuant to a Holdings plan for reinvestment of dividends or interest or (ii) a
change in the par value or no par value of the Class A Common Stock. To the
extent the Warrants become convertible into cash, no adjustment need be made
thereafter as to the cash. Interest will not accrue on the cash.

          8.10.   Notice of Adjustment. Whenever the Exercise Price is adjusted,
Holdings shall provide the notices required by Section 10 hereof.

                                       17

<PAGE>

          8.11.   Voluntary Reduction. Holdings from time to time may reduce the
Exercise Price by any amount for any period of time, if the period is at least
20 days and if the reduction is irrevocable during the period; provided that in
no event may the Exercise Price be less than the par value of a share of Class A
Common Stock. Whenever the Exercise Price is reduced, Holdings shall mail to
holders a notice of the reduction. Holdings shall mail the notice at least 15
days before the date the reduced Exercise Price takes effect. The notice shall
state the reduced Exercise Price and the period for which it will be in effect.
A reduction of the Exercise Price does not change or adjust the Exercise Price
otherwise in effect for purposes of Sections 8.1, 8.2, 8.3, 8.4 and 8.5 hereof.

          8.12.   Notice of Certain Transactions. If (i) Holdings takes any
action that would require an adjustment in the Exercise Price pursuant to
Sections 8.1, 8.2, 8.3, 8.4 and 8.5 hereof and if Holdings does not arrange for
Warrant holders to participate pursuant to Section 8.9 hereof, (ii) Holdings
takes any action that would require a supplemental Warrant Agreement pursuant to
Section 8.13 hereof or (iii) there is a liquidation or dissolution of Holdings,
then Holdings shall mail to Warrant holders a notice stating the proposed record
date for a dividend or distribution or the proposed effective date of a
subdivision, combination, reclassification, consolidation, merger, transfer,
lease, liquidation or dissolution. Holdings shall mail the notice at least 15
days before such date. Failure to mail the notice or any defect in it shall not
affect the validity of the transaction.

          8.13.   Reorganization of Holdings. If Holdings consolidates or merges
with or into, or transfers or leases all or substantially all its assets to, any
person, upon consummation of such transaction the Warrants shall automatically
become exercisable for the kind and amount of securities, cash or other assets
which the holder of a Warrant would have owned immediately after the
consolidation, merger, transfer or lease if the holder had exercised the Warrant
immediately before the effective date of the transaction. Concurrently with the
consummation of such transaction, the corporation formed by or surviving any
such consolidation or merger if other than Holdings, or the person to which such
sale or conveyance shall have been made, shall enter into a supplemental Warrant
Agreement so providing and further providing for adjustments which shall be as
nearly equivalent as may be practical to the adjustments provided for in this
Section 8.13. The successor company shall mail to Warrant holders a notice
describing the supplemental Warrant Agreement. If the issuer of securities
deliverable upon exercise of Warrants under the supplemental Warrant Agreement
is an affiliate of the formed, surviving, transferee or lessee corporation, that
issuer shall join in the supplemental Warrant Agreement. If this Section 8.13
applies, Sections 8.1, 8.2, 8.3, 8.4 and 8.5 hereof do not apply.

          8.14.   Holdings' Determination Final. Any determination that Holdings
or the Board of Directors make pursuant to Section 8.1, 8.2, 8.3, 8.4, 8.5, 8.6,
8.7 or 8.8 hereof is conclusive.

          8.15.   Warrant Agent's Disclaimer. The Warrant Agent has no duty to
determine when an adjustment under this Section 8 should be made, how it should
be made or what it should be. The Warrant Agent has no duty to determine whether
any provisions of a supplemental Warrant Agreement under Section 8.13 hereof are
correct. The Warrant Agent makes no representation as to the validity or value
of any securities or assets issued upon exercise of Warrants. The Warrant Agent
shall not be responsible for Holdings' failure to comply with this Section 8.

          8.16.   When Issuance or Payment May Be Deferred. In any case in which
this Section 8 shall require that an adjustment in the Exercise Price be made
effective as of a record date for a specified event, Holdings may elect to defer
until the occurrence of such event (i) issuing to the holder of any Warrant
exercised after such record date the Warrant Shares and other capital stock of
Holdings, if any, issuable upon such exercise over and above the Warrant Shares
and other capital stock of Holdings, if any, issuable upon such exercise on the
basis of the Exercise Price and (ii) paying to such holder any amount in cash in
lieu of a fractional share pursuant to Section 9 hereof; provided that Holdings
shall

                                       18

<PAGE>

deliver to such holder a due bill or other appropriate instrument evidencing
such holder's right to receive such additional Warrant Shares, other capital
stock and cash upon the occurrence of the event requiring such adjustment.

          8.17.   Adjustment in Number of Shares. Upon each adjustment of the
Exercise Price pursuant to this Section 8, each Warrant outstanding prior to the
making of the adjustment in the Exercise Price shall thereafter evidence the
right to receive upon payment of the adjusted Exercise Price that number of
shares of Class A Common Stock (calculated to the nearest hundredth) obtained
from the following formula:

          N' = N x        E
                  ------------------
                          E'

where:

    N' =  the adjusted number of Warrant Shares issuable upon exercise of a
          Warrant by payment of the adjusted Exercise Price.

    N  =  the number or Warrant Shares previously issuable upon exercise of a
          Warrant by payment of the Exercise Price prior to adjustment.

    E' =  the adjusted Exercise Price.

    E  =  the Exercise Price prior to adjustment.

          8.18.   Form of Warrants. Irrespective of any adjustments in the
Exercise Price or the number or kind of shares purchasable upon the exercise of
the Warrants, Warrants theretofore or thereafter issued may continue to express
the same price and number and kind of shares as are stated in the Warrants
initially issuable pursuant to this Agreement.

