Document:

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                                                                     EXHIBIT 4.4

                              SECURITY AGREEMENT

                          Dated as of March 15, 2000

                                     from

                           XM SATELLITE RADIO INC.,

                                  as Pledgor

                                      to

                          UNITED STATES TRUST COMPANY
                                 OF NEW YORK,

                              as Collateral Agent

===============================================================================
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                               TABLE OF CONTENTS
<TABLE>
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                                                                            Page
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<S>                                                                         <C>

1.   Grant of Security Interest.............................................   1

2.   Security for Obligations...............................................   2

3.   Delivery of Collateral.................................................   3

4.   Representations and Warranties.........................................   3

5.   As to the Collateral...................................................   5

6.   Additional Shares......................................................   6

7.   Payment of Taxes and Claims............................................   7

8.   Covenants and Agreements...............................................   7

9.   The Collateral Agent Appointed Attorney-in-Fact........................   9

10.  The Collateral Agent May Perform.......................................   9

11.  The Collateral Agent's Duties..........................................   9

12.  Events of Default......................................................  10

13.  Notice of Event of Default.............................................  10

14.  Remedies...............................................................  10

15.  Expenses...............................................................  12

16.  Repayment in Bankruptcy, etc...........................................  12

17.  No Segregation of Moneys; No Interest..................................  12

18.  Continuing Security Interest; Termination..............................  12

19.  Notices................................................................  13

20.  Margin Regulations.....................................................  13

21.  Other Provisions.......................................................  13
</TABLE>
<PAGE>

                              SECURITY AGREEMENT

          SECURITY AGREEMENT (this "Agreement"), dated as of March 15, 2000,
made by XM Satellite Radio Inc., a Delaware corporation (the "Pledgor"), to
United States Trust Company of New York, Trustee, as collateral agent (the
"Collateral Agent") for the holders (the "Holders") from time to time of the
Notes (as defined herein).

                                   RECITALS

          A.   The Pledgor and United States Trust Company of New York, as
Trustee (in such capacity, the "Trustee"), have entered into that certain
indenture dated the date hereof (as amended, restated, supplemented or otherwise
modified from time to time, the "Indenture"; capitalized terms used herein
without definition are used herein as defined in the Indenture), pursuant to
which the Pledgor may issue up to $325,000,000 aggregate principal amount at
maturity of its 14% Senior Secured Notes due 2010 (the "Notes").

          B.   The Pledgor is the owner of the issued and outstanding capital
stock described in Schedule I hereto (the "Pledged Shares") representing 100% of
the issued and outstanding capital stock of XM Radio Inc., a Delaware
corporation (the "Subsidiary").

          C.   The Pledgor has agreed to grant to the Collateral Agent the
assignment and security interest and make the pledge and assignment contemplated
by this Agreement.

          In consideration of the premises, the agreements herein contained and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and in order to induce the Holders to purchase the Notes,
the Pledgor hereby covenants and agrees with the Collateral Agent for its
benefit and for the ratable benefit of the Holders.

1.   Grant of Security Interest.
     ---------------------------

     (a)  The Pledgor hereby unconditionally assigns, pledges and grants to the
Collateral Agent for its benefit and the ratable benefit of the Holders, a first
priority security interest in and to all of the Pledgor's right, title and
interest in and to the following, whether now owned or existing or hereafter
arising or acquired and wheresoever located (collectively, the "Collateral"):

          (i)  the Pledged Shares and the certificates representing the Pledged
     Shares, and all dividends, cash, instruments and other property from time
     to time received, receivable or otherwise distributed in respect of or in
     exchange for any or all of the Pledged Shares;

          (ii) all additional shares of issued and outstanding shares,
     interests, participations, warrants or other equivalents (however
     designated) of corporate stock ("Stock") of the Subsidiary from time to
     time acquired by the Pledgor in any manner, and the certificates
     representing such additional shares, and all dividends, cash, instruments
     and other property from time to time received, receivable or otherwise
     distributed in respect of or in exchange for any or all of such shares; and
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          (iii) all Proceeds (as defined herein) of any and all of the foregoing
     Collateral (including, without limitation, proceeds that constitute
     property of the types described in clauses (i) and (ii) above).

     (b)  As used herein, the term "Proceeds" shall have the meaning assigned to
such term under Article 9 of the Uniform Commercial Code from time to time in
effect in the State of New York (the "UCC"; provided that in the event that, by
reason of mandatory provisions of law, any or all of the attachment, perfection
or priority of the Collateral Agent's security interest in any Collateral is
governed by the Uniform Commercial Code as in effect in a jurisdiction other
than the State of New York, the term "UCC" shall mean the Uniform Commercial
Code as in effect in such other jurisdiction for purposes of the provisions
hereof relating to such attachment, perfection or priority and for purposes of
definitions related to such provisions) and, to the extent not otherwise
included, shall include, but not be limited to, (i) any stock dividend or
distribution in connection with any increase or reduction of capital,
reclassification, merger, consolidation, sale of assets, combination of shares,
stock split, spin-off or split-off; (ii) any option or other right, whether as
an addition to, in substitution of or in exchange for any Pledged Shares or
otherwise; (iii) distributions payable in property (whether real, personal,
tangible, intangible, or mixed property; collectively "Property"); (iv)
dividends or distributions on dissolution, or in partial or total liquidation,
or from capital, capital surplus or paid-in surplus; (v) any and all payments
(in any form whatsoever) made or due and payable to the Pledgor from time to
time in connection with any requisition, confiscation, condemnation, seizure or
forfeiture of all or any part of the Collateral by any nation or government, any
state or other political subdivision thereof, any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government and any court or arbitrator (a "Governmental Body"); and (vi) any
and all other amounts from time to time paid or payable under or in connection
with the Collateral.

2.   Security for Obligations.
     ------------------------

          This Agreement secures the payment of all of the obligations and
liabilities of any kind of the Pledger under this Agreement, the Indenture or
the Notes, whether liquidated, unliquidated, direct, indirect, fixed,
contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured
or unsecured, and whether for principal, interest, fees, costs, expenses or
otherwise (whether arising or accruing before or after the occurrence of any
Event of Default (as defined herein) and whether discharged, stayed or otherwise
affected or allowed as a claim in any bankruptcy proceeding of the Subsidiary),
and all costs, fees and expenses of the Collateral Agent, the Trustee or the
Holders (including reasonable attorneys' fees and expenses and with respect to
the Collateral Agent, reasonable allocated costs and expenses of in-house
counsel and legal staff) in enforcing, preserving and protecting its rights
against the Pledgor, whether or not suit is instituted (as the foregoing
obligations and liabilities may be amended, increased, modified, renewed,
refinanced, refunded or extended from time to time) (collectively, the "Secured
Obligations"), now or hereafter existing, whether for principal, interest, fees,
costs, expenses or otherwise.

          Without limiting the generality of the foregoing, this Agreement
secures the payment of all amounts that constitute part of the Secured
Obligations and would be owed by the Pledgor to the Collateral Agent, the
Trustee or the Holders under this Agreement, the Indenture

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and the Notes but for the fact that they are unenforceable or not allowable due
to the existence of a bankruptcy, reorganization or similar proceeding involving
the Pledgor.

3.   Delivery of Collateral.
     ----------------------

     (a)  All certificates and other instruments at any time owned or acquired
by the Pledgor representing or evidencing the Pledged Shares shall be delivered
to and held by or on behalf of the Collateral Agent pursuant hereto and shall be
in suitable form for transfer by delivery, or shall be accompanied by duly
executed instruments of transfer or assignment in blank, all in form and
substance satisfactory to the Collateral Agent. Upon the occurrence and during
the continuance of an Event of Default (as defined herein), the Collateral Agent
shall have the right, upon written instructions from the Trustee and without
notice to the Pledgor, to transfer to or to register in the name of the
Collateral Agent or any of its nominees any or all of the Collateral. In
addition, upon the occurrence and during the continuance of an Event of Default,
the Collateral Agent shall have the right at any time to exchange certificates
or instruments representing or evidencing Collateral for certificates or
instruments of smaller or larger denominations.

     (b)  If there shall occur a change in applicable law or regulations
regarding (i) the steps necessary to obtain and maintain a perfected security
interest in any Collateral or (ii) the ability to obtain a security interest
directly in any license granted by the Federal Communications Commission or
Governmental Body succeeding to the functions thereof (the "FCC"), or if there
is Collateral for which the foregoing procedures are not effective to perfect a
security interest, the Pledgor will immediately upon its becoming aware thereof
so notify the Collateral Agent and will deliver to the Collateral Agent an
Opinion of Counsel setting forth the steps necessary for the Collateral Agent to
obtain and maintain such a perfected security interest in the Collateral
affected by such change or for which the foregoing procedures are not effective
to perfect a security interest, and the Collateral Agent, instead of the actions
specified in this Section 3, shall take such other action, as specified in such
Opinion of Counsel, as will create and maintain such perfected security
interest.

     (c)  Upon the execution and delivery of this Agreement, the Pledgor will
file proper financing statements with the appropriate office or offices under
the Uniform Commercial Code in the State of New York, covering the Collateral
described in this Agreement and, thereafter, such renewals, amendments or
continuations thereof or such additional financing statements in such additional
offices in such jurisdictions or in the appropriate filing offices in such
additional jurisdictions as shall be required from time to time under the UCC in
order to perfect and to continue the perfection of the security interest in the
Collateral.

4.   Representations and Warranties.
     ------------------------------

          The Pledgor hereby represents and warrants to the Collateral Agent as
follows:

     (a)  Organization; Good Standing.  The Pledgor is duly organized, validly
existing and in good standing under the laws of the State of Delaware and is
duly qualified and in good standing in every other jurisdiction where it is
doing business, except where the failure to be so qualified or maintain good
standing would not have a Material Adverse Effect (as defined

                                       3
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herein). The chief place of business and chief executive office of the Pledgor
are located at 1250 23rd Street, N.W., Washington, D.C. 20037.

     (b)  Corporate Power; Authorization.  The execution, delivery and
performance by the Pledgor of this Agreement, and the consummation of the
transactions contemplated hereby, (i) are within the Pledgor's corporate
authority; (ii) have been duly authorized by all necessary or proper corporate
action; (iii) are not in contravention of any provision of the Pledgor's by-laws
or charter; (iv) will not violate any law or regulation, or any order or decree
of any court or governmental instrumentality to which the Pledgor or its
property is subject; and (v) will not conflict with or result in the breach or
termination of, constitute a default under, or accelerate any performance
required by, any indenture, mortgage, deed of trust, lease, agreement or other
instrument to which the Pledgor is a party or by which the Pledgor or any of its
property is bound (except for such conflict, breach, termination, default or
acceleration as could not reasonably be expected to have a Material Adverse
Effect).  Subject to Section 21(f) hereof, no authorization, approval or action
by, or notice to, or filing with, any governmental authority or regulatory body
is required under existing laws and regulations on the date hereof (i) for the
grant or perfection of the security interests contemplated hereby or for the
execution, delivery or performance of this Agreement by the Company, except as
may be set forth in Section 3 with respect to actions to be taken by the
Collateral Agent, the Trustee or a financial intermediary holding Collateral and
except for the filings referred to in Section 3(b) that may be required in the
future, or (ii) for the exercise by the Collateral Agent of the voting or other
rights provided for this Agreement or its rights and remedies in respect of the
Collateral pursuant to this Agreement, except (A) as may be required in
connection with the disposition of Collateral by laws affecting the offering and
sale of securities, generally, and (B) with respect to Pledged Shares, for
authorizations, approvals, notices and filings that may be required pursuant to
regulations of the FCC (as defined herein), or any successor laws or
regulations.

     (c)  Enforceability.  This Agreement is the legal, valid and binding
obligation of the Pledgor enforceable against it in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or
similar law affecting creditors' rights or insolvent corporations generally, and
except to the extent that availability of the remedy of specific performance or
injunctive relief is subject to the discretion of the court before which any
proceeding therefor may be brought.

     (d)  Absence of Liens.  It is the legal and beneficial owner of the
Collateral free and clear of all Liens other than the security interest created
by this Agreement.  No effective financing statement or other instrument similar
in effect covering all or any part of the Collateral is on file in any recording
office, except such as may have been filed in favor of the Collateral Agent
under this Agreement.

     (e)  Collateral.  The Pledged Shares have been duly authorized and validly
issued and are fully paid and non-assessable.  The Pledged Shares represent one
hundred percent (100%) of the total number of shares of the Subsidiary which are
issued and outstanding or for which the Subsidiary is obligated to issue after
giving effect to the issuance of all such shares.

