XM SATELLITE RADIO HOLDINGS INC
EX-10.50
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<p style="margin:0in 0in 48.0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit

10.50</font></b></p>



<p style="border:none;font-weight:bold;margin:12.0pt 0in;padding:0in;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMPLOYMENT AGREEMENT<br>

<br>

Between<br>

<br>

XM SATELLITE RADIO HOLDINGS INC. and <br>

XM SATELLITE RADIO INC.<br>

<br>

and<br>

<br>

HUGH PANERO<br>

<br>

<br>

<br>

<br>

Dated as of June 1, 2001</font></b></p>



<p style="border:none;font-weight:bold;margin:12.0pt 0in;padding:0in;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended March 20, 2003</font></b></p>



<p style="border:none;font-weight:bold;margin:12.0pt 0in;padding:0in;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>





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<p style="border:none;font-size:12.0pt;font-weight:bold;margin:12.0pt 0in;padding:0in;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS AGREEMENT is entered into as of June 1, 2001 (the

&#147;Effective Date&#148;), by and between XM Satellite Radio Holdings Inc., a Delaware

corporation, and its subsidiary XM Satellite Radio Inc., a Delaware

corporation, both having a place of business at 1500 Eckington Place, N.E.,

Washington, D.C. 20002 (hereinafter collectively referred to as &#147;XM&#148;) and Hugh

Panero (&#147;EMPLOYEE&#148;) a resident of the State of Maryland.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, XM is engaged in the development,

implementation and operation of a digital audio satellite service to portable

receivers; and</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, XM is interested in employing EMPLOYEE as its

Chief Executive Officer and EMPLOYEE is interested in being employed in that

position subject to the terms and conditions set forth herein;</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in consideration of the foregoing

premises and the mutual covenants and agreements of the parties contained

herein, the parties hereby agree as follows:</font></p>



<p style="font-weight:bold;margin:0in 0in 12.0pt;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-decoration:none;text-transform:none;">ARTICLE 1</font></b><font size="2" style="font-size:10.0pt;text-transform:none;"><br>

DEFINITIONS</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purposes of this Agreement, the terms defined in

this Article 1 shall have the respective meanings set forth below:</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;Affiliate&#148; shall mean any

corporation, partnership or other entity (i)&nbsp;owning more than ten percent

(10%) of the then outstanding voting shares of XM; or (ii) controlling,

controlled by, or under common control with XM.&#160; For purposes of this definition, &#147;control&#148; (including the terms

&#147;controlling&#148; and &#147;controlled&#148;) means the power to direct or cause the

direction of the management and policies of an entity, whether through the

ownership of securities, by contract, or otherwise.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;Confidential information&#148; shall mean

all information relating to the business of XM known to XM or learned by

EMPLOYEE during the term of employment and not generally known, including any

and all general and specific knowledge, experience, information and data,

technical or non-technical, and whether or not patentable, including, without

limitation processes, skills, information, know-how, trade secrets, data,

designs, formulae, algorithms, specifications, samples, methods, techniques,

compilations, computer programs, devices, concepts, inventions, developments,

discoveries, improvements, and commercial or financial information, in any

form, including without limitation, oral, written, graphic, demonstrative,

machine recognizable, specimen or sample form.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;Conflicting Product or Service&#148;

shall mean any product or service of any person or organization other than XM,

in existence or under development, which resembles or competes with a product

or service of XM.</font></p>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>





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<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;Conflicting Organization&#148; shall mean

any person or organization engaged in, or about to become engaged in, research

on or development, production, marketing, or selling of a &#147;Conflicting Product

or Service.&#148; </font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;Inventions&#148; shall mean inventions,

designs, discoveries, developments, creations, and improvements created,

discovered, developed, conceived or reduced to practice.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#147;Works of Authorship&#148; shall mean all

computer software programs or other writings, including, without limitation,

verbal works, designs, models, drawings, or audio, visual or audiovisual

recordings.</font></p>



<p style="font-weight:bold;margin:0in 0in 12.0pt;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-decoration:none;text-transform:none;">ARTICLE 2</font></b><font size="2" style="font-size:10.0pt;text-transform:none;"><br>

TERM OF AGREEMENT; EMPLOYMENT</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Term.</font></b><font size="2" style="font-size:10.0pt;">&#160;

Subject to the provisions of Article 4 hereof, this Agreement shall be

in effect for a term of three (3) years commencing as of the Effective

Date.&#160; For the term of this Agreement, each

twelve (12) month period beginning on the Effective Date or any anniversary

thereof shall be considered a &#147;Contract Year.&#148;</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Employment.</font></b><font size="2" style="font-size:10.0pt;">&#160;

XM agrees to employ EMPLOYEE as Chief Executive Officer and EMPLOYEE

agrees to accept such employment by XM, on the terms and conditions set forth

herein.&#160; EMPLOYEE represents and

warrants that neither the execution and delivery nor performance by him of this

Agreement will violate any agreement, order, judgment or decree to which he is

a party or by which he is bound.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Duties.</font></b></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; As Chief Executive Officer of XM,