          SECTION 9.  FRACTIONAL INTERESTS. Holdings shall not be required to
issue fractional Warrant Shares on the exercise of Warrants. If more than one
Warrant shall be presented for exercise in full at the same time by the same
holder, the number of full Warrant Shares which shall be issuable upon the
exercise thereof shall be computed on the basis of the aggregate number of
Warrant Shares purchasable on exercise of the Warrants so presented. If any
fraction of a Warrant Share would, except for the provisions of this Section 9,
be issuable on the exercise of any Warrants (or specified portion thereof),
Holdings shall pay an amount in cash equal to the Exercise Price on the day
immediately preceding the date the Warrant is presented for exercise, multiplied
by such fraction.

          SECTION 10. NOTICES TO WARRANT HOLDERS. Upon any adjustment of the
Exercise Price pursuant to Section 8, Holdings shall promptly thereafter (i)
cause to be filed with the Warrant Agent a certificate of a firm of independent
public accountants of recognized standing selected by the Board of Directors
(who may be the regular auditors of Holdings) setting forth the Exercise Price
after such adjustment and setting forth in reasonable detail the method of
calculation and the facts upon which such calculations are based and setting
forth the number of Warrant Shares (or portion thereof) issuable after such
adjustment in the Exercise Price, upon exercise of a Warrant and payment of the
adjusted Exercise Price, which certificate shall be conclusive evidence of the
correctness of the matters set forth therein, and (ii) cause to be given to each
of the holders of the Warrants at his address appearing on the Warrant register
written notice of such adjustments by first-class mail, postage prepaid. Where
appropriate, such notice may be given in advance and included as a part of the
notice required to be mailed under the other provisions of this Section 10.

                                       19

<PAGE>

          In case:

          (a)     Holdings shall authorize the issuance to all holders of any
class of Common Stock of rights, options or warrants to subscribe for or
purchase shares of Common Stock or of any other subscription rights or warrants;
or

          (b)     Holdings shall authorize the distribution to all holders of
any class of Common Stock of evidences of its indebtedness or assets (other than
cash dividends or cash distributions payable out of consolidated earnings or
earned surplus or dividends payable in shares of Common Stock or distributions
referred to in Section 8.1 hereof); or

          (c)     of any consolidation or merger to which Holdings is a party
and for which approval of any shareholders of Holdings is required, or of the
conveyance or transfer of the properties and assets of Holdings substantially as
an entirety, or of any reclassification or change of Common Stock issuable upon
exercise of the Warrants (other than a change in par value, or from par value to
no par value, or from no par value to par value, or as a result of a subdivision
or combination), or a tender offer or exchange offer for shares of Common Stock;
or

          (d)     of the voluntary or involuntary dissolution, liquidation or
winding up of Holdings; or

          (e)     Holdings proposes to take any action (other than actions of
the character described in Section 8.1) which would require an adjustment of the
Exercise Price pursuant to Section 8, then Holdings shall cause to be filed with
the Warrant Agent and shall cause to be given to each of the holders at his
address appearing on the Warrant register, at least 20 days (or 10 days in any
case specified in clauses (a) or (b) above) prior to the applicable record date
hereinafter specified, or promptly in the case of events for which there is no
record date, by first-class mail, postage prepaid, a written notice stating (i)
the date as of which the holders of record of shares of Common Stock to be
entitled to receive any such rights, options, warrants or distribution are to be
determined, or (ii) the initial expiration date set forth in any tender offer or
exchange offer for shares of Common Stock, or (iii) the date on which any such
consolidation, merger, conveyance, transfer, dissolution, liquidation or winding
up is expected to become effective or consummated, and the date as of which it
is expected that holders of record of shares of Common Stock shall be entitled
to exchange such shares for securities or other property, if any, deliverable
upon such reclassification, consolidation, merger, conveyance, transfer,
dissolution, liquidation or winding up.

          Holdings shall cause to be filed with the Warrant Agent and shall
cause to be given to each of the holders at its address appearing on the Warrant
register a written notice of the existence, and any subsequent suspension or
termination, of a Registered Period.

          The failure to give any notice required by this Section 10 or any
defect therein shall not affect the legality or validity of any distribution,
right, option, warrant, consolidation, merger, conveyance, transfer,
dissolution, liquidation or winding up, or the vote upon any action.

          Nothing contained in this Agreement or in any of the Warrant
Certificates shall be construed as conferring upon the holders thereof the right
to vote or to consent or to receive notice as shareholders in respect of the
meetings of shareholders or the election of Directors of Holdings or any other
matter, or any rights whatsoever as shareholders of Holdings.

                                       20

<PAGE>

          SECTION 11. MERGER, CONSOLIDATION OR CHANGE OF NAME OF WARRANT AGENT.
Any corporation into which the Warrant Agent may be merged or with which it may
be consolidated, or any corporation resulting from any merger or consolidation
to which the Warrant Agent shall be a party, or any corporation or association
succeeding to all or substantially all of the stock transfer business of the
Warrant Agent, shall be the successor to the Warrant Agent hereunder without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, provided that such corporation would be eligible for appointment
as a successor warrant agent under the provisions of Section 13. In case at the
time such successor to the Warrant Agent shall succeed to the agency created by
this Agreement, and in case at that time any of the Warrant Certificates shall
have been countersigned but not delivered, any such successor to the Warrant
Agent may adopt the countersignature of the original Warrant Agent; and in case
at that time any of the Warrant Certificates shall not have been countersigned,
any successor to the Warrant Agent may countersign such Warrant Certificates
either in the name of the predecessor Warrant Agent or in the name of the
successor to the Warrant Agent; and in all such cases such Warrant Certificates
shall have the full force and effect provided in the Warrant Certificates and in
this Agreement.