     (f)  Security Interest.  This Agreement and the pledge of the Collateral
pursuant hereto create a valid and perfected first priority security interest in
the Collateral in favor of the

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Collateral Agent, securing the payment of all of the Secured Obligations, and
all filings and other actions necessary or desirable as may be required by the
Trustee or the Holders to perfect and protect such security interest have been
duly taken.

5.   As to the Collateral.
     --------------------

     (a)  So long as no event or circumstance which constitutes a Default shall
have occurred and be continuing:

          (i)   The Pledgor shall be entitled to exercise any and all voting and
     other consensual rights pertaining to the Collateral or any part thereof
     for any purpose not inconsistent with the terms of this Agreement or the
     Indenture; provided, however, that the Pledgor shall not exercise or
     refrain from exercising any such right without the consent of the
     Collateral Agent if, in the Collateral Agent's judgment, such action or
     inaction would have a Material Adverse Effect (as defined herein) on the
     fair market value of any of the Collateral including, without limitation,
     the validity, priority or perfection of the security interests granted
     hereby or the remedies of the Collateral Agent hereunder.

          (ii)  Any and all dividends and other distributions (whether or not in
     cash) paid or payable, and certificates, instruments and other Property
     received, receivable or otherwise distributed in respect of, or in exchange
     for, Collateral, shall be, and shall be forthwith delivered to the
     Collateral Agent to be held as Collateral and shall, if received by the
     Pledgor, be received in trust for the benefit of the Trustee and the
     Holders, be segregated from the other Property of the Pledgor, and be
     forthwith delivered to the Collateral Agent, as Collateral in the same form
     as so received (with any necessary endorsement). Any cash dividends or
     distributions delivered to or otherwise held by the Collateral Agent
     pursuant to this Section 5, and any other cash constituting Collateral
     delivered to the Collateral Agent, shall be invested, at the written
     direction of the Pledgor by the Collateral Agent in Cash Equivalents.

          (iii) The Collateral Agent shall execute and deliver (or cause to be
     executed and delivered) to the Pledgor all such proxies and other
     instruments as the Pledgor may reasonably request for the purpose of
     enabling the Pledgor to exercise the voting and other rights which it is
     entitled to exercise pursuant to subsection (i) or (ii) above.

     (b)  Upon the occurrence and during the continuance of a Default (except as
provided below), at the Collateral Agent's option and following written notice
by the Collateral Agent to the Pledgor:

          (i)  all rights of the Pledgor to exercise the voting and other
     consensual rights which it would otherwise be entitled to exercise pursuant
     to Section 5(a)(i) shall cease, provided, however, that the Pledgor shall
     be entitled to exercise such rights without the prior consent of the
     Collateral Agent if such rights are to be exercised to vote in favor of a
     transaction which is reasonably expected to cure the Default, not result in
     another Default and not result in a Material Adverse Effect. Except as
     provided in the prior sentence, after the occurrence and during the
     continuance of an Event of Default, all such

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<PAGE>

     voting and other consensual rights shall thereupon become vested in the
     Collateral Agent, who shall thereupon have the sole right to exercise such
     voting and other consensual rights, subject to the satisfaction of any
     regulatory requirements. Effective upon the occurrence and during the
     continuance of an Event of Default, the Pledgor hereby appoints the
     Collateral Agent the Pledgor's true and lawful attorney-in-fact and grants
     to the Collateral Agent an IRREVOCABLE PROXY to vote the Collateral in any
     manner the Collateral Agent deems advisable for or against all matters
     submitted or which may be submitted to a vote of shareholders. The power-
     of-attorney granted hereby is coupled with an interest and shall be
     irrevocable; and

          (ii) the provisions of Section 5(a)(ii) shall continue in full force
     and effect, except that no dividends or distributions may be paid to the
     Pledgor.

          As used in this Agreement, the term "Material Adverse Effect" shall
mean an effect resulting from any circumstance or event of whatever nature
(including any adverse determination in any litigation) which does, or could
reasonably be expected to, materially and adversely (a) impair the validity or
enforceability of any of the Indenture or the Notes or the Collateral Agent's,
the Trustee's or any Holder's rights or remedies with respect thereto; (b) cause
a Default; (c) affect the business, property, business prospects, operations, or
financial or other condition of the Subsidiary or Pledgor; or (d) impair or
affect the Collateral or the Collateral Agent's Liens on the Collateral or the
priority of such Liens.

     (c)  In the event that all or any part of the securities or instruments
constituting the Collateral are lost, mutilated, destroyed or wrongfully taken
while such securities or instruments are in the possession of the Collateral
Agent, the Pledgor agrees that it will cause the delivery of new securities or
instruments in place of the lost, mutilated, destroyed or wrongfully taken
securities or instruments upon request therefor by the Collateral Agent without
the necessity of any indemnity bond or other security other than the Collateral
Agent's agreement or indemnity therefor customary for security agreements
similar to this Agreement.

6.   Additional Shares.
     ------------------

     (a)  The Pledgor agrees that it will cause the Subsidiary not to issue any
Stock of any kind.

     (b)  Without derogating from paragraph (a) of this Section 6, in the event
that, during the term of this Agreement:

          (i)  any stock dividend, stock split, reclassification, readjustment,
     or other change is declared or made in the capital structure of the
     Subsidiary, all new, substituted, and additional shares, or other
     securities, issued by reason of any such change and received by the Pledgor
     (directly or indirectly) or to which the Pledgor shall be entitled shall be
     promptly delivered or otherwise transferred to the Collateral Agent,
     together with undated stock powers endorsed in blank by the Pledgor, and
     shall thereupon constitute additional Collateral to be held by the
     Collateral Agent under the terms of this Agreement; and

                                       6
<PAGE>

          (ii) any subscriptions, warrants or any other rights or options shall
     be issued in connection with the Pledged Shares, all new stock or other
     securities acquired through such subscriptions, warrants, rights or
     options, and all additional shares of capital stock of the Subsidiary or
     any successor in interest thereto from time to time acquired by the Pledgor
     (directly or indirectly) in any manner whatsoever (including, without
     limitation, any shares of preferred stock issued by the Subsidiary)
     together with appropriate powers by the Pledgor, shall be promptly
     delivered or otherwise transferred to the Collateral Agent and shall
     thereupon constitute Collateral to be held by the Collateral Agent under
     the terms of this Agreement.

7.   Payment of Taxes and Claims.
     ---------------------------

          The Pledgor shall make payment of (i) all taxes, assessments, license
fees, levies and other charges of Governmental Bodies imposed upon it which if
unpaid, could reasonably be expected to have a Material Adverse Effect or become
a Lien on the Property of the Pledgor, unless and to the extent only that such
taxes, assessments, charges, license fees, levies and other charges shall be
contested in good faith and by appropriate proceedings diligently conducted by
the Pledgor and the Collateral Agent has received prompt notice of such contest,
(ii) all taxes, assessments, license fees, levies and other charges of
Governmental Bodies on any of the Collateral before any penalty or interest
accrues thereon, unless and to the extent only that such taxes, assessments,
charges, license fees, levies and other charges shall be contested in good faith
and by appropriate proceedings diligently conducted by the Pledgor and the
Collateral Agent has received prompt notice of such contest, before any penalty
or interest accrues thereon, and (iii) all claims (including, without
limitation, claims for labor, services, materials and supplies) for sums
materially adversely affecting the Collateral, which have become due and payable
and which by law have or may become a Lien upon any of the Collateral prior to
the time when any penalty or fine shall be incurred with respect thereto, unless
and to the extent such claim is being contested in good faith and by appropriate
proceedings diligently conducted by the Pledgor, the Collateral Agent has
received prompt notice of such contest, any proceeding to place a lien on the
Collateral or to enforce a lien on the Collateral has been stayed and such
contest is not reasonably expected to have a Material Adverse Effect.

 8.  Covenants and Agreements.
     ------------------------

          The Pledgor covenants and agrees that on and after the date hereof
until the Payment in full of the Secured Obligations and the termination and
discharge of the Indenture, unless the Collateral Agent shall otherwise consent
in writing:

     (a)  At any time and from time to time, upon the reasonable request of the
Collateral Agent, and at the sole expense of the Pledgor, the Pledgor shall
promptly do, file, record, execute and deliver any and all such further notices,
instruments and documents and will take such further action as may be reasonably
deemed necessary or desirable in the judgment of the Collateral Agent and its
counsel to obtain, protect and perfect the security interests granted hereby and
enforce and give effect to the rights, remedies and powers hereunder, including,
without limitation, and the recording or filing of all instruments and documents
reasonably necessary to perfect and protect the perfection of the security
interests granted hereby under Articles 8 or 9 of the Uniform Commercial Code in
effect in any applicable jurisdiction.  In

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<PAGE>

connection therewith, the Collateral Agent is hereby irrevocably authorized and
empowered as the Pledgor's attorney-in-fact, solely to make, at the Collateral
Agent's option, all filings and to give all other notices as it shall reasonably
deem necessary with respect to any of the Collateral, all of which may be done
with or without the signature of the Pledgor. The Pledgor agrees that the
foregoing power constitutes a power coupled with an interest which shall survive
until the Payment in full of all of the Secured Obligations. The Pledgor agrees
to reimburse the Collateral Agent on demand for any actual and reasonable
expenses (including reasonable attorneys' fees and expenses with respect to the
Collateral Agent, including reasonable allocated costs and expenses of in-house
counsel and legal staff) incurred by the Collateral Agent in connection with
such matters and, until such reimbursement, such expenses shall be a part of the
Secured Obligations.

     (b)  The Pledgor shall defend its ownership interest in and to the
Collateral and the Collateral Agent's security interest in and to the Collateral
against all claims and demands of all Persons at any time claiming the same or
any interest therein adverse to the interests of the Collateral Agent.

     (c)  The Pledgor shall, at all times, maintain or cause to be maintained
accurate books and records with respect to the Collateral, and shall furnish to
the Collateral Agent such information concerning such Collateral as the
Collateral Agent may from time to time reasonably request.  The Collateral Agent
and its designees are hereby given the right, at the Pledgor's expense, to
inspect and copy, following prior notice to the Pledgor and during regular
business hours, or the Pledgor shall furnish the Collateral Agent with copies
of, all records and documents reasonably required by the Collateral Agent
relating to the Collateral.

     (d)  The Pledgor shall not further hypothecate, assign, pledge, encumber,
transfer, sell or otherwise dispose of, or grant any option with respect to, or
create or suffer to exist a security interest in, or a Lien on, the Collateral
or any portion thereof, except for the pledge, assignment and security interest
created by this Agreement in favor of the Collateral Agent and except as
contemplated by Article 12 of the Indenture.  The inclusion of "Proceeds" of the
Collateral under the security interest granted herein shall not be deemed a
consent by the Collateral Agent to any sale or other disposition of any
Collateral except as expressly permitted herein.

     (e)  The Pledgor shall promptly notify the Collateral Agent of any change
occurring in or to the Collateral, of a change in the Pledgor's mailing address,
of any material change in any fact or circumstance warranted or represented by
the Pledgor in this Agreement or furnished to the Collateral Agent, or if any
Default or Event of Default hereunder shall occur.

     (f)  The Pledgor shall not, without the prior written consent of the
Collateral Agent, sign or file or authorize the signing or filing of any
document, financing statement or instrument creating or perfecting, or
purporting to create or perfect, any Lien or other encumbrance on all or any
part of its Collateral except in favor of the Collateral Agent as required
hereby and except as contemplated in Article 12 of the Indenture.

     (g)  The security interest granted hereby constitutes and shall at all
times constitute a perfected continuing first priority security interest in the
Collateral.

                                       8
<PAGE>

9.   The Collateral Agent Appointed Attorney-in-Fact.
     -----------------------------------------------

          Effective upon the occurrence and during the continuance of an Event
of Default, the Pledgor hereby irrevocably appoints the Collateral Agent its
attorney-in-fact, with full authority in the place and stead of the Pledgor and
in the name of the Pledgor or otherwise, from time to time in the Collateral
Agent's discretion, to take any action and to execute any instrument which the
Collateral Agent may deem necessary or advisable to accomplish the purposes of
this Agreement, including, without limitation:

     (a)  to ask, demand, collect, sue for, recover, compromise, receive and
give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral and/or extend the time of payment, arrange for
payment in installments, or otherwise modify the terms of, or release, any
Collateral or obligations, without otherwise discharging or affecting the
Secured Obligations, the Collateral or the security interests granted by this
Agreement,

     (b)  to file any claims or take any action or institute any proceedings
which the Collateral Agent may deem necessary or desirable for the collection of
any of the Collateral or otherwise to enforce the rights of the Collateral Agent
with respect to any of the Collateral, and

     (c)  to receive, indorse and collect any drafts or other instruments and
documents made payable to the Pledgor in connection with clause (a) above or
representing any dividend or other distribution in respect of the Collateral or
any part thereof and to give full discharge for the same.

