Exhibit4.8

J & E DAVY (AS SPONSOR)

BIRCHFIELD HOLDINGS LIMITED

AND

WATERFORD WEDGWOOD PLC

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RIGHTS ISSUE UNDERWRITINGAGREEMENT

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DATED 20 June2005

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TABLE OF CONTENTS

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| **1.      INTERPRETATION**                   |  | 3  |
| **2.      CONDITIONS**                       |  | 9  |
| **3.      APPOINTMENTS**                     |  | 11 |
| **4.      REGISTRATION ANDAPPLICATION**      |  | 11 |
| **5.      ALLOTMENT**                        |  | 12 |
| **6.      SPONSOR / UNDERWRITEROBLIGATIONS** |  | 14 |
| **7.      PAYMENT**                          |  | 16 |
| **8.      SETTLEMENT**                       |  | 17 |
| **9.      FEES, COMMISSIONS ANDEXPENSES**    |  | 17 |
| **10.    WARRANTIES ANDUNDERTAKINGS**                  |  | 19 |
| **11.    RELEASE ANDINDEMNITY**                        |  | 21 |
| **12.    TERMINATION**                                 |  | 23 |
| **13.    CONTINUING OBLIGATIONS ANDCONSENTS**          |  | 24 |
| **14.    ANNOUNCEMENTSAND INFORMATION**                |  | 25 |
| **15.    GENERAL**                                     |  | 25 |
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**THISAGREEMENT** is made on 20 June 2005

**BETWEEN**:

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| (1)  | **J & E DAVY**, an unlimited companyregistered in Ireland under number 106680, having its registered officeat Davy House, 49 Dawson Street, Dublin 2("Sponsor"); |

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| (2)  | **BIRCHFIELD HOLDINGS LIMITED**, anInternational Business Company registered in the British Virgin Islandsunder number 458528, having its registered office at Trident Chambers,PO Box 146, Road Town, Tortola, British Virgin Islands("Birchfield"); and |

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| (3)  | **WATERFORD WEDGWOOD PLC**, a publiclimited company registered in Ireland under number 11861, having itsregistered office at Kilbarry, Waterford (the"Company"). |

**WHEREAS**:

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| (A)  | The Company is a public limited companyincorporated in Ireland under number 11861 and has at the date of thisAgreement an authorised share capital of €210,000,000divided into 3,500,000,000 ordinary shares of €0.06 each,of which 2,658,632,610 are in issue and fully paid up. |

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| (B)  | The Company proposes to raise up to€101,000,000 (before commissions and expenses) by means ofthe Rights Issue at the Price and on the terms to be set out in theProspectus and the PALs. |

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| (C)  | Birchfield(the "Underwriter") has agreed to underwritethe Rights Issue at the Price on the terms and subject to theconditions of this Agreement and on the terms and conditions which willbe contained in the Rights Issue Documents. |

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| (D)  | Sponsor has agreed to sponsor the RightsIssue on the terms and subject to the conditions of this Agreement andon the terms and conditions which will be contained in the Rights IssueDocuments. |

**IT IS AGREED**as follows:

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| 1.  | INTERPRETATION |

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| 1.1  | Definitions |

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

**"2004 Rights Issue"**means the 5 for 3 rights issue of 1,661,645,381 Stock Units asdetailed in the listing particulars document dated 15 December 2004issued to Stockholders;

"**Accounts**"means the Group's reported audited financial statements as at orfor the 12 month period ended on the Accounts Date (being theGroup's last reported audited financial statements);

"**Accounts Date**"means 31 March 2005;

"**Admission**"means the 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;

"**Application**"means the applications for Admission to be made by Sponsor on behalf ofthe Company;

"**BirchfieldRelevant Persons**" or **"UnderwriterRelevant Persons"**means Birchfield and (a) Sir AnthonyO'Reilly, Mr Peter John Goulandris and theO'Reilly/Goulandris Interests; (b) each 

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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**" meansthe board of directors of the Company from time to time;

"**BoardResolutions**" means the resolutions of the Board toapprove this Agreement and its execution and of the Board and the boardof directors of Waterford Wedgwood UK to approve the Rights IssueDocuments 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;

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

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

"**Concert Party**"means Birchfield, the O'Reilly/Goulandris Interests, Sir AnthonyO'Reilly, Mr Peter John Goulandris, the directors of Birchfieldand any spouse, parent, sibling or child of any of the foregoing and areference to a "member of the Concert Party"means any one of those persons;

"**Conditions**"means the conditions set out in Clause 2.1;

"**CREST**" meansthe relevant system for the paperless settlement of trades and theholding, of uncertificated securities operated by CRESTCo in accordancewith the CREST 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);

