Exhibit4.13

J & E DAVY(AS SPONSOR AND AS ANUNDERWRITER)

BIRCHFIELD HOLDINGSLIMITED

AND

WATERFORD WEDGWOODPLC

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RIGHTS ISSUEUNDERWRITINGAGREEMENT

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DATED21 OCTOBER 2004

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CONTENTS

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| Clause |  |                              |  | Page |
| 1.     |  | Interpretation                    |  | 3    |
| 2.     |  | Conditions                        |  | 9    |
| 3.     |  | Appointments                      |  | 12   |
| 4.     |  | Registration And Application      |  | 12   |
| 5.     |  | Allotment                         |  | 13   |
| 6.     |  | Sponsor / UnderwritersObligations |  | 15   |
| 7.     |  | Payment                           |  | 17   |
| 8.     |  | Settlement                        |  | 17   |
| 9.     |  | Fees, Commissions AndExpenses     |  | 18   |
| 10.    |  | Warranties AndUndertakings        |  | 19   |
| 11.    |  | Release AndIndemnity              |  | 21   |
| 12.    |  | Termination                       |  | 23   |
| 13.    |  | Continuing Obligations            |  | 24   |
| 14.    |  | Announcements AndInformation      |  | 24   |
| 15.    |  | General                           |  | 25   |
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**THIS AGREEMENT** is made on 21 October2004.

**BETWEEN**:

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| (1)  | **J& E DAVY**, an unlimited company registered in Ireland undernumber 106680, having its registered office at Davy House, 49 DawsonStreet, Dublin 2 ("**Sponsor**" in itscapacity as sponsor of the RightsIssue); |

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| (2)  | **J & E DAVY**, anunlimited company registered in Ireland under number 106680, having itsregistered office at Davy House, 49 Dawson Street, Dublin 2("**Davy**" in its capacity as anunderwriter of the RightsIssue); |

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| (3)  | **BIRCHFIELD HOLDINGSLIMITED**, an International Business Company registered in theBritish Virgin Islands under number 458528, having its registeredoffice at Trident Chambers, PO Box 146, Road Town, Tortola, BritishVirgin Islands ("**Birchfield**");and |

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| (4)  | **WATERFORD WEDGWOOD PLC**, apublic limited company registered in Ireland under number 11861, havingits registered office at Kilbarry, Waterford (the"**Company**"). |

**WHEREAS**:

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| (A)  | The Company is apublic limited company incorporated in Ireland under number 11861 andhas at the date of this Agreement an authorised share capital of€120,000,000 divided into 2,000,000,000 ordinary shares of€0.06 each, of which 996,987,229 are in issue and fullypaid up. |

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| (B)  | The Company proposes toraise up to €100,000,000 (before commissions and expenses)by means of the Rights Issue at the Price and on the terms to be setout in the Listing Particulars and thePALs. |

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| (C)  | Davy and Birchfield (each an"**Underwriter**" and together the"**Underwriters**") have agreed tounderwrite severally the Rights Issue at the Price in their respectiveProportions on the terms and subject to the conditions of thisAgreement and on the terms and conditions which will be contained inthe Rights Issue Documents. |

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| (D)  | Sponsorhas agreed to sponsor the Rights Issue on the terms and subject to theconditions of this Agreement and on the terms and conditions which willbe contained in the Rights Issue Documents. |

**IT IS AGREED**as follows:

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| 1.  | **INTERPRETATION** |

**Definitions**

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| 1.1  | Inthis Agreement, including the Schedules, the following words andexpressions shall have the meanings ascribed to them below: |

"**Accounts**" meansthe Group's reported audited financial statements as at or forthe 12 month period ended on the Accounts Date (being the Group'slast reported audited financial statements);

"**Accounts Date**"means 31 March 2004;

"**Acquisition**" meansthe proposed offer to be made by a Group Company for all of the issuedand to be issued share capital of Royal Doulton plc (other than anysuch share capital held or controlled by the Group or held as treasuryshares by Royal Doulton plc) to be implemented by way of takeover offerto which the City Code on Takeovers and Mergers applies;

"**Admission**" meansthe admission of all of the Rights Issue Units, nil paid, to theofficial list of the Irish Stock Exchange and the official listmaintained by the UK Listing Authority and to trading on the mainmarkets for listed securities of the Irish Stock Exchange and theLondon Stock Exchange becoming effective in accordance with the ListingRules and, in relation only to admission to trading of such units onthe London Stock Exchange, the Admission and Disclosure Standards ofthe London Stock Exchange from time to time;

"**Admission FullyPaid**" means admission of all the Rights Issue Unitsfully paid to trading on the main markets for listed securities of theIrish Stock Exchange and the London Stock Exchange;

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"**AnnouncementDate**" means the date on which the Company or a GroupCompany announces a firm intention to make an offer for Royal Doultonplc in accordance with Rule 2.5 of the UK City Code on Takeovers andMergers not being later than the time of the fulfilment of theCondition in Clause 2.1(f) or such other time as the Company, theUnderwriters and Sponsor may agree in writing;

"**Application**" meansthe applications for Admission to be made by Sponsor on behalf of theCompany;

"**Birchfield RelevantPersons**" means Birchfield and (a) Sir AnthonyO'Reilly, Peter John Goulandris and the O'Reilly/GoulandrisInterests; and (b) each undertaking which is, on or at any time afterthe date of this Agreement, a subsidiary undertaking or parentundertaking of Birchfield or a subsidiary undertaking of a parentundertaking of Birchfield or any of the O'Reilly/GoulandrisInterests; and (c) a person who is, on or at any time after the date ofthis Agreement, a director, officer or employee of Birchfield or anundertaking specified in sub-paragraph (a) or (b) of thisdefinition;

"**Board**" means theboard of directors of the Company from time to time;

"**Board Resolutions**"means the resolutions of the Board to approve this Agreement and itsexecution and of the Board and the board of directors of WaterfordWedgwood UK to approve the Rights Issue Documents and to authorise(where required) their publication;

"**Business Day**"means any day (other than a Saturday or Sunday) on which lending banksin Dublin and London are open for business;

"**Closing Date**"means the last date for acceptance and payment in full under the RightsIssue;

"**ConcertParty**" means Birchfield, the O'Reilly/GoulandrisInterests, Sir Anthony O'Reilly, Peter John Goulandris, thedirectors of Birchfield and any spouse, parent, sibling or child of anyof the foregoing and a reference to a "**member of theConcert Party**" means any one of those persons;

"**Companies Acts**"means the Companies Acts 1963 to 2003;

"**Company'sSolicitors**" means William Fry, Fitzwilton House,Wilton Place, Dublin 2;

"**Conditions**" meansthe conditions set out in Clause 2.1;

"**CREST**" means therelevant system for the paperless settlement of trades and the holdingof uncertificated securities operated by CRESTCo in accordance with theCREST Regulations;

"**CRESTCo**" meansCRESTCo Limited (the operator of CREST);

"**CREST member**"means a person who has been admitted by CRESTCo as a system-member (asdefined in the CREST Regulations);

"**CREST Regulations**"means the Companies Act 1990 (Uncertificated Securities) Regulations1996 (SI No. 68/1996) and the UK Uncertificated Securities Regulations2001 (SI 2001/3755);

"**CRESTparticipant**" means a person who is, in relation toCREST, a system-participant (as defined in the CREST Regulations);

"**Davy RelevantPersons**" means Davy and (a) each undertaking which is,on or at any time after the date of this Agreement, a subsidiaryundertaking or parent undertaking of Davy or a subsidiary undertakingof a parent undertaking of Davy (including, for the avoidance of doubt,Davy Corporate Finance Limited); and (b) each person who is, on or atany time after the date of this Agreement, a director, officer oremployee of Davy or an undertaking specified in sub-paragraph (a) ofthis definition;

"**Directive**" meansArticle 100 of European Parliament and Council Directive2001/34/EC;

"**Directors**" meansall of the directors of the Company;

"**Employee ParticipationSchemes**" means the 1995 Irish Profit Sharing Scheme,the Employee Share Ownership Plan and the Share Incentive Plan2002;

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"**EnablementLetter**" means the letter in the agreed form from theCompany to CRESTCo confirming that the conditions for admission of theNil Paid Rights and Fully Paid Rights to CREST have been satisfied;

"**Engagement Letter**"means the letter from Davy Corporate Finance Limited to the Companydated 21 October 2004 confirming the scope of the engagement by theCompany of Davy Corporate Finance Limited and Sponsor (in thelatter's capacity as sponsor of the Rights Issue under theListing Rules);

"**EnlargedGroup**" means the Group together with Royal Doulton plcand its subsidiary undertakings;

"**ExcludedConditions**"means:

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| (a)  | the Condition in Clause2.1(i) insofar as such Condition requires the Company to deliver theletter referred to in paragraph 16 of Part III solely to the extentthat such letter relates to the representations and warranties given bythe Company to Sponsor under this Agreement;and |

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| (b)  | the Condition in Clause 2.1(j)insofar as such Condition requires the Company to deliver the letterreferred to in paragraph 13 of Part VII solely to the extent that suchletter relates to the representations and warranties given by theCompany to the Underwriters under this Agreement; |

"**Extraordinary GeneralMeeting**" means the extraordinary general meeting ofthe Company to be held no later than the day prior to the Posting Datefor the purpose of passing the Increase/Authorisation Resolution andthe Waiver Resolution or any adjournment of such meeting;

"**Form of Proxy**"means the form of proxy in connection with the Extraordinary GeneralMeeting;

"**Fully PaidRights**" means fully paid rights to acquire RightsIssue Units;

"**FSMA**" means theFinancial Services and Markets Act 2000 of the United Kingdom;

"**Group**" means theCompany and the Subsidiary Undertakings and "**member ofthe Group**" or "**GroupCompany**" shall mean any one of them;

"**Income Shares**"means non-voting shares of nominal value Stg 1p each in the capital ofWaterford Wedgwood UK which, when held by holders who have given adividend election which remains in force in relation to OrdinaryShares, entitle holders of Stock Units to elect to receive dividendspaid from UK-sourced profits;

"**Increase/AuthorisationResolution**" means the ordinary resolution(s) of theholders of Ordinary Shares to increase the authorised share capital ofthe Company and to grant the Board authority to allot and issue asufficient number of Ordinary Shares for the purposes of the RightsIssue and the special resolution to disapply applicable pre-emptionrights so as to enable the Rights Issue to be made, in each case to beproposed at the Extraordinary General Meeting and to be contained inthe notice of meeting convening the Extraordinary General Meeting;

"**IndependentDirectors**" means all of the Directors except for SirAnthony O'Reilly, Peter John Goulandris, Lady O'Reilly andTony O'Reilly, Jnr and any other Director who is directed by anyof the Irish Stock Exchange, the UKLA or the Panel to abstain fromparticipating in the recommendation of the Waiver Resolution;

"**IndependentShareholders**" means all holders of Ordinary Sharesother than a holder of Ordinary Shares who is a member of the ConcertParty;

"**Irish StockExchange**" means The Irish Stock Exchange Limited;

"**ListingParticulars**" means the listing particulars for thepurposes of the Rights Issue relating to the Company and the Group, asrequired by the Regulations and the Listing Rules, in a form approvedby Sponsor in accordance with Clause 2.2, which will contain anunqualified statement to the effect that, taking into account existingfinancing facilities and the proceeds of the Rights Issue, the workingcapital available to the Group and the Enlarged Group is sufficient fortheir respective 

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present requirements, that is for at least thenext 12 months following the Posting Date and containing a noticeconvening an extraordinary general meeting of the Company for thepurpose of approving the Acquisition in accordance with Chapter 10 ofthe Listing Rules;

"**ListingRules**" means the listing rules of the Irish StockExchange and/or, where appropriate, the listing rules of the UK ListingAuthority;

"**London StockExchange**" means the London Stock Exchange plc;

"**Long Stop Date**"means 15 January 2005 or such other date as the Company, theUnderwriters and Sponsor may agree in writing;

"**member account ID**"means the identification code or number attached to any member accountin CREST;

"**Nil PaidRights**" means nil paid rights to subscribe for RightsIssue Units;

"**OfficialList**" means the official list of the Irish StockExchange and/or, as appropriate, the official list maintained by the UKListing Authority;

"**OrdinaryShares**" means ordinary shares of nominal value€0.06 each in the capital of the Company;

"**O'Reilly/GoulandrisInterests**" means the holders of Stock Units in which(i)  Sir Anthony O'Reilly has an interest, being currentlyStoneworth Investment Limited, Albany Hill Limited, Mystic Investments(Cayman) Limited and Indexia Holdings Limited who hold, in aggregate,199,115,372 Stock Units at the date of this Agreement; and (ii)Mr Peter John Goulandris has an interest, being currently StoneworthInvestment Limited, Albany Hill Limited, Araquipa International Limitedand Cressborough Holdings Limited who hold, in aggregate, 244,475,744Stock Units at the date of this Agreement. At the date of thisAgreement, due to common interests, Sir Anthony O'Reilly and Mr.Peter John Goulandris are in aggregate interested in 245,329,624 StockUnits through the O'Reilly/Goulandris Interests;

"**PAL**" means arenounceable provisional allotment letter in the agreed form to beissued in connection with the Rights Issue by the Company to certainQualifying Non-CREST Stockholders in respect of the Nil PaidRights;

"**Panel**"means the Irish Takeover Panel;

"**Participant ID**"means the identification code or membership number used in CREST toidentify a particular CREST member or other CREST participant;

"**Posting Date**"means the date on which the Company publishes the Listing Particularsand despatches the PALs being not later than 15 December 2004 or suchother date as the Company, the Underwriters and Sponsor may agree inwriting;

"**PressRelease**" means the press release, in the agreed form,giving details, inter alia, of the Rights Issue;

"**Price**" means€0.06 per Rights Issue Unit;

"**Proportion**" means,in relation to Davy, 30 per cent. and, in relation to Birchfield, 70per cent.;

"**Qualifying CRESTStockholder**" means a Qualifying Stockholder whoseOrdinary Shares on the register of members of the Company and whoseIncome Shares on the register of members of Waterford Wedgwood UK are,in each case, in uncertificated form;

"**Qualifying Non-CRESTStockholder**" means a Qualifying Stockholder other thana Qualifying CREST Stockholder;

"**QualifyingStockholder**" means a holder of Ordinary Shares on theregister of members of the Company and a holder of Income Shares on theregister of members of Waterford Wedgwood UK, in each case on theRecord Date;

"**RecordDate**" means 6.00 pm on the fifth Business Day beforethe Posting Date or such other date as the Company, the Underwritersand Sponsor may agree in writing;

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"**Registrars**"and/or "**Receiving Agent**" means CapitaCorporate Registrars plc, Unit 5, Manor Street Business Park, ManorStreet, Dublin 7;

"**Regulations**" meansthe European Communities (Stock Exchange) Regulations 1984 and theEuropean Communities (Transferable Securities and Stock Exchange)Regulations 1992;

"**Resolutions**" meansany resolutions required to be passed at an extraordinary generalmeeting of Waterford Wedgwood UK in order to enable the issue of IncomeShares by that company under the Rights Issue;

"**RestrictedJurisdiction**" means the United States of America,Canada, Australia, Japan and any other territory or jurisdiction wherethe posting of the Listing Particulars and/or the PALs would constitutea breach of local law or regulation and where to avoid such breach thesteps required to be taken by the Company would be unduly onerous;

"**Rights Issue**"means the proposed issue of Rights Issue Units in accordance with thisAgreement and the Rights Issue Documents by way of rights to QualifyingStockholders at the Price on the basis of 5 Rights Issue Units forevery 3 Stock Units held at the close of business on the Record Dateand otherwise on the terms and subject to the conditions set out orreferred to in the Listing Particulars and the PAL;

"**Rights IssueDocuments**" means the Press Release, the ListingParticulars (and any supplementary listing particulars issued inaccordance with Clause 4.1), the Form of Proxy and the PAL;

"**Rights IssueUnits**" means the 1,661,645,381 Stock Units to beallotted pursuant to the Rights Issue;

"**Share OptionSchemes**" means the Group's share option schemescomprising the Executive Share Option Scheme 1995, the Group ShareOption Scheme 1995, the Approved Group Share Option Scheme 1996, theSavings Related Share Option Scheme 1995 and the Irish andInternational Savings Related Share Option Scheme 1995;

"**stock account**"means an account within a member account in CREST to which a holding ofa particular share or other security in CREST is credited;

"**Stock Exchanges**"means the Irish Stock Exchange and the London Stock Exchange;

"**Stockholders**"means holders of Stock Units;

"**Stock Unit**" meansone Ordinary Share in respect of which the holder has made or isentitled to make a dividend election in accordance with the provisionsof the Company's articles of association and one Income Shareheld by the same person with the same designation which ranks fordividends (if any) on the Income Shares when such a dividend electionis in force;

"**SubsidiaryUndertakings**" means all subsidiaries and subsidiaryundertakings of the Company, including the companies listed in theFirst Schedule or any one or more of them;

"**uncertificated**" or"**in an uncertificated form**" meansStock Units recorded on the registers of members of the Company andWaterford Wedgwood UK as being held in uncertificated form in CREST andtitle to which, by virtue of the CREST Regulations, may be transferredby means of an instruction issued in accordance with the rules ofCREST;

"**Underwriters'Relevant Persons**" means, in relation to Birchfield,the Birchfield Relevant Persons and, in relation to Davy, the DavyRelevant Persons;

"**UK ListingAuthority**" or "**UKLA**"means the UK Financial Services Authority acting in its capacity as thecompetent authority for the purposes of Part VI of FSMA;

"**VAT**" means valueadded tax;

"**VerificationNotes**" means the questions to be prepared by theCompany's Solicitors to verify statements in the ListingParticulars and the answers to such questions in a form satisfactory toSponsor acting reasonably;

"**Waiver**" means awaiver of the obligation of the Concert Party or any member of it tomake a general offer for the balance of the issued share capital of theCompany under Rule 9.1 of the Irish 

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Takeover Panel Act 1997, Takeover Rules 2001granted by the Panel conditional on the approval of the IndependentShareholders at an extraordinary general meeting and with no otherconditions attaching which would materially constrain or imposeobligations on any member of the Concert Party with regard to theacquisition, disposal or exercise of rights attaching to any StockUnits (other than any conditions which reflect (but are no more onerousthan) any legal or regulatory provision or constraint by which suchperson would be bound apart from the waiver);

"**Waiver****Resolution**" means the ordinary resolution relatingto the grant of approval of the Independent Shareholders referred to inthe definition of the term "Waiver" above tobe proposed at the Extraordinary General Meeting and to be contained inthe notice of meeting convening the Extraordinary General Meeting;

"**Warranties**" means(a) in respect of Sponsor, the warranties, agreements, indemnities andrepresentations expressed to be for the benefit of Sponsor set out inClause 10 and the warranties and representations set out inParts  I, II and III of the Third Schedule and (b) in respect ofthe Underwriters, the warranties, agreements, indemnities andrepresentations expressed to be for the benefit of the Underwriters setout in Clause 10 and the warranties and representations set out inParts  IV, V and VI of the Third Schedule;

"**Waterford WedgwoodUK**" means Waterford Wedgwood U.K. plc, a subsidiary ofthe Company incorporated in England and Wales under number 2058427;and

"**Working CapitalEstimates**" means the working capital estimates to beprepared by the Company for the Group, and for the Enlarged Group, forthe 18 month period following the PostingDate.