          The power-of-attorney granted hereby is coupled with an interest and
shall be irrevocable.

10.  The Collateral Agent May Perform.
     --------------------------------

          If the Pledgor fails to perform any agreement contained herein or make
payment of any amount required hereunder, the Collateral Agent may itself
perform, or cause performance of, or provide payment for the performance
thereof, and the reasonable expenses of the Collateral Agent incurred in
connection therewith shall be payable by the Pledgor under Section 15 of this
Agreement and any such payment made shall be deemed an advance by the Collateral
Agent to the Pledgor, payable on demand together with interest at the interest
rate then payable under the Indenture.

11.  The Collateral Agent's Duties.
     -----------------------------

          The powers conferred on the Collateral Agent hereunder are solely to
protect its interest in the Collateral and shall not impose any duty upon it to
exercise any such powers. Except for the safe custody of any Collateral in its
possession and the accounting for moneys actually received by it hereunder, the
Collateral Agent shall have no duty as to any Collateral, including the filing
of any financing or continuation statements relating to the Collateral.  The
Collateral Agent shall be deemed to have exercised reasonable care in the
custody and preservation of the Collateral in its possession if the Collateral
is accorded treatment substantially equal to that which the Collateral Agent
accords its own Property, it being

                                       9
<PAGE>

understood that the Collateral Agent shall not be under any obligation to (a)
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, or (b)
take any necessary steps to preserve rights against prior parties or any other
rights pertaining to any Collateral, but may do so at its option, and all
reasonable expenses incurred in connection therewith shall be for the sole
account of the Pledgor, and shall be added to the Secured Obligations.

12   Events of Default.
     -----------------

          If any of the following events shall occur, then an "Event of Default"
has occurred hereunder:

     (a)  If the Pledgor fails to fully and punctually pay, perform or observe
any debt, obligation or liability of the Pledgor under this Agreement or the
Indenture; or

     (b)  If any representation or warranty made herein or the Indenture or in
any certificate, report or other document furnished by the Pledgor in connection
with this Agreement or the Indenture shall prove to have been false in any
material respect upon the date when made or deemed to have been made or
repeated; or

     (c)  If the Pledgor shall fail to observe or perform any term, covenant or
agreement contained in Sections 8(a), 8(d) or 8(f) of this Agreement; or

     (d)  If the Pledgor shall fail to perform or observe any other term,
covenant or agreement on its part to be performed or observed pursuant to this
Agreement and such failure shall have continued unremedied for a period of
thirty (30) days after the Pledgor shall become aware of such failure; or

     (e)  The occurrence and continuance of an Event of Default under and as
defined in the Indenture.

13.  Notice of Event of Default.
     --------------------------

          The Pledgor agrees to notify the Collateral Agent of the occurrence of
an Event of Default promptly upon its obtaining knowledge thereof.

14.  Remedies.
     --------

          Upon the occurrence and during the continuation of an Event of
Default, the Collateral Agent may upon written instructions from the Trustee,
subject to regulatory requirements, exercise any and all remedies and other
rights provided under this Agreement and by applicable law, including, without
limitation, the following:

     (a)  The Collateral Agent may exercise in respect of the Collateral, in
addition to other rights and remedies provided for herein or otherwise available
to it, all the rights and remedies of a secured party upon default under the UCC
(whether or not the UCC applies to the affected Collateral) and also may without
notice, except as specified below, sell, lease, assign, grant an

                                       10
<PAGE>

option or options to purchase or otherwise dispose of the Collateral or any part
thereof in one or more parcels at public or private sale, at any exchange,
broker's board or at any of the Collateral Agent's offices or elsewhere, for
cash, on credit or for future delivery, and upon such other terms as the
Collateral Agent may deem commercially reasonable. The Pledgor agrees that, to
the extent notice of sale shall be required by law, at least ten days' notice to
the Pledgor of the time and place of any public sale or the time after which any
private sale is to be made shall constitute reasonable notification. The
Collateral Agent shall not be obligated to make any sale of Collateral
regardless of notice of sale having been given. The Collateral Agent may adjourn
any public or private sale from time to time by announcement at the time and
place fixed therefor, and such sale may, without further notice, be made at the
time and place to which it was so adjourned.

     (b)  Any cash held by the Collateral Agent as Collateral and all cash
proceeds received by the Collateral Agent in respect of any sale of, collection
from or other realization upon all or any part of the Collateral may, in the
discretion of the Collateral Agent, be held by the Collateral Agent as
Collateral for, and then or at any time thereafter applied (after the payment of
any amounts payable to the Collateral Agent pursuant to Section 15 hereof) in
whole or in part by the Collateral Agent for the ratable benefit of the Holders
against all or any part of the Secured Obligations.  Any surplus of such cash or
cash proceeds held by the Collateral Agent and remaining after payment of all of
the Secured Obligations shall be paid over to the Pledgor or to whomsoever may
be lawfully entitled to receive such surplus.

     (c)  The Pledgor acknowledges and agrees that the Collateral Agent may
elect, with respect to the offer or sale of any or all of the Collateral, to
conduct such offer and sale in such a manner as to avoid the need for
registration or qualification of the Collateral or the offer and sale thereof
under any federal or state securities laws and that the Collateral Agent is
authorized to comply with any limitation or restriction in connection with such
sale as counsel may advise the Collateral Agent is necessary in order to avoid
any violation of applicable law, including, without limitation, compliance with
such procedures as may restrict the number of prospective bidders and
purchasers, require that such prospective bidders and purchasers have certain
qualifications, and restrict such prospective bidders and purchasers to Persons
who will represent and agree that they are purchasing for their own account for
investment and not with a view to the distribution or resale of such Collateral,
or in order to obtain any required approval of the sale or of the purchaser by
any Governmental Body.  The Pledgor further acknowledges and agrees that any
such transaction may be at prices and on terms less favorable than those which
may be obtained through a public sale and not subject to such restrictions and
agrees that, notwithstanding the foregoing, the Collateral Agent is under no
obligation to conduct any such public sale and may elect to impose any or all of
the foregoing restrictions, or any other restrictions which may be necessary or
desirable in order to avoid any such registration or qualification, at its sole
discretion or with the consent or direction of the parties entitled to give
direction pursuant to the Intercreditor Agreement, and that any such offer and
sale shall, taking into account the possible restrictions on such offer and sale
described in this subsection (c), be conducted in a commercially reasonable
manner.

     (d)  The Pledgor hereby expressly waives and covenants not to assert any
appraisement, valuation, extension, redemption or similar laws, now or at any
time hereafter in

                                       11
<PAGE>

force, which might delay, prevent or otherwise impede the performance or
enforcement of this Agreement.

15.  Expenses.
     --------

          The Pledgor will upon demand make payment to the Collateral Agent of
any and all reasonable out-of-pocket sums, costs and expenses, which the
Collateral Agent may pay or incur pursuant to the provisions of this Agreement
or in perfecting, defending, protecting or enforcing this Agreement or the
security interests granted herein or in enforcing Payment of all of the Secured
Obligations or otherwise in connection with the provisions hereof, including,
but not limited to court costs, reasonable collection charges, reasonable travel
expenses, and reasonable attorneys' fees (including with respect to the
Collateral Agent, the reasonable allocated costs and expenses of in-house
counsel and legal staff) all of which together with interest at the highest rate
then payable under the Indenture, shall be part of the Secured Obligations.

16.  Repayment in Bankruptcy, etc.
     ----------------------------

          Notwithstanding anything to the contrary contained in this Agreement,
if, at any time or times subsequent to the payment of all or any part of the
Secured Obligations, the Collateral Agent shall be required to repay any amounts
previously paid by or on behalf of the Subsidiary or the Pledgor in reduction
thereof by virtue of an order of any court having jurisdiction thereof,
including, without limitation, as a result of an adjudication that such amounts
constituted preferential payments or fraudulent conveyances, the Pledgor
unconditionally agrees to make payment to the Collateral Agent within 10 days
after demand of the amount of such repayment, together with interest on such
amount from the date of such repayment by the Collateral Agent to the date of
payment to the Collateral Agent at the default interest rate set forth in the
Indenture.

17.  No Segregation of Moneys; No Interest.
     -------------------------------------

          No moneys or any other property received by the Collateral Agent
hereunder need be segregated in any manner except to the extent required by law,
and any such moneys or other Property may be deposited under such general
conditions as may be prescribed by law applicable to the Collateral Agent, and
the Collateral Agent shall not be liable for any interest thereon.

18.  Continuing Security Interest; Termination.
     -----------------------------------------

     (a)  This Agreement shall create a continuing perfected first security
interest in the Collateral and shall (i) remain in full force and effect until
the payment in full of all of the Secured Obligations, (ii) be binding upon the
Pledgor, its successors and assigns and (iii) inure, together with the rights
and remedies of the Collateral Agent hereunder, to  the benefit of the
Collateral Agent, the Trustee and the Holders and their respective successors,
transferees and assigns.

     (b)  Notwithstanding anything to the contrary in this Section 18, upon (a)
satisfaction by the Trustee of the conditions set forth in Article Four of the
Indenture, upon the satisfaction and discharge of the Indenture, (b) the payment
in full of all Secured Obligations or (c) the

                                       12
<PAGE>

defeasance of the Notes and the Indenture as provided in Section 8.02 of the
Indenture, the security interests created under this Agreement shall terminate
and the Collateral Agent shall, at the request and expense of the Pledgor, cause
to be assigned, transferred and delivered, against receipt but without recourse,
warranty or representation whatsoever, any remaining Collateral, to or on the
order of the Pledgor, and shall execute and deliver to the Pledgor an instrument
or instruments acknowledging the release of such Collateral from the Lien of
this Agreement.

19.  Notices.
     -------

          All notices and other communications provided for hereunder shall be
in writing (including telegraphic, telecopy, telex or cable communication) and
mailed, telegraphed, telecopied, telexed, cabled or delivered to it, if to the
Pledgor, addressed to it at XM Satellite Radio Inc., 1250 23rd Street, N.W.,
Washington, D.C. 20037, Attention: Chief Executive Officer, if to the Collateral
Agent, at the address of the Trustee specified in the Indenture, or as to any
party at such other address as shall be designated by such party in a written
notice to each other party. All such notices and other communications shall,
when mailed, telegraphed, telecopied, telexed or cabled, be effective when
deposited in the mails, delivered to the telegraph company, transmitted by
telecopier, confirmed by telex answerback or delivered to the cable company,
respectively.

20.  Margin Regulations.
     ------------------

          The Pledgor shall take such steps as may be necessary so that it shall
comply with Regulations G, U and X (in so far as Regulation X applies to
Regulations G and U) promulgated by the Board of Governors of the Federal
Reserve System, in each case as in effect from time to time and to the extent
such Regulations are at the time applicable to the Notes issued by the Pledgor.

21.  Other Provisions.
     -----------------

     (a)  Except as expressly provided in this Agreement, the  Pledgor hereby
waives presentment, demand for payment, notice of default, nonperformance and
dishonor, protest and notice of protest of or in respect of this Agreement, the
Indenture, the Notes or the Secured Obligations, notice of acceptance of this
Agreement and reliance hereupon by the Collateral Agent and notice of any sale
of collateral security or any default of any sort.

     (b)  The Pledgor waives all errors or omissions of the Collateral Agent in
connection with the administration of Security Interest created hereby and the
Collateral, except errors or omissions which constitute gross negligence or
willful misconduct.

     (c)  The Pledgor agrees that the Collateral Agent, the Trustee or the
Holders may at any time, without notice to or consent of the Pledgor, and
without in any manner affecting the liability of the Pledgor hereunder, amend,
modify or waive any term or condition of the Indenture, the Notes, the
Intercreditor Agreement and any of the other Secured Obligations and any
collateral security therefor and otherwise deal with Pledgor as if this
Agreement did not exist.

                                       13
<PAGE>

     (d)  The Pledgor is not relying upon the Collateral Agent to provide to the
Pledgor any information concerning the Subsidiary, including, without
limitation, information which might have a Material Adverse Effect, and the
Pledgor has made arrangements satisfactory to the Pledgor to obtain from the
Subsidiary on a continuing basis such information concerning the Subsidiary as
the Pledgor may desire.

