Exhibit2.24

BURDALE FINANCIALLIMITED53 Queen Anne Street London W1G 9HP

Waterford Wedgwood plc1-2 Upper Hatch Street Dublin2Ireland

on behalf of the Obligors under the FacilityAgreement described below

and

Sir AnthonyO'Reilly Castlemartin KilcullenCo.KildareIreland

14 December 2004

DearSirs

FACILITY AGREEMENT DATED 30 SEPTEMBER 2004

|           |         |
|-----------|---------|
| (A)  | GENERAL |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | Werefer to the €210,000,000 and US$30,000,000 facilityagreement (the "**Facility Agreement**")dated 30 September 2004 and made between Waterford Wedgwood plc as theCompany (1), the Original Borrowers therein named (2), the OriginalGuarantors therein named (3), the Original Senior Lenders therein named(4), the Original Senior Tranche B Lenders therein named (5), theAncillary Facility Providers therein named (6) and ourselves as Agent(7). |

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|----------|---------------------------------------------------------------------------------------------------------|
| 2.  | Terms defined in the FacilityAgreement have the same meanings where used in this letter. In thisletter: |

|  |           |                                                          |
|--|-----------|----------------------------------------------------------|
|  | (a)  | "**AccountBank**" means Wachovia Bank NA, London Branch; |

|  |           |                                                                                  |
|--|-----------|----------------------------------------------------------------------------------|
|  | (b)  | "**Burdale**"means Burdale Financial Limited in its capacity as a Senior Lender; |

|  |           |                                                                                                                                                                                                                    |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | "**CashDeposit**" means the cash deposit of€25,000,000 to be placed by the Chargor with the AccountBank, as contemplated by paragraph (C)5 below (and includes anyextension, renewal or replacement thereof); |

|  |           |                                                                                                                          |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------|
|  | (d)  | "**Chargeover Deposit**" means a charge over the Cash Depositexecuted by the Chargor in the form annexed to this letter; |

|  |           |                                                                                          |
|--|-----------|------------------------------------------------------------------------------------------|
|  | (e)  | "**Chargor**"means Sir Anthony O'Reilly of Castlemartin, Kilcullen, Co.Kildare, Ireland; |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                               |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (f)  | "**EBITDA**"means in relation to the Group, for any financial year ending on orafter 31 March 2005, its consolidated profits for that period but (i)adding back any amounts in respect of interest, taxation, depreciationand amortisation, (ii) excluding any exceptional or extraordinaryprofit and (iii) adding back the non-cash costs of any rationalisationor reorganisation programme; |

|  |           |                                                                                                                                   |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------|
|  | (g)  | "**PensionPlan Deed of Amendment**" means a deed of amendment withrespect to the pension plan of RD, in the form attached hereto; |

|  |           |                                  |
|--|-----------|----------------------------------|
|  | (h)  | "**RD**"means Royal Doulton plc; |

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|  |           |                                                                                                                  |
|--|-----------|------------------------------------------------------------------------------------------------------------------|
|  | (i)  | "**RDAcquisition**" means the proposed acquisition of all orany of the RD Shares by Waterford Wedgwood U.K. plc; |

|  |           |                                                                                                            |
|--|-----------|------------------------------------------------------------------------------------------------------------|
|  | (j)  | "**RDShares**" means the ordinary shares in RD not alreadyowned by the Company or any of its Subsidiaries; |

|  |           |                                                                                |
|--|-----------|--------------------------------------------------------------------------------|
|  | (k)  | "**RightsIssue**" means the rights issue described in paragraph(A)4 below; and |

|  |           |                                                                                             |
|--|-----------|---------------------------------------------------------------------------------------------|
|  | (l)  | "**TotalSenior Facility Availability**" has the meaning given toit in paragraph (D)1 below. |

|          |                |
|----------|----------------|
| 3.  | In thisletter; |

|        |     |                                                                                                    |
|--------|-----|----------------------------------------------------------------------------------------------------|
|   | (a) | anyreference to a Default shall mean any Default other than one which hasbeen cured or waived; and |

|  |           |                                                                                                                                                                    |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | any payment required tobe made to a Blocked Account shall, subject to the terms of thisletter, be applied in accordance with clause 12.2 of the FacilityAgreement. |

|          |                                                                                                                                                                              |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.  | You propose to make an offerto acquire the RD Shares. In that connection, you also propose tolaunch an underwritten rights issue to raise gross proceeds of€99,700,000. |

|          |                                                                                                                                                             |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.  | This lettersets out certain terms and conditions upon which the Facility Agreementis to be amended, varied or waived in order to assist you in thisprocess. |