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| 1.2  | **Interpretation** |

Where used in this Agreement, the terms"**subsidiary**","**financial year**" and"**connected persons**" shall have themeanings respectively attributed to them by the Companies Acts at thedate of this Agreement and the terms "**subsidiaryundertaking**" and "**parentundertaking**" shall have the meanings respectivelyattributed to them by the European Community (Companies: GroupAccounts) Regulations1992.

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| 1.3  | **Legislation** |

A reference to any statutory provision in thisAgreement:

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|  | (a)  | includes any order,instrument, regulation, permission and direction made or issued undersuch statutory provision or deriving validity fromit; |

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|  | (b)  | shall be construed as areference to such statutory provision as in force at the date of thisAgreement (including, for the avoidance of doubt, any amendments madeto such statutory provision that are in force at the date of thisAgreement); and |

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|  | (c)  | shall also beconstrued as a reference to any statutory provision of which suchstatutory provision is a re-enactment orconsolidation. |

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| 1.4  | **Headings** |

The headings in this Agreement are for convenience only andshall not affect its meaning.

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| 1.5  | **Referenceto Clauses, etc.** |

A reference to a Clause orsub-Clause, Schedule, paragraph or sub-paragraph is (unless otherwisestated) respectively to a Clause or sub-Clause of, or a Schedule tothis Agreement or to a paragraph or sub-paragraph of the relevantSchedule or this Agreement. The Schedules form part of thisAgreement.

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| 1.6  | **Clauses incorporatinggender** |

Words importing one gender shall (whereappropriate) include any other gender and words importing the singularshall (where appropriate) include the plural and viceversa.

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| 1.7  | **Agreed form** |

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A document expressed to be"in agreed form" means a document, the terms,conditions and form of which have been agreed by the parties to thisAgreement prior to the despatch of that document and a copy of whichhas been identified as such and initialled by or on behalf of theparties to this Agreement (subject to any further amendments as theparties to this Agreement may subsequentlyagree).

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| 1.8  | **Material** |

In this Agreement, unless the context otherwise requires, areference to the word "**material**" meansmaterial in the context of the Rights Issue in the reasonable opinionof Sponsor and/or the Underwriters, as appropriate, and"**materially**" shall be construedaccordingly.

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| 1.9  | **Best ofknowledge** |

Unless expressly stated otherwise, whereany statement is qualified by the expression "to the bestof the knowledge, information and belief of the Company"or "so far as the Company is aware", or anysimilar expression, unless otherwise stated, there shall be deemed tobe included after such statement the words "after dueconsideration and having made properenquiries".

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| 1.10  | **Obligationsof the Underwriters** |

The obligations of theUnderwriters under this Agreement are several and not joint and notjoint andseveral.

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| 2.  | **CONDITIONS** |

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| 2.1  | **Conditions** |

The obligations of Sponsor and of the Underwriters pursuantto this Agreement are conditional upon the fulfilment or waiver (in themanner provided for below) of each of the following conditions by notlater than the time or date specified therein (or such later date asthe Company, Sponsor and the Underwriters may agree in writing but notbeing later than 8.30 am on the Long StopDate):

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|  | (a)  | the grant of the Waiverprior to the posting of the notice convening the Extraordinary GeneralMeeting; |

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|  | (b)  | the IndependentShareholders passing the Waiver Resolution and the Company'sshareholders passing the Increase/Authorisation Resolution, in eachcase without amendment, at the Extraordinary General Meeting prior tothe Listing Particulars and the PALs being despatched in fulfilment ofthe Condition in Clause 2.1(f); |

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|  | (c)  | theholders of the ordinary shares in Waterford Wedgwood UK passing theResolutions (without amendment) before the PostingDate; |

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|  | (d)  | the Listing Particulars beingstamped and approved by the Irish Stock Exchange and a copy thereof,together with the consents and material contracts, as required by theRegulations, being filed with the Registrar of Companies in Ireland andwritten confirmation of such filing being made to the Company, Sponsorand the Underwriters by the Company's Solicitors, in each casebefore the Posting Date; |

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|  | (e)  | theListing Particulars being stamped and approved by the UK ListingAuthority and a copy thereof, as required by FSMA, being delivered forregistration to the Registrar of Companies in England and Wales andwritten confirmation of such delivery being made to the Company,Sponsor and the Underwriters by the Company's Solicitors, in eachcase before the Posting Date; |

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|  | (f)  | theListing Particulars being despatched to certain QualifyingStockholders, the CREST accounts of certain Qualifying CRESTStockholders being credited with Nil Paid Rights and the PALs beingdespatched to certain Qualifying Non-CREST Stockholders, in each caseon the Posting Date; |

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|  | (g)  | (to the extentthat the same has not already occurred) the matters referred toin: |

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|  | (i)  | this Agreement (and inparticular, the matters referred to in Clauses 3, 4 and 5.1(a) belowbut excluding those referred to in Clause 5.1(b) below);and |

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|  | (ii)  | Clause5.1(b) below, |

being duly approved at a meetingof the Board (and, where appropriate, by the board of directors ofWaterford Wedgwood UK) or a duly established and authorised committeethereof (or, as the case may be, of the board of directors of WaterfordWedgwood UK) in each case before the PostingDate;

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|  | (h)  | the submission to the StockExchanges and/or the UKLA of any advertisement or announcement(including, without limitation, the Press Release) or other requisiteinformation relating to the Rights Issue and/or the Application, andthe Stock Exchanges and/or the UKLA approving the contents thereof orauthorising the issue thereof without such approval by no later thanthe proposed date for release or issuethereof; |

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|  | (i)  | there having beendelivered toSponsor: |

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|  | (i)  | simultaneously with theexecution of this Agreement, the documents listed in Part I of theSecond Schedule; |

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|  | (ii)  | prior to theAnnouncement Date, the documents listed in Part II of the SecondSchedule; |

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|  | (iii)  | on or prior to thePosting Date, the documents listed in Part III of the Second Schedule;and |

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|  | (iv)  | on the Closing Date, thedocument listed in Part IV of the SecondSchedule; |

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|  | (j)  | there having beendelivered to the Underwriters (save, in the case of Davy, to the extentalready delivered to Sponsor under Clause2.1(i)): |

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|  | (i)  | simultaneously with theexecution of this Agreement, the documents listed in Part V of theSecond Schedule; |

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|--|------------|---------------------------------------------------------------------------------------|
|  | (ii)  | prior to theAnnouncement Date, the documents listed in Part VI of the SecondSchedule; |

|  |             |                                                                                             |
|--|-------------|---------------------------------------------------------------------------------------------|
|  | (iii)  | on or prior to thePosting Date, the documents listed in Part VII of the Second Schedule;and |

|  |            |                                                                             |
|--|------------|-----------------------------------------------------------------------------|
|  | (iv)  | on the Closing Date, thedocument listed in Part VIII of the SecondSchedule; |

|  |           |                                                                                                                   |
|--|-----------|-------------------------------------------------------------------------------------------------------------------|
|  | (k)  | Admission occurring andbecoming effective not later than 8.00 am on the First Business Dayafter the Posting Date; |

|  |           |                                                                                                                                                                                                                                                                      |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (l)  | anysupplementary listing particulars which may be required pursuant to theRegulations or FSMA being approved by the Irish Stock Exchange and bythe UK Listing Authority and published in accordance with the ListingRules, the Regulations and FSMA beforeAdmission; |

|  |           |                                                                                                                                                    |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (m)  | the Company havingcomplied in all material respects with its obligations under thisAgreement which are required to be performed prior toAdmission; |

|  |           |                                                                                                                                                                               |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (n)  | the release of the PressRelease to the UK Listing Authority and the Irish Stock Exchange by notlater than 7:30  am on the first Business Day after the date ofthis Agreement; |

|  |           |                                                                                                                                                                                                                                                     |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (o)  | satisfaction of allthe conditions (other than Admission) to enable the Nil Paid Rights andthe Fully Paid Rights to be admitted as separate participatingsecurities (as defined in the CREST Regulations) in CREST on or beforethe Posting Date; and |

|  |           |                                                                                                                                                                                                                     |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (p)  | the Companyhaving announced a firm intention to make an offer for Royal Doultonplc in accordance with Rule 2.5 of the UK City Code on Takeovers andMergers before the fulfilment of the Condition in Clause 2.1(f), |

provided that any of the above conditions may be waived inwhole or in part by agreement between Sponsor and the Underwriters, intheir absolute discretion, by notice in writing to theCompany.

|           |                             |
|-----------|-----------------------------|
| 2.2  | **Fulfilment ofConditions** |

The Company undertakes to use allreasonable endeavours to produce the Listing Particulars, the PALs andother documents required in connection with the Rights Issue, theExtraordinary General 

10

----

Meeting and the subsequent extraordinarygeneral meeting required for the purpose of approving the Acquisitionin accordance with Chapter 10 of the Listing Rules, in each case assoon as reasonably practicable after the date of this Agreement. TheCompany agrees to consult with Sponsor and the Underwriters in relationto all of the aforementioned documents and any proposed publicannouncement relating to the Rights Issue and to incorporate suchreasonable comments as Sponsor or any Underwriter requests and not todespatch the Listing Particulars without the prior consent of Sponsor,such consent not to be unreasonably withheld or delayed. The Companyundertakes to use its reasonable endeavours, at the Company's ownexpense, to fulfil or procure the fulfilment of the Conditions by thetimes and dates specified therein (or such later time as Sponsor, theUnderwriters and the Company may agree in writing pursuant to Clause2.1) and Sponsor (and, to the extent applicable, the Underwriters)shall provide all reasonable assistance in connectiontherewith.

|           |                      |
|-----------|----------------------|
| 2.3  | **Otherinformation** |

|  |           |                                                                                                                                                                                                                            |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | The Company shalldeliver to Sponsor all such other information and documents as Sponsormay reasonably require in connection with the fulfilment and observanceof this Agreement and the implementation of the RightsIssue. |

|  |           |                                                                                                                                                                                                                                             |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | The Company shall deliver tothe Underwriters all such other information and documents as anyUnderwriter may reasonably require in connection with the fulfilmentand observance of this Agreement and the implementation of the RightsIssue. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | As soon as reasonablypracticable after the Extraordinary General Meeting, the Company shalldeliver to Sponsor and to Birchfield two copies of the WaiverResolution and the Increase/Authorisation Resolution certified by thecompany secretary of the Company as having been duly passed. TheCompany shall deliver to Sponsor and to Birchfield two copies of theResolutions certified by the company secretary of Waterford Wedgwood UKas having been duly passed as soon as reasonably practicable after theclose of the meeting at which such resolutions werepassed. |

|           |                   |
|-----------|-------------------|
| 2.4  | **Press release** |

The Company hereby authorises Sponsor to release the PressRelease to the press and the Irish Stock Exchange and the UKLA as soonas reasonably practicable after the execution of thisAgreement.

|           |                                 |
|-----------|---------------------------------|
| 2.5  | **Non-fulfilment ofConditions** |

If any Condition (other than an ExcludedCondition) becomes incapable of being fulfilled (and is not waived bySponsor and the Underwriters) or if any Condition (other than anExcluded Condition) is not fulfilled (or waived by Sponsor and theUnderwriters), in each case on or before the time or date set for itsfulfilment (or such later time as Sponsor, the Underwriters and theCompany may agree in writing pursuant to Clause 2.1), thenSponsor's and the Underwriters' obligations under thisAgreement shall terminate immediatelyand:

|  |           |                                                                                                             |
|--|-----------|-------------------------------------------------------------------------------------------------------------|
|  | (a)  | the Company shall forthwithpay to each Underwriter the commissions due to it in accordance withClause  9.1; |

|  |           |                                                                                                                                                 |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | the Companyshall forthwith pay to Sponsor and the Underwriters all costs, expensesand disbursements of the nature referred to in Clause 9.2;and |

|  |           |                                                                                                                                                                                                                                                                                                                                   |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | none of Sponsor, theUnderwriters or the Company shall have any claim whatsoever against theother under or in respect of this Agreement except in respect of anybreach of the provisions of this Agreement which has occurred beforethen, except that the provisions of Clauses 10, 11 and 14 will remainin full force and effect, |

provided however that thisAgreement shall not be capable of termination afterAdmission.

11

----

|          |                  |
|----------|------------------|
| 3.  | **APPOINTMENTS** |

|           |                                                                             |
|-----------|-----------------------------------------------------------------------------|
| 3.1  | TheCompany irrevocably appoints Davy to act as its agent for the purposeof: |

|  |           |                                                                                                                                                     |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | procuring subscribers inaccordance with Clause 6.2 to subscribe for the Rights Issue Unitsrepresenting the aggregate of fractional entitlements;and |

|  |           |                                                                                                     |
|--|-----------|-----------------------------------------------------------------------------------------------------|
|  | (b)  | procuring subscribers inaccordance with Clause 6.6 to subscribe for Rights Issue Units nottaken up, |

in each case in accordance with the terms andconditions set out in the Rights Issue Documents and this Agreement(but not for the purpose of itself subscribing as an Underwriter forany Rights Issue Units).