"**CRESTRegulations**" means the Companies Act 1990(Uncertificated Securities) Regulations 1996 (SI No 68/1996) and the UKUncertificated Securities Regulations 2001 (SI 2001/3755);

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

"**Davy RelevantPersons**" means Sponsor and (a) each undertaking whichis, on or at any time after the date of this Agreement, a subsidiaryundertaking or parent undertaking of Sponsor or a subsidiaryundertaking of a parent undertaking of Sponsor (including for theavoidance of doubt, Davy Corporate Finance Limited); and (b) eachperson who is, on or at any time after the date of this Agreement, adirector, officer or employee of Sponsor or an undertaking specified insub paragraph (a) of this definition;

"**Directive**"means European Parliament and Council Directive 2003/71/EC and anyamending legislation in effect prior to the date of Admission FullyPaid;

"**Directors**"means all 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;

"**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;

"**EngagementLetter**" means the letter from Davy Corporate FinanceLimited to the Company dated 30 May 2005 confirming the scope of theengagement by the Company of Davy Corporate Finance Limited and Sponsor(in the latter's capacity as sponsor of the Rights Issue underthe Listing Rules);

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"**ExtraordinaryGeneral Meeting**" means the extraordinary generalmeeting of the Company to be held no later than the day prior to thePosting Date for the purpose of passing the Increase/AuthorisationResolution and the Waiver Resolution or any adjournment of suchmeeting;

"**Form ofProxy**" means the form of proxy in connection with theExtraordinary General Meeting;

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

"**FSMA**" meansthe Financial Services and Markets Act 2000 of the United Kingdom andany amending legislation in effect prior to the date of Admission FullyPaid;

"**Group**" meansthe Company and the Subsidiary Undertakings and "member ofthe Group" or "Group Company"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 contained in thenotice of meeting convening the Extraordinary General Meeting;

"**IndependentDirectors**" means all of the Directors except for SirAnthony O'Reilly, Mr Peter John Goulandris, Lady O'Reillyand Mr Tony O'Reilly, Jnr and any other Director who is directedby any of the Irish Stock Exchange, the UKLA or the Panel to abstainfrom participating 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;

"**Listing Rules**"means the listing rules of the Irish Stock Exchange and/or, whereappropriate, the listing rules of the UK Listing Authority, as suchrules may be amended prior to Admission;

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

"**Long StopDate**" means 30 September 2005 or such other date asthe Company, the Underwriter and Sponsor may agree in writing;

"**member accountID**" means the identification code or number attachedto any member account in 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 theUK Listing 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, and IndexiaHoldings Limited who hold, in aggregate, 530,974,324 Stock Units at thedate of this Agreement; and (ii) Mr Peter John Goulandris has aninterest, being currently Stoneworth Investment Limited, Albany HillLimited, Araquipa International Limited and Cressborough HoldingsLimited who hold, in aggregate, 651,935,092 Stock Units at the date ofthis Agreement. At the date of this Agreement, due to common interests,Sir Anthony O'Reilly and Mr Peter John Goulandris are inaggregate interested in 654,212,329 Stock Units through theO'Reilly/Goulandris Interests;

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"**PAL**"means a renounceable provisional allotment letter in the agreed form tobe issued in connection with the Rights Issue by the Company to certainQualifying Non CREST Stockholders in respect of the Nil PaidRights;

"**Panel**" meansthe Irish Takeover Panel;

"**ParticipantID**" means the identification code or membership numberused in CREST to identify a particular CREST member or other CRESTparticipant;

"**PostingDate**" means the date on which the Company publishesthe Prospectus and despatches the PALs being not later than 31 August2005 or such other date as the Company, the Underwriter and Sponsor mayagree in writing;

"**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;

"**Prospectus**"means the prospectus document or listing particulars for the purposesof the Rights Issue relating to the Company and the Group, as requiredby the Regulations and the Listing Rules, in a form approved by Sponsorin accordance with Clause 2.2, which will contain an unqualifiedstatement to the effect that, taking into account existing financingfacilities and the proceeds of the Rights Issue, the working capitalavailable to the Group is sufficient for its present requirements, thatis for at least the next 12 months following the Posting Date;

"**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 Underwriter andSponsor may agree in writing;

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

"**Regulations**"means the European Communities (Stock Exchange) Regulations 1984 andthe European Communities (Transferable Securities and Stock Exchange)Regulations 1992 or any regulations issued in substitution thereforpursuant to Directive 2003/71/EC of the European Parliament and of theCouncil of the European Union of 4 November 2003;