          In case at any time the name of the Warrant Agent shall be changed and
at such time any of the Warrant Certificates shall have been countersigned but
not delivered, the Warrant Agent whose name has been changed may adopt the
countersignature under its prior name, and in case at that time any of the
Warrant Certificates shall not have been countersigned, the Warrant Agent may
countersign such Warrant Certificates either in its prior name or in its changed
name, and in all such cases such Warrant Certificates shall have the full force
and effect provided in the Warrant Certificates and in this Agreement.

          SECTION 12. WARRANT AGENT. The Warrant Agent undertakes the duties and
obligations explicitly imposed by this Agreement (and no implied duties or
obligations shall be read into this Agreement against the Warrant Agent) upon
the following terms and conditions, by all of which Holdings and the holders of
Warrants, by their acceptance thereof, shall be bound:

          (a)     The statements contained herein and in the Warrant
Certificates shall be taken as statements of Holdings and the Warrant Agent
assumes no responsibility for the correctness of any of the same except such as
describe the Warrant Agent or action taken or to be taken by it. The Warrant
Agent assumes no responsibility with respect to the distribution of the Warrant
Certificates except as herein otherwise provided.

          (b)     The Warrant Agent shall not be responsible for any failure of
Holdings to comply with any of the covenants contained in this Agreement or in
the Warrant Certificates to be complied with by Holdings.

          (c)     The Warrant Agent may consult at any time with counsel
satisfactory to it (who may be counsel for Holdings) and the Warrant Agent shall
incur no liability or responsibility to Holdings or to any holder of any Warrant
Certificate in respect of any action taken, suffered or omitted by it hereunder
in good faith and in accordance with the opinion or the advice of such counsel.

          (d)     (i)    The Warrant Agent shall incur no liability or
                         responsibility to Holdings or to any holder of any
                         Warrant Certificate for any action taken in reliance on
                         any Warrant Certificate, certificate of shares, notice,
                         resolution, waiver, consent, order, certificate, or
                         other paper, document or instrument believed by it to
                         be genuine and to have been signed, sent or presented
                         by the proper party or parties.

                                       21

<PAGE>

                  (ii)   No provision of this Agreement shall require the
                         Warrant Agent to expend or risk its own funds or
                         otherwise incur any financial liability in the
                         performance of any of its duties or in the exercise of
                         its rights hereunder if there shall be reasonable
                         grounds for believing that repayment of such funds or
                         adequate indemnification against such risk or liability
                         is not reasonably assured to it.

                  (iii)  Notwithstanding anything in this Agreement to the
                         contrary, in no event shall the Warrant Agent be liable
                         for special, indirect, punitive or consequential loss
                         or damage of any kind whatsoever (including, but not
                         limited to, lost profits), even if the Warrant Agent
                         has been advised of the likelihood of the loss or
                         damage and regardless of the form of action.

                  (iv)   The provisions of this Section 12(d) shall survive the
                         expiration of the Warrants and the termination of this
                         Agreement.

          (e)     Holdings agrees to pay to the Warrant Agent such compensation
as shall be agreed to in writing between Holdings and the Warrant Agent for all
services rendered by the Warrant Agent in the execution of this Agreement, to
reimburse the Warrant Agent for all expenses, taxes and governmental charges and
other charges of any kind and nature incurred by the Warrant Agent in the
execution of this Agreement and to indemnify the Warrant Agent and save it
harmless against any and all liabilities, including judgments, costs and
reasonable counsel fees and expenses, for anything done or omitted by the
Warrant Agent in the execution of this Agreement except as a result of its gross
negligence or bad faith. The provisions of this Section 12(e) shall survive the
expiration of the Warrants and the termination of this Agreement.

          (f)     Holdings shall indemnify the Warrant Agent against any and all
losses, liabilities or expenses incurred by it arising out of or in connection
with the acceptance or administration of its duties under this Warrant
Agreement, including the costs and expenses of enforcing this Warrant Agreement
against Holdings (including this Section 12(f)) and defending itself against any
claim (whether asserted by Holdings or any holder or any other person) or
liability in connection with the exercise or performance of any of its powers or
duties hereunder, except to the extent any such loss, liability or expense may
be attributable to its gross negligence or bad faith. The Warrant Agent shall
notify Holdings promptly of any claim for which it may seek indemnity. Failure
by the Warrant Agent to so notify Holdings shall not relieve Holdings of its
obligations hereunder. Holdings shall defend the claim and the Warrant Agent
shall cooperate in the defense. The Warrant Agent may have separate counsel and
Holdings shall pay for reasonable fees and expenses of such counsel. Holdings
need not pay for any settlement made without its consent, which consent shall
not be unreasonably withheld. All rights of action under this Agreement or under
any of the Warrants may be enforced by the Warrant Agent without the possession
of any of the Warrant Certificates or the production thereof at any trial or
other proceeding relative thereto, and any such action, suit or proceeding
instituted by the Warrant Agent shall be brought in its name as Warrant Agent
and any recovery of judgment shall be for the ratable benefit of the registered
holders of the Warrants, as their respective rights or interests may appear. The
provisions of this Section 12(f) shall survive the expiration of the Warrants
and the termination of this Agreement.

          (g)     The Warrant Agent, and any stockholder, director, officer or
employee of it, may buy, sell or deal in any of the Warrants or other securities
of Holdings or become pecuniarily interested in any transaction in which
Holdings may be interested, or contract with or lend money to Holdings or
otherwise act as fully and freely as though it were not Warrant Agent under this
Agreement. Nothing herein shall preclude the Warrant Agent from acting in any
other capacity for Holdings or for any other legal entity.