EMPLOYEE shall have duties and responsibilities related to building the

organization and business, including but not limited to, achieving agreed

revenue, cost, profit and cash-flow targets, and shall report to the Board of

Directors and the Board Chairman.&#160; While

acting as CEO, EMPLOYEE shall also serve as a director of XM.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; EMPLOYEE&#146;s employment with XM shall

be full-time and exclusive.&#160; During the

term of employment, EMPLOYEE shall devote the whole of EMPLOYEE&#146;s business

time, attention, skill, and ability to the faithful and diligent fulfillment of

EMPLOYEE&#146;s duties hereunder.&#160; EMPLOYEE

acknowledges and agrees that EMPLOYEE may be required, without additional

compensation, to perform services for any Affiliates, and to accept such office

or position with any Affiliate as the Board may require, including, but not

limited to, service as an officer or director of XM or any Affiliate, provided

however, that such services, and such office or position, shall be consistent

with EMPLOYEE&#146;s position as Chief Executive Officer of XM.&#160; EMPLOYEE shall comply with all applicable

policies of XM and Affiliates.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; During the term of employme nt, it

shall not be a violation of this Agreement for EMPLOYEE to (i) serve on no more

than one outside corporate board (except the board of a Conflicting

Organization); (ii) serve as an officer or director of a</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>





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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



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<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">cooperative housing, or civic or charitable

organization or committee; (iii) deliver lectures, fulfill speaking

engagements, or teach at educational institutions; or (iv) manage personal

passive investments, so long as such activities (individually or collectively)

do not conflict or materially interfere with the performance of EMPLOYEE&#146;s

duties hereunder.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Indemnification.&#160; </font></b><font size="2" style="font-size:10.0pt;">During and after the term of this Agreement, XM shall

provide EMPLOYEE with directors and officers insurance, and shall indemnify

EMPLOYEE and his legal representatives to the fullest extent permitted by the

laws of the State of Delaware and the By-Laws of XM as in effect on the date

hereof, against all damages, costs, expenses and other liabilities incurred or

sustained by EMPLOYEE or his legal representatives in connection with any suit,

action or proceeding to which EMPLOYEE or his legal representatives may be made

a party by reason of EMPLOYEE being or having been a director or officer of XM

or any Affiliate or having served in any other capacity or taken any other

action purportedly on behalf of or at the request of XM or any Affiliate.&#160; During and after the term of this Agreement

and without the need for further approval by the Board of Directors of XM or

any Affiliate, XM will promptly advance or pay any and all amounts for costs or

expenses (including but not limited to legal fees and expenses incurred by

counsel of EMPLOYEE&#146;s choice retained by EMPLOYEE) for which EMPLOYEE may claim

XM is obligated to indemnify him. EMPLOYEE undertakes to repay such amounts if

it is ultimately determined that he is not entitled to be indemnified by XM as

provided in this Article 2.4.</font></p>



<p style="font-weight:bold;margin:0in 0in 12.0pt;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-decoration:none;text-transform:none;">ARTICLE 3</font></b><font size="2" style="font-size:10.0pt;text-transform:none;"><br>

COMPENSATION</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Base

Salary.</font></b><font size="2" style="font-size:10.0pt;">&#160; For services rendered by EMPLOYEE pursuant

to this Agreement, XM agrees to pay EMPLOYEE a base salary (&#147;Base Salary&#148;) of

at least Four Hundred Twelve Thousand Dollars ($412,000), beginning January 1,

2003 and continuing for the third Contract Year.&#160; In determining any increase above the minimums set forth in the

preceding sentence, the Board shall consider any increases in the cost of living

and may provide for performance or merit increases as it deems appropriate in

its sole discretion.&#160; Base Salary shall

be payable in accordance with XM&#146;s then-prevailing executive payroll practices.&#160; The term &#147;Base Salary&#148; as used herein shall

include any adjustments thereto made from time to time as permitted by this

Article 3.1.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Bonuses.</font></b></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; With respect to each calendar year

during the term of this Agreement, regardless of XM&#146;s performance, EMPLOYEE

shall be entitled to a bonus (the &#147;Leadership Bonus&#148;) equal to thirty percent

(30%) of his Base Salary for the calendar year if, in the reasonable judgment

of the XM Board of Directors, he shall have made the effort and provided the

leadership expected of the CEO.&#160; In any

calendar year in which EMPLOYEE is employed by XM for less than the full year,

the Leadership Bonus will be paid on a pro-rata basis for the portion of the

calendar year for which EMPLOYEE was employed by XM and provided the expected

effort and leadership.</font></p>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>





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<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Leadership Bonus shall be paid within sixty (60)

days of the end of each calendar year.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; With respect to each calendar year

during the term of this Agreement, EMPLOYEE will be eligible to receive such

bonuses (the &#147;Discretionary Bonus&#148;) as may be authorized and declared by the XM

Board of Directors based upon EMPLOYEE meeting or substantially exceeding

performance criteria to be set by the Board, after consultation with EMPLOYEE,

at the start of each calendar year.&#160; For

2001, such criteria shall be set by July 1, 2001.&#160; Although the actual amount of any Discretionary Bonus will be

determined by the Board, the &#147;target&#148; amount of the annual Discretionary Bonus

will be thirty to seventy percent (30-70%) of EMPLOYEE&#146;s Base Salary for the

calendar year, reflecting the Board&#146;s determination that EMPLOYEE has met (30%)

or substantially exceeded (70%) the established performance criteria.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Participation

in Benefit Plans.&#160; </font></b><font size="2" style="font-size:10.0pt;">Subject to applicable eligibility

requirements, and to the terms of this Agreement, EMPLOYEE shall be eligible

during the term of this Agreement to participate in any stock option, employee

stock ownership, pension, thrift, profit sharing, group life or disability

insurance, medical or dental coverage, education, or other retirement or

employee benefit plan or program that XM has adopted or may adopt for the

benefit of its employees, on the same basis as other executive employees.&#160; EMPLOYEE shall be entitled to paid vacation,

paid sick leave, and holidays on the same basis as may from time to time apply

to other XM executive employees generally.&#160;