"**Resolutions**"means any 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 Prospectus and/or the PALs would constitute a breachof local law or regulation and where to avoid such breach the stepsrequired 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 7 Rights Issue Units forevery 11 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 Prospectus and the PAL;

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

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"**RightsIssue Units**" means the 1,691,857,115 Stock Units to beallotted pursuant to the Rights Issue;

**"SeniorFacilities"** means the facilities agreement dated 30September 2004 between, amongst others, the Company and BurdaleFinancial Limited as amended, varied or supplemented from time totime;

"**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;

"**StockExchanges**" means the Irish Stock Exchange and theLondon Stock Exchange;

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

"**Stock Unit**"means one 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;

"**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**" meansvalue added tax;

"**VerificationNotes**" means the questions to be prepared by theCompany's Solicitors to verify statements in the Prospectus andthe answers to such questions in a form satisfactory to Sponsor actingreasonably;

"**Waiver**" meansa waiver 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 Takeover Panel Act 1997, TakeoverRules 2001 granted by the Panel conditional on the approval of theIndependent Shareholders at an extraordinary general meeting and withno other conditions attaching which would materially constrain orimpose obligations on any member of the Concert Party with regard tothe acquisition, 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);

"**WaiverResolution**" means the ordinary resolution relating tothe grant of approval of the Independent Shareholders referred to inthe definition of the term "Waiver" above tobe proposed at the Extraordinary General Meeting and contained in thenotice of meeting convening the Extraordinary General Meeting;

"**Warranties**"means (a) in respect of Sponsor, the warranties, agreements,indemnities and representations expressed to be for the benefit ofSponsor set out in Clause 10 and the warranties and representations setout in Parts I, II and III of the Third Schedule and (b) in respect ofthe Underwriter, the warranties, agreements, indemnities andrepresentations expressed to be for the benefit of the Underwriter 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

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"**WorkingCapital Estimates**" means the working capital estimatesto be prepared by the Company for the Group for the 18 month periodfollowing the Posting Date.

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| 1.2  | Interpretation |

Where used in this Agreement, the terms"subsidiary", "financialyear" and "connected persons"shall have the meanings respectively attributed to them by theCompanies Acts at the date of this Agreement and the terms"subsidiary undertaking" and"parent undertaking" shall have the meaningsrespectively attributed to them by the European Community (Companies:Group Accounts) Regulations 1992.

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| 1.3  | Legislation |

Areference to any statutory provision in this Agreement:

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

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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 be construedas a reference to any statutory provision of which such statutoryprovision is a re enactment or consolidation. |

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| 1.4  | Headings |

Theheadings in this Agreement are for convenience only and shall notaffect its meaning.

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| 1.5  | Reference toClauses, 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(where appropriate) include any other gender and words importing thesingular shall (where appropriate) include the plural and viceversa.

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| 1.7  | Agreed form |

A document expressed to be "inagreed form" means a document, the terms, conditions andform of which have been agreed by the parties to this Agreement priorto the despatch of that document and a copy of which has beenidentified as such and initialled by or on behalf of the parties tothis Agreement (subject to any further amendments as the parties tothis Agreement may subsequently agree).

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| 1.8  | Material |

Inthis Agreement, unless the context otherwise requires, a reference tothe word "material" means material in thecontext of the Rights Issue in the reasonable opinion of Sponsor and/orthe Underwriter, as appropriate, and"materially" shall be construedaccordingly.

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| 1.9  | Best of knowledge |

Unless expressly stated otherwise, where anystatement is qualified by the expression "to the best ofthe 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 proper enquiries".

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| 2.  | CONDITIONS |

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| 2.1  | Conditions |

The obligations of Sponsor andof the Underwriter pursuant to this Agreement are conditional upon thefulfilment or waiver (in the manner provided for below) of each of thefollowing conditions by not later than the time or date specifiedtherein (or such later date as the Company, Sponsor and the Underwritermay agree in writing but not being later than 8.30 am on the Long StopDate):

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|  | (a)  | thegrant of the Waiver prior to the posting of the notice convening theExtraordinary General Meeting; |

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|  | (b)  | theIndependent Shareholders passing the Waiver Resolution and theCompany's shareholders passing the Increase/AuthorisationResolution, in each case without amendment, at the ExtraordinaryGeneral Meeting prior to the Prospectus and the PALs being despatchedin fulfilment of the Condition in Clause 2.1(f); |

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|  | (c)  | the holders ofthe ordinary shares in Waterford Wedgwood UK passing the Resolutions(without amendment) on or before the Posting Date; |