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2  | The Companyhereby irrevocably and unconditionally confers on Sponsor and eachUnderwriter all powers, authorities and discretions which are necessaryfor, or reasonably incidental to, the Rights Issue (including, withoutlimitation, the giving of such instructions to the Registrars as may inthe reasonable opinion of Sponsor or an Underwriter be necessary ordesirable in connection with the Rights Issue and/or the Application)and hereby agrees to ratify and confirm everything which Sponsor or anUnderwriter shall lawfully and properly do in the exercise of suchappointment, powers, authorities anddiscretions. |

|          |                                 |
|----------|---------------------------------|
| 4.  | **REGISTRATION ANDAPPLICATION** |

|           |                       |
|-----------|-----------------------|
| 4.1  | **Significantchange** |

The Company agrees with Sponsor and theUnderwriters that every significant change, significant new matter orsignificant inaccuracy in the Listing Particulars which arises orbecomes apparent between the date the Listing Particulars areregistered and the date of Admission Fully Paid shall be dealt with inaccordance with the Directive and FSMA and, in particular, should theneed arise and in conjunction with Sponsor for the purpose of theirobligations under this Agreement, a supplementary prospectus and/orsupplementary listing particulars will be published as required by theDirective and/or FSMA. The Company undertakes to bring to the attentionof Sponsor and the Underwriters any such matters as are referred to inthis Clause of which it has knowledge before the date of AdmissionFully Paid promptly upon any such matter coming to itsattention.

|           |                 |
|-----------|-----------------|
| 4.2  | **Application** |

The Company undertakes to Sponsor and the Underwriters thatit will as soon as reasonably practicable make the Application throughSponsor and that it will comply with all reasonable requirements whichthe Stock Exchanges and the UK Listing Authority shall make of it so asto enable the Application to begranted.

|           |                 |
|-----------|-----------------|
| 4.3  | **Information** |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | TheCompany undertakes to Sponsor and the Underwriters to provide all suchinformation and assistance relating to the Group or otherwise as mayreasonably be required by Sponsor or the Underwriters for the purposeof complying with any requirement of law or any requirement of theIrish Stock Exchange, the London Stock Exchange or the UK ListingAuthority in relation to the Application or the Rights Issue or itsassociated transactions and documents and will do (or procure to bedone) all such things and execute (or procure to be executed) all suchdocuments as may be necessary or desirable in the reasonable opinion ofSponsor or the Underwriters to be done or executed by the Company or byits officers, employees or agents in connection with the Rights IssueorAdmission. |

|  |           |             |
|--|-----------|-------------|
|  | (b)  | Birchfield: |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (i)  | undertakesto the Company to provide all information and assistance which it mightreasonably be expected to provide for the purposes of applying for theWaiver and shall provide all such information concerning Birchfieldand/or the O'Reilly/Goulandris Interests which is relevant in thecontext of the Waiver as the Company reasonably requests for inclusionin the circular to the Company's shareholders containing a noticeconvening the Extraordinary General Meeting; |

12

----

|  |            |                                                                                                                                                                                                                |
|--|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (ii)  | undertakesto the Company and to Sponsor to comply with conditions attaching tothe Waiver (for the avoidance of doubt, provided such conditions arelimited as outlined in the definition of"Waiver" above); and |

|  |             |                                                                                                                                                                                   |
|--|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (iii)  | hereby authorises Sponsor to contactthe Panel and take such other steps as are appropriate on behalf ofBirchfield and any other Concert Party with a view to obtaining theWaiver. |

|           |                           |
|-----------|---------------------------|
| 4.4  | **Application toCRESTCo** |

Prior to Admission the Company will, unlessSponsor agrees otherwise:

|  |           |                                                                                                    |
|--|-----------|----------------------------------------------------------------------------------------------------|
|  | (a)  | apply toCRESTCo for the Rights Issue Units to be admitted to CREST asparticipating securities; and |

|  |           |                                                                                                                                      |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | takeall reasonable steps necessary for the Rights Issue Units to becomeparticipating securities in CREST immediately afterAdmission. |

|          |               |
|----------|---------------|
| 5.  | **ALLOTMENT** |

|           |                   |
|-----------|-------------------|
| 5.1  | **Boardmeetings** |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | The Company shallprocure that prior to the Posting Date the Directors (and the directorsof Waterford Wedgwood UK) shall convene and hold a meeting of the Board(and of the board of directors of Waterford Wedgwood UK) for thepurpose of considering and passing the Board Resolutions (to the extentsuch resolutions (i) have not already been passed prior to theexecution of this Agreement or (ii) will be passed in accordance withClause 5.1(b)). |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | The Company shallprocure that, following the passing of the Increase/AuthorisationResolution and the Resolutions, and in any event no later than thePosting Date, the Directors (and the directors of Waterford WedgwoodUK) shall convene and hold a meeting of the Board or a duly appointedcommittee thereof (and of the board of directors of Waterford WedgwoodUK or a duly appointed committee thereof)to: |

|  |           |                                                                                                                                                                                  |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (i)  | approve the Listing Particularsand authorise the despatch of the Listing Particulars to certainQualifying Stockholders and the PALs to certain Qualifying Non-CRESTStockholders; |

|  |            |                                                                                                                                                                                                                                                                                          |
|--|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (ii)  | provisionally allotthe Ordinary Shares and the Income Shares comprised in the Rights IssueUnits to Qualifying Stockholders by way of rights nil paid at thePrice, the entitlement of each Qualifying Stockholder to be roundeddown to the nearest whole number of Rights Issue Units;and |

|  |             |                                                                                                                                                                           |
|--|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (iii)  | provisionally allot theOrdinary Shares and the Income Shares comprised in any fractionalentitlements to Rights Issue Units nil paid in accordance with Clause6.1 to Davy. |

The Company will procure that copies of theresolutions referred to in this Clause 5.1(b), certified by the companysecretary of the Company and of Waterford Wedgwood UK (respectively) ashaving been duly passed, are provided to Sponsor and to theUnderwriters as soon as reasonably practicable after being passed andin any event prior toAdmission.

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | The Company undertakesto Sponsor and to each of the Underwriters not to give, or, so far asit is within its powers, not to permit there to be given, any directionto Sponsor, the Underwriters or the Directors, and not to take anyaction, which is inconsistent with its obligations or any of the powersor authorities conferred by it under this Agreement and, in particular,not to create any adverse interest over the Rights Issue Units to beallotted and issued by it pursuant to thisAgreement. |

|  |           |                                                                                                                                                                             |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (d)  | The Company undertakesto Sponsor and to each of the Underwriters to procure that WaterfordWedgwood UK shall not give, or so far as it is within its powers, notto permit to |

13

----

|  |        |                                                                                                                                                                                                                                                                                                                                                                                          |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |   | be given, any direction to Sponsor, theUnderwriters or the directors of Waterford Wedgwood UK, and not to takeany action, which is inconsistent with its obligations or any of thepowers or authorities conferred by it under this Agreement and, inparticular, not to create any adverse interest over the Rights IssueUnits to be allotted and issued by it pursuant to thisAgreement. |

|           |                  |
|-----------|------------------|
| 5.2  | **Confirmation** |

The Company hereby confirms that the Rights Issue Unitswill, as from the date when they become Fully Paid Rights, rank paripassu in all respects with the Stock Units then in issue and, inparticular, will, after such date, rank in full for all dividends andother distributions declared, made and paid on the Stock Units afterthe date of their allotment (nilpaid).

|           |                          |
|-----------|--------------------------|
| 5.3  | **OverseasStockholders** |

The following arrangements will applyto certain entitlements under the Rights Issue of overseasStockholders:

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | The Rights IssueUnits have not been, and will not be, registered under the UnitedStates Securities Act 1933 (as amended) (the "**USSecurities Act**") or relevant securities legislation inCanada, Australia or Japan. Accordingly, Qualifying Stockholders whohave registered addresses in Canada, Australia, Japan or the UnitedStates or their respective territories or possessions or any areassubject to their respective jurisdictions ("**ExcludedHolders**") will not be sent a PAL unless they havefirst satisfied the Company that they may take up their entitlement toRights Issue Units in accordance with an applicable exemption fromlocal securities law. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                     |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | QualifyingStockholders (not being Excluded Holders) with registered addresses ina Restricted Jurisdiction will not be sent a PAL unless they havesatisfied the Company prior to the PALs being posted to them that theymay subscribe for Rights Issue Units under the terms of the RightsIssue in accordance with an applicable exemption from local securitieslaw. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | Sponsor and the Underwritersacknowledge that the Rights Issue Units have not been and will not beregistered under the US Securities Act and may not be offered or soldwithin the United States or to, or for the account or benefit of, U.S.persons except in accordance with Regulation S under the US SecuritiesAct ("**Regulation S**") or pursuant to anexemption from the registration requirements of the US Securities Act.Sponsor and the Underwriters agree that they will not offer or sell theRights Issue Units as part of their initial allotment at any time until40 days after the commencement of the Rights Issue within the UnitedStates or to or for the account or benefit of U.S. persons, except ineither case in accordance with Regulation S. Accordingly, none ofSponsor, the Underwriters or any person acting on their behalf hasengaged or will engage in any directed selling effort in the UnitedStates with respect to the Rights Issue Units. Sponsor and theUnderwriters will send to each broker/dealer or sub-Underwriters towhich it sells in reliance on Regulation S during such 40 day period aconfirmation or other notice detailing the restrictions on offers andsales of such securities within the United States, or to or for theaccount or benefit of U.S. persons. In addition, Sponsor and theUnderwriters agree that no such securities will be offered or sold byor on behalf of them or any sub-Underwriters in the United Statesexcept by a broker/dealer registered under the Exchange Act 1934, asamended (the "**Exchange Act**") theUnited States or pursuant to a valid exemption from such requirementsunder the Exchange Act. Terms used in this paragraph have the meaninggiven to them by RegulationS. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (d)  | Sponsor and the Underwritersacknowledge that each Qualifying Stockholder who is in the UnitedStates and who wishes to exercise a right to purchase Rights IssueUnits will be required to execute a representation letter in a formacceptable to the Company. Such representation letter will require theinvestor to represent that, among other things, it is a"qualified institutional buyer" (as definedin Rule 144A under the US Securities Act) and is acquiring suchsecurities in a transaction not involving a public offering in theUnited States. |

14

----

|          |                                      |
|----------|--------------------------------------|
| 6.  | **SPONSOR /UNDERWRITERSOBLIGATIONS** |

|           |               |
|-----------|---------------|
| 6.1  | **Fractions** |

Fractions of Rights Issue Units ("**fractionalentitlements**") will not be provisionally allotted toQualifying Stockholders but will be aggregated, provisionally allottedto Davy and sold in accordance with the provisions of Clause6.2.

|           |                                             |
|-----------|---------------------------------------------|
| 6.2  | **Subscription for fractionalentitlements** |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | The Company shallinform Davy of the number of Rights Issue Units provisionally allottedto Davy in accordance with Clause 6.1, representing the aggregate offractional entitlements. Davy shall use its reasonable endeavours toprocure that the rights to subscribe all or as many as is reasonablypracticable of such Rights Issue Units are sold through the StockExchanges nil paid at a price equal to, or at a premium over, theexpenses of sale (including any VAT thereon) as soon as practicable butno later than by 9.30  am on the Closing Date. Immediately aftersuch sale takes place, the Company shall deliver to Davy nil paid splitprovisional allotment letters in the names and denominations requiredby Davy. Davy shall account to the Receiving Agent for the net proceedsof sale (after deduction of expenses, including any VAT thereon) ofthose Rights Issue Units that have been sold and the net proceeds shallbe paid to and retained for the benefit of the Company in accordancewith Clause 7.1. |

|  |           |                                                                                                                                                                                                                          |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | If the rights tosubscribe for the Rights Issue Units referred to in Clause 6.2 have notbeen sold before 9.30 am on the Closing Date, they will be dealt within accordance with the remaining provisions of this Clause6. |

|           |                                   |
|-----------|-----------------------------------|
| 6.3  | **Procedures on the ClosingDate** |

If by 9.30 am on the Closing Date (or otherwiseas provided in the Listing Particulars) duly completed PALs in respectof all the Rights Issue Units have been lodged (whether by QualifyingStockholders or by allotees pursuant to Clause 6.2 or by renouncees ofthe right to accept an allotment of Rights Issue Units in accordancewith the terms of the Rights Issue Documents), accompanied by chequesor other remittances for the Price in respect of the Rights Issue Unitsthe subject of such PALs (provided that such cheques or otherremittances have not been dishonoured by such time), then Sponsor andthe Underwriters shall cease to have any obligations under thefollowing sub-Clauses of this Clause 6. The Rights Issue Unitscomprised in PALs which have been so lodged and accompanied by chequesor other remittances for the Price in respect of the Rights Issue Unitsthe subject of such PALs (provided that such cheques or otherremittances have not been dishonoured by such time) are for thepurposes of this Clause 6 described as having been"**taken up**" (and, accordingly, allother Rights Issue Units, including any Rights Issue Units representingthe aggregate of fractional entitlements which are not sold as providedin Clause 6.2, are described as having been "**not takenup**") provided that, if the Company so elects, RightsIssue Units shall be deemed to have been taken upif:

|  |           |                                                                                                                                                                                                                                                                                                              |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | PALs and accompanyingremittances are received late (the cover bearing a legible postmarkdated not later than the Business Day prior to the Closing Date)provided that such fact is notified to Sponsor and to the Underwritersby not later than 9.30 am on the second Business Day after the ClosingDate; or |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | a cheque or otherremittance (and whether or not such cheque or other remittance shall behonoured) is received from an authorised person (being, in the case ofStockholders in Ireland, an organisation or firm authorised or exemptedpursuant to the Investment Intermediaries Act 1995 or the StockExchange Act 1995 and being, in the case of Stockholders in the UnitedKingdom, an adviser authorised pursuant to FSMA) no later than 9.30 amon the second Business Day after the Closing Date who identifies theRights Issue Units concerned and undertakes to lodge the relevant PALsduly completed in duecourse. |

|           |                                                 |
|-----------|-------------------------------------------------|
| 6.4  | **Notification to Sponsorand the Underwriters** |

The Company shall from time totime, at the request of Sponsor or the Underwriters, keep Sponsor andthe Underwriters informed of the amount of Rights Issue Unitsprovisionally allotted which 

15

----

have been taken up. If, however, by 9.30 amon the Closing Date, any of the Rights Issue Units are not taken up,then the provisional allotment of such Rights Issue Units will, subjectto an election of the Company as referred to in Clause 6.3, be deemedto have been declined. The Company will then as soon as possible but inany event not later than 4.00 pm on the next Business Day following theClosing Date, procure that Sponsor and the Underwriters are notified inwriting of the number of Rights Issue Units not takenup.

|           |                                                                                 |
|-----------|---------------------------------------------------------------------------------|
| 6.5  | **Consultation in connectionwith proposed notification to the Stock Exchanges** |

Sponsor and the Company shall consult as to whether theStock Exchanges should be notified of the number of Rights Issue Unitsnot taken up before Sponsor begins to procure subscribers for RightsIssue Units not taken up pursuant to Clause6.6.

|           |                                                                        |
|-----------|------------------------------------------------------------------------|
| 6.6  | **Davy to procure subscribersfor the Rights Issue Units not taken up** |

Davy will,as agent for the Company, subject to the provisions of Clauses 6.4 and6.5, use its reasonable endeavours to procure subscribers as soon aspossible and in any event by not later than 3.00 pm on the sixthBusiness Day following the Closing Date for all or as many as isreasonably practicable of the Rights Issue Units not taken up if aprice (in respect of each such Rights Issue Unit) equal to, or at apremium over, the sum of (x) the Price and (y) the expenses ofprocuring such subscribers (including any VAT thereon) can be obtained,provided that Davy may at any time after 4.00 pm on the Business Dayfollowing the Closing Date determine that it shall no longer use itsreasonable endeavours to procure subscribers in accordance with thisClause 6.6, if, in its reasonable opinion, it is unlikely that any suchsubscribers can be procured as aforesaid, in which case it willpromptly consult with the Company in relation to the basis for suchdetermination.

|           |                             |
|-----------|-----------------------------|
| 6.7  | **Allotment tosubscribers** |

Forthwith upon Davy notifying theCompany that any subscriber has been procured pursuant to Clause 6.6,the Company will deliver or procure the delivery to Davy of dulyreceipted, fully paid PALs in respect of those Rights Issue Unitsand/or, to the extent so directed by Davy, will procure that CRESTCo isinstructed to credit to stock accounts of one or more CREST members(identified by member account ID and participant ID by Davy)entitlements to Rights Issue Units as directed by Davy, and will ensurethat the same are enabled for settlement as soon as practicable afterAdmission Fully Paid in favour of the persons and in the denominationsrequired by Davy. Subject to the Company delivering such duly receiptedfully paid PALs and/or taking such other steps as aforesaid, Davy will,not later than 3.00 pm on the eighth Business Day following the ClosingDate, account to the Company for the proceeds received from subscribers(after deduction of the expenses of procuring subscriptions, includingany VAT thereon) in accordance with Clause 7.1. The Company willdistribute the relevant part of the proceeds (after deduction of thePrice and of the expenses of procuring subscriptions, including any VATthereon) pro rata to Qualifying Stockholders who did not take up allthe Rights Issue Units provisionally allotted to them, except thatindividual amounts of less than €3.80 per holding will notbe distributed but will be retained for the benefit of theCompany.

|           |                                        |
|-----------|----------------------------------------|
| 6.8  | **Notification to theStock Exchanges** |

Sponsor will, with the prioragreement of the Company, on behalf of the Company, notify the StockExchanges and the Underwriters by not later than 4.30 pm on the sixthBusiness Day following the Closing Date of the amount of Rights IssueUnits taken up and whether Davy has procured subscribers under Clause6.6 for any of the Rights Issue Units which have been not taken up (inwhich case the announcement must include the date such subscribers wereprocured and the price at which they agreed to subscribe for suchRights Issue Units) and that all such Rights Issue Units for which Davyhas not procured subscribers will be subscribed for by the Underwritersin their respective Proportions or such other subscribers as theUnderwriters procure pursuant to Clause6.9.

|           |                  |
|-----------|------------------|
| 6.9  | **Underwriting** |

Each Underwriter hereby severally undertakes on the terms,subject to the conditions and on the basis of the information to becontained in the Rights Issue Documents (except as regards the time

16

----

for acceptance and payment) and in relianceupon the Warranties given to each of the Underwriters by the Company toprocure, as agent for the Company, subscribers for its Proportion ofthe Rights Issue Units having been not taken up and, in default, tosubscribe for such Rights Issue Units itself and, by not later than3.00 pm on the eighth Business Day following the Closing Date, toprocure payment of, or pay to such accounts as may be specified by theCompany, the Price for such Rights Issue Units against delivery to itor to its nominees or designees (as it may request) of duly receipted,fully paid PALs in such names and in such denominations as it mayrequire and/or, to the extent so directed by an Underwriter, willprocure that CRESTCo is instructed to credit to stock accounts of oneor more CREST members (identified by member account ID and participantID by such Underwriter) entitlements to Rights Issue Units as directedby such Underwriter, and, as soon as practicable after Admission FullyPaid, will ensure that the same are enabled for settlement in favour ofthe persons and in the denominations required by suchUnderwriter.

|            |               |
|------------|---------------|
| 6.10  | **Admission** |

Sponsor shall use its reasonable endeavours to procure thatAdmission occurs on the first Business Day after the Posting Date andin any event (but on a reasonable endeavours basis only) not later thanthe Long StopDate.

|          |             |
|----------|-------------|
| 7.  | **PAYMENT** |

|           |                                              |
|-----------|----------------------------------------------|
| 7.1  | **Paymentof subscription monies by Sponsor** |

Davy shall procurethe payment for the Rights Issue Units as set out in Clauses 6.2 and6.7, subject to deduction of:

|  |           |                                                        |
|--|-----------|--------------------------------------------------------|
|  | (a)  | theexpenses of sale referred to in Clauses 6.2 and6.7; |

|  |           |                                                                                   |
|--|-----------|-----------------------------------------------------------------------------------|
|  | (b)  | any fees payable to DavyCorporate Finance Limited under the Engagement Letter;and |

|  |           |                                        |
|--|-----------|----------------------------------------|
|  | (c)  | any expenses referred to inClause 9.2. |

|           |                                                       |
|-----------|-------------------------------------------------------|
| 7.2  | **Payment ofsubscription monies by the Underwriters** |

Subject toClause 8.1, each Underwriter shall procure the payment for itsProportion of the Rights Issue Units as set out in Clause  6.9,subject to deduction of the commissions payable by the Company pursuantto Clause 9.1 and any expenses referred to in Clause9.2.

|           |                  |
|-----------|------------------|
| 7.3  | **Bank account** |

Payment to the Company of amounts referred to in Clauses 7.1and 7.2 (subject, in each case, to the deductions referred to therein)shall be made by telegraphic transfer to the account notified inwriting to Sponsor and the Underwriters by the Company prior to theClosing Date and such payment by Sponsor or an Underwriter shallconstitute a full discharge of Sponsor or such Underwriter in respectof its obligations pursuant to Clauses 6, 7.1, 7.2 and8.1.

|          |                |
|----------|----------------|
| 8.  | **SETTLEMENT** |

|           |                |
|-----------|----------------|
| 8.1  | **Settlement** |

Upon Admission Fully Paid, the Company will deliver to theUnderwriters, or as they may direct, duly receipted, fully paid PALs insuch names and denominations as they shall specify in respect of theRights Issue Units referred to in Clause 6.9 and/or, to the extent sodirected by the Underwriters, procure that CRESTCo is instructed tocredit to stock accounts of one or more CREST members (identified bymember account ID and participant ID by the Underwriters) entitlementsto Rights Issue Units as directed by the Underwriters, and ensure thatthe same are enabled for settlement as soon as practicable afterAdmission Fully Paid. Subject to the Company delivering such dulyreceipted fully paid PALs and/or taking such other steps as aforesaid,each Underwriter will pay or cause to be paid to the Company inaccordance with Clauses 7.2 and 7.3 the amounts required to be paid byit as specified in thatClause.

|           |                  |
|-----------|------------------|
| 8.2  | **Registration** |

The Company will provide the Registrars with all necessaryauthorisations and information to enable them to perform their dutiesas registrars in accordance with and as contemplated by this Agreementand the terms of the Rights Issue Documents.