                                       22

<PAGE>

          (h)     The Warrant Agent shall act hereunder solely as agent for
Holdings, and its duties shall be determined solely by the provisions hereof.
The Warrant Agent shall not be liable for anything which it may do or refrain
from doing in connection with this Agreement except for its own gross negligence
or bad faith.

          (i)     The Warrant Agent shall not at any time be under any duty or
responsibility to any holder of any Warrant Certificate to make or cause to be
made any adjustment of the Exercise Price or number of the Warrant Shares or
other securities or property deliverable as provided in this Agreement, or to
determine whether any facts exist which may require any of such adjustments, or
with respect to the nature or extent of any such adjustments, when made, or with
respect to the method employed in making the same. The Warrant Agent shall not
be accountable with respect to the validity or value or the kind or amount of
any Warrant Shares or of any securities or property which may at any time be
issued or delivered upon the exercise of any Warrant or with respect to whether
any such Warrant Shares or other securities will when issued be validly issued
and fully paid and non-assessable, and makes no representation with respect
thereto.

          (j)     The Warrant Agent may assume that any Warrant exercised is
permitted to be exercised under applicable law and shall have no liability for
acting in reliance upon such assumption; provided, however, that the Warrant
Agent may not accept payment of the Exercise Price in cash, by wire transfer or
by certified or official bank check payable to the order of Holdings unless the
Warrant Agent shall have received written notice from Holdings pursuant to
Section 4.2 hereof that a Registered Period is in existence.

          SECTION 13. CHANGE OF WARRANT AGENT.

          The Warrant Agent may resign and be discharged from its duties under
this Agreement by giving to Holdings written notice of its intention to resign
30 days in advance of the intended effective date of such resignation. The
Warrant Agent may be removed by like notice to the Warrant Agent from Holdings,
such notice to specify the date on which the removal is to be effected. If the
Warrant Agent shall resign or be removed or otherwise become incapable of acting
as Warrant Agent, Holdings shall appoint a successor to such Warrant Agent. If
Holdings shall fail to make such appointment within a period of 30 days after
such removal or it has been notified in writing of such resignation or
incapacity by the Warrant Agent or by the registered holder of a Warrant
Certificate, then the registered holder of any Warrant Certificate or, in the
case of any such resignation or incapacity, the Warrant Agent, may, at the
expense of Holdings, apply to any court of competent jurisdiction for the
appointment of a successor to the Warrant Agent. Any successor Warrant Agent,
whether appointed by Holdings or any such court, shall be a bank or trust
company, in good standing, incorporated under the laws of the United States of
America or any state thereof and having at the time of its appointment as
Warrant Agent a combined capital and surplus of at least $100,000,000. Pending
appointment of a successor to such Warrant Agent, either by Holdings or by such
a court, the duties of the Warrant Agent shall be carried out by Holdings. The
holders of a majority of the unexercised Warrants shall be entitled at any time
to remove the Warrant Agent and appoint a successor to such Warrant Agent. Such
successor to the Warrant Agent need not be approved by Holdings or the former
Warrant Agent. After appointment the successor to the Warrant Agent shall be
vested with the same powers, rights, duties and responsibilities as if it had
been originally named as Warrant Agent without further act or deed; but the
former Warrant Agent shall deliver and transfer to the successor to the Warrant
Agent any property at the time held by it hereunder and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Failure to
give any notice provided for in this Section 13, however, or any defect therein,
shall not affect the legality or validity of the appointment of a successor to
the Warrant Agent. Any successor Warrant Agent shall mail, by first class mail,
postage prepaid, to each registered holder of a Warrant Certificate at his
address appearing on the Warrant register written notice of its succession as
Warrant Agent.

                                       23

<PAGE>

          SECTION 14. REGISTRATION. Holders shall be able to exercise their
Warrants only if a registration statement relating to the Warrant Shares is then
in effect, or the exercise of such Warrants is exempt from the registration
requirements of the Securities Act, and such securities are qualified for sale
or exempt from qualification under the applicable securities laws of the states
in which the various holders of the Warrants or other persons to whom it is
proposed that the Warrant Shares be issued on exercise of the Warrants reside.

          SECTION 15. REPORTS.

          (a)     Whether or not required by the rules and regulations of the
Commission, so long as any Warrants are outstanding, Holdings shall furnish to
the Warrant Agent and the holders of Warrants (i) all quarterly and annual
financial information that would be required to be contained in a filing with
the Commission on Forms 10-Q and 10-K if Holdings were required to file such
Forms, including a "Management's Discussion and Analysis of Financial Condition
and Results of Operations" and, with respect to the annual information only, a
report thereon by Holdings' certified independent accountants and (ii) all
current reports that would be required to be filed with the Commission on Form
8-K if Holdings were required to file such reports. In addition, whether or not
required by the rules and regulations of the Commission, Holdings shall file a
copy of all such information and reports with the Commission for public
availability (unless the Commission shall not accept such a filing) and make
such information available to securities analysts and prospective investors upon
request.

          (b)     Holdings shall provide the Warrant Agent with a sufficient
number of copies of all such reports that the Warrant Agent may be required to
deliver to the holders of the Warrants under this Section 15.

          SECTION 16. REGISTRATION RIGHTS.

          (a)     Shelf Registration.