     (e)  In addition to all other rights it may have at law or otherwise, upon
the occurrence and during the continuance of an Event of Default, the Collateral
Agent, is hereby authorized at any time and from time to time, without notice,
to set-off against any and all obligations which the Collateral Agent may owe to
the Subsidiary or the Pledgor, of any kind or nature, and the Pledgor shall
continue to be liable to the Collateral Agent for any deficiency with interest
at the applicable interest rate forth in the Indenture or the Notes.

     (f)  Notwithstanding anything to the contrary contained in the Indenture or
in any other agreement, instrument or document executed by the Pledgor and
delivered to the Collateral Agent, the Collateral Agent will not take any action
pursuant to any document referred to above which would constitute or result in
any assignment of any FCC license or any change of control (whether de jure or
de facto) of the Pledgor or the Subsidiary if such assignment of any FCC license
or change of control would require, under then existing law, the prior approval
of the FCC without first obtaining such prior approval of the FCC.  Upon the
occurrence of an Event of Default or at any time thereafter during the
continuance thereof, subject to terms and conditions of this Agreement, the
Pledgor agrees to take any action which the Collateral Agent may reasonably
request in order to obtain from the FCC such approval as may be necessary to
enable the Collateral Agent to exercise and enjoy, the full rights and benefits
granted to the Collateral Agent by this Agreement and the other documents
referred to above, including specifically, at the cost and expense of the
Pledgor, the use of its best efforts to assist in obtaining approval of the FCC
for any action or transaction contemplated by this Agreement for which such
approval is or shall be required by law, and specifically, without limitation,
upon request, to prepare, sign and file with the FCC the assignor's or
transferor's portion of any application or applications for consent to the
assignment of license or transfer of control necessary or appropriate under the
FCC's rules and regulations for approval of (i) any sale or other disposition of
the Collateral by or on behalf of the Collateral Agent, or (ii) any assumption
by the Collateral Agent of voting rights in the Collateral effected in
accordance with the terms of this Agreement.  It is understood and agreed that
all foreclosure and related actions will be made in accordance with the
Communications Act of 1934, as amended, and the rules and regulations
promulgated thereunder, as from time to time in effect (the "Communications
Act") and other applicable FCC regulations and published policies and decisions.

     (g)  the Pledgor agrees to indemnify and hold harmless the Collateral
Agent, the Trustee, and the Holders, the respective affiliates of the Collateral
Agent, the Trustee, and the Holders, and the respective officers, directors,
employees, agents (including, without limitation each of their counsel), and
controlling persons of the Collateral Agent, the Trustee, and the Holders and
each such affiliate (each, an "Indemnified Party") from and against any and all
claims, actions and suits whether groundless or otherwise, and from and against
any and all liabilities, losses, damages and costs and expenses (including,
without limitation, the reasonable fees and disbursements of counsel and with
respect to the Collateral Agent, reasonably allocated costs and expenses of in-
house counsel and legal staff) of every nature and character arising out

                                       14
<PAGE>

of or in connection with any actual or threatened claim, litigation,
investigation or proceeding relating to the Indenture, the Notes or this
Agreement or the transactions contemplated hereby (other than any such actions
or expenses resulting from the gross negligence or willful misconduct of the
Collateral Agent, the Trustee or the Holders), in each case including, without
limitation, the reasonable fees and disbursements of counsel and allocated costs
of in-house counsel and legal staff incurred in connection with any such
investigation, litigation or other proceeding whether or not such Indemnified
Party is a party thereto, and the Pledgor agrees to reimburse each Indemnified
Party, upon demand, for all out-of-pocket costs and expenses (including, without
limitation, the reasonable fees and disbursements of counsel and with respect to
the Collateral Agent, reasonably allocated costs and expenses of in-house
counsel and legal staff) incurred in connection with any of the foregoing. In
litigation, or the preparation therefor, the Collateral Agent, the Trustee and
the Holders shall be entitled to select their own counsel and, in addition to
the foregoing indemnity, the Pledgor agrees to pay promptly the reasonable fees
and expenses of such counsel. If, and to the extent that the obligations of the
Pledgor under this Section 21(g) are unenforceable for any reason, the Pledgor
hereby agrees to make the maximum contribution to the payment in satisfaction of
such obligations which is permissible under applicable law.

          The Pledgor shall not make any claim against any Indemnified Party for
any special, indirect or consequential damages in respect of any breach or
wrongful conduct (whether the claim therefor is based in contract, tort or duty
imposed by law) in connection with, arising out of or in any way related to the
transactions contemplated by, and the relationship established by the Indenture,
the Notes, or any act, omission or event occurring in connection therewith, and
the Pledgor hereby waives, releases and agrees not to sue upon any such claim
for any such damages, whether or not accrued and whether or not known or
suspected to exist in the Pledgor's favor.

          The covenants contained in this Section 21(g) shall survive payment or
satisfaction in full of all other of the Secured Obligations.

     (h)  The Pledgor hereby appoints Hogan & Hartson L.L.P., 885 Third Avenue,
New York, New York 10022 Attn: Steven Kaufman, as its legally authorized process
agent to accept service on behalf of the Pledgor.

     (i)  This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.  The Pledgor agrees that any suit for the
enforcement of this Agreement may be brought in the courts of the State of New
York or any federal court sitting therein and consents to the nonexclusive
jurisdiction of such court and service of process in any such suit being made
upon the Pledgor by mail to Hogan & Hartson at the address specified in Section
21(h).  The Pledgor hereby waives any objection that it may now or hereafter
have to the venue of any such suit or any such court or that such suit is
brought in an inconvenient court.

     (j)  This Agreement and any amendment hereof may be executed in several
counterparts and by each party on a separate counterpart, each of which when so
executed and delivered shall be an original, and all of which together shall
constitute one instrument.  In proving this Agreement it shall not be necessary
to produce or account for more than one such counterpart signed by the party
against whom enforcement is sought.

                                       15
<PAGE>

     (k)  This Agreement and any other documents executed in connection herewith
express the entire understanding of the parties with respect to the transactions
contemplated hereby.  Neither this Agreement nor any term hereof may be changed,
waived, discharged or terminated, except as provided in Section 21(m).

     (l)  the Pledgor hereby waives its right to a jury trial with respect to
any action or claim arising out of any dispute in connection with this
Agreement, or any of the other loan documents, any rights or obligations
hereunder or thereunder or the performance of such rights and obligations.

          Except as prohibited by law, the Pledgor hereby waives any right it
may have to claim or recover in any litigation referred to in the preceding
sentence any special, exemplary, punitive or consequential damages or any
damages other than, or in addition to, actual damages. The Pledgor (a) certifies
that no agent or representative of the Collateral Agent, the Trustee or any
Holder has represented, expressly or otherwise, that the Collateral Agent, the
Trustee or such Holder, as the case may be, would not, in the event of
litigation, seek to enforce the foregoing waivers and (b) acknowledges that the
Trustee, the Holders and the Collateral Agent have been induced to enter into
this Agreement and Indenture among other things, the waivers and certifications
contained herein.

     (m)  Any consent or approval required or permitted by this Agreement to be
given by the Collateral Agent may be given, and any term of this Agreement, may
be amended, and the performance or observance by the Pledgor of any terms of
this Agreement, or the continuance of any Default or Event of Default may be
waived (either generally or in a particular instance and either retroactively or
prospectively) with, but only with, the written consent of the Pledgor and the
written consent of the Collateral Agent.  No waiver shall extend to or affect
any obligation not expressly waived or impair any right consequent thereon.  No
course of dealing or delay or omission on the part of the Collateral Agent, the
Trustee or any Holder in exercising any right shall operate as a waiver thereof
or otherwise be prejudicial thereto.  No notice to or demand upon the Pledgor
shall entitle the Pledgor to other or further notice or demand in similar or
other circumstances.

     (n)  Notwithstanding the foregoing, this Agreement may be amended, revised
and supplemented, as contemplated by Section 9.02 of the Indenture, to assign
and pledge to the Custodian for the benefit of the Holders and the equal and
ratable benefit of the secured parties a security interest in the Collateral.
Any such amendment, revision or supplement shall comply with the provisions of
Section 9.02 of the Indenture.

     (o)  The Pledgor hereby waives any and all rights against immunity from
jurisdiction, attachment (both before and after judgment) and execution to which
it might be entitled.

     (p)  The provisions of this Agreement are severable and if any one clause
or provision hereof shall be held invalid or unenforceable in whole or in part
in any jurisdiction, then such invalidity or unenforceability shall affect only
such clause or provision, or part thereof, in such jurisdiction, and shall not
in any manner affect such clause or provision in any other jurisdiction, or any
other clause or provision of this Agreement in any jurisdiction.

                                       16
<PAGE>

          IN WITNESS WHEREOF, the Pledgor has caused this Agreement to be duly
executed and delivered as of the date hereof.

                                             XM SATELLITE RADIO INC.

                                             By:_________________________
                                                Name:
                                                Title:

Accepted and Agreed to:

UNITED STATES TRUST COMPANY OF NEW YORK
as Collateral Agent

By:____________________________
   Name:
   Title:

<PAGE>

                                  Schedule I

                                Pledged Shares

100 shares of common stock, par value $.01 per share, of XM Radio Inc.<PAGE>

                                                                     EXHIBIT 4.5

                               PLEDGE AGREEMENT

     This PLEDGE AGREEMENT (this "Pledge Agreement") is made and entered into as
of March 15, 2000 by XM SATELLITE RADIO INC., a Delaware corporation (the
"Company"), having its registered office at 1250 23/RD/ Street, Washington, D.C.
20037, in favor of UNITED STATES TRUST COMPANY OF NEW YORK ("United States
Trust"), a state chartered trust company organized under the laws of the State
of New York, having an office at 114 West 47/th/ Street, New York, NY 10036, as
(i) trustee (the "Trustee") for the holders (the "Holders") of the Notes (as
defined herein) issued by the Company under the Indenture referred to below and
(ii) in its individual capacity, as securities intermediary (in such capacity,
the "Collateral Securities Intermediary").  Capitalized terms used herein and
not otherwise defined herein shall have the meanings given to such terms in the
Indenture.

                              W I T N E S S E T H

     WHEREAS, the Company and the Trustee have entered into that certain
indenture dated as of the date hereof (as amended, restated, supplemented or
otherwise modified from time to time, the "Indenture"), pursuant to which the
Company is issuing on the date hereof  $325,000,000 in aggregate principal
amount of 14% Senior Secured Notes due 2010 (the "Notes"); and

     WHEREAS, the Trustee has opened a collateral account (the "Pledge Account")
with United States Trust Company of New York, at its office at 114 West 47/th/
Street, New York, NY 10036, Reference: "XM Satellite Collateral," Account No.
04587900, in the name, and under the sole control and dominion, of the Trustee
and subject to the terms of this Pledge Agreement;

     WHEREAS, the Company has agreed pursuant to the Indenture to deposit in the
Pledge Account, for the benefit of the Holders of the Notes, an amount from the
net proceeds of the offering of the Notes sufficient to acquire Pledged
Securities (as defined herein) in an amount as will be sufficient upon receipt
of scheduled interest and principal payments on such Pledged Securities to
provide payment in full when due of the first six scheduled interest payments
due on the Notes; and

     WHEREAS, to secure the obligations of the Company under the Indenture and
the Notes to pay in full each of the first six scheduled interest payments on
the Notes and to secure repayment of the principal, premium (if any) and
interest on the Notes in the event that the Notes become due and payable prior
to such time as the first six scheduled interest payments thereon shall have
been paid in full (collectively, the "Obligations"), the Company has agreed (i)
to pledge to the Trustee for its benefit and the ratable benefit of the Holders
of the Notes, a security interest in all cash, if any, held in the Pledge
Account, the Pledged Securities and related collateral and (ii) to execute and
deliver this Pledge Agreement in order to secure the payment and performance by
the Company of all the Obligations; and

<PAGE>

     WHEREAS, it is a condition precedent to the initial purchase of the Notes
by the initial Holders thereof that the Company shall have granted the
assignment and security interest and made the pledge and assignment contemplated
by this Pledge Agreement; and

     WHEREAS, unless otherwise defined herein or in the Indenture, terms used in
Articles 8 or 9 of the Uniform Commercial Code ("UCC") as in effect in the State
of New York are used herein as therein defined.