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|  | (d)  | theProspectus being stamped and approved by the Irish Stock Exchange orotherwise as required by the Regulations and a copy thereof, togetherwith such consents and material contracts as may be required by theRegulations, being filed with the Registrar of Companies in Ireland andwritten confirmation of such filing being made to the Company, Sponsorand the Underwriter by the Company's Solicitors, in each case onor before the Posting Date; |

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|  | (e)  | theProspectus being stamped and approved by the applicable authority inthe United Kingdom and a copy thereof, as required by applicable law inEngland and Wales, being delivered for registration to the Registrar ofCompanies in England and Wales and written confirmation of suchdelivery being made to the Company, Sponsor and the Underwriter by theCompany's Solicitors, in each case on or before the PostingDate; |

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|  | (f)  | theProspectus being despatched to certain Qualifying Stockholders, theCREST accounts of certain Qualifying CREST Stockholders being creditedwith Nil Paid Rights and the PALs being despatched to certainQualifying Non- CREST Stockholders, in each case on the PostingDate; |

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|  | (g)  | (tothe extent that the same has not already occurred) the matters referredto in: |

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|  | (i)  | thisAgreement (and in particular, the matters referred to in Clauses 3, 4and 5.l(a) below but excluding those referred to in Clause 5.l(b)below); and |

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|  | (ii)  | Clause 5.l(b)below, |

being duly approved at ameeting of the Board (and, where appropriate, by the board of directorsof Waterford Wedgwood UK) or a duly established and authorisedcommittee thereof (or, as the case may be, of the board of directors ofWaterford Wedgwood UK) in each case on or before the Posting Date;

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|  | (h)  | thesubmission to the Stock Exchanges and/or the UKLA of any advertisementor announcement (including, without limitation, the Press Release) orother requisite information relating to the Rights Issue and/or theApplication, and the Stock Exchanges and/or the UKLA approving thecontents thereof or authorising the issue thereof without such approvalby no later than the proposed date for release or issue thereof; |

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|  | (i)  | there havingbeen delivered to Sponsor: |

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

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

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|  | (iii)  | on theClosing Date, the document described in Part III of the SecondSchedule; |

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|  | (j)  | therehaving been delivered to the Underwriter: |

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

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|  | (ii)  | on orprior to the Posting Date, the documents listed in Part V of the SecondSchedule; and |

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|  | (iii)  | on theClosing Date, the document described in Part VI of the SecondSchedule; |

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|  | (k)  | Admissionoccurring and becoming effective not later than 8.00 am on the FirstBusiness Day after the Posting Date; |

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|  | (l)  | any supplementaryProspectus which may be required pursuant to the Regulations or theapplicable law in England and Wales being approved by the Irish StockExchange and by the applicable authority in the UK and published inaccordance with the Listing Rules and the applicable law in England andWales before Admission; |

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

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|  | (n)  | satisfaction of all theconditions (other than Admission) to enable the Nil Paid Rights and theFully Paid Rights to be admitted as separate participating securities(as defined in the CREST Regulations) in CREST on or before the PostingDate, and |

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|  | (o)  | no eventhaving occurred or circumstances having arisen which constitutes anEvent of Default (as defined in the Senior Facilities) or Default (asdefined in the Senior Facilities) which is continuing and has not beenremedied or waived; |

provided that any of theabove conditions may be waived in whole or in part by agreement betweenSponsor and the Underwriter, in their absolute discretion, by notice inwriting to the Company.

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| 2.2  | Fulfilment ofConditions |

The Company undertakes to useall reasonable endeavours to produce the Prospectus, the PALs and otherdocuments required in connection with the Rights Issue and theExtraordinary General Meeting, in each case as soon as reasonablypracticable after the date of this Agreement. The Company agrees toconsult with Sponsor and the Underwriter in relation to all of theaforementioned documents and any proposed public announcement relatingto the Rights Issue and to incorporate such reasonable comments asSponsor or the Underwriter requests and not to despatch the Prospectuswithout its prior approval by Sponsor and the Underwriter, suchapproval 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, theUnderwriter and the Company may agree in writing pursuant to Clause2.1) and Sponsor (and, to the extent applicable, the Underwriter) shallprovide all reasonable assistance in connection therewith.

|           |                   |
|-----------|-------------------|
| 2.3  | Other information |

|  |           |                                                                                                                                                                                                                             |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (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 Rights Issue. |

|  |           |                                                                                                                                                                                                                                            |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | The Company shalldeliver to the Underwriter all such other information and documents asthe Underwriter may reasonably require in connection with thefulfilment and observance of this Agreement and the implementation ofthe Rights Issue. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | As soon as reasonablypracticable after the Extraordinary General Meeting, the Company shalldeliver to Sponsor and to the Underwriter 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 the Underwriter two copies ofthe Resolutions certified by the company secretary of WaterfordWedgwood UK as having been duly passed as soon as reasonablypracticable after the close of the meeting at which such resolutionswere passed. |