                  (1)    Subject to the terms and conditions of this Agreement,
Holdings will use its Commercially Reasonable Efforts to (i) prepare and file
with the Commission a Shelf Registration Statement covering the Registrable
Securities on Form S-3 or other appropriate form within 90 days after the date
hereof, (ii) cause such Shelf Registration Statement to be declared effective by
the Commission within 180 days from the date hereof and (iii) keep effective
such Shelf Registration Statement until the earlier of the second anniversary of
the date on which such Shelf Registration Statement is declared effective by the
Commission or such time as all Warrants have been exercised and all Warrant
Shares have been issued in respect thereof.

                  (2)    Notwithstanding anything to the contrary herein,
Holdings may delay the effectiveness of any registration statement, or suspend
offers and sales under any effective registration statement, at any time and for
any period (any of the foregoing, a "Black Out Period"), if (i) such action is
required by applicable law, (ii) the effectiveness of any registration statement
or the continuation of offers and sales under any effective registration
statement would require Holdings to disclose a material financing, acquisition
or other transaction, and the Board of Directors (or where due to the nature of
the circumstances, timely consultation with the Board of Directors is not, in
the good faith determination of the Chairman of the Board, the Chief Executive
Officer or the Chief Financial Officer of Holdings, possible, then such officer)
shall have determined in good faith that such disclosure is not in the best
interests of Holdings and the holders of its outstanding Class A Common Stock,
or (iii) the Board of Directors (or where due to the nature of the
circumstances, timely consultation with the Board of Directors is not, in the
good faith determination of the Chairman of the Board, the Chief Executive
Officer or the Chief Financial Officer of Holdings, possible, then such officer)
shall have determined in

                                       24

<PAGE>

good faith that there is a valid business purpose or reason for such delay or
suspension. Holdings shall promptly notify the Warrant Agent, who shall in turn
promptly notify the holders, of any suspension of offers and sales under any
effective registration statement. Any such suspension period shall commence upon
notice by Holdings to the Warrant Agent and shall continue until Holdings
notifies the Warrant Agent that offers and sales may be resumed.

          (b)     Additional Registration Procedures.

          Subject to the terms and conditions of this Agreement, Holdings will,
as expeditiously as reasonably possible and at its expense:

                  (1)    prepare and file with the Commission such amendments
and supplements to the Shelf Registration Statement and the prospectus used in
connection therewith as may be necessary to keep such registration statement
effective for the period set forth in Section 16(a)(1) hereof, and otherwise as
may be necessary to comply with the provisions of the Securities Act and the
rules and regulations thereunder with respect to the issuance of all Registrable
Securities covered by such registration statement;

                  (2)    use its Commercially Reasonable Efforts to register or
qualify such Registrable Securities under such other securities or blue sky laws
of such jurisdictions as may be necessary to issue the Registrable Securities
(provided that Holdings will 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 16(b)(2), (ii) subject itself to taxation in any such
jurisdiction where it would not otherwise be subject to taxation but for this
Section 16(b)(2) or (iii) consent to general service of process in any such
jurisdiction where it would not otherwise be required to so consent but for this
Section 16(b)(2));

                  (3)    use its Commercially Reasonable Efforts to cause the
Registrable Securities to be registered with or approved by such other
governmental agencies or authorities as may be necessary by virtue of the
business and operations of Holdings to enable Holdings to issue the Registrable
Securities;

                  (4)    cause all such Registrable Securities to be registered
under the Exchange Act;

                  (5)    cause a CUSIP number to be provided for such
Registrable Securities;

                  (6)    provide and maintain a transfer agent and registrar for
all of such Registrable Securities;

                  (7)    cause all such Registrable Securities to be listed on
the Nasdaq National Market or any national securities exchange on which Class A
Common Stock is then listed;

                  (8)    promptly notify the Warrant Agent, who shall in turn
promptly notify the holders, of the time when such registration statement has
become effective or a supplement to any prospectus forming a part of such
registration statement has been filed;

                  (9)    notify the Warrant Agent, who shall in turn promptly
notify the holders, of any request by the Commission for the amending or
supplementing of such registration statement or prospectus or for additional
information;

                                       25

<PAGE>

                  (10)   prepare and file with the Commission and promptly
notify the Warrant Agent, who shall in turn promptly notify the holders, of the
filing of such amendment or supplement to such registration statement or
prospectus as may, in the reasonable judgment of Holdings, be necessary or
advisable; and

                  (11)   advise the Warrant Agent, who shall in turn promptly
advise the holders, promptly after it shall receive notice of the issuance of
any stop order by the Commission suspending the effectiveness of such
registration statement.

          (c)     Registration Expenses.

          All expenses incident to Holdings' performance of or compliance with
this Agreement, including all registration and filing fees, fees and expenses of
compliance with securities or blue sky laws (including fees and disbursements of
counsel in connection with blue sky qualifications of the Registrable
Securities), printing expenses, messenger and delivery expenses, internal
expenses (including all salaries and expenses of its officers and employees
performing legal or accounting duties), the fees and expenses incurred in
connection with the listing of the securities to be registered on the Nasdaq
National Market or any national securities exchange on which Class A Common
Stock is then listed, and fees and disbursements of counsel for Holdings and its
independent certified public accountants (including the expenses of any special
audit or comfort letters required by or incident to such performance),
Securities Act liability insurance (if Holdings elects to obtain such
insurance), the fees and expenses of any special experts retained by Holdings in
connection with such registration, and fees and expenses of other persons
retained by Holdings in connection with each registration hereunder will be
borne by Holdings.

          SECTION 17. NOTICES TO HOLDINGS AND WARRANT AGENT. Any notice or
demand authorized by this Agreement to be given or made by the Warrant Agent or
by the registered holder of any Warrant Certificate to or on Holdings shall be
sufficiently given or made when and if deposited in the mail, first class or
registered, postage prepaid, addressed (until another address is filed in
writing by Holdings with the Warrant Agent), as follows:

          XM Satellite Radio Holdings Inc.
          1500 Eckington Place, N.E.
          Washington, DC 20002
          Attention: Joseph M. Titlebaum, Esq.