     NOW, THEREFORE, in consideration of the mutual promises herein contained,
and in order to induce the Holders of the Notes to purchase the Notes, the
Company hereby agrees with the Trustee, for the benefit of the Trustee and for
the ratable benefit of the Holders of the Notes, as follows:

     Section 1.  PLEDGE AND GRANT OF SECURITY INTEREST.{TC} The Company hereby
assigns and pledges to the Trustee for its benefit and for the ratable benefit
of the Holders of the Notes, and hereby grants to the Trustee for its benefit
and for the ratable benefit of the Holders of the Notes, a continuing first
priority security interest in and to all of the Company's right, title and
interest in, to and under the following (whether consisting of investment
securities, book-entry securities or other securities, security entitlements,
financial assets or other investment property, accounts, general intangibles,
instruments or documents, securities accounts, deposit accounts or other bank,
trust or cash collateral accounts, or other property, assets or rights), whether
now owned or hereafter acquired, wherever located and whether now or hereafter
existing (hereinafter collectively referred to as the "Cash Collateral"):

                 (a)  the Pledge Account, all financial assets from time to time
credited to the Pledge Account (including, without limitation, any Pledged
Securities from time to time credited to the Pledge Account), and all dividends,
interest, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such financial assets;

                 (b)  any and all applicable security entitlements to any of the
financial assets credited from time to time to the Pledge Account (including,
without limitation, to any Pledged Securities from time to time credited to the
Pledge Account);

                 (c)  any and all related securities accounts in which security
entitlements to any of the financial assets credited from time to time to the
Pledge Account (including, without limitation, to any Pledged Securities from
time to time credited to the Pledge Account);

                 (d)  all notes, certificates of deposit, deposit accounts,
checks and other instruments from time to time hereafter delivered to or
otherwise possessed by the Trustee for or on behalf of the Company in
substitution for or in addition to any or all of the then existing Cash
Collateral;

                 (e)  all interest, dividends, cash, instruments and other
property from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of the then existing Cash Collateral;
and

                                       2
<PAGE>

                 (f)  all proceeds (including, without limitation, cash
proceeds) of any and all of the foregoing Cash Collateral (including, without
limitation, proceeds that constitute property of types described in clauses (a)
through (e) of this Section 1).

     Section 2.  SECURITY FOR OBLIGATION.{TC} This Pledge Agreement and the
grant of a security interest in the Cash Collateral secure the prompt and
complete payment and performance when due (whether at stated maturity, by
acceleration or otherwise) of all the Obligations, whether for principal,
interest, fees or otherwise, now or hereafter existing, under this Pledge
Agreement, the Notes or the Indenture (all such Obligations being the "Secured
Obligations"). Without limiting the generality of the foregoing, this Pledge
Agreement and the grant of a security interest in the Cash Collateral hereunder
secure the payment of all amounts that constitute part of the Secured
Obligations and would be owed by the Company to the Trustee or the Holders under
the Notes or the Indenture but for the fact that they are unenforceable or not
allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving the Company.

     Section 3.  MAINTAINING THE COLLATERAL ACCOUNT.{TC} Prior to or
concurrently with the execution and delivery hereof and for so long as any
Secured Obligation shall remain outstanding,

                 (a)  the Trustee shall establish and maintain (and the
Collateral Securities Intermediary shall maintain and administer in accordance
with this Pledge Agreement) the Pledge Account with the Collateral Securities
Intermediary at its office 114 West 47/th/ Street, New York, NY 10036 in
accordance with the terms of this Pledge Agreement. The Pledge Account shall at
all times be segregated from any other custodial or collateral account
maintained by the Trustee.

                 (b)  the Collateral Securities Intermediary and the Trustee
shall cause the Pledge Account to be, and the Pledge Account shall be, separate
from all other accounts held by or under the control and dominion of the
Trustee, the Collateral Securities Intermediary or United States Trust. It shall
be a term and condition of the Pledge Account, notwithstanding any term or
condition to the contrary in any other agreement relating to the Pledge Account,
and except as otherwise provided by the provisions of Section 4 and Section 16.9
of this Pledge Agreement, that no amount shall be paid or released to or for the
account of, or withdrawn by or for the account of, the Company or any other
Person from the Pledge Account.

                 (c)  the Pledge Account shall be subject to such applicable
laws, and such applicable regulations of any appropriate banking or governmental
authority, as may now or hereafter be in effect, including, without limitation,
any applicable regulations of the Board of Governors of the Federal Reserve
System.

                 (d)  subject to the provisions of this Pledge Agreement, the
Pledge Account shall be under the sole dominion and control of the Trustee. The
Trustee shall have the sole right to make withdrawals from the Pledge Account
and to exercise all rights (including the delivery of entitlement orders) with
respect to the Cash Collateral from time to time therein. All Cash Collateral
delivered to or held by or on behalf of, and not released by, the Trustee
pursuant hereto shall be held in the Pledge Account in accordance with the
provisions hereof.

                                       3
<PAGE>

                 (e)  if any earnings of the Cash Collateral held in the Pledge
Account are subject to non-U.S. withholding taxes, the Trustee shall cooperate
in good faith with the Company to reduce or eliminate such withholding taxes,
including, without limitation, through changing the location of the Pledge
Account or through establishing an additional Pledge Account at a different
location to hold the affected Cash Collateral, provided that after giving effect
to any such change of location or establishment of an additional Pledge Account,
the Trustee's security interest in the affected Cash Collateral shall continue
to constitute a valid and perfected first priority security interest in such
Cash Collateral.

                 (f)  all Cash Collateral shall be retained in the Pledge
Account pending disbursement pursuant to the terms of this Pledge Agreement.

     Section 4.  DISBURSEMENTS.{TC}

                 (a)  Immediately prior to the due date of any of the first six
scheduled interest payments on the Notes, the Company may (i) pursuant to
written instructions given by the Company to the Trustee (an "Issuer Order"),
direct the Trustee to release from the Pledge Account and pay to the Holders of
the Notes proceeds sufficient to provide for payment in full of such interest
then due on the Notes or (ii) deposit with the Trustee from funds otherwise
available to the Company cash sufficient to pay the interest scheduled to be
paid on such date. Upon receipt of an Issuer Order, the Trustee will release
funds in an amount sufficient to provide for the payment in full of such
interest then due on the Notes in accordance with such Issuer Order and the
payment provisions of the Indenture to the Holders of the Notes from (and to the
extent of) proceeds of the Pledged Securities in the Pledge Account. Nothing in
this Section 4 shall affect the Trustee's rights to apply the Cash Collateral to
the payments of amounts due on the Notes upon acceleration thereof.

                 (b)  If the Company makes any interest payment or portion of an
interest payment pursuant to Section 4(a)(ii) from a source of funds other than
the Pledge Account ("Pledgor Funds"), the Company may, after payment in full of
such interest payment, direct the Trustee pursuant to an Issuer Order to release
to the Company or to another party at the direction of the Company (the
"Pledgor's Designee") proceeds from the Pledge Account in an amount less than or
equal to the amount of Company Funds applied to such interest payment. Upon
receipt by the Trustee of (i) such Issuer Order and (ii) payment in full of such
interest payment, the Trustee shall pay over to the Company or the Company's
Designee, as the case may be, proceeds from the Pledge Account in accordance
with such Issuer Order as soon as practicable.

                 (c)  If at any time the principal of and interest on the
Pledged Securities exceeds 100% of the amount sufficient, in the written opinion
of an internationally recognized firm of independent accountants selected by the
Company and delivered to the Trustee, to provide for payment in full of the
remaining first six scheduled interest payments due on the Notes, the Company
may direct the Trustee to release any such excess amount to the Company or to
the Company's Designee. Upon receipt of an Issuer Order (which shall include a
certificate from such internationally recognized firm of independent accountants
stating the amount by which the Pledged Securities exceeds the amount required
to be held in the Pledge Account) the

                                       4
<PAGE>

Trustee shall pay over to the Company or the Company's Designee, as the case may
be, any such excess amount.

                 (d)  Upon payment in full of the first six scheduled interest
payments on the Notes, the security interest in the Cash Collateral evidenced by
this Pledge Agreement will automatically terminate and be of no further force
and effect and the Cash Collateral shall promptly be paid over and transferred
to the Company or the Company's Designee, as the case may be. Furthermore, upon
the release of any Cash Collateral from the Pledge Account in accordance with
the terms of this Pledge Agreement, whether upon release of Cash Collateral to
Holders as payment of interest or otherwise, the security interest evidenced by
this Pledge Agreement in such released Cash Collateral will automatically
terminate and be of no further force and effect.

                 (e)  At least three Business Days prior to the due date of each
of the first six scheduled interest payments on the Notes, the Company shall
give the Trustee notice (by Issuer Order) as to whether such interest payment
will be made pursuant to Section 4(a)(i) or 4(a)(ii) above and the respective
amounts of interest that will be paid from the Pledge Account and from Company
Funds. Any Company Funds to be used to make any interest payment shall be
delivered to the Trustee, in immediately available funds, prior to 10:00 a.m.
(New York City time) on such interest payment date. If no such notice is given
or such Company Funds have not been so delivered, the Trustee will act pursuant
to Section 4(a) above as if it had received an Issuer Order pursuant thereto for
the payment in full of the interest then due from the Pledge Account.

                 (f)  If on any interest payment date there are insufficient
funds in the Pledge Account to make any scheduled payment of interest (after
taking into account any Company Funds delivered to the Trustee as provided in
Section 4(a)(ii) above), the Trustee shall liquidate Cash Collateral in the
Pledge Account to the extent necessary to pay, in full, such scheduled payment
of interest.

                 (g)  Nothing contained in this Pledge Agreement shall (i)
afford the Company any right to issue entitlement orders with respect to any
security entitlement to the Pledged Securities or any securities account in
which any such security entitlement may be carried, or otherwise afford the
Company control of any such security entitlement or (ii) otherwise give rise to
any rights of the Company with respect to the Pledged Securities, any security
entitlement thereto or any securities account in which any such security
entitlement may be carried, other than the Company's rights under this Pledge
Agreement as the beneficial owner of collateral pledged to and subject to the
exclusive dominion and control (except as expressly provided in Sections 5(a),
(b), (c), (d), (e) and (f) hereof) of the Trustee in its capacity as such (and
not as a securities intermediary). The Company acknowledges, confirms and agrees
that the Trustee holds a security interest to the Pledged Securities solely as
Trustee for the Holders of the Notes and not as a securities intermediary.

     Section 5.  CASH DEPOSIT; INVESTMENTS.{TC}

                 (a)  On the date hereof, the Company shall deposit (or cause to
be deposited) cash proceeds sufficient to purchase direct obligations (or
certificates representing an

                                       5
<PAGE>

ownership interest in such obligations) of the United States of America
(including any agency or instrumentality thereof) for the payment of which full
faith and credit of the United States of America is pledged and which are not
callable at the Company's option (the "Pledged Securities") on the date hereof.

                 (b)  In the event that the Company shall have deposited (or
cause to be deposited) cash proceeds pursuant to clause (a) above, the Trustee
shall, on the date hereof, use such cash proceeds to invest in the Pledged
Securities, at which time such Pledged Securities shall be promptly credited to
the Pledge Account. Until such time as any cash proceeds are invested in the
Pledged Securities as provided above, such cash proceeds shall be deposited and
held in a deposit account with United States Trust Company of New York in the
name of the Trustee and under the sole control and dominion of the Trustee, such
deposit account to be deemed to constitute part of the Pledge Account.

     Section 6.  DELIVERY AND CONTROL OF COLLATERAL; COLLATERAL ACCOUNTS;
INTEREST; SECURITIES INTERMEDIARY.{TC}

          Notwithstanding anything to the contrary contained in this Pledge
Agreement (it being understood that in the event of any conflict between the
provisions of this Section 6 and any other provisions of this Pledge Agreement,
the provisions of this Section 6 shall control) United States Trust, as
Collateral Securities Intermediary, hereby represents and warrants to, and
agrees with the Company and the Trustee as follows:

                 (a)  It is a securities intermediary as of the date hereof and
for so long as this Pledge Agreement remains in effect shall remain in effect
and United States Trust is acting as the Collateral Securities Intermediary
hereunder, it shall remain a securities intermediary and shall act as such with
respect to the Company, the Trustee, the Pledge Account, all financial assets
credited thereto (including without limitation the Pledged Securities), all
related securities entitlements and all other Cash Collateral.

                 (b)  The Pledge Account is and will be maintained as a
securities account and Trustee is the entitlement holder in respect of the
Pledge Account, all financial assets credited thereto (including without
limitation the Pledged Securities) and all related securities entitlements and
the Collateral Securities Intermediary shall so note the same in its records
with respect to the Pledge Account, all financial assets credited thereto
(including without limitation the Pledged Securities) and all related securities
entitlements.

                 (c)  It is the securities intermediary with respect to any
assets, property or other items credited to the Pledge Account from time to time
(including without limitation the Pledged Securities).