17

----

|          |                                  |
|----------|----------------------------------|
| 9.  | **FEES,COMMISSIONS ANDEXPENSES** |

|           |                      |
|-----------|----------------------|
| 9.1  | **UnderwritingFees** |

|  |           |                                                                                                                                                                                                                                                                                               |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | In consideration of thecovenants given and the obligations assumed by them under thisAgreement, the Company will pay to each Underwriter (provided that thisAgreement is not terminated under Clause 2.5 or, in relation to suchUnderwriter, under Clause 12.2 or 12.3) a commission equalto: |

|  |           |                                                                                                                                                                                                                                                                                                                |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (i)  | in respect of the first 28 dayperiod commencing on (and including) the date of this Agreement, inaggregate, 2.5% of such Underwriter's Relevant Amount,less, in the case only of any amounts due to Birchfield under thissub-Clause 9.1(a)(i), an amount equal to 2.5% of the BirchfieldDeductible Amount; and |

|  |            |                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (ii)  | for eachseven days or part of seven days commencing (if any) after the expiryof the 28 day period referred to in sub-Clause 9.1(a)(i) up to andincluding the Cut Off Date (both dates inclusive), an additionalcommission equal to 0.125% of such Underwriter's RelevantAmount less, in the case only of any amounts due to Birchfield underthis sub-Clause 9.1(a)(ii), an amount equal to 0.125% of theBirchfield Deductible Amount. |

|  |           |                                                                                                                                                                                                                                                                                                                                                |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | Inconsideration of the covenants given and the obligations assumed bythem under this Agreement, if this Agreement is terminated under Clause2.5, 12.2 or 12.3, then the Company will pay to each Underwriter (or,in the case of termination by an Underwriter under Clause 12.2 or 12.3,to such terminating Underwriter) a commission equalto: |

|  |           |                                                                                                                                                                                                                                                                                                                  |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (i)  | in respect of the first 28 dayperiod (or any part thereof) commencing on (and including) the date ofthis Agreement 1% of such Underwriter's Relevant Amountless, in the case only of any amounts due to Birchfield under thissub-Clause 9.1(b)(i), an amount equal to 1% of the BirchfieldDeductible Amount; and |

|  |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (ii)  | for eachseven days or part of seven days commencing (if any) after the expiryof the 28 day period referred to in sub-Clause 9.1(b)(i) up to andincluding the date on which this Agreement is terminated pursuant toClause 2.5, 12.2 or 12.3 (both dates inclusive), an additionalcommission equal to 0.125% of such Underwriter's RelevantAmount less, in the case only of any amounts due to Birchfield underthis sub-Clause 9.1(b)(ii), an amount equal to 0.125% of theBirchfield Deductible Amount. |

|  |           |              |
|--|-----------|--------------|
|  | (c)  | InClause9.1: |

|  |           |                                                                                                                                                                                                                                           |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (i)  | "**BirchfieldDeductible Amount**" means the product (expressed inEuro) of (x) the Price and (y) the number of Rights Issue Units towhich the O'Reilly/Goulandris Interests are, in aggregate,entitled under the terms of the RightsIssue; |

|  |            |                                                                                                                                                                                                     |
|--|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (ii)  | "**RelevantAmount**" means, in relation to an Underwriter, theproduct (expressed in Euro) of (x) the Price, (y) suchUnderwriter's Proportion and (z) the aggregate number of RightsIssue Units; and |

|  |             |                                  |
|--|-------------|----------------------------------|
|  | (iii)  | the term"**Cut Off Date**"means: |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                               |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (1)  | if the Closing Date falls onany date between (and including) 22 December 2004 and 29 December 2004,the earlier of (A) the sixth Business Day following the Closing Dateand (B) the date (if any) by which Sponsor has procured subscribers forall of the Rights Issue Units not taken up or determined that it willno longer procure subscribers for such Rights Issue Units in accordancewith Clause 6.6; or |

|  |           |                                                                              |
|--|-----------|------------------------------------------------------------------------------|
|  | (2)  | in any othercircumstance, the second Business Day following the ClosingDate. |

|  |           |                                                                                                                                                                                                 |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (d)  | Payments to the Underwritersunder this Clause 9 are to be made by way of the deductions permittedby Clause 7.1 or, to the extent that there is no such deduction, ondemand by the Underwriters. |

|  |           |                                                                                                                                                                                                                      |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (e)  | Out ofthe commissions referred to in this Clause 9.1, the Underwriters willpay sub-underwriting commissions (together with any VAT thereon, ifapplicable), if any, in respect of the underwritten Rights IssueUnits. |

18

----

|           |           |
|-----------|-----------|
| 9.2  | **Costs** |

Provided that Sponsor or, as the case may be, an Underwriterhas consulted with the Company prior to the appointment by it of anyprofessional adviser whose fees are to be discharged by the Company andprovided that the Company has received an estimate of the fees, costsand expenses to be paid for such appointment prior to the date hereof,the Company will bear all costs, charges and expenses of, or incidentalto, the satisfaction of the Conditions, the Rights Issue, the issue ofthe Rights Issue Units and the arrangements referred to in thisAgreement or contemplated by this Agreement (together with any VATchargeable thereon), including, without limitation, all fees andexpenses payable in connection with Admission, the Engagement Letter,all expenses of the Registrars, printing and advertising expenses,postage and all reasonable accountancy, actuarial and otherprofessional fees and expenses, including Sponsor's and each ofthe Underwriters' legal advisers' fees. The Company shallupon receipt from Sponsor or, as the case may be, an Underwriter ofinvoices and/or, without prejudice to Clause 7.1, vouchers in respectof the same, reimburse to, or pay on behalf of, Sponsor or the relevantUnderwriter (as the case may be) the amount of any such costs, chargesand expenses which Sponsor or such Underwriter may havepaid.

|           |         |
|-----------|---------|
| 9.3  | **VAT** |

Where, pursuant to Clauses 2, 9.1 or 9.2 a sum is payable toSponsor or to an Underwriter the Company shall, in addition, pay toSponsor or the relevant Underwriter, as appropriate, in respect of VAT,where the payment (or any part of it) constitutes the consideration (orany part thereof) for any supply of services by Sponsor or the relevantUnderwriter, as appropriate, to the Company, such amount as equals anyVAT properly payable thereon. Where a sum in respect of VAT is paidpursuant to this Clause 9.3, Sponsor or the relevant Underwriter, asappropriate, shall within 10 Business Days provide the Company with anappropriate and valid tax invoice in respect of the supply to which thepayment relates, naming the Company as the recipient of thesupply.

|           |                                |
|-----------|--------------------------------|
| 10.  | **WARRANTIES ANDUNDERTAKINGS** |

|            |                |
|------------|----------------|
| 10.1  | **Warranties** |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | TheCompany warrants to and agrees with Sponsor that each statement set outin Parts I and II of the Third Schedule is true, accurate and notmisleading as at the date of this Agreement and agrees with Sponsorthat each statement set out in Parts I, II and III of the ThirdSchedule will be true, accurate and not misleading as of the PostingDate by reference to the facts and circumstances then existing and betreated as Warranties given and/or repeated on such date. Suchwarranties and agreements are given to Sponsor solely in its capacityas sponsor. Sponsor shall not be entitled to bring any action againstthe Company or any member of the Group under this Clause 10 or anyother provision of this Agreement for any loss or liability that it maysuffer or incur arising from its subscription for Rights IssueUnits. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | The Company warrants to andagrees with each of the Underwriters that each statement set out inParts IV and V of the Third Schedule is true, accurate and notmisleading as at the date of this Agreement and agrees with each of theUnderwriters that each statement set out in Parts IV, V and VI of theThird Schedule will be true, accurate and not misleading as of thePosting Date by reference to the facts and circumstances then existingand be treated as Warranties given and/or repeated on such date. |

|            |               |
|------------|---------------|
| 10.2  | **Indemnity** |

|  |           |                                                                                                                                                                                                                                                                            |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | TheCompany will, subject to Clause 10.1(a) and to Clause 10.7, indemnifyand hold Sponsor harmless against any losses, claims, damages, costs,expenses or liabilities arising out of breach by it of any of theWarranties given by it to Sponsor in terms of this Clause10. |

|  |           |                                                                                                                                                                                                                                                                                        |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | The Company will, subject toClause 10.7, indemnify and hold each of the Underwriters harmlessagainst any losses, claims, damages, costs, expenses or liabilitiesarising out of breach by it of any of the Warranties given by it toeach of the Underwriters in terms of this Clause10. |

19

----

|            |                 |
|------------|-----------------|
| 10.3  | **Undertaking** |

The Company undertakes to Sponsor and each of theUnderwriters that (except to the extent necessary to give effect tothis Agreement) it will not, and will procure (so far as lies withinits power of procurement) that no Group Company will do, allow orprocure any act or omission which would constitute a breach of anyWarranty either when given or repeated or which would cause anyWarranty to become untrue, inaccurate or misleading in any respect byreference to the facts then existing if the Warranties were to be givenat any time before the PostingDate.

|            |                                              |
|------------|----------------------------------------------|
| 10.4  | **Warranties notextinguished by completion** |

Subject to the provisionsof this Clause 10, the Warranties shall not in any respect beextinguished or affected by the completion of all matters andarrangements contemplated by thisAgreement.

|            |                     |
|------------|---------------------|
| 10.5  | **Notice ofbreach** |

The Company undertakes to Sponsor and each ofthe Underwriters that, until the earlier of Admission and the date onwhich this Agreement is terminated, it will notify Sponsor and each ofthe Underwriters as soon as practicable if it becomes aware of anymatter which constitutes a breach of any Warranty or which would, orwould be likely to, constitute a breach of any Warranty or cause anyWarranty to become untrue, inaccurate or misleading by reference to thefacts then existing if the Warranties were to be given at any timebeforeAdmission.

|            |                  |
|------------|------------------|
| 10.6  | **Consultation** |

If before Admission Fully Paid, Sponsor or either of theUnderwriters receive a notice pursuant to Clause 10.5 or otherwisebecome aware of any Warranty being untrue, inaccurate or misleading byreference to the facts then existing or of any circumstance whichwould, or would be likely to, cause any Warranty, if given at suchtime, to become untrue, inaccurate or misleading by reference to thefacts then existing, Sponsor and/or the Underwriters (as appropriate)shall consult with the Board and (provided this Agreement has not, atthe relevant time, been terminated) may require the Company at its ownexpense to make or cause to be made an announcement and/or despatch acommunication to potential subscribers for the Rights Issue Units, suchannouncement or communication to be approved by Sponsor and/or theUnderwriters after consultation with theBoard.

|            |                 |
|------------|-----------------|
| 10.7  | **Limitations** |

Without prejudice to Clause  11 and except in the caseof fraud, wilful misrepresentation, deliberate concealment or grossnegligence:

|  |           |                                                                                                                                                                                                                                                                                |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | no claim may be madeagainst the Company for breach of Warranty or under this Agreementunless written notice that such claim may be made (giving reasonabledetails of the circumstances giving rise to the claim) has been givento the Company on or before 31 October 2006;and |

|  |           |                                                                                                                                                                                                                                     |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | no claim may be made by Sponsoragainst the Company for breach of Warranty or under Clause 10.2(a)unless the aggregate amount of all such claims exceeds€50,000 in which case the full amount of all claims shallbecomepayable. |

|            |                 |
|------------|-----------------|
| 10.8  | **Grossing-up** |

If the Revenue Commissioners or any other taxing authoritybrings into charge to tax any sum payable under the Warranties orindemnities contained in this Agreement then the amount so payableshall be grossed up by such amount as will ensure that, after deductionof the tax so chargeable, there shall remain a sum equal to the amountthat would otherwise be payable under such Warranty orindemnity.

|            |                     |
|------------|---------------------|
| 10.9  | **Acknowledgement** |

|  |           |                                                                                                                                                                                              |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | TheCompany acknowledges that Sponsor has entered into this Agreement inreliance upon, inter alia, the Warranties given by it to Sponsor andthe release and indemnity contained in Clause 11. |

20

----

|  |           |                                                                                                                                                                                                                       |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | The Companyacknowledges that each of the Underwriters has entered into thisAgreement in reliance upon, inter alia, the Warranties given by it tothe Underwriters and the release and indemnity contained in Clause11. |

|  |           |                                                                                                                                                                                                                        |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | Each of the Warranties shall beconstrued separately and independently and shall not be limited orrestricted by reference to, or inference from, the terms of any otherof them or any other provision of thisAgreement. |

|             |                                             |
|-------------|---------------------------------------------|
| 10.10  | **Action materiallyaffecting Rights Issue** |

The Company will not, andwill procure that none of the Subsidiary Undertakings will, between thedate hereof and the Closing Date, enter into any agreement, commitmentor arrangement which is material in the context of the business oraffairs of the Group (taken as a whole) or which would, or would belikely to, materially and adversely affect the Rights Issue, withoutthe prior consent of the Underwriters, such consent not to beunreasonably withheld ordelayed.

|           |                          |
|-----------|--------------------------|
| 11.  | **RELEASE ANDINDEMNITY** |

|            |             |
|------------|-------------|
| 11.1  | **Release** |

The Company shall not make or assert a claim againstSponsor, any Davy Relevant Person, the Underwriters or anyUnderwriters' Relevant Person to recover, and none of Sponsor,any Davy Relevant Person, the Underwriters or any Underwriters'Relevant Person shall have any liability to the Company or theDirectors for, any loss, liability or cost incurred by any of themarising:

|  |           |                                                                                                                                                                                       |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | out of the performance bySponsor, any Davy Relevant Person, the Underwriters or anyUnderwriters' Relevant Person of Sponsor's or theUnderwriters' obligations under this Agreement;or |

|  |           |                                                                                                                                                                                         |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | in connection with theperformance by Sponsor, any Davy Relevant Person, the Underwriters orany Underwriters' Relevant Person of any matter incidental to orrelated to the Rights Issue, |

unless and to the extentthat, any such loss, liability or cost arises directly from thenegligence, bad faith, wilful default, recklessness or fraud of, orbreach of this Agreement by, (as applicable) Sponsor, such DavyRelevant Person, an Underwriter or such Underwriters' RelevantPerson. The Company will procure that no Director or Group Company willmake or assert such claim or seek to establish suchliability.

|            |               |
|------------|---------------|
| 11.2  | **Indemnity** |

The Company will indemnify and hold Sponsor, all DavyRelevant Persons, each of the Underwriters and all Underwriters'Relevant Persons harmless against any losses, claims, damages,liabilities incurred or suffered by Sponsor, any Davy Relevant Person,any Underwriter and any Underwriters' Relevant Personarising:

|  |           |                                                                                                                                                                                                                                                  |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | out of or in connectionwith the performance by, as the case may be, Sponsor or any DavyRelevant Person of Sponsor's obligations, or the Underwriters orany Underwriters' Relevant Person of the Underwriters'obligations under this Agreement;or |

|  |           |                                                                                                                                    |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | in connection with the RightsIssue and the preparation and publication of the Rights IssueDocuments, including, withoutlimitation: |

|  |           |                                                                                                                           |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------|
|  | (i)  | the Listing Particularsnot containing or being alleged not to contain all the informationrequired to be stated therein;or |

|  |            |                                                                                                                                                                         |
|--|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (ii)  | any statement contained in theListing Particulars not being or being alleged not to be complete,true, accurate, fair or reasonable or being alleged to be misleading;or |

|  |           |                                                                                                                                                                                                                                                                      |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | out of any breach or allegedbreach of the laws or regulations of any country resulting from theissue, offer or underwriting of the Rights Issue or the publication ordistribution of the Rights Issue Documents or the performance of theterms of this Agreement; or |

|  |           |                                                                                                                                                                                                        |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (d)  | out ofthe Company failing to comply with any of the requirements imposed uponit by the Irish Stock Exchange, the London Stock Exchange or the UKListing Authority in connection with the Rights Issue, |