          In case Holdings shall fail to maintain such office or agency or shall
fail to give such notice of the location or of any change in the location
thereof, presentations may be made and notices and demands may be served at the
principal office of the Warrant Agent.

          Any notice pursuant to this Agreement to be given by Holdings or by
the registered holder(s) of any Warrant Certificate to the Warrant Agent shall
be sufficiently given when and if deposited in the mail, first-class or
registered, postage prepaid, addressed (until another address is filed in
writing by the Warrant Agent with Holdings) to the Warrant Agent as follows:

          The Bank of New York
          101 Barclay Street, Floor 8 West
          New York, NY 10286
          Attention: Corporate Trust Administration

          SECTION 18. SUPPLEMENTS AND AMENDMENTS. From time to time, Holdings
and the Warrant Agent, without consent of the holders of the Warrants, may amend
or supplement the Warrant

                                       26

<PAGE>

Agreement for certain purposes, including curing defects or inconsistencies or
making changes that do not materially adversely affect the rights of any holder.
Any amendment or supplement to the Warrant Agreement that has a material adverse
effect on the interests of the holders of the Warrants requires the written
consent of the holders of a majority of the then outstanding Warrants. The
consent of each holder of the Warrants is required for any amendment pursuant to
which the Exercise Price would be increased or the number of Warrant Shares
purchasable upon exercise of Warrants would be decreased (other than pursuant to
adjustments provided for in the Warrant Agreement as generally described above).
Upon the delivery of a certificate from an Officer of Holdings which states that
the proposed supplement or amendment is in compliance with the terms of this
Section 18, the Warrant Agent shall execute such supplement or amendment.
Notwithstanding any other provision hereof, the Warrant Agent's consent must be
obtained regarding any amendment or supplement pursuant to this Section 18 which
alters the Warrant Agent's duties hereunder.

          SECTION 19. SUCCESSORS. All the covenants and provisions of this
Agreement by or for the benefit of Holdings or the Warrant Agent shall bind and
inure to the benefit of their respective successors and assigns hereunder.

          SECTION 20. TERMINATION. This Agreement shall terminate at 5:00 p.m.,
New York City time on December 31, 2009. Notwithstanding the foregoing, this
Agreement will terminate on any earlier date if all Warrants have been
exercised. The provisions of Section 12 shall survive such termination.

          SECTION 21. GOVERNING LAW. This Agreement and each Warrant Certificate
issued hereunder shall be deemed to be a contract made under the laws of the
State of New York and for all purposes shall be construed in accordance with the
internal laws of said State. The parties hereto hereby waive the right to a jury
trial in any action arising out of this Agreement. Any dispute arising out of
this Agreement shall be litigated in the borough of Manhattan, New York City,
New York, and the parties hereby submit to the jurisdiction of such courts and
acknowledge that such courts are a convenient forum.

          SECTION 22. BENEFITS OF THIS AGREEMENT. Nothing in this Agreement
shall be construed to give to any person or corporation other than Holdings, the
Warrant Agent and the holders any legal or equitable right, remedy or claim
under this Agreement; but this Agreement shall be for the sole and exclusive
benefit of Holdings, the Warrant Agent and the holders.

          SECTION 23. COUNTERPARTS. This Agreement may be executed in
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and both such counterparts shall together constitute but one and
the same instrument.

                            [Signature Page Follows]

                                       27

<PAGE>

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

                                        XM Satellite Radio Holdings Inc.

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

                                        The Bank of New York, as Warrant Agent

                                        By:/s/ John Guiliano
                                           -------------------------------------
                                        Name: John Guiliano
                                        Title: Vice President

Warrant Agreement signature page(s)

<PAGE>

                                    EXHIBIT A

                                 FORM OF WARRANT

                          [Face of Warrant Certificate]

[Insert Global Warrant Legend, if applicable pursuant to the terms of the
Warrant Agreement]

          NOTWITHSTANDING ANY PROVISIONS OF THIS WARRANT OR ANY OTHER DOCUMENT
TO THE CONTRARY, IN THE EVENT THAT THE CONSENT OF THE FEDERAL COMMUNICATIONS
COMMISSION ("FCC") TO THE EXERCISE OF THIS WARRANT IS REQUIRED TO BE OBTAINED
PRIOR TO SUCH EXERCISE, THIS WARRANT SHALL NOT BE EXERCISABLE UNLESS AND UNTIL
SUCH FCC CONSENT SHALL HAVE BEEN OBTAINED. IN THE EVENT THAT THIS WARRANT IS
INTENDED TO BE EXERCISED AND SUCH FCC CONSENT IS REQUIRED TO BE OBTAINED,
HOLDINGS AND THE HOLDER SHALL USE COMMERCIALLY REASONABLE EFFORTS TO OBTAIN SUCH
FCC CONSENT PROMPTLY.