EMPLOYEE shall also be entitled to supplemental disability insurance

beginning no earlier than April 1, 2003, at the company&#146;s expense.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Expenses.&#160; </font></b><font size="2" style="font-size:10.0pt;">XM shall reimburse EMPLOYEE for all reasonable,

ordinary and necessary business expenses actually incurred by EMPLOYEE in

connection with the performance of his duties hereunder, including ordinary and

necessary expenses incurred by EMPLOYEE in connection with travel on XM business.&#160; As Chief Executive Officer of XM, EMPLOYEE

shall be entitled to fly first class.&#160;

All expenses shall be approved in advance by XM in accordance with and

subject to the terms and conditions of XM&#146;s then-prevailing expense

policy.&#160; As a condition precedent to

obtaining reimbursement of expenses, EMPLOYEE shall provide to XM any and all

statements, bills, or receipts evidencing the expenses for which EMPLOYEE seeks

reimbursement, and such related information or materials as XM may from time to

time reasonably require. EMPLOYEE shall account to XM for any expenses that are

eligible for reimbursement under this Section 3.4 in accordance with XM policy.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Employment and Supplies.&#160; </font></b><font size="2" style="font-size:10.0pt;">XM shall provide EMPLOYEE with administrative support

relating to the performance of EMPLOYEE&#146;s duties of the same type and at least

the same extent as is provided to other executive employees.&#160; XM shall acquire and/or provide to EMPLOYEE

for his business use:&#160; a multimedia

portable computer and subscriptions to various trade publications and various

trade books.&#160; Such items shall remain

the exclusive property of XM, are to be used solely for XM&#146;s benefit, and shall

be returned promptly to XM upon request at the termination of EMPLOYEE&#146;s employment

for whatever reason.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



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<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Withholding.</font></b><font size="2" style="font-size:10.0pt;">&#160;

Anything in this Agreement to the contrary notwithstanding, al payments

required to be made by XM hereunder to EMPLOYEE or EMPLOYEE&#146;s estate or

beneficiaries in connection with EMPLOYEE&#146;s employment hereunder shall be

subject to the withholding of such amounts relating to taxes as XM may

reasonably determine it should withhold pursuant to any applicable law or

regulation.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Stock

Option Grants.</font></b><font size="2" style="font-size:10.0pt;">&#160; EMPLOYEE shall receive options to purchase

Class A common stock of XM Satellite Radio Holdings Inc. (&#147;XM Stock&#148;) on the

following terms.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; On the Effective Date of the

Amendment, XM will grant EMPLOYEE an option to purchase Three Hundred Fifty

Thousand (350,000) shares of XM Stock.&#160;

Additional stock options shall be awarded at the discretion of the

Compensation Committee and the Board of Directors.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The options granted pursuant to

Article 3.7(a) hereof will be non-qualified.&#160;

The exercise price for such options shall be, with respect to each

grant, the closing price of&#160; XM Stock on

the date of grant.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subject to the provisions of Article

4 hereof, the options granted pursuant to Article 3.7(a) hereof will vest and

become exercisable on the following schedule:&#160;

with respect to each grant, one third of the shares covered by the

option shall become exercisable on the first anniversary of the grant, one

third of the shares covered by the option shall become exercisable on the

second anniversary of the grant, and one third of the shares covered by the

option shall become exercisable on the third anniversary of the grant.&#160; In addition to the annual vesting

requirement, the initial options granted upon the amendment of the contract

shall also require that EMPLOYEE will not sell, pledge or otherwise dispose of

shares issued upon the exercise of such initial options until the first to

occur of the following: (i) the average closing price of XM Stock on the Nasdaq

National Market system, or principal stock exchange on which shares of XM Stock

are then listed, over any 20 consecutive trading days following the date of

grant equals or exceeds $10, or (ii) seven years have elapsed since the date of

grant. In the event that EMPLOYEE holds non-vested options at the time his

employment by XM terminates, such non-vested options shall vest or shall be

forfeited, as the case may be, in accordance with the provisions of Article 4

hereof.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Vested options may be exercised

within ten (10) years of the date on which they were granted.&#160; In the event that EMPLOYEE holds unexercised

vested options at the time his employment by XM terminates, such vested options

may be exercised within the time periods set forth in Article 4 hereof.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; XM agrees that the XM Stock to be

issued to EMPLOYEE upon his exercise of the options granted pursuant to Article

3.7(a) hereof will be registered for sale to the public on XM&#146;s Form S-8

Registration Statement.</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>





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<hr size="2" width="100%" noshade color="gray" align="left">



</font></b></div>



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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-weight:bold;margin:0in 0in 12.0pt;page-break-after:avoid;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-decoration:none;text-transform:none;">ARTICLE 4</font></b><font size="2" style="font-size:10.0pt;text-transform:none;"><br>

TERMINATION</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; General.</font></b><font size="2" style="font-size:10.0pt;">&#160;

EMPLOYEE&#146;s employment hereunder shall terminate in accordance with the

provisions of this Article 4 upon EMPLOYEE&#146;s death or Disability, upon

EMPLOYEE&#146;s termination by XM with or without Cause, upon EMPLOYEE&#146;s resignation

with or without Good Reason, or upon the expiration of the term of this

Agreement without renewal.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Death.</font></b><font size="2" style="font-size:10.0pt;">&#160;