21

----

including, without limitation,all losses, claims, damages, liabilities and costs incurred as a resultof investigating, defending or settling any actual or potential claim,action or proceeding alleging any such liability and enforcing theterms of this Clause, unless and to the extent that any of them arisesfrom the negligence, bad faith, wilful default, recklessness or fraudof, or breach of this Agreement by, as the case may be, Sponsor, suchDavy Relevant Person, an Underwriter or such Underwriter'sRelevant Person or a breach by Sponsor or a Davy Relevant Person of itsduties or obligations under any system by which it is regulated but,without prejudice to Clause 10.2, excluding any loss which Sponsor, anyDavy Relevant Person, the Underwriters or any Underwriter'sRelevant Person may suffer or incur arising from any reduction in thevalue of any of the Rights Issue Units at any time unless such lossarising from any such reduction in value results from, or isattributable to, or would not have arisen but for (in each casedirectly or indirectly), the neglect of the Company of, or a default bythe Company in performing, any of its obligations under this Agreement(including, without limitation, any breach of the Warranties) providedalways that nothing in this Clause 11.2 shall oblige the Company toindemnify any person where to do so would constitute a breach ofsection 200 of the Companies Act1963.

|            |                    |
|------------|--------------------|
| 11.3  | **Acknowledgment** |

The Company hereby acknowledges that Sponsor and theUnderwriters shall not be responsible to the Company for verifying theaccuracy and fairness of any information contained in the Rights IssueDocuments or otherwise published by the Company in connection with thetransactions described in the Listing Particulars, save, in the case ofSponsor, for those matters which Sponsor has agreed to verify in theVerification Notes.

|            |                         |
|------------|-------------------------|
| 11.4  | **Indemnityadditional** |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | The Company agreeswith Sponsor for its benefit and as trustee for all Davy RelevantPersons that the indemnity obligations of the Company under Clause 11.2shall be in addition to any liability which the Company may otherwisehave to Sponsor and any Davy Relevant Person (as the case may be) andshall be binding upon and inure to the benefit of any successors, heirsand personal representatives of the Company, Sponsor and all DavyRelevant Persons. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | The Companyagrees with each Underwriter, for its benefit and as trustee for all ofits Underwriters' Relevant Persons, that the indemnityobligations of the Company under Clause 11.2 shall be in addition toany liability which the Company may otherwise have to the Underwritersand any Underwriters' Relevant Person (as the case may be) andshall be binding upon and inure to the benefit of any successors, heirsand personal representatives of the Company, the Underwriters and allUnderwriters' RelevantPersons. |

|            |                     |
|------------|---------------------|
| 11.5  | **Notice ofclaims** |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | Sponsor shall, as soonas reasonably practicable after it becomes aware of any claims made orthreatened against it or any Davy Relevant Person which may occasion aliability on the Company under Clause 11, notify the Company in writingof any such claims and Sponsor shall, at the request of the Company,use all reasonable endeavours to avoid, dispute, resist, appeal,compromise or defend any claim (unless in the reasonable opinion ofSponsor after consultation with the Company, the reputation or standingof Sponsor would thereby be affected adversely to a material extent, inwhich case Sponsor shall be at liberty to settle the claim) upon beingfully indemnified and secured by the Company against all costs, damagesand expenses thereby incurred, in which event Sponsor shall not make,and shall procure that no Davy Relevant Person makes any admission asto liability or any compromise in respect of any such claim without theprior written consent of the Company, such consent not to beunreasonably withheld ordelayed. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | Each Underwriter shall, assoon as reasonably practicable after it becomes aware of any claimsmade or threatened against it or any Underwriters' RelevantPerson which may occasion a liability on the Company under Clause 11,notify the Company in writing of any such claims and such Underwritershall, at the request of the Company, use all reasonable endeavours toavoid, dispute, resist, appeal, compromise or defend any claim (unlessin the reasonable |

22

----

|  |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |   | opinion of such Underwriter afterconsultation with the Company, the reputation or standing of suchUnderwriter (or in the case of Birchfield, any shareholder ofBirchfield) would thereby be affected adversely to a material extent,in which case the Underwriter shall be at liberty to settle the claim)upon being fully indemnified and secured by the Company against allcosts, damages and expenses thereby incurred, in which event theUnderwriter shall not make, and shall procure that noUnderwriters' Relevant Person shall make any admission as toliability or any compromise in respect of any such claim without theprior written consent of the Company, such consent not to beunreasonably withheld ordelayed. |

|            |                    |
|------------|--------------------|
| 11.6  | **Other remedies** |

The rights and remedies contained in this Agreement arecumulative and not exclusive of rights or remedies provided bylaw.

|           |                 |
|-----------|-----------------|
| 12.  | **TERMINATION** |

|            |                                                  |
|------------|--------------------------------------------------|
| 12.1  | **Limitation on ability to terminateor rescind** |

Neither Sponsor nor any Underwriter willhave the right to terminate or rescind this Agreement for any reasonother than pursuant to Clauses 2.5, 12.2 and 12.3, but the foregoingshall be without prejudice to any other rights which Sponsor or any ofthe Underwriters may have in respect of any breach of this Agreement bythe Company.

|            |                 |
|------------|-----------------|
| 12.2  | **Termination** |

If at any time before the time at which the Condition inClause 2.1(p) is fulfilled:

|  |           |                                                                                                                                                                                                                                                                                                                       |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | itshall come to the notice of an Underwriter or Sponsor that any Warrantygiven to it was not, when given, true, accurate and not misleading inany respect and as a result could be expected to have a materialadverse effect on the Rights Issue by reference to the facts existingat the time the Warranty wasgiven; |

|  |           |                                                                                                                                                                                                                                                                                                          |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | a matter has arisen afterthe date of this Agreement which would have rendered any Warranty, ifrepeated at that time, to be untrue, inaccurate or misleading byreference to the facts then existing in any respect and as a resultcould be expected to have a material adverse effect on the RightsIssue; |

|  |           |                                                                                                                                                                    |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | the Company has failed tocomply, in any respect which would have a material adverse effect onthe Rights Issue, with any of its obligations under this Agreement;or |

|  |           |                                                            |
|--|-----------|------------------------------------------------------------|
|  | (d)  | a material adverse change occurswith respect to the Group, |

then each of the Underwritersor Sponsor may, after consultation with the Company, in their absolutediscretion by notice in writing to the Company given before such time,terminate its obligations under this Agreement with immediate effectand Clause 2.5 will apply in respect of any terminating party as ifthis Agreement had been terminated pursuant to Clause2.5.

|            |                   |
|------------|-------------------|
| 12.3  | **Force majeure** |

If at any time before the time at which the Condition inClause 2.1(p) is fulfilled, there shall have occurred any change innational or international financial, monetary, military, economic orpolitical or stock market conditions which, in the reasonable opinionof Sponsor or an Underwriter arrived at in good faith would, or wouldbe likely to, be materially prejudicial to the Company, any othermember of the Group or to the Application or the offering constitutedby the Rights Issue or to the acquisition of the Rights Issue Units bypersons pursuant thereto, then Sponsor or an Underwriter may, in itsabsolute discretion, by notice in writing to the Company given beforesuch time, terminate its obligations under this Agreement withimmediate effect and Clause 2.5 will apply in respect of anyterminating party as if this Agreement had been terminated pursuant toClause 2.5.

23

----

|           |                           |
|-----------|---------------------------|
| 13.  | **CONTINUINGOBLIGATIONS** |

|            |                 |
|------------|-----------------|
| 13.1  | **Undertaking** |

The Company undertakes to Sponsor and to each of theUnderwriters that it will:

|  |           |                                                                                                                          |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | applythe sums received by it pursuant to the Rights Issue for the purposesto be described in the Listing Particulars;and |

|  |           |                                                                                                                                                                                                                                   |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | for the period of 180 daysafter the Closing Date, not issue securities, or re-issue any treasuryshares, without prior consultation with and the consent of Sponsor,save on exercise of any options under the Share OptionSchemes. |

|            |                                  |
|------------|----------------------------------|
| 13.2  | **Compliance by GroupCompanies** |

The Company undertakes to Sponsor and toeach of the Underwriters to use all reasonable endeavours to ensurethat the Subsidiary Undertakings comply with those provisions of thisAgreement which are applicable tothem.

|            |                                               |
|------------|-----------------------------------------------|
| 13.3  | **Undertaking concerningDeed of Undertaking** |

The Company undertakes to Davyand to Sponsor that:

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | if theUnderwriters become obliged to subscribe for Rights Issue Unitspursuant to Clause 6.9 and Birchfield fails to satisfy or discharge itsobligations under any of Clauses 6.9, 7.2 or 8.1, then the Company willenforce, in full, its rights under the deed of undertaking dated 21October 2004 given in favour of the Company relating to this Agreement(the "**Deed of Undertaking**") againstthe Obligors (as that term is defined in the Deed of Undertaking);and |

|  |           |                                                                                                                                                                           |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | it will refrain from doing anyact or thing pursuant to Clause 2.4 of the Deed of Undertaking or fromterminating the Deed of Undertaking without the prior consent ofDavy. |

|           |                                  |
|-----------|----------------------------------|
| 14.  | **ANNOUNCEMENTS ANDINFORMATION** |

|            |                   |
|------------|-------------------|
| 14.1  | **Nopublication** |

From the date of this Agreement untilthe Closing Date the Company undertakes to Sponsor and the Underwritersnot to make any public statement (in response to enquiries orotherwise) or publish any document or information which relates to theRights Issue or which relates to any member of the Groupunless:

|  |           |                                                  |
|--|-----------|--------------------------------------------------|
|  | (a)  | it is a normal tradeannouncement or document, or |

|  |           |                                                                                                                                          |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | thestatement, document or information is required by law or the IrishStock Exchange or the UK Listing Authority to be made or published, |

provided such party has first, in the case of (a) above,obtained the prior consent of Sponsor and the Underwriters as to thecontent, timing and manner of the making or publication of theannouncement, statement, document or information, such consent not tobe unreasonably withheld or delayed and, in the case of (b) above, has,to the extent practical, consulted with Sponsor and the Underwritersprior to any such statement orpublication.

|            |                                   |
|------------|-----------------------------------|
| 14.2  | **References topublic statement** |

In Clause 14.1 references to makinga public statement or publishing a document or information includeauthorising or permitting another person to doso.

|            |                          |
|------------|--------------------------|
| 14.3  | **Release of statement** |

The parties undertake to each other to use all theirreasonable endeavours to ensure that any public statement or documentor information which any member of the Group proposes to make orpublish and which requires to be released to the Irish Stock Exchangeor the London Stock Exchange or the UKLA shall be released, wherepracticable, simultaneously on the Irish Stock Exchange and the LondonStock Exchange or to the UKLA or, where not so practicable, on the sameday.

24

----

|            |                           |
|------------|---------------------------|
| 14.4  | **Clientconfidentiality** |

The parties agree that where anyinformation, which is required by law or by any regulatory authority tobe disclosed, is disclosed by Sponsor to the Stock Exchanges or theUKLA or the Irish Takeover Panel in relation to the Group or the RightsIssue such disclosure shall not be a breach of clientconfidentiality.

|            |                               |
|------------|-------------------------------|
| 14.5  | **Disclosurerequired by law** |

Sponsor hereby undertakes that,where it is required by law or any regulatory body to disclose anyinformation in relation to the Group or the Rights Issue to anystatutory or regulatory authority, it will immediately after making therequired disclosure provide the Company with details of the informationdisclosed.

|           |             |
|-----------|-------------|
| 15.  | **GENERAL** |

|            |            |
|------------|------------|
| 15.1  | **Waiver** |

No waiver by any party hereto of any breach ornon-fulfilment by any other party of any provision of this Agreementshall be deemed to be a waiver of any subsequent or other breach ofthat or any other provision hereof and no failure to exercise or delayin exercising any right or remedy under this Agreement shall constitutea waiver thereof. No single or partial exercise of any right or remedyunder this Agreement shall constitute a waiver thereof. No single orpartial exercise of any such right or remedy under this Agreement shallpreclude or restrict the further exercise of any such right or remedy.The rights and remedies of the parties provided in this Agreement arecumulative and not exclusive of any rights and remedies provided bylaw.

|            |                               |
|------------|-------------------------------|
| 15.2  | **Agreement remains inforce** |

This Agreement shall remain in full force andeffect so far as concerns any matter remaining to be performed atcompletion of the subscription for Rights Issue Units by theUnderwriters or any person procured by them in accordance with Clause 6and notwithstanding that such subscription shall have takenplace.

|            |                          |
|------------|--------------------------|
| 15.3  | **Warrantiescontinuing** |

Subject to the provisions of Clauses 10.7and 11.5, the warranties, indemnities, undertakings, agreements andprovisions contained in this Agreement shall remain in full force andeffect notwithstanding completion of all matters and arrangementscontemplated by thisAgreement.

|            |               |
|------------|---------------|
| 15.4  | **Severance** |

The invalidity, illegality or unenforceability of anyprovision of this Agreement shall not affect the continuation in forceof the remainder of thisAgreement.

|            |                        |
|------------|------------------------|
| 15.5  | **Time of theessence** |

Dates, times or periods referred to in thisAgreement shall not be of the essence except for the Announcement Date,the Posting Date and the Long Stop Date in respect of which the dateshall be of theessence.

|            |                |
|------------|----------------|
| 15.6  | **Variations** |

No variation of this Agreement or any of the documents inthe agreed form shall be valid unless it is in writing and signed by oron behalf of each of the partieshereto.

|            |                  |
|------------|------------------|
| 15.7  | **Counterparts** |

This Agreement may be executed in any number of counterpartseach of which when executed by one or more of the parties hereto shallconstitute an original but all of which shall constitute one and thesame instrument.

|            |                     |
|------------|---------------------|
| 15.8  | **Entireagreement** |

This Agreement and any documents referredto herein constitute the entire agreement between the parties withrespect to the subject matter of this Agreement.

25

----

|            |             |
|------------|-------------|
| 15.9  | **Notices** |

Any notice to be given pursuant to the terms of thisAgreement must be given in writing to the party due to receive suchnotice at its address or number set out below:

|                  |  |                                                 |  |                   |  |  |  |  |  |  |
|------------------|--|-------------------------------------------------|--|-------------------|--|--|--|--|--|--|
| Party            |  | Address                                         |  | FacsimileNo.      |
| Sponsor and Davy |  | Davy House49Dawson StreetDublin 2Ireland        |  | + 353 1 6796366   |
| Company          |  | 1-2 Upper HatchStreetDublin 2 Ireland           |  | + 353 1 4784863   |
| Birchfield       |  | P O Box N-858LyfordManorLyford CayNassauBahamas |  | + 1 (242) 3626616 |
|                  |

or such other address as may havebeen notified for the purpose to the other parties in accordance withthis Clause. Notice shall be sent by pre-paid recorded delivery orpre-paid registered post (air mail if overseas) or by facsimiletransmission and shall be deemed to be given in the case of posting (inthe absence of evidence of earlier receipt) within forty eight hoursafter posting or six days if sent by air mail and in the case offacsimile transmission on completion of the transmission (as confirmedin a successful transmission report) if such transmission is receivedprior to 5.00 pm on a Business Day or, if received after that time oron a day which is not a Business Day, on the next Business Day providedthat a confirmation copy is sent on that date by pre-paid post asaforesaid.

|             |                                   |
|-------------|-----------------------------------|
| 15.10  | **Governing law andjurisdiction** |

|  |           |                                         |
|--|-----------|-----------------------------------------|
|  | (a)  | This Agreement isgoverned by Irish law. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | Each partyirrevocably agrees that the Irish courts shall have non-exclusivejurisdiction to hear and determine any suit, action or proceedings, andto settle any disputes, which may arise out of or in connection withthis Agreement (respectively,"**Proceedings**" and"**Disputes**") and, for such purposes,irrevocably submits to the jurisdiction of the Irish courts. Each partyirrevocably waives any objection which it might at any time have to theIrish courts being nominated as the forum to hear and determine anyProceedings and to settle any Disputes and agrees not to claim that theIrish courts are not a convenient or appropriate forum. Each partyagrees that the process by which any Proceedings are begun in Irelandor elsewhere may be served on it by being posted in accordance withClause 15.9, although this shall not affect the right to serve processin any other manner permitted by law. |