                 (d)  All financial assets in registered form or payable to or
to the order of and credited to the Pledge Account shall be registered in the
name of, payable to or to the order of, or endorsed to, the Collateral
Securities Intermediary or in blank and in no case during the term of this
Pledge Agreement will any financial asset credited to the Pledge Account be
registered in the name of, payable to or to the order of, or endorsed to, the
Company, except to

                                       6
<PAGE>

the extent the foregoing have been subsequently endorsed by the Company to the
Collateral Securities Intermediary or in blank.

                 (e)  It shall without further consent from the Company, (i)
comply with all instructions, entitlement orders and directions of any kind
originated by the Trustee concerning the Cash Collateral, including entitlement
orders to liquidate or otherwise dispose of the Cash Collateral as and to the
extent directed by the Trustee and pay over to the Trustee all proceeds and
other value therefrom or otherwise distributed with respect thereto without any
set-off or deduction, and (ii) except as otherwise directed by the Trustee, not
comply with the instructions, entitlement orders or directions of the Company or
any other person, in each case it being the intention that Trustee shall have
sole dominion and control of the Pledge Account, all financial assets credited
thereto (including without limitation the Pledged Securities) and all related
securities entitlements.

                 (f)  Each item of property (whether cash, a security,
investment property, instrument or obligation, share, participation, interest or
other property whatsoever, including without limitation the Pledged Securities)
credited to the Pledge Account shall be treated as a financial asset.

                 (g)  Except for the claims and interests of the Trustee and the
Company in the Pledge Account, all financial assets credited thereto (including
without limitation the Pledged Securities) and all related securities
entitlements, it does not know of any claim to or security interest or other
interest in the Pledged Account, any financial assets credited thereto
(including without limitation the Pledged Securities) or any related securities
entitlements and, except for such claims and interests of the Trustee and the
Company, the Trustee also does not know of any such claims or interests.

                 (h)  It hereby waives its rights to set off any obligations of
the Company to it against the Pledged Account, any financial assets credited
thereto (including without limitation the Pledged Securities) or any related
securities entitlements, and hereby agrees that any and all liens, encumbrances,
claims or security interests which it may have against the Pledged Account, any
financial assets credited thereto (including without limitation the Pledged
Securities) or any related securities entitlements, either now or in the future
are and shall be subordinate and junior to the prior payment in full of all
obligations of the Company now or hereafter existing under the Indenture, Notes
and all other documents related thereto whether for principal, interest
(including, without limitation, interest as provided in the Notes, whether or
not such interest accrues after the filing of such petition for purposes of the
Bankruptcy Code or is an allowed claim in such proceeding), indemnities, fees,
premiums, expenses or otherwise.

                 (i)  It shall not agree with any third party to comply with any
instructions, entitlement orders or directions of any kind concerning the
Pledged Account, any financial assets credited thereto (including without
limitation the Pledged Securities) or any related securities entitlements
originated by such third party without the prior written consent of the Trustee.

                                       7
<PAGE>

                 (j)  It shall maintain the Pledged Account so that all items of
income, gain, expense and loss recognized in the Pledged Account shall be
reported to the Internal Revenue Service and all state and local taxing
authorities under the name and taxpayer identification number of the Company and
the Company shall execute a Substitute Form W-9 or such other documents as may
be requested by the Trustee to provide that the Company shall not be subject to
the backup withholding requirements of the Internal Revenue Code of 1986, as
amended.

                 (k)  Its jurisdiction for purposes of the UCC with respect to
the Pledged Account, all financial assets credited thereto (including without
limitation the Pledged Securities) and all related securities entitlements is
and shall always be the State of New York.

     Section 7.  REPRESENTATIONS AND WARRANTIES.{TC}

          The Company hereby represents and warrants that:

                 (a)  The execution and delivery by the Company of, and the
performance by the Company of its obligations under, this Pledge Agreement will
not contravene any provision of applicable law or the Articles of Incorporation
of the Company or any material agreement or other material instrument binding
upon the Company or any of its subsidiaries or any judgment, order or decree of
any governmental body, agency or court having jurisdiction over the Company or
any of its subsidiaries, or result in the creation or imposition of any Lien on
any assets of the Company, except for the security interests granted under this
Pledge Agreement.

                 (b)  No consent of any other person and no approval,
authorization, order of, action by or qualification with, any governmental
authority, regulatory body, agency or other third party is required (i) for the
execution, delivery or performance by the Company of its obligations under this
Pledge Agreement or (ii) for the grant by the Company of the security interests
created by this Pledge Agreement or for the pledge by the Company of the Cash
Collateral pursuant to this Pledge Agreement, except, in each case, for such
consents, approvals, authorizations, orders, actions and qualifications which
the failure to obtain, individually or in the aggregate, could not reasonably be
expected to have a material adverse effect on the properties, assets, financial
condition or results of operations of the Company. No consent of any other
person and no approval, authorization, order of, action by or qualification
with, any governmental authority, regulatory body, agency or other third party
is required for the exercise by the Trustee of the rights provided for in this
Pledge Agreement or the remedies in respect of the Cash Collateral pursuant to
this Pledge Agreement, except for any such consents, approvals, authorizations
or orders required to be obtained by the Trustee (or the Holders) for reasons
other than the consummation of this transaction.

                 (c)  The Company is the entitlement holder of a security
entitlement in the Pledged Securities; the Company has acquired such security
entitlement for value and without notice of any advance claim, and accordingly,
no action based on any adverse claim to the Pledged Securities may be asserted
against the Company. The Company has not at time transferred any of the Cash
Collateral to third parties nor encumbered such Cash Collateral with any third
party rights. No financing statement or instrument similar in effect covering
all or any

                                       8
<PAGE>

part of the Company's interest in the Pledged Securities is on file in any
public or recording office, other than the financing statements filed pursuant
to this Pledge Agreement. The Company has no trade names.

                 (d)  This Pledge Agreement has been duly authorized, validly
executed and delivered by the Company and constitutes a valid and binding
agreement of the Company, enforceable against the Company in accordance with its
terms, except as (i) the enforceability hereof may be limited by bankruptcy,
insolvency, fraudulent conveyance, preference, reorganization, moratorium or
similar laws now or hereafter in effect relating to or affecting creditors'
rights or remedies generally, (ii) the availability of equitable remedies may be
limited by equitable principles of general applicability, (iii) the exculpation
provisions and rights to indemnification hereunder may be limited by U.S.
federal and state securities laws and public policy considerations and (iv) the
waiver of rights and defenses contained in Section 13(a) and (b), Section 16.11
and Section 16.15 of this Pledge Agreement may be limited by applicable law.

                 (e)  Upon the crediting of any Cash Collateral to the Pledged
Account in accordance with Sections 3 and 6 above, the pledge and grant of a
security interest in the Cash Collateral pursuant to this Pledge Agreement for
the benefit of the Trustee and the Holders of the Notes will constitute a valid
and perfected first priority security interest in such Cash Collateral, securing
the payment of the Secured Obligations enforceable as such against all creditors
of the Company (and any persons purporting to purchase any of the Cash
Collateral from the Company).

                 (f)  There are no legal or governmental proceedings pending or,
to the best of the Company's knowledge, threatened to which the Company or any
of its subsidiaries is a party or to which any of the properties of the Company
or any such subsidiary is subject that would materially adversely affect the
power or ability of the Company to perform its obligations under this Pledge
Agreement or to consummate the transactions contemplated hereby.

                 (g)  The pledge of the Cash Collateral pursuant to this Pledge
Agreement is not prohibited by law or governmental regulation (including,
without limitation, Regulations G, T, U and X of the Board of Governors of the
Federal Reserve System) applicable to the Company.

                 (h)  No Event of Default exists.

     Section 8.  FURTHER ASSURANCES.{TC}

                 (a)  The Company agrees that from time to time, at the expense
of the Company, the Company will, promptly including upon reasonable request by
the Trustee, execute and deliver or cause to be executed and delivered, or use
its reasonable commercial efforts to procure, all assignments, instruments and
other documents, all in form and substance reasonably satisfactory to the
Trustee, deliver any instruments to the Trustee and take any other actions that
may be necessary or, in the reasonable opinion of the Trustee, desirable to
perfect, continue the perfection of, or protect the first priority of the
Trustee's security interest in and to the Cash Collateral, to protect the Cash
Collateral against the rights, claims, or interests of third

                                       9
<PAGE>

persons (other than any such rights, claims or interests created by or arising
through the Trustee) or to effect the purposes of this Pledge Agreement.

                 (b)  The Company hereby authorizes the Trustee to file any
financing or continuation statements in the United States with respect to the
Cash Collateral without the signature of the Company (to the extent permitted by
applicable law); provided, however, that the Company shall not be relieved of
any of its obligations under Section 8(a) hereof. A photocopy or other
reproduction of this Pledge Agreement or any financing statement covering the
Cash Collateral or any part thereof shall be sufficient as a financing statement
where permitted by law.

                 (c)  The Company will furnish to the Trustee from time to time
statements and schedules further identifying and describing the Cash Collateral
and such other reports in connection with the Cash Collateral as the Trustee may
reasonably request, all in reasonable detail.

                 (d)  The Company will promptly pay all costs reasonably
incurred in connection with any of the foregoing within 30 days of receipt of an
invoice therefor. The Company also agrees, whether or not requested by the
Trustee, to take all actions that are necessary to perfect or continue the
perfection of, or to protect the first priority of, the Trustee's security
interest in and to the Cash Collateral, including the filing of all necessary
financing and continuation statements, and to protect the Cash Collateral
against the rights, claims or interests of third persons (other than any such
rights, claims or interests created by or arising through the Trustee).

     Section 9.  COVENANTS.{TC}

          The Company covenants and agrees with the Trustee and the Holders of
the Notes that from and after the date of this Pledge Agreement until the
earlier of payment in full in cash of (x) each of the first six scheduled
interest payments due on the Notes under the terms of the Indenture and (y) all
obligations due and owing under the Indenture and the Notes in the event such
obligations become due and payable prior to the payment in full of the first six
scheduled interest payments on the Notes:

                 (a)  that (i) it will not (and will not purport to) sell or
otherwise dispose of, or grant any option or warrant with respect to, any of the
Cash Collateral or its beneficial interest therein, and (ii) it will not create
or permit to exist any Lien or other adverse interest in or with respect to its
beneficial interest in any of the Cash Collateral (except for the security
interests granted under this Pledge Agreement); and

                 (b)  that it will not (i) enter into any agreement or
understanding that restricts or inhibits or purports to restrict or inhibit the
Trustee's rights or remedies hereunder, including, without limitation, the
Trustee's right to sell or otherwise dispose of the Cash Collateral or (ii) fail
to pay or discharge any tax, assessment or levy of any nature with respect to
its beneficial interest in the Cash Collateral not later than five days prior to
the date of any proposed sale under any judgment, writ or warrant of attachment
with respect to such beneficial interest.

                                       10
<PAGE>

     Section 10. POWER OF ATTORNEY.{TC}

          In addition to all of the powers granted to the Trustee pursuant to
the Indenture, the Company hereby appoints and constitutes the Trustee as the
Company's attorney-in-fact (with full power of substitution), with full
authority in the place and stead of the Company and in the name of the Company
or otherwise, from time to time in the Trustee's reasonable discretion to take
any action and to execute any instrument that the Trustee may deem necessary or
advisable to accomplish the purposes of this Pledge Agreement, including,
without limitation:

                 (a)  to ask for, demand, collect, sue for, recover, compromise,
receive and give acquittance and receipts for moneys due and to become due under
or in respect of any of the Cash Collateral,

                 (b)  to receive, indorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clause (a) above,

                 (c)  to file any claims or take any action or institute any
proceedings that the Trustee may reasonably deem necessary or desirable for the
collection of any of the Cash Collateral or otherwise to enforce the rights of
the Trustee with respect to any of the Cash Collateral, and

                 (d)  to pay or discharge taxes or Liens levied or placed upon
the Cash Collateral, the legality or validity thereof and the amounts necessary
to discharge the same to be determined by the Trustee in its sole reasonable
discretion, and such payments made by the Trustee to become part of the
Obligations of the Company to the Trustee, due and payable immediately upon
demand; provided, however, that the Trustee shall have no obligation to perform
any of the foregoing actions. The Trustee's authority under this Section 10
shall include, without limitation, the authority to endorse and negotiate any
checks or instruments representing proceeds of Cash Collateral in the name of
the Company, execute and give receipt for any certificate of ownership or any
document constituting Cash Collateral, transfer title to any item of Cash
Collateral, sign the Company's name on all financing statements (to the extent
permitted by applicable law) or any other documents reasonably deemed necessary
or appropriate by the Trustee to preserve, protect or perfect the security
interest in the Cash Collateral and to file the same, prepare, file and sign the
Company's name on any notice of Lien, and to take any other actions arising from
or incident to the powers granted to the Trustee in this Pledge Agreement. This
power of attorney is coupled with an interest and is irrevocable by the Company.