If the EMPLOYEE&#146;s employment terminates because of his death, the date

of termination shall be the date of death.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If the EMPLOYEE&#146;s employment

terminates because of his death, XM shall continue to pay EMPLOYEE&#146;s then

current Base Salary, pro-rated Leadership Bonus, and pro-rated Discretionary

Bonus (based on the percentage of Base Salary awarded to EMPLOYEE as a

Discretionary Bonus in the prior year), and shall continue to make all

applicable benefits available, to EMPLOYEE&#146;s legal representatives, estate,

beneficiaries or heirs, in accordance with XM&#146;s then-prevailing executive

payroll practices, through the end of the third calendar month following

EMPLOYEE&#146;s death.&#160; In addition, XM shall

continue any health, medical, dental, or similar benefits which members of

EMPLOYEE&#146;s family were receiving for&#160; a

period of one year, or pay such family members an amount equal to their cost

for obtaining equivalent coverage.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If the EMPLOYEE&#146;s employment

terminates because of his death, EMPLOYEE&#146;s non-vested options shall be

forfeited.&#160; EMPLOYEE&#146;s legal

representatives, estate, beneficiaries or heirs shall be entitled to exercise

any of EMPLOYEE&#146;s vested options within one (1) year after EMPLOYEE&#146;s death.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Disability.</font></b><font size="2" style="font-size:10.0pt;"> For purposes of this Agreement, EMPLOYEE

shall be deemed to be under a Disability if EMPLOYEE shall be unable, by virtue

of illness or physical or mental incapacity or disability (from any cause or

causes whatsoever), to perform EMPLOYEE&#146;s essential job functions hereunder, whether

with or without reasonable accommodation, in substantially the manner and to

the extent required hereunder prior to the commencement of such disability, for

a period exceeding ninety (90) consecutive days.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Upon EMPLOYEE&#146;s Disability, the

payment of benefits under XM&#146;s short-term and long-term disability insurance

programs, if any, shall offset XM&#146;s obligations under Article 3.1 hereof to the

extent such benefits are received by EMPLOYEE.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subject to any

applicable legal requirements, in the event EMPLOYEE shall remain under a

Disability for a period exceeding one hundred twenty (120) days in any twelve

(12) month period, XM shall have the right to terminate EMPLOYEE&#146;s employment

hereunder.&#160; XM shall effect such

termination by giving EMPLOYEE a notice specifying the effective date of such

termination, which date shall not be earlier than the last day of the calendar

month following the giving of notice.</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>





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<hr size="2" width="100%" noshade color="gray" align="left">



</font></b></div>



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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If XM terminates the EMPLOYEE&#146;s employment

because of Disability, XM shall continue to pay EMPLOYEE&#146;s then current Base

Salary, pro-rated Leadership Bonus, and pro-rated Discretionary Bonus (based on

the percentage of Base Salary awarded to EMPLOYEE as a Discretionary Bonus in

the prior year), and shall continue to make all applicable benefits available,

to EMPLOYEE, in accordance with XM&#146;s then-prevailing executive payroll

practices, through the end of the third calendar month following

termination.&#160; In addition, XM shall

continue any health, medical, dental, or similar benefits which EMPLOYEE

(and/or members of EMPLOYEE&#146;s family) were receiving for&#160; a period of one year, or pay EMPLOYEE an

amount equal to the cost of obtaining equivalent coverage.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If XM terminates EMPLOYEE&#146;s

employment because of Disability, EMPLOYEE&#146;s non-vested options shall be

forfeited.&#160; EMPLOYEE shall be entitled

to exercise any of his vested options within one (1) year after termination.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Termination

for Cause or Voluntary Resignation.</font></b></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For purposes of this Agreement, Cause

shall mean:&#160; (i) EMPLOYEE&#146;s willful or

gross misconduct, willful or gross negligence in the performance of his duties

for XM, or intentional or habitual neglect of his duties for XM, provided that

XM shall have given EMPLOYEE notice specifying the conduct it believes to fall

within this sentence and EMPLOYEE shall have failed to remedy such conduct

within ten (10) days thereafter; or (ii) EMPLOYEE&#146;s theft or misappropriation

of funds of XM or conviction of a felony.&#160;

XM shall effect a termination for Cause by giving EMPLOYEE a notice

specifying the effective date of such termination.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For purposes of this Agreement,

voluntary resignation means the EMPLOYEE&#146;s resignation of his employment

hereunder without Good Reason (as defined in Article 4.5(b) hereof.&#160; EMPLOYEE shall effect a termination by

voluntary resignation by giving XM a notice specifying the effective date of

such termination, which date shall not be earlier than thirty (30) days after

the giving of notice.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In the event EMPLOYEE&#146;s employment is

terminated by XM for Cause or by EMPLOYEE by voluntary resignation:</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; XM shall pay to EMPLOYEE, in

accordance with XM&#146;s then-prevailing executive payroll practices, all Base

Compensation, benefits and other payments to which EMPLOYEE was entitled

hereunder through the effective date of termination.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In the case of voluntary resignation

only, EMPLOYEE shall be entitled to exercise any of his vested options within

three (3) months after termination.&#160;

Subject to the previous sentence of this Article 4.4(c)(ii), EMPLOYEE&#146;s

non-vested and vested but unexercised options shall be forfeited.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as set forth

in this Article 4.4, XM shall have no further obligation to EMPLOYEE (or

EMPLOYEE&#146;s legal representatives, estate, beneficiaries or heirs) for any

compensation, benefits or other payments hereunder, </font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>





<div style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></b></div>



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<p align="center" style="font-size:12.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">provided that

nothing herein shall be deemed to affect EMPLOYEE&#146;s entitlement, if any, to any

vested pension or similar benefits to which he may be or may become entitled.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in 12.0pt;page-break-after:avoid;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Termination