**IN WITNESS** whereofthis Agreement has been entered into the day and year first hereinwritten.

26

----

FIRST SCHEDULE

MATERIALSUBSIDIARY UNDERTAKINGS

|                                                              |  |  |  |  |  |  |
|--------------------------------------------------------------|--|--|--|--|--|--|
| Name                                                         |
| Waterford Crystal (Manufacturing) Ltd                        |
| Josiah Wedgwood & Sons Ltd                               |
| RosenthalAG                                                  |
| Waterford Crystal Ltd                                        |
| Stuart& Sons Ltd                                         |
| Waterford Wedgwood AustraliaLtd                              |
| Waterford Wedgwood Canada Inc.                               |
| Waterford Wedgwood USA Inc.                                  |
| WaterfordWedgwood Japan Ltd                                  |
| Waterford Wedgwood RetailLtd                                 |
| Josiah Wedgwood & Sons (Exports)Ltd                      |
| Josiah Wedgwood (Malaysia) Pte Ltd                           |
| Waterford Wedgwood Trading Singapore Pte. Ltd                |
| Waterford Wedgwood (Taiwan) Ltd                              |
| WedgwoodGmbH                                                 |
| W/C Imports Inc.                                             |
| All-CladSwitzerland GmbH                                     |
| Spring USA Corporation                                       |
| Cashs Mail Order Limited                                     |
| StatumLimited                                                |
| Waterford Wedgwood U.K. plc                                  |
| Wedgwood Ltd                                                 |
| Waterford WedgwoodInc.                                       |
| Waterford Glass Research and DevelopmentLtd                  |
| Waterford Wedgwood Employee ShareOwnership Plan (Jersey) Ltd |
| Waterford WedgwoodGmbH                                       |
| Waterford Wedgwood Linens Inc.                               |
| Ashling Corporation                                          |
|                                                              |

27

----

SECOND SCHEDULE

PART I

DELIVERY OF DOCUMENTS TO SPONSOR ATEXECUTION

|          |                                                                                                                                                                            |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | A copy of the resolutionof the Board and of the board of directors of Waterford Wedgwood UKapproving the Rights Issue, the Press Release, this Agreement and itsexecution. |

|          |                   |
|----------|-------------------|
| 2.  | The PressRelease. |

|          |                                   |
|----------|-----------------------------------|
| 3.  | A copy of the Deed ofUndertaking. |

PART II

DELIVERY OF DOCUMENTS TO SPONSORON OR PRIOR TO THE ANNOUNCEMENTDATE

|          |                                                                                                                                                                                                                                                                                                                                                                          |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | A letter from the Companyaddressed to Sponsor confirming that, taking into account (a) thefinancing facilities available to them and (b) the proceeds of theRights Issue, the working capital available to the Group and to theEnlarged Group is sufficient for their respective present requirements,that is for at least the next 12 months from the AnnouncementDate. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | A letter from the auditors ofthe Company addressed to the Company and Sponsor in a form acceptableto Sponsor, acting reasonably, confirming that the statement containedin the letter referred to in paragraph 1 above as to sufficiency ofworking capital available to the Group and to the Enlarged Group hasbeen made after due and careful enquiry and that the persons orinstitutions providing finance have confirmed in writing that therelevant financing facilities exist, together with a copy of each suchwritten confirmation. |

|          |                               |
|----------|-------------------------------|
| 3.  | The WorkingCapital Estimates. |

|          |                                                                         |
|----------|-------------------------------------------------------------------------|
| 4.  | A letter addressedto Sponsor in the form set out in the FourthSchedule. |

|          |                                                                   |
|----------|-------------------------------------------------------------------|
| 5.  | A certified copy of theannouncement referred to in Clause 2.1(p). |

PART III

DELIVERY OF DOCUMENTS TO SPONSOR ON OR PRIOR TO THE POSTINGDATE

|          |                                                                                                                                                                                                                                                                                                                                              |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | Two copies of the ListingParticulars, together with evidence of approval by the Irish StockExchange and UK Listing Authority, each duly signed and dated by eachof the Directors and the directors of Waterford Wedgwood UK or by hisagent duly authorised in writing, together with two certified copies ofthe authority of any such agent. |

|          |                                 |
|----------|---------------------------------|
| 2.  | Twocopies of the Form of Proxy. |

|          |                               |
|----------|-------------------------------|
| 3.  | Twocopies of the form of PAL. |

|          |                                               |
|----------|-----------------------------------------------|
| 4.  | One signedoriginal of the Verification Notes. |

|          |           |
|----------|-----------|
| 5.  | Acopy of: |

|  |           |                                                                                                                                                                                                                                                                                                                                   |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | the minutes of themeeting of the Board and the meeting of the board of directors ofWaterford Wedgwood UK (or, in either case, a duly appointed committeethereof) as referred to in Clause 5.1, certified by the Secretary ofthe Company or the Secretary of Waterford Wedgwood UK, as appropriate,as having been duly passed; and |

|  |           |                                                                                                                                                                                                                                                                                                                    |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | acopy of the minutes of the meeting of the Board and the meeting of theboard of directors of Waterford Wedgwood UK appointing any committeereferred to in sub-paragraph 5(a) above, certified by the Secretary ofthe Company or the Secretary of Waterford Wedgwood UK, as appropriate,as having been duly passed. |

28

----

|          |                               |
|----------|-------------------------------|
| 6.  | The WorkingCapital Estimates. |

|          |                                                                                                                                                                                                       |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.  | A copy (certifiedas aforesaid) of a duly executed power of attorney granted by eachDirector, or director of Waterford Wedgwood UK, as appropriate, in aform satisfactory to Sponsor actingreasonably. |

|          |                                                                                                                                                                                                                                                                                                                                                                                       |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | A copy (certified by aDirector or the secretary of the Company or by a director or thesecretary of Waterford Wedgwood UK, as appropriate) of a responsibilityletter from or on behalf of each of the Directors and the directors ofWaterford Wedgwood UK, in a form satisfactory to Sponsor actingreasonably, confirming his acceptance of responsibility for the ListingParticulars. |

|          |                                                                                                                                                                                                                                 |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 9.  | A letter from theauditors of the Company addressed to Sponsor and the Company confirmingthe accuracy of the extraction of financial information in the ListingParticulars, in a form satisfactory to Sponsor acting reasonably. |

|           |                                                                                                                                                                                              |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.  | A letter from the Company addressed toSponsor confirming the sufficiency of working capital available to theGroup and the Enlarged Group in a form satisfactory to Sponsor actingreasonably. |

|           |                                                                                                                                                                                                    |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 11.  | A letter from theCompany to Sponsor and the Underwriters confirming that, save asdisclosed in the Listing Particulars, there has been no significantchange in the financial or trading positionof: |

|  |           |                                                                                                               |
|--|-----------|---------------------------------------------------------------------------------------------------------------|
|  | (a)  | the Group since the date towhich the Group's most recent consolidated financial statementswere published; and |

|  |           |                                                          |
|--|-----------|----------------------------------------------------------|
|  | (b)  | Royal Doultonplc and its subsidiaries since 30 June2004. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.  | A letter from the auditors ofthe Company addressed to Sponsor and the Company in a form acceptableto Sponsor, acting reasonably, reporting on the Working CapitalEstimates and confirming that the statement as to sufficiency ofworking capital available to the Group and to the Enlarged Group ascontained in the section of the Listing Particulars entitled"Working Capital" has been made after due andcareful enquiry by the Company and that the persons or institutionsproviding finance have confirmed in writing that the relevantfacilities exist, together with a copy of each such writtenconfirmation. |

|           |                                                                                                                                                                                                                                                                                             |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 13.  | A letter from theCompany addressed to Sponsor confirming that the Directors have hadexplained to them the nature of their responsibilities and obligationsas directors of a listed company under the Listing Rules and confirmingmatters in relation to paragraph 2.13 of the ListingRules. |

|           |                                                                        |
|-----------|------------------------------------------------------------------------|
| 14.  | Schedule 3As and Form 1s dulyexecuted for and on behalf of theCompany. |

|           |                                                                                                                                                                                                                                                                                                                                                   |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 15.  | Two originals of theletter, specified in paragraph 5.5 of the Listing Rules, relating tothe contents of the Listing Particulars, each duly signed by each ofthe Directors and the directors of Waterford Wedgwood UK or by hisagent duly authorised in writing (and, in the case of execution by anagent, a certified copy of suchauthorisation). |

|           |                                                                                                                              |
|-----------|------------------------------------------------------------------------------------------------------------------------------|
| 16.  | A letter from theCompany addressed to Sponsor in substantially the form set out in theFourth Schedule dated the PostingDate. |

|           |                       |
|-----------|-----------------------|
| 17.  | The EnablementLetter. |

|           |                                                                                                                                                                                                                             |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 18.  | Evidence in a formsatisfactory to Sponsor acting reasonably of the fulfilment of all ofthose Conditions contained in Clause 2.1 which fall to be fulfilled(and which have not been waived) on or prior to the Posting Date. |

PART IV

DELIVERY OF DOCUMENTS TO SPONSOR ON OR PRIOR TOTHE CLOSING DATE

A letter from the Company addressed to Sponsorin substantially the form set out in the Sixth Schedule dated theClosing Date.

PART V

DELIVERY OF DOCUMENTS TO EACH OFTHE UNDERWRITERS AT EXECUTION

|          |                                                                                                                                                                            |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | A copyof the resolution of the Board and of the board of directors ofWaterford Wedgwood UK approving the Rights Issue, the Press Release,this Agreement and its execution. |

29

----

|          |                   |
|----------|-------------------|
| 2.  | The PressRelease. |

|          |                                   |
|----------|-----------------------------------|
| 3.  | A copy of the Deed ofUndertaking. |

PART VIDELIVERY OF DOCUMENTS TO EACH OF THEUNDERWRITERS ON OR PRIOR TO ANNOUNCEMENTDATE

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | Copies of the letters referredto in Part II of this Schedule (provided that, in relation to theletter from the auditors referred to in paragraph 2 thereof, theauditors have authorised the Company to disclose such letter to theUnderwriters and the Company shall, subject to provision of anynon-reliance or other form of letter from the Underwriters as may berequired by the auditors, use reasonable endeavours to obtain suchauthorisation) and, in the case of the letters referred to inparagraphs 1 and 4 of Part II, addressed to the Underwriters ratherthan Sponsor. |

|          |                               |
|----------|-------------------------------|
| 2.  | The Working CapitalEstimates. |

|          |                                                                   |
|----------|-------------------------------------------------------------------|
| 3.  | A certified copy of theannouncement referred to in Clause 2.1(p). |

PARTVIIDELIVERY OF DOCUMENTS TO EACH OF THE UNDERWRITERS ON ORPRIOR TO THE POSTING DATE

|          |                                                                                                                                                                                                                                                                                                                                     |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | A copy ofthe Listing Particulars, together with evidence of approval by theIrish Stock Exchange and UK Listing Authority, each duly signed anddated by each of the Directors and the directors of Waterford WedgwoodUK or by his agent duly authorised in writing, together with acertified copy of the authority of any suchagent. |

|          |                             |
|----------|-----------------------------|
| 2.  | A copy of the Form ofProxy. |

|          |                           |
|----------|---------------------------|
| 3.  | A copy of the form ofPAL. |

|          |                                               |
|----------|-----------------------------------------------|
| 4.  | One signed original of theVerification Notes. |

|          |            |
|----------|------------|
| 5.  | A copy of: |

|  |           |                                                                                                                                                                                                                                                                                                                                   |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | the minutes of the meeting of theBoard and the meeting of the board of directors of Waterford WedgwoodUK (or, in either case, a duly appointed committee thereof) as referredto in Clause 5.1, certified by the Secretary of the Company or theSecretary of Waterford Wedgwood UK, as appropriate, as having been dulypassed; and |

|  |           |                                                                                                                                                                                                                                                                                                                    |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | a copy of the minutesof the meeting of the Board and the meeting of the board of directorsof Waterford Wedgwood UK appointing any committee referred to insub-paragraph 5(a) above, certified by the Secretary of the Company orthe Secretary of Waterford Wedgwood UK, as appropriate, as having beenduly passed. |

|          |                               |
|----------|-------------------------------|
| 6.  | The Working CapitalEstimates. |

|          |                                                                                                                                                                                                       |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.  | A copy (certified asaforesaid) of a duly executed power of attorney granted by eachDirector, or director of Waterford Wedgwood UK, as appropriate, in aform satisfactory to Sponsor actingreasonably. |

|          |                                                                                                                                                                                                                                                                                                                                                                                       |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | A copy (certified by aDirector or the secretary of the Company or by a director or thesecretary of Waterford Wedgwood UK, as appropriate) of a responsibilityletter from or on behalf of each of the Directors and the directors ofWaterford Wedgwood UK, in a form satisfactory to Sponsor actingreasonably, confirming his acceptance of responsibility for the ListingParticulars. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 9.  | A letter from theauditors of the Company addressed to Sponsor and the Company confirmingthe accuracy of the extraction of financial information in the ListingParticulars in a form satisfactory to Davy acting reasonably (providedthat the auditors have authorised the Company to disclose such letterto the Underwriters and the Company shall, subject to provision of anynon-reliance or other form of letter from the Underwriters as may berequired by the auditors, use reasonable endeavours to obtain suchauthorisation). |

30

----

|           |                                                                                                                                                                                                          |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.  | A letterfrom the Company addressed to the Underwriters confirming thesufficiency of working capital available to the Group and to theEnlarged Group, in a form satisfactory to Sponsor actingreasonably. |

|           |                                                                                                                                                                                        |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 11.  | A letter from theCompany to the Underwriters confirming that, save as disclosed in theListing Particulars, there has been no significant change in thefinancial or trading positionof: |

|  |           |                                                                                                               |
|--|-----------|---------------------------------------------------------------------------------------------------------------|
|  | (a)  | the Group since the date towhich the Group's most recent consolidated financial statementswere published; and |

|  |           |                                                          |
|--|-----------|----------------------------------------------------------|
|  | (b)  | Royal Doultonplc and its subsidiaries since 30 June2004. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.  | A letter from the auditors ofthe Company addressed to Sponsor and the Company in a form acceptableto Sponsor, acting reasonably, reporting on the Working CapitalEstimates and confirming that the statement as to sufficiency ofworking capital available to the Group and to the Enlarged Group, ascontained in the section of the Listing Particulars entitled"Working Capital" has been made after due andcareful enquiry by the Company and that the persons or institutionsproviding finance have confirmed in writing that the relevantfacilities exist, together with a copy of each such writtenconfirmation (provided that the auditors have authorised the Company todisclose such letter to the Underwriters and the Company shall, subjectto provision of any non-reliance or other form of letter from theUnderwriters as may be required by the auditors, use reasonableendeavours to obtain suchauthorisation). |

|           |                                                                                                                                      |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------|
| 13.  | A letter from theCompany addressed to the Underwriters in substantially the form set outin the Fifth Schedule dated the PostingDate. |

|           |                                                                                                                                                                                                                                               |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14.  | Evidence in a formsatisfactory to each of the Underwriters, acting reasonably, of thefulfilment of all of those conditions contained in Clause 2.1 whichfall to be fulfilled (and which have not been waived) on or prior tothe Posting Date. |

PART VIII

DELIVERY OF DOCUMENTS TOEACH OF THE UNDERWRITERS ON OR PRIOR TO THE CLOSING DATE

Aletter from the Company addressed to the Underwriters in substantiallythe form set out in the Seventh Schedule dated the ClosingDate.

31

----

THIRD SCHEDULE

WARRANTIES ANDREPRESENTATIONS FOR THE BENEFIT OF SPONSOR (GIVEN ON THE DATE OFTHIS AGREEMENT AND ON THE POSTING DATE)

PARTI

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | The implementation of the RightsIssue, and the publication and despatch of the Rights Issue Documents,will comply in all respects with the relevant provisions of theCompanies Acts, the Regulations, the CREST Regulations, the ListingRules and all other relevant laws and regulations and will comply inall material respects with, and will not infringe, any agreements andobligations to which the Company or any of the Subsidiary Undertakingsis a party or by which the Company or any of the SubsidiaryUndertakings is bound. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | All sums duein respect of the issued capital of each member of the Group have beenpaid to and received by the relevant member of the Group and there areno authorised but unissued shares or outstanding options or otherrights to subscribe for or call for the allotment of any share or loancapital of any member of the Group other than those disclosed in theGroup's most recently published annual consolidated financialstatements. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | Subject to the passing ofthe Waiver Resolution, the Resolutions, the Increase/AuthorisationResolution, the Board Resolutions and to the resolutions referred to inClause 5.1(b), the Company, the Directors and Waterford Wedgwood UK andits directors have all necessary power under the Memorandum andArticles of Association of the Company and Waterford Wedgwood UK, andall authorisations, approvals, consents and licences required by theCompany and Waterford Wedgwood UK have been unconditionally obtainedand are in full force and effect, to permit the Company and WaterfordWedgwood UK to allot and issue the Rights Issue Units, and to permitthe Company to enter into this Agreement and to perform its obligationsunder this Agreement. |

|          |                                                                                                                                                                                                                                                                                                                        |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.  | The creation,allotment and issue of the Rights Issue Units will, subject to thepassing of the Increase/Authorisation Resolution and the Resolutions,not infringe or exceed any limits, powers or restrictions or the termsof any contract, obligation or commitment whatsoever of the Company orWaterford Wedgwood UK. |

|          |                                                                                                                                                                                                                                                                                                                                  |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.  | None of theowners or holders of shares in the Company or Waterford Wedgwood UKwill, following Admission, have any rights, in their capacity as such,in relation to the Company or Waterford Wedgwood UK, as the case maybe, other than as set out in the relevant Articles of Association ofthe Company or Waterford WedgwoodUK. |

|          |                                                                                                                                                                                           |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.  | The Rights Issue Units will beallotted and issued in accordance with the Rights Issue Documents freefrom all encumbrances, claims, liens or other third party rights ofwhatsoever nature. |

|          |                                                                                                                                                                                                                                                                                                                                          |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.  | The Rights IssueUnits will, as from the date when they become Fully Paid Rights, rankpari passu in all respects with the Stock Units then in issue and, inparticular, will, after such date, rank in full for all dividends andother distributions declared, paid or made on the Stock Units after thedate of their allotment (nilpaid). |

|          |                                                                                                                                                                                                                                                                                                                                                                                                  |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | All written informationsupplied to Sponsor or its agents or advisors by the Company or, to theextent authorised by the Company, by its agents or advisors for thepurposes of the Rights Issue and the arrangements contemplated by thisAgreement is true and accurate in all material respects and allforecasts and estimates given or implied have been made after due andproper consideration. |

PART II

WARRANTIES ANDREPRESENTATIONS FOR THE BENEFIT OF SPONSOR (GIVEN ON THE DATE OFTHIS AGREEMENT AND ON THE POSTING DATE)

In this Part IIreferences to the Company shall, except where the context otherwiserequires, be deemed to include additional and separate references alsoto each Subsidiary Undertaking, whether or not it was a subsidiary ofthe Company at the relevant time.