|          |                                                                                |
|----------|--------------------------------------------------------------------------------|
| 6.  | This letter is written to youin our capacity as Agent for the Finance Parties. |

|           |                                         |
|-----------|-----------------------------------------|
| (B)  | ACQUISITION OF RD SHARES/RDINDEBTEDNESS |

|          |                                                                                                                                                                              |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | For the purposes of clause24.5(a) of the Facility Agreement, the Majority Lenders consent to theRD Acquisition, provided that RD thereby becomes a Subsidiary of theCompany. |

|          |                                                                                                                                                                                                                                                                           |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | To the extent to which suchconsent may be required, the Majority Lenders also approve thearrangements under which (i) some or all of the proceeds of the RightsIssue are paid to the Company's registrars and (ii) such proceedsare applied in payment for the RD Shares. |

|          |                                                                                                                                                     |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | In the event that RD and/or its Subsidiariesare required to repay any of their facilities in consequence of RDbecoming a Subsidiary of the Company: |

|  |           |                                                                                                                                                                                                                                         |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | the Lenders consent to(i) the provision by the Company out of the Rights Issue proceeds of aloan to RD sufficient to enable it to repay such facilities and (ii)the making of the necessary repayment by RD to its existing lenders;and |

|  |           |                                                                                                                                                                                                 |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | the Companyshall procure that RD becomes an Additional Borrower in all respects inaccordance with the terms of the Facility Agreement within 30 days ofit becoming a Subsidiary of the Company. |

|          |                                                                                                                     |
|----------|---------------------------------------------------------------------------------------------------------------------|
| 4.  | The Lenders consent to the giving by theCompany of the guarantee contemplated by the Pension Plan Deed ofAmendment. |

|          |                                                                                                                                                   |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.  | The consents given pursuantto this paragraph (B) are given subject to the conditions that, at thetime of RD becoming a Subsidiary of the Company: |

|  |           |                                                                                                                                                                    |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | the Company receives orhas received net proceeds of at least €98,000,000 inrespect of the Rights Issue before any payment is made in respect ofthe RD Shares; |

|  |           |                                                                                                                                                                             |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | theAgent has received evidence that the maximum purchase price of the RDShares plus associated costs (excluding acquired indebtedness) will notexceed €55,000,000; and |

|  |           |                                                                                                          |
|--|-----------|----------------------------------------------------------------------------------------------------------|
|  | (c)  | the Agent has receiveda copy of the Pension Plan Deed of Amendment, duly executed by theparties thereto. |

|        |                                                                                                                                                                          |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | For the purposes of thisparagraph (B)5, the Company may allocate costs relating to the RightsIssue to be associated costs of the acquisition of RD Shares and viceversa. |

|          |                                                                                                                                                                 |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.  | On behalf of the MajorityLenders, we confirm that we have received a satisfactory business planfor the purposes of clause 4.3(b)(iv) of the Facility Agreement. |

2

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|           |                   |
|-----------|-------------------|
| (C)  | THE FACILITYLIMIT |

|          |                                                            |
|----------|------------------------------------------------------------|
| 1.  | At present, the Senior FacilityLimit is €140,000,000. |

|          |                                                                                                                                                                                                                                                                                                                                          |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | Notwithstanding that the Senior FacilityLimit has not yet become subject to increase in accordance with theterms of paragraph (D) of schedule 3 to the Facility Agreement, theLenders agree that the Senior Facility Limit is increased to€155,000,000. The Senior Commitment of Burdale is likewiseincreased to €155,000,000. |

|          |                                                                                                                                                                                                                                                                                              |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | If the syndication process contemplated byparagraph (D) of schedule 3 to the Facility Agreement results in theTotal Senior Commitments exceeding €155,000,000, theSenior Commitment of Burdale shall be €40,000,000 inaccordance with the terms of paragraph (D) of that schedule. |

|          |                                                                                                                                |
|----------|--------------------------------------------------------------------------------------------------------------------------------|
| 4.  | For the purposes of this paragraph (C), theAgent agrees that syndication will not close before  28 February2005 unless either: |

|  |           |                                            |
|--|-----------|--------------------------------------------|
|  | (a)  | the Company consents inwriting thereto; or |

|  |           |                                                             |
|--|-----------|-------------------------------------------------------------|
|  | (b)  | the Total SeniorCommitments have reached €210,000,000. |

|          |                                                                                                                                                                                   |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.  | The increase in the Senior Facility Limitand in the Senior Commitment of Burdale pursuant to paragraph (C)2above are subject to the conditions that the Agent shall havereceived: |

|  |           |                                                                         |
|--|-----------|-------------------------------------------------------------------------|
|  | (a)  | confirmationthat the Cash Deposit has been placed with the AccountBank; |