Without Cause or Resignation for Good Reason.</font></b></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For the purposes of this Agreement,

termination without Cause is any termination by XM of EMPLOYEE&#146;s employment

hereunder without Cause, as defined in Article&#160;

4.4(a) hereof.&#160; XM shall effect a

termination without Cause by giving EMPLOYEE a notice specifying the effective

date of such termination, which date shall not be earlier than thirty (30) days

after the giving of notice.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For the purposes of this Agreement,

Good Reason shall mean:&#160; (i) a

substantial diminution of EMPLOYEE&#146;s responsibilities or status; (ii) XM&#146;s

relocation of EMPLOYEE outside the Washington, D.C. area; (iii) a material

breach of this Agreement by XM, provided that EMPLOYEE shall have given XM

notice of the conduct he believes to constitute the material breach and XM

shall have failed to remedy such breach within ten (10) days thereafter; (iv)

the departure of Gary M. Parsons as Chairman of the Board of Directors of XM,

unless the newly named Chairman is reasonably acceptable to EMPLOYEE; or (v) a

Change of Control of XM as defined in Article 4.5(c) hereof.&#160; EMPLOYEE shall effect a termination by

resignation for Good Reason by giving XM a notice specifying the effective date

of such termination.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For the purposes of

this Agreement, a Change of Control will occur where (i) any person or group

becomes beneficial owner of securities of XM representing more than 40% of the

then voting power of XM; (ii) Board members (together with new members

appointed by at least two thirds (2/3) of those members) at the beginning of a

two-year period no longer constitute two thirds (2/3) of the Board during such

two-year period; (iii) a merger/consolidation of XM occurs wherein the XM

voting securities immediately prior thereto do not constitute at least sixty

percent (60%) of the combined voting securities after the merger/consolidation;

or (iv) the stockholders approve a plan of complete liquidation or winding-up

or an agreement for the sale or disposition of all or substantially all of XM&#146;s

assets.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In the event EMPLOYEE&#146;s employment is

terminated by XM without Cause or by EMPLOYEE by resignation for Good Reason:</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; XM shall continue to pay EMPLOYEE&#146;s

then current Base Salary and pro-rated Leadership Bonus, and shall continue to

make all applicable benefits available to EMPLOYEE, in accordance with XM&#146;s

then-prevailing executive payroll practices, for two (2) years from such

termination.&#160; With respect to the

health, medical, dental, or similar benefits which EMPLOYEE (and/or members of

EMPLOYEE&#146;s family) were receiving, XM may pay EMPLOYEE an amount equal to his

cost for obtaining equivalent coverage, as an alternative to continuing such

benefits.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; XM shall pay EMPLOYEE&#146;s pro-rated

Discretionary Bonus (based on the percentage of Base Salary awarded to EMPLOYEE

as a </font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>





<div style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></b></div>



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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Discretionary Bonus in the prior year), for the

portion of the calendar year EMPLOYEE was employed by XM prior to the termination.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In the event EMPLOYEE&#146;s employment is

terminated by XM without Cause or by EMPLOYEE by resignation for Good Reason,

all options that have been granted to EMPLOYEE shall immediately vest and

become exercisable, and EMPLOYEE shall be entitled to exercise any of his

vested options within eighteen (18) months after termination.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If, as a result of a Change of

Control, it is determined that EMPLOYEE would be subject to the excise tax

imposed by Section 4999 of the Internal Revenue Code, XM shall reimburse

EMPLOYEE for the amount of such tax, and shall pay EMPLOYEE such additional

amount as may be necessary to place EMPLOYEE in the same financial position

that he would have been in if he had not incurred such excise tax liability.&#160; All determinations under this Article

4.5(f), including whether EMPLOYEE is liable for the excise tax, and the amount

to be paid to EMPLOYEE by XM, shall be made by a nationally-recognized

accounting firm to be selected by EMPLOYEE and paid by XM.</font></p>



<p style="margin:0in 0in 12.0pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Expiration

of Contract Term.</font></b></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For the purposes of this Agreement,

Renewal Offer means a bona fide offer by XM to enter into a new employment

agreement with EMPLOYEE, on terms at least as favorable to EMPLOYEE as this

Agreement, made to EMPLOYEE at least four (4) months before the expiration of

this Agreement.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In the event that XM makes a Renewal

Offer to Employee, but the parties nevertheless do not enter into a new

employment agreement and EMPLOYEE&#146;s employment by XM therefore terminates upon

the expiration of this Agreement, any options scheduled to vest on the third

anniversary of the Effective Date of this Agreement pursuant to Article 3.7(c)

shall immediately vest and become exercisable, all other non-vested options

shall be forfeited, and EMPLOYEE shall be entitled to exercise any of his

vested options within three (3) months after termination.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In the event that XM does not make a

Renewal Offer to Employee and EMPLOYEE&#146;s employment by XM therefore terminates

at the expiration of the term of this Agreement, all options that have been

granted to EMPLOYEE shall immediately vest and become exercisable, and EMPLOYEE

shall be entitled to exercise any of his vested options within eighteen (18)

months after termination.</font></p>



<p style="font-weight:bold;margin:0in 0in 12.0pt;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-decoration:none;text-transform:none;">ARTICLE 5</font></b><font size="2" style="font-size:10.0pt;text-transform:none;"><br>

RESTRICTIVE COVENANTS</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Confidentiality.</font></b><font size="2" style="font-size:10.0pt;">&#160;