32

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|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | Since theAccounts Date, save as disclosed in the Press Release and the circularfrom the Company to its shareholders dated 2 July 2004 relating to,inter alia, the sale of All-Clad USA Inc, and the Form 20-F filed bythe Company on 30 September 2004 (unless disclosure of any of thematters set out in paragraphs (a) to (e) below would not be required inorder to prevent the Listing Particulars being untrue, inaccurate ormisleading in any materialrespect): |

|  |           |                                                                         |
|--|-----------|-------------------------------------------------------------------------|
|  | (a)  | the Company has carriedon its business in the ordinary and usualcourse; |

|  |           |                                                                                                                        |
|--|-----------|------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | there has been nosignificant material adverse change in the financial or tradingposition of the Group taken as awhole; |

|  |           |                                                                                                                                                                                                                                                                              |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | the Company has not disposedof any of its assets other than in the ordinary course of trading andhas not entered into any material contract or commitment of an unusualand/or unusually onerous nature or assumed any material liabilities(including contingentliabilities); |

|  |           |                                                                                                                         |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------|
|  | (d)  | the Company has notpaid or made any payment or transfer to shareholders of any dividend,bonus, loan or distribution;and |

|  |           |                                                                                                                                                          |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (e)  | the Company has not incurredany tax liability which could reasonably be considered material inrespect of carrying on its business in the ordinarycourse. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | Save as disclosed in the Form20-F filed by the Company on 30 September 2004, the Company is notengaged in any litigation, arbitration or similar proceedings ofmaterial importance in the context of the Group nor, so far as theCompany is aware, are any such litigation, arbitration or similarproceedings threatened or pending and there are no circumstances knownto the Company, after due and careful enquiry, which are likely to giverise to any such litigation, arbitration or similarproceedings. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | The Company has nottaken any action, nor have legal proceedings started or been threatenedagainst the Company for its winding-up or dissolution or for it toenter into any arrangement with or composition for the benefit ofcreditors, or for the appointment of a receiver, administrator,examiner, administrative receiver, trustee or similar officer of theCompany or any of its properties, revenues or otherassets. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                   |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.  | No event has occurred or, tothe best of the knowledge, information and belief of the Company, isabout to occur by reason of the happening of which any secured orunsecured borrowings of the Company, in an amount material as againstthe overall borrowings of the Group taken as a whole, have become orwould with the giving of notice or the lapse of time become repayableprior to maturity. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.  | Save for grants ofoptions under the Share Option Schemes and the Employee ParticipationSchemes or pursuant to the Company's scrip dividend plan thereare in force no options or other agreements or arrangements which callfor the issue to any person or accord to any person the right to callfor the issue of any shares in the capital of the Group or any othersecurities of any member of theGroup. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                          |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.  | The execution of thisAgreement and the consummation of the transactions contemplated by itwill not, nor is likely to, cause the Company or any of the SubsidiaryUndertakings to lose the benefit of any material right or privilegewhich it presently enjoys or any person who normally does business withthe Company or the relevant Subsidiary Undertakings not to continue todo so on the same basis. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.  | No event hasoccurred or, to the best of the knowledge, information and belief ofthe Company, is subsisting which constitutes or would constitute amaterial default under, or result in the acceleration by reason ofdefault of, any material obligations under any agreement, undertaking,instrument or arrangement to which the Company is a party or by whichit or any of its properties, revenues or assets are bound and whichwould in any such case have a material adverse effect on the business,assets, prospects or condition of the Group taken as awhole. |

|          |                                                                                                                                                                                                |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | Each member of the Group hasbeen duly incorporated and has full corporate power and authority tocarry on its business as at the date this Warranty is given or repeatedand has carried on such |

33

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|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | business in compliance with all legalrequirements applicable to such business (save where the failure to doso would not have a material adverse effect on the Group taken as awhole) and as far as the Company is aware, having made due and carefulenquiry, each member of the Group holds all licences, permissions,authorisations and consents necessary to enable it to carry on the samebusiness in all material respects as hitherto carried on (including,without limitation, all necessary planning and other consents orpermissions in relation to the properties owned or occupied by it andall consents, authorisations and licences required under environmentaland health and safety legislation) and so far as the Company is awareall such licences, permissions, authorisations and consents are in fullforce and effect and so far as the Company is aware there are nocircumstances which indicate that any of them is reasonably likely tobe revoked, rescinded, avoided or repudiated or not renewed in whole,or in part, in the ordinary course ofevents. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 9.  | With respect to the Accountsand each announcement made by or on behalf of the Company to either ofthe Stock Exchanges or the UK Listing Authority since the date ofpublication of the Accounts, at the date that the Accounts werepublished or, as the case may be, at the date such announcement wasmade, all statements contained therein (other than expressions ofopinion, intention or expectation of the Directors) were true and fairin all material respects and not misleading in any material respect andare in accordance with the facts and do not omit anything likely toaffect the import of such statements and all expressions of opinion,intention or expectation of the Directors contained therein were whenmade fair and honestly held by the Directors and had been made onreasonable grounds and were fairly based and so far as the Company isaware, none of the statements or expressions were or are renderedmisleading in any material respect by the omission of anyinformation. |

|           |                                                                                                                                    |
|-----------|------------------------------------------------------------------------------------------------------------------------------------|
| 10.  | Since the AccountsDate all information required by Rules 9.1 and 9.2 of the Listing Ruleshas been notified to the Stock Exchanges. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 11.  | The entry into this Agreement and theperformance by the Company of its obligations under this Agreement,including the offer, allotment and issue of the Rights Issue Units inaccordance with the Rights Issue Documents and the provisions of thisAgreement will comply with the Articles of Association of the Companyand Waterford Wedgwood UK, FSMA, the Listing Rules and all otherrelevant laws and regulations of the United Kingdom and Ireland. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.  | The amounts borrowed by the Company donot exceed any limitation on its borrowing contained in its Articles ofAssociation and any debenture or other deed or document binding upon itand the Company has no outstanding loan capital and has not engaged infinancing of a type which would not require to be shown or reflected inaudited accounts (other than factoring of its debts) or borrowed anymoney which it has not repaid, save for borrowings specified in theListing Particulars. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 13.  | The Companymaintains appropriate insurance cover against fire and other risks uponall its assets and public and employer's liability, taking intoaccount the nature and scale of its activities and the provisions ofagreements binding upon it and such insurance is now in force and theCompany is not aware of any fact or matter which would lead to any suchinsurance being vitiated or repudiated and there is no claim which ismaterial in the context of the Group taken as a whole which is pendingor outstanding and all premiums in respect of such insurances have beenduly paid. |

PART III

WARRANTIES ANDREPRESENTATIONS FOR THE BENEFIT OF SPONSOR (GIVEN ON THE POSTINGDATE ONLY)

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | All statements of factcontained in the Rights Issue Documents are true and accurate and notmisleading. All statements of opinion, intention or expectationcontained in the Rights Issue Documents are made on reasonable groundsafter due and proper consideration, are fair and honest, and there areno facts known or which could on reasonable enquiry have been known tothe Company which are not disclosed in the Listing Particulars theomission of which would make misleading in any material respect anystatement therein, whether of fact or opinion, and inparticular: |

34

----

|  |           |                                                                                                                                                                                                                                                                        |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | thefinancial information contained in the Listing Particulars gives a trueand fair view of the profits and source of funds and cash flows for thefinancial period covered by the report and of the state of affairs ofthe Group as at the end of such financialperiod; |

|  |           |                                                                                                |
|--|-----------|------------------------------------------------------------------------------------------------|
|  | (b)  | the reasons for the RightsIssue are fairly and accurately described in the ListingParticulars; |

|  |           |                                                                                                                                                                                                                                                                                                |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | the Pro FormaConsolidated Balance Sheet included in the Listing Particulars has beenproperly compiled on the basis of the Group's auditedconsolidated financial statements for the six months ended 30 September2004, as adjusted for the Acquisition and the net proceeds of theRights Issue; |

|  |           |                                                                                                                                                                                                |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (d)  | the interests (ifany) of the Directors in the share capital of the Company and incontracts and arrangements with the Company are fairly and accuratelydescribed in the Listing Particulars;and |

|  |           |                                                                                                                                                                 |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (e)  | the Company has no materialsubsidiaries other than those identified in the Listing Particulars andthe Company is not itself the subsidiary of any othercompany. |

|          |                                                                                                                                                                                                                                                                                                                                                                                 |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | The Listing Particularscontain all such information as investors and their professionaladvisers would reasonably require and reasonably expect to find in theListing Particulars for the purpose of making an informed assessment ofthe assets and liabilities, financial position, profits and losses andprospects of the Group and of the rights attaching to the StockUnits. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | All statements made by or withthe express authority of the Company in connection with the Applicationfor certain information to be omitted from the Listing Particulars asbeing inapplicable or of minor importance only and not such as wouldinfluence assessment of the assets and liabilities, financial position,profits and losses and prospects of the Group or any other reasonpermitted by the applicable Listing Rules, were when made, and continueto be, true and accurate in all materialrespects. |

|          |                                                                                                                                                                                                                                                                        |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.  | The answers to theVerification Notes have been prepared or approved by persons havingappropriate knowledge and responsibility to enable them properly toprovide such replies and are believed by the Company to be true,complete and accurate in all materialrespects. |

|          |                                                                                                                                                                                                                                       |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.  | The Working CapitalEstimates have been approved by the Board and have been prepared afterdue and careful enquiry and on the basis and assumptions stated in theWorking Capital Estimates, which the Company believes to bereasonable. |

|          |                                                                                                                                                                                                                                                                                            |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.  | Upon satisfaction of theConditions and subject to the Underwriters complying with itsunderwriting obligations contained in Clause 6 of this Agreement, theGroup and the Enlarged Group will have sufficient working capital forat least the period of 12 months following the PostingDate. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.  | Except pursuant to thosepension arrangements disclosed in the Listing Particulars or in theaudited accounts made up to the Accounts Date, the Company is not underany liability or obligation (whether or not legally enforceable) whichis material to the Group taken as a whole to pay, provide or contributetowards any retirement, death or disability benefit for or in respectof any past officer or employee (or any spouse, child or dependant ofany of them) of the Company. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | TheCompany has not done or omitted to do any act, matter or thing inrespect of any agreement relating to intellectual property material tothe Group taken as a whole which would impinge (to an extent which ismaterial to the Group taken as a whole) upon the validity orenforceability of the same or upon the right of the Company to use thesame nor are there any outstanding obligations of the Company whetheras to payment or otherwise which if left outstanding would so impingeand which have not been provided for in the audited accounts of theCompany for the year ended 31 March 2004. Save as disclosed in theListing Particulars, the Company owns or licences all intellectualproperty material to the Group taken as a whole relating to thebusiness of the Company free from all liens, charges and encumbrancesand none of such intellectual property is the subject of any claim,opposition, assertion, infringement, attack, right, action or otherrestriction or arrangement of whatsoever nature which does or mayimpinge upon the validity, enforceability or |

35

----

|        |                                                                                                                                                                                                                                                                                                                                                   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ownership of the same or the utilisationthereof by the Company to an extent which is material in the context ofthe Group. To the best of the knowledge, information and belief of theCompany, having made due and careful enquiry, none of the activities ofthe Company infringes any right of any other person relating tointellectual property. |

PART IV

WARRANTIES ANDREPRESENTATIONS FOR THE BENEFIT OF EACH OF THE UNDERWRITERS (GIVENON THE DATE OF THIS AGREEMENT AND ON THE POSTINGDATE)

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | The implementation of theRights Issue, and the publication and despatch of the Rights IssueDocuments, will comply in all respects with the relevant provisions ofthe Companies Acts, the Regulations, the CREST Regulations, the ListingRules and all other relevant laws and regulations and will comply inall material respects with, and will not infringe, any agreements andobligations to which the Company or any of the Subsidiary Undertakingsis a party or by which the Company or any of the SubsidiaryUndertakings is bound. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | All sums duein respect of the issued capital of each member of the Group have beenpaid to and received by the relevant member of the Group and there areno authorised but unissued shares or outstanding options or otherrights to subscribe for or call for the allotment of any share or loancapital of any member of the Group other than those disclosed in theGroup's most recently published annual consolidated financialstatements. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | Subject to the passing ofthe Waiver Resolution, the Resolutions, the Increase/AuthorisationResolution, the Board Resolutions and to the resolutions referred to inClause 5.1(b), the Company, the Directors and Waterford Wedgwood UK andits directors have all necessary power under the Memorandum andArticles of Association of the Company and Waterford Wedgwood UK andall authorisations, approvals, consents and licences required by theCompany and Waterford Wedgwood UK have been unconditionally obtainedand are in full force and effect, to permit the Company and WaterfordWedgwood UK to allot and issue the Rights Issue Units, and to permitthe Company to enter into this Agreement and to perform its obligationsunder this Agreement. |

|          |                                                                                                                                                                                                                                                                                                                        |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.  | The creation,allotment and issue of the Rights Issue Units will, subject to thepassing of the Increase/Authorisation Resolution and the Resolutions,not infringe or exceed any limits, powers or restrictions or the termsof any contract, obligation or commitment whatsoever of the Company orWaterford Wedgwood UK. |

|          |                                                                                                                                                                                                                                                                                                                                  |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.  | None of theowners or holders of shares in the Company or Waterford Wedgwood UKwill, following Admission, have any rights, in their capacity as such,in relation to the Company or Waterford Wedgwood UK, as the case maybe, other than as set out in the relevant Articles of Association ofthe Company or Waterford WedgwoodUK. |

|          |                                                                                                                                                                                           |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.  | The Rights Issue Units will beallotted and issued in accordance with the Rights Issue Documents freefrom all encumbrances, claims, liens or other third party rights ofwhatsoever nature. |

|          |                                                                                                                                                                                                                                                                                                                                          |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.  | The Rights IssueUnits will, as from the date when they become Fully Paid Rights, rankpari passu in all respects with the Stock Units then in issue and, inparticular, will, after such date, rank in full for all dividends andother distributions declared, paid or made on the Stock Units after thedate of their allotment (nilpaid). |

|          |                                                                                                                                                                                                                                                                                                                                                                                               |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | All written informationsupplied to Davy or its agents or advisors by the Company or, to theextent authorised by the Company, by its agents or advisors for thepurposes of the Rights Issue and the arrangements contemplated by thisAgreement is true and accurate in all material respects and allforecasts and estimates given or implied have been made after due andproper consideration. |

36

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PART V

WARRANTIES ANDREPRESENTATIONS FOR THE BENEFIT OF EACH OF THE UNDERWRITERS (GIVENON THE DATE OF THIS AGREEMENT AND ON THE POSTING DATE)

Inthis Part V references to the Company shall, except where the contextotherwise requires, be deemed to include additional and separatereferences also to each Subsidiary Undertaking, whether or not it was asubsidiary of the Company at the relevanttime.