|  |           |                                                     |
|--|-----------|-----------------------------------------------------|
|  | (b)  | the Chargeover Deposit duly executed by theChargor; |

|  |           |                                                                                                                                                                     |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | confirmationfrom Matheson Ormsby Prentice, legal advisers to the Chargor, that theyhave advised him on the contents and legal effect of the Charge overDeposit; and |

|  |           |                                                                                                               |
|--|-----------|---------------------------------------------------------------------------------------------------------------|
|  | (d)  | anappropriate board resolution or other evidence that the Company hasauthorised the execution of this letter. |

|        |                                                                                                                                                                                                                                                                               |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | We confirm that we have received an opinion ofClifford Chance dated 9 December 2004 with respect to the borrowinglimits under the High Yield Bond Indenture and confirm that this is themost recent legal opinion for the purposes of clause 6.4(j) of theFacility Agreement. |

|          |                                        |
|----------|----------------------------------------|
| 6.  | The Companyundertakes to procure that: |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | the Agent receives,within seven days after RD has become a Subsidiary of the Company,satisfactory evidence that, when RD becomes an Additional Borrower, theTotal Senior Facility Availability shall exceed the outstandingUtilisations by at least €50,000,000 (taking into account(i) any enhanced availability by reference to the stock and receivablesof RD (and for these purposes, the Agent will assess such availabilityin good faith by reference to the information made available to it) and(ii) the enhanced availability resulting from the increase in theFacility Limit under paragraph (C)2 above); and |

|  |           |                                                                                                                                                                                                |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | the restructuringcharges associated with the RD Acquisition shall not exceed€20,000,000 during the twelve month period following thedate on which RD becomes a Subsidiary of the Company. |

|          |                                                                                                                                                                                                               |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.  | The Chargor shall be released from hisCharge over Deposit and (subject to sub-paragraph (C)7(b)(ii) below)the Cash Deposit shall be released to the Chargor in full if thefollowing conditions are satisfied: |

|  |           |                                                                                                                                                                                                                          |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | a corporate entityestablished in Jersey or in some other jurisdiction acceptable to theAgent executes a substitute charge over deposit in favour of the Agent,in substantially the same form as the Charge over Deposit; |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | either (i) such entityplaces a deposit of €25,000,000 with the Account Bank toform the subject matter of such charge over deposit or (ii) followingsatisfaction of the conditions listed in paragraphs (a), (c), (d) and(e) of this paragraph (C)7, the Chargor has requested the Agent totransfer, to an account established by the corporate entity for thepurposes of its charge, the Cash Deposit and the Account Bank hasimplemented such transfer; |

3

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|  |           |                                                                                                                                                                                                                                                                                                                                                                    |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | suchentity delivers to the Agent (i) a certified copy of its constitutionaldocuments, (ii) a list of its directors and shareholders, together withspecimen signatures, (iii) a certified copy of an appropriate boardresolution and (iv) either (x) a satisfactory report on its assets andliabilities or (y) satisfactory evidence that the entity has nottraded; |

|  |           |                                                                                                            |
|--|-----------|------------------------------------------------------------------------------------------------------------|
|  | (d)  | such entitycomplies with all applicable 'know your customer'requirements of the Account Bank and theAgent; |

|  |           |                                                                                                                                                                                                                                                                                                                                                                     |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (e)  | such entitydelivers to the Agent a legal opinion covering substantially thematters covered in the form annexed to this letter and otherwise as theAgent may approve acting reasonably (having regard to the nature andpurpose of the security), together with confirmation that the issuinglaw firm holds professional indemnity cover of at least€25,000,000. |

|          |                                                                                                                                                                     |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | The Agentshall carry out any request made to it by the Chargor in accordancewith the terms of paragraph (C)7(b)(ii) above and instruct the AccountBank accordingly. |

|          |                                                                    |
|----------|--------------------------------------------------------------------|
| 9.  | If the conditionslisted in paragraph (C)7 above are satisfiedthen: |

|  |           |                                                                         |
|--|-----------|-------------------------------------------------------------------------|
|  | (a)  | Sir AnthonyO'Reilly shall cease to be a party to this letter asChargor; |

|  |           |                                                                                                                                            |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | the entityreferred to in paragraph (C)7 above shall become the Chargor for thepurposes of this letter in place of Sir Anthony O'Reilly;and |

|  |           |                                                                                                                                                                   |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | all partiesshall execute such documentation as Burdale may require to give effectto the arrangements described in paragraph (C)7 above and in thisparagraph (C)9. |