Except as authorized or directed by XM, EMPLOYEE shall not, at any time

during or subsequent to the term of this Agreement, directly or indirectly

publish or disclose any Confidential Information of XM or of any of its

Affiliates, or Confidential Information of others that has come into the

possession of XM or of any of its Affiliates, or into the EMPLOYEE&#146;s possession

in the course of his </font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>





<div style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></b></div>



<b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">employment with XM or of his services and duties

hereunder, to any other person or entity, and EMPLOYEE shall not use any such

Confidential Information for EMPLOYEE&#146;s own personal use or advantage or make

it available to others for use.&#160; All

Confidential Information, whether oral or written, regarding the business or

affairs of XM or any of its Affiliates, including, without limitation,

information as to their products, services, systems, designs, inventions,

software, finances (including prices, costs and revenues), marketing plans,

programs, methods of operation, prospective and existing contracts, customers

and other business arrangements or business plans, procedures, and strategies,

shall all be deemed Confidential Information, except to the extent the same

shall have been lawfully and without breach of the EMPLOYEE&#146;S confidentiality

obligation made available to the general public without restriction, or that

EMPLOYEE can prove, by documentary evidence, was previously known to EMPLOYEE

prior to the term of EMPLOYEE&#146;s employment.&#160;

The Company shall be under no obligation to identify specifically any

information as to which the protection of this Section 5.1 extends by any

notice or other action.&#160; Upon expiration

or termination of this Agreement for any reason, EMPLOYEE shall promptly return

to XM all Confidential Information, including all copies thereof in EMPLOYEE&#146;s

possession, whether prepared by him or others.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Unfair

Competition.&#160; </font></b><font size="2" style="font-size:10.0pt;">During his employment pursuant to this

Agreement and for a period of one (1) year after the termination of his

employment, EMPLOYEE shall not, within the United States, directly or

indirectly, and whether or not for compensation, as a stockholder owning

beneficially or of record more than five percent (5%) of the outstanding shares

of any class of stock of an issuer, or as an officer, director, employee,

consultant, partner, joint venturer, proprietor, or otherwise, engage in or

become interested in any Conflicting Organization in connection with research,

development, consulting, manufacturing, purchasing, accounting, engineering, marketing,

merchandising or selling of any Conflicting Product or Service, directly or

indirectly, in competition with XM or any of its Affiliates (or any of their

successors) as conducted from time to time during such period.&#160; During the period in which EMPLOYEE is

receiving any payments under this Agreement and for a period of one (1) year

thereafter, EMPLOYEE shall not, without the prior written consent of XM,

solicit or hire or induce the termination of employment of any employees or

other personnel providing services to XM, or any of its Affiliates, for any

business activity, other than a business activity owned or controlled, directly

or indirectly, by XM or any of its Affiliates.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Injunctive

Relief.</font></b></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; EMPLOYEE acknowledges and warrants

that he will be fully able to earn an adequate livelihood for himself and his

dependents if Section 5.2 should be specifically enforced against him, and that

Section 5.2 merely prevents unfair competition against XM for a limited period

of time.&#160; EMPLOYEE agrees and acknowledges

that, by virtue of EMPLOYEE&#146;s employment with XM, EMPLOYEE shall have access to

and maintain an intimate knowledge of XM&#146;s activities and affairs, including

trade secrets, Confidential Information, and other confidential matters.&#160; As a result of such access and knowledge,

and because of the special, unique, and extraordinary services that EMPLOYEE is

capable of performing for XM or one of its</font></p>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>





<div style="margin:0in 0in 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></b></div>



<b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">
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</font></b>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">competitors, EMPLOYEE acknowledges that the services

to be rendered by EMPLOYEE pursuant to this Agreement are of a character giving

them a peculiar value, the loss of which cannot adequately or reasonably be

compensated by money damages.&#160;

Consequently, EMPLOYEE agrees that any breach or threatened breach by

EMPLOYEE of EMPLOYEE&#146;s obligations under this Article 5 would cause irreparable

injury to XM, and that XM shall be entitled to (i) preliminary and permanent

injunctions enjoining EMPLOYEE from violating such provisions, and (ii) actual

money damages suffered by XM as a result of such breach, in the amount of any

fees, compensation, benefits, profits, or other remuneration earned by EMPLOYEE

as a result of such breach, together with interest, and cost and attorney&#146;s

fees expended to collect such damages or secure such injunctions.&#160; Nothing in this Agreement, however, shall be

construed to prohibit XM from pursuing any other remedy, XM and EMPLOYEE having

agreed that all such remedies shall be cumulative.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The restrictions set forth in this

Article 5 and the following Article 6 shall be construed as independent

covenants, and shall survive the termination or expiration of this Agreement,

and the existence of any claim or cause of action against XM, whether

predicated upon this Agreement or otherwise, shall not constitute a defense to

the enforcement by XM of the restrictions contained in this Article 5 or the

following Article 6.&#160; EMPLOYEE hereby

consents and waives any objection to the jurisdiction over his person or the

venue of any courts within the State of Virginia with respect to any

proceedings in law or in equity arising out of this Article 5 or the following

Article 6.&#160; If any court of competent

jurisdiction shall hold that any of the restrictions contained in Section 5.2

are unreasonable as to time, geographical area, or otherwise, said restrictions

shall be deemed to be reduced to the extent necessary in the opinion of such

court to make their application reasonable.</font></p>



<p style="font-weight:bold;margin:0in 0in 12.0pt;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-decoration:none;text-transform:none;">ARTICLE 6</font></b><font size="2" style="font-size:10.0pt;text-transform:none;"><br>