     Section 11. NO ASSUMPTION OF DUTIES; REASONABLE CARE.{TC}

          The rights and powers conferred on the Trustee hereunder are solely to
preserve and protect the security interest of the Trustee and the Holders of the
Notes in and to the Cash Collateral granted hereby and shall not be interpreted
to, and shall not impose any duties on the Trustee in connection therewith other
than those expressly provided herein or imposed under applicable law.  Except as
provided by applicable law or by the Indenture, the Trustee shall be deemed to
have exercised reasonable care in the custody and preservation of the Cash
Collateral in its possession if the Cash Collateral is accorded treatment
substantially equal to that which the

                                       11
<PAGE>

Trustee accords similar property held by the Trustee for its own account, it
being understood that the Trustee in its capacity as such shall not have any
responsibility for (a) ascertaining or taking action with respect to calls,
conversions, exchanges, maturities or other matters relative to any Cash
Collateral, whether or not the Trustee has or is deemed to have knowledge of
such matters, (b) taking any necessary steps to preserve rights against any
parties with respect to any Cash Collateral or (c) investing or reinvesting any
of the Cash Collateral or any loss on any investment.

     Section 12. INDEMNITY.{TC}

          The Company shall indemnify, hold harmless and defend the Trustee, the
Collateral Securities Intermediary and each of their respective directors,
officers, agents and employees, from and against any and all claims, actions,
obligations, liabilities and expenses, including reasonable defense costs,
reasonable investigative fees and costs, and reasonable legal fees and damages
arising from their execution of or performance under this Pledge Agreement,
except to the extent that such claim, action, obligation, liability or expense
is directly attributable to the bad faith, gross negligence or willful
misconduct of such indemnified person.  This indemnification shall survive the
termination of this Pledge Agreement.

     Section 13. REMEDIES UPON EVENT OF DEFAULT.{TC}

          If any Event of Default shall have occurred and be continuing:

                 (a)  The Trustee and the Holders of the Notes may exercise, in
addition to all other rights given by law or by this Pledge Agreement or the
Indenture, all of the rights and remedies with respect to the Cash Collateral of
a secured party under the UCC in effect in the State of New York at that time
and also may (i) require the Company to, and the Company hereby agrees that it
will at its expense and upon request of the Trustee forthwith, assemble all or
part of the Cash Collateral as directed by the Trustee and make it available to
the Trustee at a place to be designated by the Trustee that is reasonably
convenient to both parties and (ii) without notice except as specified below,
sell the Cash Collateral or any part thereof in one or more parcels at any
broker's board or at public or private sale, in one or more sales or lots, at
any of the Trustee's offices or elsewhere, for cash, on credit or for future
delivery, and upon such other terms as the Trustee may deem commercially
reasonable. The Company agrees that, to the extent notice of sale shall be
required by law, at least ten days' notice to the Company of the time and place
of any public sale or the time after which any private sale is to be made shall
constitute reasonable notification. The Trustee shall not be obligated to make
any sale of Cash Collateral regardless of notice of sale having been given. The
Trustee may adjourn any public or private sale from time to time by announcement
at the time and place fixed therefor, and such sale may, without further notice,
be made at the time and place to which it was so adjourned. The purchaser of any
or all Cash Collateral so sold shall thereafter hold the same absolutely, free
from any claim, encumbrance or right of any kind whatsoever created by or
through the Company. Any sale of the Cash Collateral conducted in conformity
with reasonable commercial practices of banks, insurance companies, commercial
finance companies, or other financial institutions disposing of property similar
to the Cash Collateral shall be deemed to be commercially reasonable. The
Trustee or any Holder of Notes may, in its own name or in the name of a designee
or nominee, buy any of the Cash Collateral at any public sale and, if

                                       12
<PAGE>

permitted by applicable law, at any private sale. All expenses (including court
costs and reasonable attorneys' fees, expenses and disbursements) of, or
incident to, the enforcement of any of the provisions hereof shall be
recoverable from the proceeds of the sale or other disposition of the Cash
Collateral.

                 (b)  All cash proceeds received by the Trustee in respect of
any sale of, collection from, or other realization upon all or any part of the
Cash Collateral may, following the payment of the fees and expenses of the
Trustee, be held by the Trustee as collateral for, and/or then or at any time
thereafter applied (after payment of any amounts payable to the Trustee pursuant
to Section 14): first, to the Holders for amounts due and unpaid on the Notes
for interest, ratably, without preference or priority of any kind; and second,
to the Holders for amounts due and unpaid on the Notes for principal, ratably,
without preference or priority of any kind. Any surplus of such cash or cash
proceeds held by the Trustee and remaining after payment in full of all the
Secured Obligations shall be paid over to the Company or to whomsoever may be
lawfully entitled to receive such surplus.

                 (c)  The Trustee may, without notice to the Company except as
required by law and at any time or from time to time, charge, set-off and
otherwise apply all or any part of the Secured Obligations against the Pledged
Account or any part thereof.

                 (d)  The Company further agrees to use its best efforts to do
or cause to be done all such other acts as may be necessary to make such sale or
sales of all or any portion of the Cash Collateral pursuant to this Section 13
valid and binding and in compliance with any and all other applicable
requirements of law. The Company further agrees that a breach of any of the
covenants contained in this Section 13 will cause irreparable injury to the
Trustee and the Holders of the Notes, that the Trustee and the Holders of the
Notes have no adequate remedy at law in respect of such breach and, as a
consequence, that each and every covenant contained in this Section 13 shall be
specifically enforceable against the Company, and the Company hereby waives and
agrees not to assert any defenses against an action for specific performance of
such covenants except for a defense that no Event of Default has occurred and is
continuing.

     Section 14. EXPENSES.{TC}

          The Company will upon demand pay to the Trustee and the Collateral
Securities Intermediary the amount of any and all reasonable expenses,
including, without limitation, the reasonable fees, expenses and disbursements
of its counsel, experts and agents retained by the Trustee or the Collateral
Securities Intermediary, as the case may be, that the Trustee or the Collateral
Securities Intermediary, as the case may be, may incur in connection with (a)
the review, negotiation and administration of this Pledge Agreement, (b) the
custody or preservation of, or the sale of, collection from, or other
realization upon, any of the Cash Collateral, (c) the exercise or enforcement of
any of the rights of the Trustee and the Holders of the Notes hereunder or (d)
the failure by the Company to perform or observe any of the provisions hereof.

     Section 15. SECURITY INTEREST ABSOLUTE.{TC}

          All rights of the Trustee and the Holders of the Notes and security
interests hereunder, and all obligations of the Company hereunder, shall be
absolute and unconditional

                                       13
<PAGE>

irrespective of:

                 (a)  any lack of validity or enforceability of the Indenture or
Notes or any other agreement or instrument relating thereto;

                 (b)  any change in the time, manner or place of payment of, or
in any other term of, all or any of the Secured Obligations, or any other
amendment or waiver of or any consent to any departure from the Indenture;

                 (c)  any taking, exchange, surrender, release or non-perfection
of any Liens on any other collateral for all or any of the Secured Obligations;

                 (d)  any manner of application of collateral, or proceeds
thereof, to all or any of the Secured Obligations, or any manner of sale or
other disposition of any collateral for all or any of the Secured Obligations or
any other assets of the Company;

                 (e)  any change, restructuring or termination of the corporate
 structure or existence of the Company; or

                 (f)  to the extent permitted by applicable law, any other
circumstance which might otherwise constitute a defense available to, or a
discharge of, the Company in respect of the Secured Obligations or of this
Pledge Agreement.

     Section 16. MISCELLANEOUS PROVISIONS.{TC}

          Section 16.1  NOTICES.{TC}  Any notice or communication given
hereunder shall be sufficiently given if in writing and delivered in person or
mailed by first class mail, commercial courier service or telecopier
communication, addressed as follows:

          IF TO THE COMPANY:

          XM Satellite Radio Inc.
          1250 23/rd/ Street, N.W.
          Washington, D.C. 20037
          Fax: (202) 969-7124
          Attention: General Counsel

          IF TO THE TRUSTEE OR THE COLLATERAL SECURITIES
          INTERMEDIARY:

          United States Trust Company of New York
          114 West 47/th/ Street
          New York, NY 10036
          Fax: (212) 852-1626
          Attention: Corporate Trust Division

                                       14
<PAGE>

All such notices and other communications shall, when mailed, delivered or
telecopied, respectively, be effective when deposited in the mails, delivered or
telecopied, respectively, addressed as aforesaid.

          Section 16.2   NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.{TC} This
Pledge Agreement may not be used to interpret another pledge, security or debt
agreement of the Company or any subsidiary thereof. No such pledge, security or
debt agreement (other than the Indenture) may be used to interpret this Pledge
Agreement.

          Section 16.3   SEVERABILITY.{TC}  The provisions of this Pledge
Agreement are severable, and if any clause or provision shall be held invalid,
illegal or unenforceable in whole or in part in any jurisdiction, then such
invalidity or unenforceability shall affect in that jurisdiction only such
clause or provision, or part thereof, and shall not in any manner affect such
clause or provision in any other jurisdiction or any other clause or provision
of this Pledge Agreement in any jurisdiction.

          Section 16.4   HEADINGS.{TC}  The headings in this Pledge Agreement
have been inserted for convenience of reference only, are not to be considered a
part hereof and shall in no way modify or restrict any of the terms or
provisions hereof.

          Section 16.5   COUNTERPART ORIGINALS.{TC}  This Pledge Agreement may
be signed in two or more counterparts, each of which shall be deemed an
original, but all of which shall together constitute one and the same agreement.

          Section 16.6   BENEFITS OF PLEDGE AGREEMENT.{TC}  Nothing in this
Pledge Agreement, express or implied, shall give to any person, other than the
parties hereto and their successors hereunder, and the Holders of the Notes, any
benefit or any legal or equitable right, remedy or claim under this Pledge
Agreement. The rights of the Company in the Cash Collateral and the rights and
obligations of the Company hereunder may be assigned (an "ASSIGNMENT") to any
direct or indirect Wholly Owned Subsidiary of the Company (an "ASSIGNEE");
provided that such Assignee furnishes the Trustee with an Opinion of Counsel to
the effect that such Assignment is valid, binding and enforceable against such
Assignee and that after such Assignment the Trustee shall have a perfected
security interest in the Cash Collateral, securing the payment of the Secured
Obligations, and addressing such other related matters as the Trustee may
reasonably request. The Trustee shall cooperate in good faith with the Company
to effect any proposed Assignment. Upon the effectiveness of any such
Assignment, the Assignee shall become the Company hereunder for all purposes of
this Pledge Agreement, and the prior Company shall be released from its
obligations hereunder (other than its obligations under Sections 13 and 15).

          Section 16.7   AMENDMENTS, WAIVERS AND CONSENTS.{TC}  Any amendment or
waiver of any provision of this Pledge Agreement and any consent to any
departure by the Company from any provision of this Pledge Agreement shall be
effective only if made or duly given in compliance with all of the terms and
provisions of the Indenture, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.
Neither the Trustee nor any Holder of Notes shall be deemed, by any act, delay,
indulgence, omission or otherwise, to have waived any right or remedy hereunder
or

                                       15
<PAGE>

to have acquiesced in any Event of Default or in any breach of any of the terms
and conditions hereof. Failure of the Trustee or any Holder of Notes to
exercise, or delay in exercising, any right, power or privilege hereunder shall
not preclude any other or further exercise thereof or the exercise of any other
right, power or privilege. A waiver by the Trustee or any Holder of Notes of any
right or remedy hereunder on any one occasion shall not be construed as a bar to
any right or remedy that the Trustee or such Holder of Notes would otherwise
have on any future occasion. The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of any
rights or remedies provided by law.

          Section 16.8   INTERPRETATION OF AGREEMENT.{TC}  To the extent a term
or provision of this Pledge Agreement conflicts with the Indenture, the
Indenture shall control with respect to the subject matter of such term or
provision. Acceptance of or acquiescence in a course of performance rendered
under this Pledge Agreement shall not be relevant to determine the meaning of
this Pledge Agreement even though the accepting or acquiescing party had
knowledge of the nature of the performance and opportunity for objection.