|           |                                               |
|-----------|-----------------------------------------------|
| (D)  | DRAWING, REDUCTION ANDRELEASE OF CASH DEPOSIT |

|          |                                        |
|----------|----------------------------------------|
| 1.  | In clause 1.1 ofthe FacilityAgreement: |

|  |           |                                                                                 |
|--|-----------|---------------------------------------------------------------------------------|
|  | (a)  | thefollowing definition shall be inserted in its appropriate alphabeticalorder: |

|        |                                                                                                                  |
|--------|------------------------------------------------------------------------------------------------------------------|
|   | ""**CashDeposit**" has the meaning given to it in a letter fromthe Agent to the Company dated 14 December2004;"; |

|  |           |                                                                                                                   |
|--|-----------|-------------------------------------------------------------------------------------------------------------------|
|  | (b)  | thedefinition of "Total ReceivablesAvailability" shall be deleted and the following shall besubstituted therefor: |

|        |                                                                                                                                                                                 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ""**Total ReceivablesAvailability**" means (i) the aggregate of theReceivables Advance Amounts of all of the Eligible ReceivablesPLUS (ii) the amount of the Cash Deposit;";and |

|  |           |                                                                                  |
|--|-----------|----------------------------------------------------------------------------------|
|  | (c)  | the followingdefinition shall be inserted in its appropriate alphabetical order: |

|        |                                                                                                                                                                                                                                |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ""**Total SeniorFacility Availability**" means, at any relevant time,the aggregate of (i) the Total Availability and (ii) all amounts ofprincipal outstanding under the Equipment Loan Facility and theProperty Loan Facility. |

|          |                                                                                   |
|----------|-----------------------------------------------------------------------------------|
| 2.  | If any Obligorcompletes a disposal permitted pursuant to paragraph (G) belowthen: |

|  |           |                                                                                                            |
|--|-----------|------------------------------------------------------------------------------------------------------------|
|  | (a)  | the relevantObligor shall procure that the net proceeds of such disposal arecredited to a Blocked Account, |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | 30 per cent of such netproceeds shall be applied in or towards prepayment of the principalamounts then owing in respect of the Tranche B Loan in accordance withthe terms of the Facility Agreement but no prepayment or earlytermination fee shall be payable in respect of any such prepayment tothe Tranche B Lender. The Agent is irrevocably authorised to make suchpayment to the Tranche B Lender out of funds remitted to it from theBlocked Account concerned. |

|          |                                                                                                                 |
|----------|-----------------------------------------------------------------------------------------------------------------|
| 3.  | If, on anydate following receipt of the net disposal proceeds into a BlockedAccount under paragraph (D)2 above: |

|  |           |                                                                                                                        |
|--|-----------|------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | no Default issubsisting on such date (and for these purposes, the effect ofparagraph (F)3 below shall be disregarded); |

4

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|  |           |                                                                                                                                                                                                                                                                                                                                           |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | theaggregate amount of all outstanding Utilisations in respect of theSenior Facilities during the 30 day period prior to such date has at notime exceeded the Total Senior Facility AvailabilityLESS  €60,000,000 and will not exceed thatamount immediately following the release contemplated by this paragraph(D)3; and |

|  |           |                                                                                                                                                                                                                                                                                                                                     |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | EBITDA inrespect of the Group's most recently completed financial year wasnot less than €50,000,000 (as evidenced by the auditedconsolidated financial statements for that financial year and (to theextent such amounts cannot be extracted from the relevant financialstatements) opined on by the auditors to the Company), |

|        |                                                                                                                                                                                                                                                                                                                |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | then (i) at the option of the Company, theChargor or the Company shall be entitled to demand payment to theChargor out of the Cash Deposit of an amount equal to 70 per cent ofthe relevant net disposal proceeds and (ii) the Agent shall giveinstructions to the Account Bank to give effect to that demand. |

|          |                                                                                                                                                                                                                                                                                    |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.  | On request by the Company or the Chargor,the Agent will give notice to the Account Bank requiring it to releaseto the Chargor from the Cash Deposit an amount ascertained pursuant toparagraph (D)6 below if the performance criteria listed in paragraph(D)5 below have been met. |

|          |                                                                                  |
|----------|----------------------------------------------------------------------------------|
| 5.  | For thepurposes of paragraph (D)4 above, the performance criteria are asfollows: |

|  |           |                                                                                                                                      |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | no Defaultis subsisting at the date of the request (and, for these purposes, theeffect of paragraph (F)3 below shall bedisregarded); |

|  |           |                                                                                                                                                                                                                                                                                                                                               |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | theaggregate amount of all outstanding Utilisations in respect of theSenior Facilities during the 30 day period prior to such release has atno time exceeded the Total Senior Facility AvailabilityLESS  €60,000,000 and will not exceed thatamount immediately following the release contemplated by paragraph (D)4above; and |