</font><font size="2" style="font-size:10.0pt;text-decoration:none;text-transform:none;">INVENTIONS, WORKS OF AUTHORSHIP,</font><font size="2" style="font-size:10.0pt;text-transform:none;"><br>

PATENTS AND COPYRIGHTS</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Ownership of

Inventions and Works of Authorship.&#160; </font></b><font size="2" style="font-size:10.0pt;">EMPLOYEE agrees that all Inventions made,

conceived, discovered, developed or reduced to practice by EMPLOYEE and all

software and other works of authorship created by EMPLOYEE, either alone or

with others, at any time, within or without normal working hours, during the

term of this Agreement, arising out of such employment or based upon

Confidential Information, or pertinent to any field of business or research in

which, during such employment, XM is engaged or (if such is known or

ascertainable by EMPLOYEE) is considering engaging, whether or not patented or

patentable, shall be and remain the sole property of XM with respect to all

rights of EMPLOYEE arising from any discovery, conception, development,

reduction to practice, or creation by EMPLOYEE.&#160; XM shall have the full right to assign, license, or transfer all

rights thereto.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Disclosure of Inventions and Works of

Authorship.&#160; </font></b><font size="2" style="font-size:10.0pt;">EMPLOYEE shall promptly make full

disclosure to XM or to an authorized representative thereof of all information

relating to the making, conception, discovery, development, creation or </font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>





<div style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></b></div>



<b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">
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</font></b>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">reduction to practice of Inventions, or of software

and other works of authorship owned by XM pursuant to Section 6.1 above.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Patent and

Copyright Applications.&#160; </font></b><font size="2" style="font-size:10.0pt;">At the request of XM and at XM&#146;s expense,

EMPLOYEE shall execute such documents and perform such acts as XM deems

necessary to obtain patents or the like on such Inventions or copyright registrations

for such software and other works of authorship in any jurisdiction or

jurisdictions.&#160; Such obligation shall

continue beyond the term of this Agreement.&#160;

In the event that XM is unable because of&#160; EMPLOYEE&#146;s mental or physical capacity or for any other reason to

secure EMPLOYEE&#146;s signature to apply for or to pursue any applications for

patent or copyright covering Inventions, software and other works of authorship

owned by XM pursuant to Section 6.1, then EMPLOYEE hereby irrevocably

designates and appoints XM as EMPLOYEE&#146;s agent and attorney in fact, upon prior

notice, to act for and in his behalf and stead to execute and file any such

applications and to do all other lawfully permitted acts to further the

prosecution and issuance of patents and copyright registrations thereon with

the same legal force and effect as if executed by EMPLOYEE.&#160; EMPLOYEE further agrees not to file any

patent applications relating to or describing or otherwise disclosing any

Confidential Information or any such Inventions, or to claim any copyright or

file any applications to register any copyright in such software or other works

of authorship, except with the prior written consent of XM.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Assignment

of Inventions and Works of Authorship.&#160; </font></b><font size="2" style="font-size:10.0pt;">EMPLOYEE agrees to assign to XM or it

Affiliates all of EMPLOYEE&#146;s right, title and interest in and to any and all

such Inventions and the patent applications and patents relating thereto and to

the copyright in any and all such software and other works of authorship and

any copyright applications and registrations relating thereto conceived,

reduced to practice, discovered, created or otherwise developed by EMPLOYEE and

owned by XM pursuant to Section 6.1 above.</font></p>



<p style="font-weight:bold;margin:0in 0in 12.0pt;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-decoration:none;text-transform:none;">ARTICLE 7</font></b><font size="2" style="font-size:10.0pt;text-transform:none;"><br>

MISCELLANEOUS</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Assignment.&#160; </font></b><font size="2" style="font-size:10.0pt;">The rights and obligations of XM under this Agreement

shall be binding upon its successors and assigns and, subject to EMPLOYEE&#146;s

rights under Article 4.5 hereof, may be assigned by XM to the successors in

interest of XM.&#160; The rights and

obligations of EMPLOYEE under this Agreement shall be binding upon EMPLOYEE&#146;s

heirs, legatees, personal representatives, executors or administrators.&#160; This Agreement may not be assigned by

EMPLOYEE, but any amount owed EMPLOYEE upon EMPLOYEE&#146;s death shall inure to the

benefit of EMPLOYEE&#146;s heirs legatees, personal representatives, executors, or

administrators.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.2&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Notice.&#160; </font></b><font size="2" style="font-size:10.0pt;">For purposes of this Agreement, notices and all other

communications provided for in this Agreement shall be in writing and shall be

deemed to have been duly given when hand delivered, sent by overnight courier,

or mailed by first-class, registered, or certified mail, return receipt

requested, postage prepaid, or transmitted by telegram, telecopy, or telex

addressed as follows:</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>





<div style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></b></div>



<b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">
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</font></b>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in 12.0pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to EMPLOYEE: (Copy to XM Executive Office)</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hugh Panero<br>

4609 Derussey Parkway <br>

Chevy Chase, Maryland 20815</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to XM:</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">XM Satellite Radio

Holdings Inc.<br>

1500 Eckington Place, N.E.,<br>

Washington, D.C. 20002<br>

Telephone:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 703-758-6116<br>

Telecopy:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 703-758-6106</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in 12.0pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attn:&#160;&#160;&#160;&#160;&#160;&#160; General

Counsel</font></p>



<p style="margin:0in 0in 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or to such other address as either party may have

furnished to the other in writing in accordance herewith, except that notices

of change of address shall be effective only upon receipt.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Entire