          Section 16.9   CONTINUING SECURITY INTEREST; TERMINATION.{TC}

               (a)  This Pledge Agreement shall create a continuing security
interest in and to the Cash Collateral and shall, unless otherwise provided in
this Pledge Agreement, remain in full force and effect until the payment in full
in cash of the Secured Obligations. This Pledge Agreement shall be binding upon
the Company, its transferees, successors and assigns, and shall inure, together
with the rights and remedies of the Trustee hereunder, to the benefit of the
Trustee, the Holders of the Notes, the Collateral Securities Intermediary and
their respective successors, transferees and assigns.

               (b)  This Pledge Agreement (other than Company's obligations
under Sections 13 and 15) shall terminate upon the earlier of (i) the payment in
full in cash of the Secured Obligations and (ii) the payment in full in cash of
the first six scheduled interest payments on all of the Notes. At such time, the
Trustee shall, pursuant to an Issuer Order, reassign and redeliver to the
Company all of the Cash Collateral hereunder that has not been sold, disposed
of, retained or applied by the Trustee in accordance with the terms of this
Pledge Agreement and the Indenture and take all actions that are necessary to
release the security interest created by this Pledge Agreement in and to the
Cash Collateral, including the execution and delivery of all termination
statements necessary to terminate any financing or continuation statements filed
with respect to the Cash Collateral. Such reassignment and redelivery shall be
without warranty by or recourse to the Trustee in its capacity as such, except
as to the absence of any Liens on the Cash Collateral created by or arising
through the Trustee, and shall be at the reasonable expense of the Company.

          Section 16.10  SURVIVAL OF REPRESENTATIONS AND COVENANTS.{TC}  All
representations, warranties and covenants of the Company contained herein shall
survive the execution and delivery of this Pledge Agreement, and shall terminate
only upon the termination of this Pledge Agreement.

          Section 16.11  WAIVERS.{TC}  The Company waives presentment and demand
for payment of any of the Obligations, protest and notice of dishonor or default
with respect to

                                       16
<PAGE>

any of the Obligations, and all other notices to which the Company might
otherwise be entitled, except as otherwise expressly provided herein or in the
Indenture.

          Section 16.12  AUTHORITY OF THE TRUSTEE.{TC}

               (a)  The Trustee shall have and be entitled to exercise all
powers hereunder that are specifically granted to the Trustee by the terms
hereof, together with such powers as are reasonably incident thereto. The
Trustee may perform any of its duties hereunder or in connection with the Cash
Collateral by or through agents or employees and shall be entitled to retain
counsel and to act in reliance upon the advice of counsel concerning all such
matters. Except as otherwise expressly provided in this Pledge Agreement or the
Indenture, neither the Trustee nor any director, officer, employee, attorney or
agent of the Trustee shall be liable to the Company for any action taken or
omitted to be taken by the Trustee, in its capacity as Trustee, hereunder,
except for its own bad faith, gross negligence or willful misconduct, and the
Trustee shall not be responsible for the validity, effectiveness or sufficiency
hereof or of any document or security furnished pursuant hereto. The Trustee and
its directors, officers, employees, attorneys and agents shall be entitled to
rely on any communication, instrument or document reasonably believed by it or
them to be genuine and correct and to have been signed or sent by the proper
person or persons.

          Section 16.13  The Company acknowledges that the rights and
responsibilities of the Trustee under this Pledge Agreement with respect to any
action taken by the Trustee or the exercise or non-exercise by the Trustee of
any option, right, request, judgment or other right or remedy provided for
herein or resulting or arising out of this Pledge Agreement shall, as between
the Trustee and the Holders of the Notes, be governed by the Indenture and by
such other agreements with respect thereto as may exist from time to time among
them, but, as between the Trustee and the Company, the Trustee shall be
conclusively presumed to be acting as agent for the Holders of the Notes with
full and valid authority so to act or refrain from acting, and the Company shall
not be obligated or entitled to make any inquiry respecting such authority. All
rights of the Trustee under the Indenture, including its right to reimbursement
and indemnification are incorporated herein by reference in their entirety.

          Section 16.14  FINAL EXPRESSION.{TC}  This Pledge Agreement, together
with the Indenture and any other agreement executed in connection herewith, is
intended by the parties as a final expression of this Pledge Agreement and is
intended as a complete and exclusive statement of the terms and conditions
thereof.

          Section 16.15  RIGHTS OF HOLDERS OF THE NOTES.{TC}  No Holder of Notes
shall have any independent rights hereunder other than those rights granted to
individual Holders of the Notes pursuant to Section 6.07 of the Indenture;
provided that nothing in this subsection shall limit any rights granted to the
Trustee under the Notes or the Indenture.

          Section 16.16  GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF
JURY TRIAL; WAIVER OF DAMAGES.{TC}

               (a)  THIS PLEDGE AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED
UNDER THE LAWS OF THE STATE OF NEW YORK.

                                       17
<PAGE>

               (b)  THE COMPANY AGREES THAT THE TRUSTEE SHALL, IN ITS CAPACITY
AS TRUSTEE OR IN THE NAME AND ON BEHALF OF ANY HOLDER OF NOTES, HAVE THE RIGHT,
TO THE EXTENT PERMITTED BY APPLICABLE LAW (AND TO THE EXTENT THE TRUSTEE HAS
RECEIVED INDEMNITY DEEMED SATISFACTORY TO IT AND HAS AGREED TO DO SO), TO
PROCEED AGAINST THE COMPANY OR THE COLLATERAL IN A COURT IN ANY LOCATION
REASONABLY SELECTED IN GOOD FAITH (AND HAVING PERSONAL OR IN REM JURISDICTION
OVER THE COMPANY OR THE COLLATERAL, AS THE CASE MAY BE) TO ENABLE THE TRUSTEE TO
REALIZE ON SUCH COLLATERAL, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER
ENTERED IN FAVOR OF THE TRUSTEE. THE COMPANY AGREES THAT IT WILL NOT ASSERT ANY
COUNTERCLAIMS, SETOFFS OR CROSSCLAIMS IN ANY PROCEEDING BROUGHT BY THE TRUSTEE
TO REALIZE ON SUCH PROPERTY OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN
FAVOR OF THE TRUSTEE, EXCEPT FOR SUCH COUNTERCLAIMS, SETOFFS OR CROSSCLAIMS
WHICH, IF NOT ASSERTED IN ANY SUCH PROCEEDING, COULD NOT OTHERWISE BE BROUGHT OR
ASSERTED. THE COMPANY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND
EFFECTIVELY DO SO, ANY OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE COURT
IN THE CITY OF NEW YORK IN THE BOROUGH OF MANHATTAN ONCE THE TRUSTEE HAS
COMMENCED A PROCEEDING DESCRIBED IN THIS PARAGRAPH INCLUDING, WITHOUT
LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUM NON CONVENIENS.

               (c)  THE COMPANY AGREES THAT NONE OF ANY HOLDER OF NOTES, (EXCEPT
AS OTHERWISE PROVIDED IN THIS PLEDGE AGREEMENT OR THE INDENTURE) UNITED STATES
TRUST IN ITS CAPACITY AS TRUSTEE OR UNITED STATES TRUST IN ITS CAPACITY AS
COLLATERAL SECURITIES INTERMEDIARY SHALL HAVE ANY LIABILITY TO THE COMPANY
(WHETHER ARISING IN TORT, CONTRACT OR OTHERWISE) FOR LOSSES SUFFERED BY THE
COMPANY IN CONNECTION WITH, ARISING OUT OF, OR IN ANY WAY RELATED TO, THE
TRANSACTIONS CONTEMPLATED AND THE RELATIONSHIP ESTABLISHED BY THIS PLEDGE
AGREEMENT, OR ANY ACT, OMISSION OR EVENT OCCURRING IN CONNECTION THEREWITH,
UNLESS IT IS DETERMINED BY A FINAL AND NONAPPEALABLE JUDGMENT OF A COURT THAT IS
BINDING ON THE TRUSTEE, COLLATERAL SECURITIES INTERMEDIARY OR SUCH HOLDER OF
NOTES, AS THE CASE MAY BE, THAT SUCH LOSSES WERE THE RESULT OF ACTS OR OMISSIONS
ON THE PART OF THE TRUSTEE, COLLATERAL SECURITIES INTERMEDIARY OR SUCH HOLDERS
OF NOTES, AS THE CASE MAY BE, CONSTITUTING BAD FAITH, GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT.

               (d)  TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE COMPANY
WAIVES THE POSTING OF ANY BOND OTHERWISE REQUIRED OF THE TRUSTEE OR ANY HOLDER
OF NOTES IN CONNECTION WITH ANY JUDICIAL PROCESS OR PROCEEDING TO ENFORCE ANY
JUDGMENT OR OTHER COURT ORDER PERTAINING TO THIS PLEDGE AGREEMENT OR ANY RELATED
AGREEMENT OR DOCUMENT ENTERED IN FAVOR OF THE TRUSTEE OR ANY HOLDER OF NOTES, OR
TO ENFORCE BY SPECIFIC PERFORMANCE, TEMPORARY

                                       18
<PAGE>

RESTRAINING ORDER OR PRELIMINARY OR PERMANENT INJUNCTION, THIS PLEDGE AGREEMENT
OR ANY RELATED AGREEMENT OR DOCUMENT BETWEEN THE COMPANY ON THE ONE HAND AND THE
TRUSTEE AND/OR THE HOLDERS OF THE NOTES ON THE OTHER HAND.

            [The remainder of this page left intentionally blank.]

                                       19
<PAGE>

     IN WITNESS WHEREOF, the Company and the Trustee have each caused this
Pledge Agreement to be duly executed and delivered as of the date first above
written.

                              Company:

                              XM SATELLITE RADIO INC.

                              By: __________________________________
                                  Name:_____________________________
                                  Title:____________________________

                              Trustee:

                              UNITED STATES TRUST COMPANY OF NEW YORK

                              By: __________________________________
                                  Name:_____________________________
                                  Title:____________________________

                              Collateral Securities Intermediary:

                              UNITED STATES TRUST COMPANY OF NEW YORK

                              By: __________________________________
                                  Name:_____________________________
                                  Title:____________________________

                                      S-1
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                              Page
<S>                                                                           <C>
Section 1.       PLEDGE AND GRANT OF SECURITY INTEREST......................   2
Section 2.       SECURITY FOR OBLIGATION....................................   3
Section 3.       MAINTAINING THE COLLATERAL ACCOUNT.........................   3
Section 4.       DISBURSEMENTS..............................................   4
Section 5.       CASH DEPOSIT; INVESTMENTS..................................   6
Section 6.       DELIVERY AND CONTROL OF COLLATERAL; COLLATERAL ACCOUNTS;
                 INTEREST; SECURITIES INTERMEDIARY..........................   6
Section 7.       REPRESENTATIONS AND WARRANTIES.............................   8
Section 8.       FURTHER ASSURANCES.........................................   9
Section 9.       COVENANTS..................................................  10
Section 10.      POWER OF ATTORNEY..........................................  10
Section 11.      NO ASSUMPTION OF DUTIES; REASONABLE CARE...................  11
Section 12.      INDEMNITY..................................................  12
Section 13.      REMEDIES UPON EVENT OF DEFAULT.............................  12
Section 14.      EXPENSES...................................................  13
Section 15.      SECURITY INTEREST ABSOLUTE.................................  13
Section 17.      MISCELLANEOUS PROVISIONS...................................  14
Section 17.1     NOTICES....................................................  14
Section 17.2     NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS..............  14
Section 17.3     SEVERABILITY...............................................  14
Section 17.4     HEADINGS...................................................  15
Section 17.5     COUNTERPART ORIGINALS......................................  15
Section 17.6     BENEFITS OF PLEDGE AGREEMENT...............................  15
Section 17.7     AMENDMENTS, WAIVERS AND CONSENTS...........................  15
Section 17.8     INTERPRETATION OF AGREEMENT................................  15
Section 17.9     CONTINUING SECURITY INTEREST; TERMINATION..................  16
Section 17.10    SURVIVAL OF REPRESENTATIONS AND COVENANTS..................  16
Section 17.11    WAIVERS....................................................  16
Section 17.12    AUTHORITY OF THE TRUSTEE...................................  16
Section 17.14    FINAL EXPRESSION...........................................  17
Section 17.15    RIGHTS OF HOLDERS OF THE NOTES.............................  17
Section 17.16    GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY
                 TRIAL; WAIVER OF DAMAGES...................................  17
</TABLE>

                                      -i-
<PAGE>

          An extra section break has been inserted above this paragraph. Do not
delete this section break if you plan to add text after the Table of
Contents/Authorities.  Deleting this break will cause Table of
Contents/Authorities headers and footers to appear on any pages following the
Table of Contents/Authorities.

                                      A-1

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