|  |           |                                                                                                                                                                                                                                                                                                                                     |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | EBITDA inrespect of the Group's most recently completed financial year wasnot less than €65,000,000 (as evidenced by the auditedconsolidated financial statements for that financial year and (to theextent such amounts cannot be extracted from the relevant financialstatements) opined on by the auditors to the Company). |

|          |                                                                                                                                                                     |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.  | The amount to be released to the Chargorpursuant to paragraph (D)4 above shall be the amount by which EBITDAunder paragraph (D)5(c) above exceeds €65,000,000. |

|          |                                                                                                                                                                                                                                                                                                                                                                                       |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.  | Interest accruing on the Cash Deposit shallfall outside the scope of the security created by the Charge overDeposit and shall be released to the Chargor on its due date. Theprincipal amount of the Cash Deposit shall only be released inaccordance with the other provisions of this letter or when all amountsowing under the Finance Documents have been finally repaid in full. |

|          |                                                                                                                                                                                                |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | The Lenders consent to the Obligorsexecuting a counter-indemnity or similar obligation with respect to theCash Deposit arrangements in favour of the Chargor, subject toparagraph (D)12 below. |

|          |                                                                                                                                                                                                                                                                                                                                                               |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 9.  | The Agent shallonly draw funds from the Cash Deposit if the Company has gone intoliquidation, administration, examination or equivalent insolvencyproceedings at least six months prior to the date of such drawing. Theamount so drawn may not exceed the aggregate of the amounts whichremain owing under the Finance Documents at the time of suchdrawing. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                        |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.  | Amounts drawn under paragraph(D)9 above shall, without prejudice to the Chargor's rights ofsubrogation, be immediately applied to reduce amounts in respect ofprincipal owing to the Senior Lenders under the Senior Facility and,following repayment of the Senior Lenders in full, to reduce amounts inrespect of principal owing to the Senior Tranche B Lender under theSenior Tranche B Facility. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 11.  | The Companyand the Lenders acknowledge that the Chargor has executed this letterand the Charge over Deposit at the request of the Company and that,upon the Agent drawing funds from the Cash Deposit, the Chargor shall,subject to paragraph (D)12 below,  be subrogated to the rights ofthe relevant Finance Parties to the extent of the amounts of theSenior  Facilities  which have been repaid utilising suchfunds. Whilst Burdale acknowledges the existence of such right ofsubrogation, it gives no representation or warranty as to its validity,enforceability or availability under any particular circumstances. |

5

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|           |                               |
|-----------|-------------------------------|
| 12.  | The Chargoracknowledges that: |

|  |           |                                                                                                    |
|--|-----------|----------------------------------------------------------------------------------------------------|
|  | (a)  | he has receivedadequate consideration for the execution of this letter and the Chargeover Deposit; |

|  |           |                                                                                                                                                                                                                                                                                                                                                                 |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | theChargor undertakes (in favour of the Finance Parties) that he will notseek to exercise against any Obligor any right of subrogation,counter-indemnity or similar right with respect to any payment made toany Finance Party out of the Cash Deposit unless and until all amountsowing pursuant to the Finance Documents have been finally repaid infull; and |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | notwithstandingparagraph (D)12(b) above, in the event of a liquidation of any Obligor,the Chargor may prove in the liquidation for amounts owing to him bythat Obligor but, until all amounts owing pursuant to the FinanceDocuments have been finally repaid in full he shall pay any amounts soreceived to the Agent. The Agent shall hold such amounts (which shallbear interest at the rate from time to time paid by the Account Bank)on a suspense account until it is satisfied that no further recoveriescan be made from the Obligors. It shall then apply such moneys in ortowards payment of the amounts owing under the Finance Documents andrelease any balance to the Chargor, in each case together with theinterest thereon. If the amounts owing to the Finance Parties are paidin full at any time, then the Agent shall release the moneys insuspense (including the interest earned thereon) to the Chargor andthis clause (D)12(c) shall cease to apply. |

|           |                                       |
|-----------|---------------------------------------|
| (E)  | AVAILABILITY BLOCKS/SUBORDINATED DEBT |

|          |                                                                |
|----------|----------------------------------------------------------------|
| 1.  | There subsist at present the followingReserves (among others): |

|  |           |                                                                                                                       |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------|
|  | (a)  | a Reserve totalling€40,000,000 in respect of the WW Subordinated Facility andthe Rosenthal SubordinatedFacility; |

|  |           |                                                                        |
|--|-----------|------------------------------------------------------------------------|
|  | (b)  | a Reserveof €5,000,000 in respect of the Ancillary Facilities;and |

