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In-House Counsel Patrick L. Donnelly, Sirius Satellite Radio Inc. TITLE: Senior vice president, general counsel and secretary AGE: 38 THE COMPANY: New York-based Sirius plans to use a trio of satellites to beam 100 channels of digital-quality music, news and talk to vehicles in the United States equipped with special receivers. For $9.95 a month, says the company, motorists will receive a signal that never fades, on a special frequency Sirius purchased from the Federal Communications Commission in 1997. The service might later be marketed in remote areas with poor traditional radio reception. Sirius, which is traded on Nasdaq, has yet to produce any revenues. The company, with about 135 employees, says that its service will debut by January 2001. THE DEPARTMENT: Donnelly’s department includes another lawyer, Douglas Kaplan, and a paralegal. Kaplan shares legal duties for the engineering department with Donnelly, and is responsible for supporting the marketing department’s relationship with car and receiver makers. Donnelly helps develop Sirius’ agreements with automakers and with content providers, including the BBC, NPR, CNBC and others he cannot yet mention. He has also worked with the programming department in its signing of on-air personalities. Donnelly travels weekly to Washington, D.C., to keep the FCC apprised of Sirius’ infrastructure build-out and launch plans, to talk to company lobbyists or to take a closer look at communications or copyright legislation that could affect Sirius. Donnelly has also hammered out agreements with institutional investors, including DaimlerChrysler, which made a $100 million purchase of Sirius stock in January. PRIMARY OUTSIDE COUNSEL: New York firms Paul, Weiss, Rifkind, Wharton & Garrison (securities, litigation, employee benefits); Simpson Thacher & Bartlett (transactions) and Kramer Levin Naftalis & Frankel (intellectual property); and Washington, D.C.’s Wiley, Rein & Fielding (regulatory). ROUTE TO THE TOP: Donnelly was born on Long Island, N.Y., where his father, Thomas, practiced law for area banks at a firm called Ricca & Donnelly. Donnelly graduated magna cum laude in economics from Lafayette College, in Easton, Pa., in 1984. He entered Cornell Law School to forestall a career decision, but soon he was hooked on the law, drawn in by the human dilemmas inherent in most legal issues. He became an editor of the Cornell Law Review and graduated in 1987 magna cum laude, a recipient of the Order of the Coif. During his eight years at Simpson Thacher, he concentrated on finance matters before leaving in 1995 to be assistant, and later deputy, general counsel at ITT Corp., a Simpson Thacher client, because he was intrigued by the potential of a corporation that included marquee names such as Sheraton Inns, Caesar’s World casinos and Madison Square Garden. But ITT was quickly embroiled in defending against a hostile takeover by Hilton Hotels Corp., which it escaped by selling out to Starwood Hotels and Resorts in 1998. In May 1998, Donnelly left ITT to become Sirius’ general counsel. NEWS: On June 30, the company’s first satellite rocketed into space from the Kazakhstan launch site that sent forth Sputnik and Yuri Gagarin. Donnelly says that half the company’s employees crowded into the boardroom to watch a video feed of the big moment. “Those of us who have been here for two years held our breath as [the countdown] got to 10, 9, 8,” he says. “To watch the engines kick up at one second to go was great.” He stayed at the office until the solar panels that will power the communications equipment aboard the $125 million satellite were unfurled, around midnight. When the company enlarged its satellite configuration from two to three, Donnelly negotiated with manufacturer Loral for a third Sirius orbiter, and for the fourth, a spare. He also arranged for their insurance through a European syndicate. COOPERATING WITH THE COMPETITION: In February, Donnelly and Kaplan helped draft the hard-won agreement that resolved a patent infringement suit Sirius had filed a year earlier against its sole competition, XM Satellite Radio. The companies are now sharing information that will lead to the development of a single receiver for their signals, a requirement of their FCC licenses. Donnelly and his counterpart at XM, Joe Titlebaum, are working on selecting a mediator who, it is hoped, will resolve the companies’ differences over the valuation of their respective receiver technologies. “We’ve agreed that we may go to arbitration if we can’t mediate this,” Donnelly says. “But I expect we’ll be able to work it out.” That will be the first step of a long process. “The technology is going to take a while to develop,” he says. MAKING DEALS: Donnelly was instrumental in Sirius deals with Ford, BMW and DaimlerChrysler that, in 2001, are expected to result in Sirius receivers being installed as original equipment in their cars. Now that Sirius and XM are on track to develop a one-size-fits-all receiver, Donnelly and Titlebaum are working together to ink deals with car makers. For young companies in an unproven field, Donnelly says, dealing with veterans of the auto industry is daunting. “The automakers we’ve dealt with are very used to wringing significant concessions from parts makers,” he says. “They know how to negotiate. They’re interested [in our service] from a strategic point of view, but, just like when they buy wiper blades, they want to make sure they get the best deal.” ASSUAGING A RATTLED INDUSTRY: Donnelly believes the music industry, now battling threats to sales by Webcasters and download services such as Napster, will welcome Sirius and its 50-channel smorgasbord of musical genres (examples: “Broadway’s Best,” “Rock en Espanol,” “World Beat,” “Chamber Music”). “We think the music industry should embrace us because we’ll help sell that niche music in record stores,” he says. “What I worry about sometimes is that the [Recording Industry Association of America] and the industry feel like they’re under siege, and we’re certainly not their enemy.” Sirius and XM will again negotiate together with the industry the royalties they will pay for broadcasting songs, although Donnelly, who will be at the table, says that Sirius will be on the air before an agreement is reached. FAMILY: Donnelly and his wife, Susan, have been married 12 years and have three children: Patrick, 9, Colleen, 7, and Jack, 3. OUTSIDE INTERESTS: Most of his free time is spent on family activities, although Donnelly golfs when he can. LAST BOOK READ: “Harry Potter and the Chamber of Secrets,” by J.K. Rowling, with his daughter. Law.com staff contributed to this story.

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