          NOTWITHSTANDING ANY PROVISIONS OF THIS WARRANT OR ANY OTHER DOCUMENT
TO THE CONTRARY, INCLUDING BUT NOT LIMITED TO THE PRECEDING PARAGRAPH, THIS
WARRANT SHALL NOT BE EXERCISABLE IN THE EVENT THAT SUCH EXERCISE WOULD CAUSE THE
AGGREGATE ALIEN OWNERSHIP OR VOTING INTEREST IN HOLDINGS TO INCREASE TO ANY
LEVEL ABOVE 24.5%, AS DETERMINED BY APPLICABLE FCC RULES, REGULATIONS, AND
POLICIES, IT BEING WELL UNDERSTOOD THAT THIS WARRANT SHALL NOT BE EXERCISABLE IN
THE EVENT THAT SUCH ALIEN OWNERSHIP OR VOTING INTEREST ALREADY EXCEEDS 24.5%, IT
BEING FURTHER UNDERSTOOD THAT IN NO EVENT SHALL HOLDINGS BE REQUIRED HEREUNDER
TO SEEK FCC CONSENT TO EXCEED FCC ALIEN OWNERSHIP OR VOTING LIMITATIONS
APPLICABLE TO HOLDINGS.

No. ______                                               _________ Warrants

                               Warrant Certificate

                        XM SATELLITE RADIO HOLDINGS INC.

          This Warrant Certificate certifies that ______________, or registered
assigns, is the registered holder of Warrants expiring December 31, 2009 (the
"Warrants") to purchase Class A Common Stock. Each Warrant entitles the holder
upon exercise to receive from Holdings commencing on January __, 2003 until 5:00
p.m. New York City time on December 31, 2009, the number of fully paid and
nonassessable Warrant Shares as set forth in the Warrant Agreement, subject to
adjustment as set forth in Section 8 of the Warrant Agreement, at the initial
exercise price (the "Exercise Price") of $3.18 per share payable upon surrender
of this Warrant Certificate and payment of the Exercise Price at the office or
agency of the Warrant Agent, but only subject to the conditions set forth herein
and in the Warrant Agreement referred to on the reverse hereof. Notwithstanding
the foregoing, Warrants may be exercised without the exchange of funds pursuant
to the cashless exercise provisions of Section 4 of the Warrant Agreement. The
Exercise Price and number of Warrant Shares issuable upon exercise of the
Warrants are subject to adjustment upon the occurrence of certain events set
forth in the Warrant Agreement. No Warrant may be exercised after 5:00 p.m., New
York City time, on December 31, 2009, and to the extent not exercised by such
time such Warrants shall become void. Reference is hereby made to the further
provisions of this Warrant Certificate set forth on the reverse hereof and such
further

                                       A-1

<PAGE>

provisions shall for all purposes have the same effect as though fully set forth
at this place. This Warrant Certificate shall not be valid unless countersigned
by an authorized signatory of the Warrant Agent, as such term is used in the
Warrant Agreement. This Warrant Certificate shall be governed and construed in
accordance with the internal laws of the State of New York.

          IN WITNESS WHEREOF, XM Satellite Radio Holdings Inc. has caused this
Warrant Certificate to be signed by its President and Treasurer and by its Vice
President and Secretary and may cause its corporate seal to be affixed hereunto
or imprinted hereon.

Dated:  _________, 200_

                                        XM Satellite Radio Holdings Inc.

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

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

Date of Countersignature:

_____________, 200_

Certificate of Authentication:

This is one of the Warrants referred to in the within mentioned Warrant
Agreement.

The Bank of New York
 as Warrant Agent

By:
   ------------------------------------
         Authorized Signatory

                                       A-2

<PAGE>

                        [Reverse of Warrant Certificate]

          The Warrants evidenced by this Warrant Certificate are part of a duly
authorized issue of Warrants expiring December 31, 2009 on exercise to receive
shares of Class A Common Stock, and are issued or to be issued pursuant to a
Warrant Agreement dated as of January __, 2003 (the "Warrant Agreement"), duly
executed and delivered by Holdings to The Bank of New York, as warrant agent
(the "Warrant Agent"), which Warrant Agreement (including the definitions set
forth therein) is hereby incorporated by reference in and made a part of this
instrument and is hereby referred to for a description of the rights, limitation
of rights, obligations, duties and immunities thereunder of the Warrant Agent,
Holdings and the holders (the words "holders" or "holder" meaning the registered
holders or registered holder) of the Warrants. A copy of the Warrant Agreement
may be obtained by the holder hereof upon written request to Holdings.

          Warrants may be exercised at any time on or before December 31, 2009;
provided that holders shall be required to make payment of the Exercise Price
upon exercise of their Warrants only by means of a Cashless Exercise (as defined
in Section 4.3 of the Warrant Agreement) unless a registration statement
relating to the Warrant Shares is then in effect under the Securities Act of
1933, as amended (the "Securities Act"), and the making of offers and sales of
the Warrant Shares thereunder has not been suspended or terminated in accordance
with the provisions of Section 16 of the Warrant Agreement (the periods in which
such conditions are met being referred to herein as "Registered Periods"). In
order to exercise all or any of the Warrants represented by this Warrant
Certificate, (i) in the case of Definitive Warrants, the holder must surrender
for exercise this Warrant Certificate to the Warrant Agent at its New York
corporate trust office set forth in Section 17 of the Warrant Agreement, (ii) in
the case of a book-entry interest in a Global Warrant, the exercising
Participant whose name appears on a securities position listing of the
Depositary as the holder of such book-entry interest must comply with the
Depositary's procedures relating to the exercise of such book-entry interest in
such Global Warrant and (iii) in the case of both Global Warrants and Definitive
Warrants, the holder thereof or the Participant, as applicable, must deliver to
the Warrant Agent the form of election to purchase on the reverse hereof duly
filled in and signed, which signature shall be a medallion guaranteed by an
institution which is a member of a Securities Transfer Association recognized
signature guarantee program, and upon payment to the Warrant Agent for the
account of Holdings of the Exercise Price, as adjusted as provided in the
Warrant Agreement, for the number of Warrant Shares in respect of which such
Warrants are then exercised. No adjustment shall be made for any dividends on
any Common Stock issuable upon exercise of this Warrant.