|  |           |                                         |
|--|-----------|-----------------------------------------|
|  | (c)  | a permanentReserve of €20,000,000. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | Notwithstanding any other provision of theFinance Documents or this letter, Reserves equal to€65,000,000 will remain effective (regardless of anyrepayments or other matters affecting the WW Subordinated Facility, theRosenthal Subordinated Facility or the Ancillary Facilities) until 31December 2006. Thereafter, these Reserves may only be released orreduced in accordance with the terms of paragraphs (E)3, 4 or 5below. |

|          |                                                                                                                                                        |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | The permanent Reserve of€20,000,000 may only be released if the conditions set outin the Facility Agreement for that purpose have been satisfied. |

|          |     |
|----------|-----|
| 4.  | If: |

|  |           |                                                                                           |
|--|-----------|-------------------------------------------------------------------------------------------|
|  | (a)  | the Cash Deposit hasbeen released in full in accordance with the terms of this letter;and |

|  |           |                                                                                   |
|--|-----------|-----------------------------------------------------------------------------------|
|  | (b)  | the conditionsset out in paragraph D(5) above are met on any subsequent occasion, |

|        |                                                                                                                                                                                                                                                                               |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | then (save insofar as such excess EBITDA haspreviously been used to secure a return of all or any part of the CashDeposit), the Reserve of €40,000,000 shall be reduced bythe amount by which EBITDA in respect of any completed financial yearexceeds €65,000,000. |

|          |                                                                                                                                                                                                                                                                                            |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.  | Thefirst reduction of any Reserve pursuant to paragraph (E)3 or 4 abovemay occur on or after 1 January 2007 with reference to auditedconsolidated financial statements prepared with reference to thefinancial year ending in 2005 or 2006, provided that the necessaryconditions are met. |

|          |                                                                                                                              |
|----------|------------------------------------------------------------------------------------------------------------------------------|
| 6.  | The followingprovision shall be inserted into clause 24.10 of the Facility Agreementin substitution for the existing clause: |

|        |                                                                                                                                         |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|   | "The Company shall procure thatneither the WW Subordinated Facility nor the Rosenthal SubordinatedFacility is repaid or prepaid except: |

|  |           |                                                                                                                                                                                                                                                                      |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (i)  | to the extent of anycorresponding reduction in the Reserves attributable to that debt inaccordance with the terms of the letter from the Agent to the Companyand others dated 14 December 2004 signed by the Agent and the Company(the "**Relevant Letter**");and/or |

6

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|  |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (ii)  | ifthe Company elects  by notice to the Agent to use 70% ofthe net proceeds of   any disposal permitted pursuant toparagraph (G) of the Relevant Letter for this purpose and not for therelease of the Cash Deposit referred to in the Relevant Letter, in anamount equal to 70% of such net proceeds provided thatimmediately following such payment the amounts outstanding  underthe Senior Facilities do not exceed the Total Senior Availability LESS€60,000,000; and /or |

|  |             |                                           |
|--|-------------|-------------------------------------------|
|  | (iii)  | with the consent ofthe Required Lenders." |

|          |                                                                                                                                                                                                                                        |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.  | TheLenders consent to any repayment or prepayment of the WW SubordinatedFacility or Rosenthal Subordinated Facility which is made in accordancewith clause 24.10 of the Facility Agreement as amended pursuant toparagraph (E)6 above. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | If any payment ismade in respect of the WW Subordinated Facility or the RosenthalSubordinated Facility, the Company shall at the same time prepay theTranche B Loan in an amount equal to 30 per cent of such payment, inaccordance with the terms of the Facility Agreement. No prepayment orearly termination fee shall be payable in respect of any suchprepayment to the Tranche B Lender. |

|           |                     |
|-----------|---------------------|
| (F)  | FINANCIAL COVENANTS |

|          |                                                                                                                                          |
|----------|------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | Paragraph (B) of schedule 3 to the FacilityAgreement sets out the Net Worth and Trading Cashflow covenants to beachieved by the Company. |

|          |                                                                                                                                                                             |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | The tables setout under paragraph 1(b) of paragraph (B) of schedule 3 to the FacilityAgreement shall be deleted and replaced by the terms set out in Annex 1to this letter. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                 |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | If, during the last 30days of any Review Period, the aggregate amount of all outstandingUtilisations in respect of the Senior Facilities has at no timeexceeded the Total Senior Facility Availability LESS the StipulatedHeadroom, then the Company shall not be obliged to comply with thefinancial covenants in respect of that particular Review Period. Forthese purposes, the "Stipulated Headroom"means: |