Agreement.&#160; </font></b><font size="2" style="font-size:10.0pt;">From and after the Effective Date, this

Agreement constitutes the entire agreement between the parties hereto, and

expressly supersedes all prior oral or written agreements, commitments or

understandings with respect to the matters provided for herein.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Headings.&#160; </font></b><font size="2" style="font-size:10.0pt;">Article and Section headings contained in this

Agreement are inserted for convenience of reference only, shall not be deemed

to be a part of this Agreement for any purpose, and shall not in any way define

or affect the meaning, construction or scope of any of the provisions hereof.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Severability</font></b><font size="2" style="font-size:10.0pt;">.&#160;

In the event any provision of this Agreement, or any portion thereof, is

determined by any arbitrator or court of competent jurisdiction to be

unenforceable as written, such provision or portion thereof shall be interpreted

so as to be enforceable.&#160; In the event

any provision of this Agreement, or any portion thereof is determined by any

arbitrator or court of competent jurisdiction to be void, the remaining

portions of this Agreement shall nevertheless be binding upon XM and EMPLOYEE

with the same effect as though the void provision or portion thereof had been

severed and deleted.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.6&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Arbitration.</font></b><font size="2" style="font-size:10.0pt;">&#160;

Without prejudice to XM&#146;s right to seek an injunction pursuant to

Article 5.3(a) hereof from a court of competent jurisdiction, any dispute

between the parties hereto arising out of this Agreement, or otherwise arising

out of or relating to EMPLOYEE&#146;s employment by XM, or the termination thereof,

shall be submitted to non-binding mediation before a mediator to be agreed upon

by the parties or, failing agreement, to be appointed by the American

Arbitration Association (&#147;AAA&#148;).&#160; In the

event that mediation is unsuccessful, such dispute shall be resolved by binding

arbitration, before a single arbitrator, under the rules of the AAA.&#160; The arbitrator shall </font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>





<div style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">



<hr size="2" width="100%" noshade color="gray" align="left">



</font></b></div>



<b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">
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</font></b>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">have the authority

to apportion the costs of arbitration, and to render an award including

reasonable attorney&#146;s fees,&#160; as and to

the extent he deems appropriate under the circumstances.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.7&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Governing

Law.&#160; </font></b><font size="2" style="font-size:10.0pt;">This Agreement, the rights and obligations of the

parties hereto, and any claims or disputes relating thereto, shall be governed

by and construed in accordance with the substantive laws of the State of

Virginia (excluding the choice of law rules thereof).</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.8&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Amendment;

Modification; Waiver.&#160; </font></b><font size="2" style="font-size:10.0pt;">No amendment, modification or waiver of

the terms of this Agreement shall be valid unless made in writing and duly

executed by EMPLOYEE and XM.&#160; No delay

or failure at any time on the part of EMPLOYEE or XM in exercising any right,

power or privilege under this Agreement, or in enforcing any provision of this

Agreement, shall impair any such right, power, or privilege, or be construed as

a waiver of any default or as any acquiescence therein, or shall affect the

right of EMPLOYEE or XM thereafter to enforce each and every provision of this

Agreement in accordance with its terms.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.9&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Additional

Obligations.&#160; </font></b><font size="2" style="font-size:10.0pt;">Both during and after the term of

employment, EMPLOYEE shall, upon reasonable notice, furnish XM with such

information as may be in EMPLOYEE&#146;s possession or control, and cooperate with

XM, as may reasonably be requested by XM (and, after the term of employment,

with due consideration for EMPLOYEE&#146;s obligations with respect to any new

employment or business activity) in connection with any litigation or other

adversarial proceedings in which XM or any Affiliate is or may become a

party.&#160; XM shall reimburse EMPLOYEE for

all reasonable expenses incurred by EMPLOYEE in fulfilling EMPLOYEE&#146;s

obligations under this Article 7.9.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties have executed this

Agreement to be effective as of the Effective Date.</font></p>



<p style="margin:0in 0in 12.0pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

 <tr>

  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.12%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="54%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:54.88%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">XM Satellite Radio

  Holdings Inc.</font></p>

  </td>

 </tr>

 <tr>

  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.12%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="54%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:54.88%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">XM Satellite Radio Inc.</font></p>

  </td>

 </tr>

 <tr>

  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.12%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.1%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="50%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:50.78%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.12%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.1%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="50%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:50.78%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="45%" valign="top" style="padding:0in .7pt 0in .7pt;width:45.12%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.1%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By</font></p>

  </td>

  <td width="50%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:50.78%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.22%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="50%" colspan="3" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:50.78%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Gary M. Parsons</font></p>

  </td>

 </tr>

 <tr>

  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.22%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="50%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:50.78%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chairman of the Board</font></p>

  </td>

 </tr>

 <tr>

  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.22%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.18%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: </font></p>

  </td>

  <td width="22%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:22.48%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.12%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.22%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="50%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:50.78%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.22%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="50%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:50.78%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.22%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="50%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:50.78%;">

  <p style="font-size:12.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.22%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="50%" colspan="3" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:50.78%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Hugh Panero</font></p>

  </td>

 </tr>

 <tr>

  <td width="49%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:49.22%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="8%" valign="top" style="padding:0in .7pt 0in .7pt;width:8.18%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:</font></p>

  </td>

  <td width="22%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:22.48%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="20%" valign="top" style="padding:0in .7pt 0in .7pt;width:20.12%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

</table>



<p style="margin:0in 0in 12.0pt 3.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>





<div style="margin:0in 0in 12.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">



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