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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 6, 2004
SIRIUS SATELLITE RADIO INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 0-24710 52-1700207
(State or other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
1221 Avenue of the Americas, 36th Fl., New York, NY 10020
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (212) 584-5100
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Item 5. Other Events.
Today we announced a new agreement with DaimlerChrysler Corporation.
Beginning with 2005 model year vehicles, DaimlerChrysler will bundle a one-year
subscription to our service in all of its vehicles that contain a
factory-installed Sirius radio. DaimlerChrysler has agreed to use commercially
reasonable efforts to produce and distribute an aggregate of 550,000 such
bundled vehicles by June 30, 2006. We will receive from Chrysler our standard
one-year subscription fee for each bundled subscription. We have agreed to
reimburse DaimlerChrysler for the costs of factory-installed Sirius radios and
to pay incentives to DaimlerChrysler upon the achievement of agreed upon volume
thresholds. DaimlerChrysler will continue to offer Sirius radios as a
dealer-installed option in the majority of its remaining vehicles.
We will issue DaimlerChryler AG warrants to purchase an aggregate of up
to 21.5 million shares of our common stock at an exercise price of $1.04 per
share (a valuation at which we issued warrants in connection with our
recapitalization in March 2003). These warrants vest based on the achievement of
various performance milestones, including the volume thresholds contained in our
agreement with DaimlerChrysler Corporation. These warrants replace the warrants
issued to DaimlerChrysler AG in October 2002.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SIRIUS SATELLITE RADIO INC.
By: /s/ Patrick L. Donnelly
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Patrick L. Donnelly
Executive Vice President,
General Counsel and Secretary
Dated: April 6, 2004
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