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | Since the Accounts Date, saveas disclosed in the Press Release, the circular from the Company to itsshareholders dated 2 July 2004 relating to, inter alia, the sale ofAll-Clad USA Inc, and the Form 20-F filed by the Company on 30September 2004 (unless disclosure of any of the matters set out inparagraphs (a) to (e) below would not be required in order to preventthe Listing Particulars being untrue, inaccurate or misleading in anymaterial respect): |

|  |           |                                                                         |
|--|-----------|-------------------------------------------------------------------------|
|  | (a)  | the Company hascarried on its business in the ordinary and usualcourse; |

|  |           |                                                                                                                        |
|--|-----------|------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | there has been nosignificant material adverse change in the financial or tradingposition of the Group taken as awhole; |

|  |           |                                                                                                                                                                                                                                                                              |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | the Company has not disposedof any of its assets other than in the ordinary course of trading andhas not entered into any material contract or commitment of an unusualand/or unusually onerous nature or assumed any material liabilities(including contingentliabilities); |

|  |           |                                                                                                                         |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------|
|  | (d)  | the Company has notpaid or made any payment or transfer to shareholders of any dividend,bonus, loan or distribution;and |

|  |           |                                                                                                                                                          |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (e)  | the Company has not incurredany tax liability which could reasonably be considered material inrespect of carrying on its business in the ordinarycourse. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | Save as disclosed in the Form20-F filed by the Company on 30 September 2004, the Company is notengaged in any litigation, arbitration or similar proceedings ofmaterial importance in the context of the Group nor, so far as theCompany is aware, are any such litigation, arbitration or similarproceedings threatened or pending and there are no circumstances knownto the Company , after due and careful enquiry, which are likely togive rise to any such litigation, arbitration or similarproceedings. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                              |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | The Company has nottaken any action, nor have legal proceedings started or been threatenedagainst the Company for its winding-up or dissolution or for it toenter into any arrangement with or composition for the benefit ofcreditors, or for the appointment of a receiver, administrator,examiner, administrative receiver, trustee or similar officer of theCompany or any of their properties, revenues or otherassets. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.  | No event has occurred or, tothe best of the knowledge, information and belief of the Company, issubsisting which constitutes or would constitute a material defaultunder, or result in the acceleration by reason of default of, anymaterial obligations under any agreement, undertaking, instrument orarrangement to which the Company is a party or by which it or any ofits properties, revenues or assets are bound and which would in anysuch case have a material adverse effect on the business, assets,prospects or condition of the Group taken as awhole. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                   |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.  | No event has occurred or, tothe best of the knowledge, information and belief of the Company, isabout to occur by reason of the happening of which any secured orunsecured borrowings of the Company, in an amount material as againstthe overall borrowings of the Group taken as a whole, have become orwould with the giving of notice or the lapse of time become repayableprior to maturity. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.  | Each member of theGroup has been duly incorporated and has full corporate power andauthority to carry on its business as at the date this Warranty isgiven or repeated and has carried on such business in compliance withall legal requirements applicable to such business (save where thefailure to do so would not have a material adverse effect on the Grouptaken as a whole) and as far |

37

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|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | as the Company is aware, having made due andcareful enquiry, each member of the Group holds all licences,permissions, authorisations and consents necessary to enable it tocarry on the same business in all material respects as hitherto carriedon (including, without limitation, all necessary planning and otherconsents or permissions in relation to the properties owned or occupiedby it and all consents, authorisations and licences required underenvironmental and health and safety legislation) and so far as theCompany is aware all such licences, permissions, authorisations andconsents are in full force and effect and so far as the Company isaware there are no circumstances which indicate that any of them isreasonably likely to be revoked, rescinded, avoided or repudiated ornot renewed in whole, or in part, in the ordinary course ofevents. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.  | Save for grants of optionsunder the Share Option Schemes and the Employee Participation Schemesor pursuant to the Company's scrip dividend plan there are inforce no options or other agreements or arrangements which call for theissue to any person or accord to any person the right to call for theissue of any shares in the capital of the Group or any other securitiesof any member of the Group. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                         |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | Theexecution of this Agreement and the consummation of the transactionscontemplated by it will not, nor is likely to, cause the Company or anyof the Subsidiary Undertakings to lose the benefit of any materialright or privilege which it presently enjoys or any person who normallydoes business with the Company or the relevant Subsidiary Undertakingsnot to continue to do so on the samebasis. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 9.  | With respect to the Accountsand each announcement made by or on behalf of the Company to either ofthe Stock Exchanges or the UK Listing Authority since the date ofpublication of the Accounts, at the date that the Accounts werepublished or, as the case may be, at the date such announcement wasmade, all statements contained therein (other than expressions ofopinion, intention or expectation of the Directors) were true and fairin all material respects and not misleading in any material respect andare in accordance with the facts and do not omit anything likely toaffect the import of such statements and all expressions of opinion,intention or expectation of the Directors contained therein were whenmade fair and honestly held by the Directors and had been made onreasonable grounds and were fairly based and so far as the Company isaware, none of the statements or expressions were or are renderedmisleading in any material respect by the omission of anyinformation. |

|           |                                                                                                                                    |
|-----------|------------------------------------------------------------------------------------------------------------------------------------|
| 10.  | Since the AccountsDate all information required by Rules 9.1 and 9.2 of the Listing Ruleshas been notified to the Stock Exchanges. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 11.  | The entry into this Agreement and theperformance by the Company of its obligations under this Agreement,including the offer, allotment and issue of the Rights Issue Units inaccordance with the Rights Issue Documents and the provisions of thisAgreement will comply with the Articles of Association of the Companyand Waterford Wedgwood UK, FSMA, the Listing Rules and all otherrelevant laws and regulations of the United Kingdom and Ireland. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.  | The amounts borrowed by the Company donot exceed any limitation on its borrowing contained in its Articles ofAssociation and any debenture or other deed or document binding upon itand the Company has no outstanding loan capital and has not engaged infinancing of a type which would not require to be shown or reflected inaudited accounts (other than factoring of its debts) or borrowed anymoney which it has not repaid, save for borrowings specified in theListing Particulars. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 13.  | The Companymaintains appropriate insurance cover against fire and other risks uponall its assets and public and employer's liability, taking intoaccount the nature and scale of its activities and the provisions ofagreements binding upon it and such insurance is now in force and theCompany is not aware of any fact or matter which would lead to any suchinsurance being vitiated or repudiated and there is no claim which ismaterial in the context of the Group taken as a whole which is pendingor outstanding and all premiums in respect of such insurances have beenduly paid. |

38

----

PART VI

WARRANTIES ANDREPRESENTATIONS FOR THE BENEFIT OF EACH OF THE UNDERWRITERS(GIVEN ON THE POSTING DATE ONLY)

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | Allstatements of fact contained in the Rights Issue Documents are true andaccurate and not misleading. All statements of opinion, intention orexpectation contained in the Rights Issue Documents are made onreasonable grounds after due and proper consideration, are fair andhonest, and there are no facts known or which could on reasonableenquiry have been known to the Company which are not disclosed in theListing Particulars the omission of which would make misleading in anymaterial respect any statement therein, whether of fact or opinion, andin particular: |

|  |           |                                                                                                                                                                                                                                                                        |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | the financialinformation contained in the Listing Particulars gives a true and fairview of the profits and source of funds and cash flows for thefinancial period covered by the report and of the state of affairs ofthe Group as at the end of such financialperiod; |

|  |           |                                                                                                |
|--|-----------|------------------------------------------------------------------------------------------------|
|  | (b)  | the reasons for the RightsIssue are fairly and accurately described in the ListingParticulars; |

|  |           |                                                                                                                                                                                                                                                                                                |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | the Pro FormaConsolidated Balance Sheet included in the Listing Particulars has beenproperly compiled on the basis of the Group's auditedconsolidated financial statements for the six months ended 30 September2004, as adjusted for the Acquisition and the net proceeds of theRights Issue; |

|  |           |                                                                                                                                                                                                            |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (d)  | the interests (ifany) of the Independent Directors in the share capital of the Companyand in contracts and arrangements with the Company are fairly andaccurately described in the Listing Particulars;and |

|  |           |                                                                                                                                                                 |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (e)  | the Company has no materialsubsidiaries other than those identified in the Listing Particulars andthe Company is not itself the subsidiary of any othercompany. |

|          |                                                                                                                                                                                                                                                                                                                                                                                 |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | The Listing Particularscontain all such information as investors and their professionaladvisers would reasonably require and reasonably expect to find in theListing Particulars for the purpose of making an informed assessment ofthe assets and liabilities, financial position, profits and losses andprospects of the Group and of the rights attaching to the StockUnits. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | All statements made by or withthe express authority of the Company in connection with the Applicationfor certain information to be omitted from the Listing Particulars asbeing inapplicable or of minor importance only and not such as wouldinfluence assessment of the assets and liabilities, financial position,profits and losses and prospects of the Group or any other reasonpermitted by the applicable Listing Rules, were when made, and continueto be, true and accurate in all materialrespects. |

|          |                                                                                                                                                                                                                                       |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.  | The Working CapitalEstimates have been approved by the Board and have been prepared afterdue and careful enquiry and on the basis and assumptions stated in theWorking Capital Estimates, which the Company believes to bereasonable. |

|          |                                                                                                                                                                                                                                                                        |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.  | The answers to theVerification Notes have been prepared or approved by persons havingappropriate knowledge and responsibility to enable them properly toprovide such replies and are believed by the Company to be true,complete and accurate in all materialrespects. |

|          |                                                                                                                                                                                                                                                                                            |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.  | Upon satisfaction of theConditions and subject to the Underwriters complying with itsunderwriting obligations contained in Clause 6 of this Agreement, theGroup and the Enlarged Group will have sufficient working capital forat least the period of 12 months following the PostingDate. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.  | Except pursuant to thosepension arrangements disclosed in the Listing Particulars or in theaudited accounts made up to the Accounts Date, the Company is not underany liability or obligation (whether or not legally enforceable) whichis material to the Group taken as a whole to pay, provide or contributetowards any retirement, death or disability benefit for or in respectof any past officer or employee (or any spouse, child or dependant ofany of them) of the Company. |

39

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|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | The Companyhas not done or omitted to do any act, matter or thing in respect ofany agreement relating to intellectual property material to the Grouptaken as a whole which would impinge (to an extent which is material tothe Group taken as a whole) upon the validity or enforceability of thesame or upon the right of the Company to use the same nor are there anyoutstanding obligations of the Company whether as to payment orotherwise which if left outstanding would so impinge and which have notbeen provided for in the audited accounts of the Company for the yearended 31 March 2004. Save as disclosed in the Listing Particulars, theCompany owns or licences all intellectual property material to theGroup taken as a whole relating to the business of the Company freefrom all liens, charges and encumbrances and none of such intellectualproperty is the subject of any claim, opposition, assertion,infringement, attack, right, action or other restriction or arrangementof whatsoever nature which does or may impinge upon the validity,enforceability or ownership of the same or the utilisation thereof bythe Company to an extent which is material in the context of the Group.To the best of the knowledge, information and belief of the Company,having made due and careful enquiry, none of the activities of theCompany infringes any right of any other person relating tointellectual property. |

40

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FOURTH SCHEDULE

LETTER OFCONFIRMATION FROM THE COMPANY TO SPONSOR(GIVEN ON OR PRIOR TO THEANNOUNCEMENT DATE AND ON THE POSTING DATE)

|  | [Date] 2004 |
|--|-------------|

|           |                                                    |
|-----------|----------------------------------------------------|
| TO:  | J & E Davy Davy House 49 DawsonStreet Dublin 2 |

Dear Sirs

Proposed RightsIssue of 1,661,645,381 Units by Waterford Wedgwood plc at a price of€0.06 per New Stock Unit (the "RightsIssue")

We refer to the Rights Issue and to theUnderwriting Agreement relating thereto dated 21 October 2004 (the"**Underwriting Agreement**"). Words andexpressions defined in the Underwriting Agreement have the same meaningherein.

The Company hereby confirms to Sponsor that the Companyhas complied with its obligations under Clauses 2, 3, 4 and 5 of theUnderwriting Agreement solely to the extent such obligations fall to beperformed prior to the date hereof.

Subject to the limitationscontained in Clause 10.7 of the Underwriting Agreement, the Companyhereby confirms that none of the representations and warranties givenby it to Sponsor in Clause 10 of the Underwriting Agreement is breachedor untrue or inaccurate or misleading in any respect when made, none ofsuch representations and warranties would be breached or untrue orinaccurate or misleading in any respect were it to be repeated byreference to the facts and circumstances subsisting at the date hereofand none of the undertakings contained in Clause 10 of the UnderwritingAgreement has been breached by the Company.

Yoursfaithfully

|  |
|--|
|  |  |
|  |

Director For and on behalf ofWaterford Wedgwood plc

41

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FIFTH SCHEDULE

LETTER OFCONFIRMATION FROM THE COMPANY TO THE UNDERWRITERS(GIVEN ON ORPRIOR TO THE ANNOUNCEMENT DATE AND ON THE POSTING DATE)

|  | [Date] 2004 |
|--|-------------|

|     |  |                                                                          |  |         |  |                                                |  |  |  |  |  |  |  |  |
|-----|--|--------------------------------------------------------------------------|--|---------|--|------------------------------------------------|--|--|--|--|--|--|--|--|
| TO: |  | BirchfieldHoldings LimitedPO Box N-858Lyford ManorLyfordCayNassauBahamas |  | AND TO: |  | J & EDavyDavy House49 Dawson StreetDublin2 |
|     |

Dear Sirs

**Proposed Rights Issue of1,661,645,381 Units by Waterford Wedgwood plc at a price of€0.06 per New Stock Unit (the "RightsIssue")**

We refer to the Rights Issue and to theUnderwriting Agreement relating thereto dated 21 October 2004 (the"**Underwriting Agreement**"). Words andexpressions defined in the Underwriting Agreement have the same meaningherein.

The Company hereby confirms to each of the Underwritersthat the Company has complied with its obligations under Clauses 2, 3,4 and 5 of the Underwriting Agreement solely to the extent suchobligations fall to be performed prior to the date hereof.

Subject to the limitations contained in Clause 10.7 of theUnderwriting Agreement (solely to the extent that clause applies toclaims brought by an Underwriter), the Company hereby confirms thatnone of the representations and warranties given by it to each of theUnderwriters in Clause 10 of the Underwriting Agreement is breached oruntrue or inaccurate or misleading in any respect when made, none ofsuch representations and warranties would be breached or untrue orinaccurate or misleading in any respect were it to be repeated byreference to the facts and circumstances subsisting at the date hereofand none of the undertakings contained in Clause 10 of the UnderwritingAgreement has been breached by the Company.

Yours faithfully

_________________________

Director For and on behalf of Waterford Wedgwoodplc

42

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SIXTH SCHEDULE

LETTER OFCONFIRMATION FROM THE COMPANY TO SPONSOR(GIVEN ON THE CLOSINGDATE)

|  | [Closing Date] |
|--|----------------|

|           |                                                    |
|-----------|----------------------------------------------------|
| TO:  | J & E Davy Davy House 49 DawsonStreet Dublin 2 |

Dear Sirs

**Proposed Rights Issueof 1,661,645,381 Units by Waterford Wedgwood plc at a price of€0.06 per New Stock Unit (the "RightsIssue")**

We refer to the Rights Issue and to theUnderwriting Agreement relating thereto dated 21 October 2004 (the"**Underwriting Agreement**"). Words andexpressions defined in the Underwriting Agreement have the same meaningherein.

The Company hereby confirms to Sponsor that the Companyhas complied with its obligations under Clauses 2, 3, 4 and 5 of theUnderwriting Agreement solely to the extent such obligations fall to beperformed prior to the date hereof.

Subject to the limitationscontained in Clause 10.7 of the Underwriting Agreement, the Companyhereby confirms that none of the undertakings contained in Clause 10 ofthe Underwriting Agreement has been breached by the Company.

Yours faithfully

_________________________

Director For and on behalf of Waterford Wedgwoodplc

43

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SEVENTH SCHEDULE

LETTER OFCONFIRMATION FROM THE COMPANY TO THE UNDERWRITERS(GIVEN ON THECLOSING DATE)

|  | [Closing Date] |
|--|----------------|

|     |  |                                                                          |  |         |  |                                                |  |  |  |  |  |  |  |  |
|-----|--|--------------------------------------------------------------------------|--|---------|--|------------------------------------------------|--|--|--|--|--|--|--|--|
| TO: |  | BirchfieldHoldings LimitedPO Box N-858Lyford ManorLyfordCayNassauBahamas |  | AND TO: |  | J & EDavyDavy House49 Dawson StreetDublin2 |
|     |

Dear Sirs

**Proposed Rights Issue of1,661,645,381 Units by Waterford Wedgwood plc at a price of€0.06 per New Stock Unit (the "RightsIssue")**

We refer to the Rights Issue and to theUnderwriting Agreement relating thereto dated 21 October 2004 (the"**Underwriting Agreement**"). Words andexpressions defined in the Underwriting Agreement have the same meaningherein.

The Company hereby confirms to each of the Underwritersthat the Company has complied with its obligations under Clauses 2, 3,4 and 5 of the Underwriting Agreement solely to the extent suchobligations fall to be performed prior to the date hereof.

Subject to the limitations contained in Clause 10.7 of theUnderwriting Agreement (solely to the extent that clause applies toclaims brought by an Underwriter), the Company hereby confirms thatnone of the undertakings contained in Clause 10 of the UnderwritingAgreement has been breached by the Company.

Yours faithfully

_________________________

Director For and on behalf of Waterford Wedgwood plc

|                                    |  |                        |  |  |  |  |
|------------------------------------|--|------------------------|--|--|--|--|
| **SIGNED**by                       |  | Kyran McLaughlin       |
| duly authorised                    |  |                   |
| for and on behalfof                |  |                   |
| **J & E DAVY**                 |  |                   |
| (inits capacity as Sponsor)        |  |                   |
| in the presenceof:-                |  | Eugenée Mulhern |
| **SIGNED**by                       |  | KyranMcLaughlin        |
| duly authorised                    |  |                   |
| for and on behalf of               |  |                   |
| **J & EDAVY**                  |  |                   |
| (in its capacity as anUnderwriter) |  |                   |
| in the presenceof:-                |  | Eugenée Mulhern |
| **SIGNED**by                       |  | Patrick Dowling        |
|                                    |

44

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|                                 |  |                                   |  |  |  |  |
|---------------------------------|--|-----------------------------------|--|--|--|--|
| duly authorised                 |  |                              |
| for and on behalf of            |  |                              |
| **WATERFORD WEDGWOODplc**       |  |                              |
| in the presence of:-            |  | PaulD'Alton                       |
| **SIGNED**by                    |  | Pauline O'Donovan                 |
| duly authorised                 |  |                              |
| for and on behalfof             |  |                              |
| **BIRCHFIELD HOLDINGS LIMITED** |  |                              |
| in the presence of:-            |  | Security Officer, 30HerbertStreet |
|                                 |

45

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