|  |           |                                                                                           |
|--|-----------|-------------------------------------------------------------------------------------------|
|  | (a)  | in respectof any Review Period ending on or before 31 December 2005,€15,000,000; and |

|  |           |                                                              |
|--|-----------|--------------------------------------------------------------|
|  | (b)  | in respect of anysubsequent Review Period, €25,000,000. |

|          |                                                                                                                                                                                                                                                                                                                 |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.  | In calculating Net Worth for the purposes ofthe financial covenants in relation to RD and its Subsidiaries, anappropriate deduction shall be made to reflect any provision whichwould be required pursuant to FRS17 (to the extent not alreadyreflected in the financial statements of RD and itsSubsidiaries). |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.  | If RD does not become aSubsidiary of the Company and the offer relating to the RD Acquisitionlapses, the financial covenants set out in paragraph (B) of Schedule 3of the Facility Agreement shall be amended to reflect the receipt ofthe Rights Issue proceeds and the Group's current trading. If theCompany and or its agent has received the net proceeds of the RightsIssue at that time, then the Charge over Deposit shall be released andthe Cash Deposit shall be released to the Chargor in full. If the netproceeds of the Rights Issue have not been so received, then the CashDeposit shall remain subject to the Charge over Deposit in accordancewith the terms of this letter. |

|          |                                                                                                                                                                                                                                                                                                                                               |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.  | If theCompany fails to meet its 2004/2005 "6 plus6" Group profits before tax forecast cumulatively at theend of any month ending after the date of this letter, the Agent mayrequire the Company to instruct PWC or another adviser acceptable tothe Required Lenders to review such aspects of the Group'sbusiness as the Agent may specify. |

|           |                     |
|-----------|---------------------|
| (G)  | PERMITTED DISPOSALS |

|          |                                                                                                                                 |
|----------|---------------------------------------------------------------------------------------------------------------------------------|
| 1.  | Subject to paragraph (G)2 below, thefollowing disposals are permitted for the purposes of clause 24.4 ofthe Facility Agreement: |

|  |           |                                                             |
|--|-----------|-------------------------------------------------------------|
|  | (a)  | any disposal listed inSchedule 8 of the Facility Agreement; |

|  |           |                                                                                                        |
|--|-----------|--------------------------------------------------------------------------------------------------------|
|  | (b)  | the disposal of theWaterford Sports Ground following receipt of planning permission forcommercial use; |

7

----

|  |           |                                                                                     |
|--|-----------|-------------------------------------------------------------------------------------|
|  | (c)  | thedisposal of the assets or business of, or shares in, Spring SwitzerlandGmbH; and |

|  |           |                                                                        |
|--|-----------|------------------------------------------------------------------------|
|  | (d)  | thedisposal of IT equipment, on terms approved by the RequiredLenders. |

|          |                                                                                        |
|----------|----------------------------------------------------------------------------------------|
| 2.  | The approvals given underparagraph (G)1 above are subject to the following conditions: |

|  |           |                                                    |
|--|-----------|----------------------------------------------------|
|  | (a)  | any disposal iseffected on arms' length terms; and |

|  |           |                                                                           |
|--|-----------|---------------------------------------------------------------------------|
|  | (b)  | the net proceeds of anysuch disposal must be paid into a Blocked Account. |

|           |                                           |
|-----------|-------------------------------------------|
| (H)  | FINANCIAL INDEBTEDNESS AND NEGATIVEPLEDGE |

|          |                                                                                                                                                                                                                                                                                                                       |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | Subject to paragraph (H)2 below,the raising of Financial Indebtedness by RD or any of its Subsidiariesup to an amount equivalent to €12,000,000 and the creationof a corresponding Security Interest over premises in Indonesia, areapproved for the purposes of clauses 24.3 and 24.8 of the FacilityAgreement. |

|          |                                                                                  |
|----------|----------------------------------------------------------------------------------|
| 2.  | The approvals given underparagraph (H)1 above are subject to the followingterms: |

|  |           |                                                                                         |
|--|-----------|-----------------------------------------------------------------------------------------|
|  | (a)  | the netproceeds of such secured financing transaction are credited to aBlocked Account; |

|  |           |                                                                                                                                                                                                                                                                                                                           |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | anamount equal to 30 per cent of such net proceeds are applied inprepayment of the principal amounts owing in respect of the Tranche BLoan in accordance with the terms of the Facility Agreement but noprepayment or early termination fee shall be payable in respect of anysuch prepayment to the Tranche B Lender;and |

|  |           |                                                                                                  |
|--|-----------|--------------------------------------------------------------------------------------------------|
|  | (c)  | receipt by theAgent of documentation affording to it acceptable access to thepremises concerned. |