          The Warrant Agreement provides that upon the occurrence of certain
events the Exercise Price set forth on the face hereof may, subject to certain
conditions, be adjusted. If the Exercise Price is adjusted, the Warrant
Agreement provides that the number of shares of Class A Common Stock issuable
upon the exercise of each Warrant shall be adjusted. No fractions of a share of
Common Stock will be issued upon the exercise of any Warrant, but Holdings will
pay the cash value thereof determined as provided in the Warrant Agreement.

          Holdings has agreed to use its Commercially Reasonable Efforts
(subject to Black Out Periods) to (i) file within 90 days after the date of the
Warrant Agreement a Shelf Registration Statement on an appropriate form under
the Securities Act covering the issuance of Warrant Shares upon exercise of the
Warrants, (ii) make the Shelf Registration Statement effective no later than 180
days after the date of the Warrant Agreement, and (iii) keep the Shelf
Registration Statement effective until the earlier of the second anniversary of
the date on which such Shelf Registration Statement is declared effective by the

                                       A-3

<PAGE>

Commission or such time as all Warrants have been exercised and all Warrant
Shares have been issued in respect thereof.

          Warrant Certificates, when surrendered at the office of the Warrant
Agent by the registered holder thereof in person or by legal representative or
attorney duly authorized in writing, may be exchanged, in the manner and subject
to the limitations provided in the Warrant Agreement, but without payment of any
service charge, for another Warrant Certificate or Warrant Certificates of like
tenor evidencing in the aggregate a like number of Warrants.

          Upon due presentation for registration of transfer of this Warrant
Certificate at the office of the Warrant Agent a new Warrant Certificate or
Warrant Certificates of like tenor and evidencing in the aggregate a like number
of Warrants shall be issued to the transferee(s) in exchange for this Warrant
Certificate, subject to the limitations provided in the Warrant Agreement,
without charge except for any tax or other governmental charge imposed in
connection therewith.

          Holdings and the Warrant Agent may deem and treat the registered
holder(s) thereof as the absolute owner(s) of this Warrant Certificate
(notwithstanding any notation of ownership or other writing hereon made by
anyone), for the purpose of any exercise hereof, of any distribution to the
holder(s) hereof, and for all other purposes, and neither Holdings nor the
Warrant Agent shall be affected by any notice to the contrary. Neither the
Warrants nor this Warrant Certificate entitles any holder hereof to any rights
of a stockholder of Holdings.

                                       A-4

<PAGE>

                          FORM OF ELECTION TO PURCHASE

                    (To Be Executed Upon Exercise Of Warrant)

          The undersigned hereby irrevocably elects to exercise the right,
represented by this Warrant Certificate, to receive shares of Class A Common
Stock upon payment by the undersigned of the Exercise Price in effect as of the
date hereof for the Warrants being surrendered.

          The undersigned understands and acknowledges that if exercise is
occurring other than during a Registered Period, the undersigned is exercising
Warrants pursuant to the Cashless Exercise provisions of Section 4.3 of the
Warrant Agreement. If exercise is occurring during a Registered Period, the
undersigned elects to make payment of the Exercise Price:

          / / Check this box and complete if payment is to be made in cash, by
wire transfer or by certified or official bank check payable to the order of
Holdings. The undersigned elects to receive ____ shares of Class A Common Stock
and herewith tenders payment for such shares to the order of Holdings in the
amount of $____ in accordance with the terms hereof.

          / / Check this box and complete if payment is to be made pursuant to
the Cashless Exercise provisions of Section 4.3 of the Warrant Agreement. The
undersigned elects to receive such number of shares of Class A Common Stock as
Holdings then shall be required to issue in accordance with Section 4.3 of the
Warrant Agreement upon tender by the undersigned for exchange of Warrants to
purchase ____ shares of Class A Common Stock.

          The undersigned requests that a certificate for such shares be
registered in the name of _____________________________, whose address is
_______________________________ and that such shares be delivered to __________
whose address is _______________________________. If said number of shares is
less than all of the shares of Common Stock purchasable hereunder, the
undersigned requests that a new Warrant Certificate representing the remaining
balance of such shares be registered in the name of ______________, whose
address is _________________________, and that such Warrant Certificate be
delivered to _________________, whose address is __________________. If payment
of the Exercise Price is to be made through Cashless Exercise, in accordance
with Section 9 of the Warrant Agreement the undersigned requests that any cash
in lieu of fractional interests be paid to __________ whose address is
_______________________________.

Date: ______________, ____

                                        --------------------------
                                        (Signature)

                                        --------------------------
                                        (Signature Guaranteed)

                                       A-5

<PAGE>

                                   SCHEDULE A

                              SCHEDULE OF WARRANTS

                        EVIDENCED BY THIS GLOBAL WARRANT

          The initial number of Warrants evidenced by this Global Warrant shall
be ______. The following decreases/increases in the number of Warrants evidenced
by this Warrant have been made:

<TABLE>
<CAPTION>
                                                                     Total Number of
                     Decrease in                                     Warrants Evidenced
                     Number of               Increase in Number      by this Global
Date of              Warrants                of Warrants             Warrant Following           Notation Made by
Decrease/            Evidenced by this       Evidenced by this       such Decrease/              or on Behalf of
Increase             Global Warrant          Global Warrant          Increase                    Warrant Agent
-----------------    -------------------    --------------------     ----------------------      -------------------
<S>                  <C>                    <C>                      <C>                         <C>
-----------------    -------------------    --------------------     ----------------------      -------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

-----------------    -------------------    --------------------     ----------------------      -------------------
</TABLE>

                                       A-6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}]]