|           |      |
|-----------|------|
| (I)  | FEES |

|          |                                                                                                                                                                                           |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | TheCompany will pay a fee of an amount and at the time separately agreedin a letter of even date herewith, for distribution among the Lendersin such proportions as they may have agreed. |

|           |               |
|-----------|---------------|
| (J)  | MISCELLANEOUS |

|          |                                    |
|----------|------------------------------------|
| 1.  | This letter is a Finance Document. |

|          |                                                                                                                                                                                                                                      |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | Save as amended by this letter, the FinanceDocuments shall remain in full force and effect in accordance withtheir terms. In the event of any inconsistency between this letter andthe Finance Documents, this letter shall prevail. |

|          |                                         |
|----------|-----------------------------------------|
| 3.  | This letter is governed by English law. |

Please confirm your agreement by counter-signing a copy of thisletter.

Yours faithfully

/s/ Nigel HoggFor and onbehalf of**Burdale Financial Limited**

Weagree

/s/ PatrickDowling                                    

WaterfordWedgwood plc (on behalf of itself and the other Obligors)

I agree

/s/ AnthonyO'Reilly                                 

SirAnthony O'Reilly

8

----

Attachments:

Annex 1(Financial Covenants)

Annex 2 (Pension Plan Deed ofAmendment)

Annex 3 (Form of Charge over Deposit)

Annex 4(Form of Legal Opinion)

ANNEX1

|                                      |  |                              |        |                                    |  |        |        |         |  |  |
|--------------------------------------|--|------------------------------|--------|------------------------------------|--|--------|--------|---------|--|--|
| (A)REVIEWPERIOD (ending on or about) |  | (B)NET WORTH(€ million) |        | (C)TRADING CASHFLOW(€million) |
| Fiscal2005                           |  |                         |   |                               |  |   |   |    |
| October'04                           |  |                         | 119.0  |                               |  |   | (111.0 | )  |
| November'04                          |  |                         | 119.0  |                               |  |   | (111.0 | )  |
| December'04                          |  |                         | 119.0  |                               |  |   | (115.0 | )  |
| January'05                           |  |                         | 119.0  |                               |  |   | (117.0 | )  |
| February'05                          |  |                         | 100.0  |                               |  |   | (145.0 | )  |
| March'05                             |  |                         | 80.0   |                               |  |   | (160.0 | )  |
| Fiscal2006                           |  |                         |   |                               |  |   |   |    |
| April'05                             |  |                         | 70.0   |                               |  |   | (160.0 | )  |
| May'05                               |  |                         | 70.0   |                               |  |   | (155.0 | )  |
| June'05                              |  |                         | 70.0   |                               |  |   | (155.0 | )  |
| July'05                              |  |                         | 60.0   |                               |  |   | (140.0 | )  |
| August'05                            |  |                         | 60.0   |                               |  |   | (140.0 | )  |
| September'05                         |  |                         | 60.0   |                               |  |   | (90.0  | )  |
| October'05                           |  |                         | 65.0   |                               |  |   | (75.0  | )  |
| November'05                          |  |                         | 70.0   |                               |  |   | (75.0  | )  |
| December'05                          |  |                         | 75.0   |                               |  |   | (55.0  | )  |
| January'06                           |  |                         | 70.0   |                               |  |   | (55.0  | )  |
| February'06                          |  |                         | 65.0   |                               |  |   | (40.0  | )  |
| March'06                             |  |                         | 65.0   |                               |  |   | (20.0  | )  |
| Fiscal2007                           |  |                         |   |                               |  |   |   |    |
| April'06                             |  |                         | 60.0   |                               |  |   | (10.0  | )  |
| May'06                               |  |                         | 60.0   |                               |  |   | 0.0    |    |
| June'06                              |  |                         | 60.0   |                               |  |   | 0.0    |    |
| July'06                              |  |                         | 60.0   |                               |  |   | 0.0    |    |
| August'06                            |  |                         | 60.0   |                               |  |   | 5.0    |    |
| September'06                         |  |                         | 60.0   |                               |  |   | 5.0    |    |
| October'06                           |  |                         | 70.0   |                               |  |   | 10.0   |    |
| November'06                          |  |                         | 70.0   |                               |  |   | 10.0   |    |
| December'06                          |  |                         | 70.0   |                               |  |   | 15.0   |    |
| January'07                           |  |                         | 75.0   |                               |  |   | 15.0   |    |
| February'07                          |  |                         | 75.0   |                               |  |   | 15.0   |    |
| March'07                             |  |                         | 75.0   |                               |  |   | 20.0   |    |
|                                      |

9

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