10

----

|           |                             |
|-----------|-----------------------------|
| 2.4  | Non-fulfilmentof Conditions |

If any Condition becomesincapable of being fulfilled (and is not waived by Sponsor and theUnderwriter) or if any Condition is not fulfilled (or waived by Sponsorand the Underwriter), in each case on or before the time or date setfor its fulfilment (or such later time as Sponsor, the Underwriter andthe Company may agree in writing pursuant to Clause 2.1) thenSponsor's and the Underwriter's obligations under thisAgreement shall terminate immediately and:

|  |           |                                                                                                           |
|--|-----------|-----------------------------------------------------------------------------------------------------------|
|  | (a)  | the Company shallforthwith pay to the Underwriter the commissions due to it inaccordance with Clause 9.1; |

|  |           |                                                                                                                                                 |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | the Company shallforthwith pay to Sponsor and the Underwriter all costs, expenses anddisbursements of the nature referred to in Clause 9.2; and |

|  |           |                                                                                                                                                                                                                                                                                                                                  |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | none of Sponsor, theUnderwriter 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 howeverthat this Agreement shall not be capable of termination afterAdmission.

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

|           |                                                                                 |
|-----------|---------------------------------------------------------------------------------|
| 3.1  | The Company irrevocably appoints Sponsor toact as its agent for the purpose of: |

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

|  |           |                                                                                                     |
|--|-----------|-----------------------------------------------------------------------------------------------------|
|  | (b)  | procuring subscribersin accordance with Clause 6.6 to subscribe for Rights Issue Units nottaken up; |

in accordance with the terms andconditions set out in the Rights Issue Documents and thisAgreement.

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2  | The Company herebyirrevocably and unconditionally confers on Sponsor and the Underwriterall powers, authorities and discretions which are necessary for, orreasonably incidental to, the Rights Issue (including, withoutlimitation, the giving of such instructions to the Registrars as may inthe reasonable opinion of Sponsor or the 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 theUnderwriter shall lawfully and properly do in the exercise of suchappointment, powers, authorities and discretions. |

|          |                              |
|----------|------------------------------|
| 4.  | REGISTRATION AND APPLICATION |

|           |                    |
|-----------|--------------------|
| 4.1  | Significant change |

The Company agrees with Sponsor and theUnderwriter that every significant change, significant new matter orsignificant inaccuracy in the Prospectus which arises or becomesapparent between the date the Prospectus are registered and the date ofAdmission Fully Paid shall be dealt with in accordance with applicablelaw and, in particular, should the need arise and in conjunction withSponsor for the purpose of their obligations under this Agreement, asupplementary prospectus and/or supplementary listing particulars willbe published as required by the applicable law. The Company undertakesto bring to the attention of Sponsor and the Underwriter any suchmatters as are referred to in this Clause of which it has knowledgebefore the date of Admission Fully Paid promptly upon any such mattercoming to its attention.

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

The Company undertakes to Sponsor and theUnderwriter that it will as soon as reasonably practicable make theApplication through Sponsor and that it will comply with all reasonablerequirements which the Stock Exchanges and the UK Listing Authorityshall make of it so as to enable the Application to be granted.

11

----

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

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | The Company undertakesto Sponsor and the Underwriter to provide all such information andassistance relating to the Group or otherwise as may reasonably berequired by Sponsor or the Underwriter for the purpose of complyingwith any applicable requirement of law or any applicable requirement ofthe Irish 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 Underwriter to be done or executed by the Company or byits officers, employees or agents in connection with the Rights Issueor Admission. |

|  |           |                                                                                                                                                                                                                            |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | TheUnderwriter undertakes to the Company and to Sponsor to comply withconditions attaching to the Waiver (for the avoidance of doubt,provided such conditions are limited as outlined in the definition of"Waiver" above). |

|           |                        |
|-----------|------------------------|
| 4.4  | Application to CRESTCo |

Prior to Admission the Company will, unlessSponsor agrees otherwise:

|  |           |                                                                                                    |
|--|-----------|----------------------------------------------------------------------------------------------------|
|  | (a)  | apply to CRESTCo forthe Rights Issue Units to be admitted to CREST as participatingsecurities; and |

|  |           |                                                                                                                                       |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | take all reasonablesteps necessary for the Rights Issue Units to become participatingsecurities in CREST immediately after Admission. |

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

|           |                |
|-----------|----------------|
| 5.1  | Board meetings |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (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.l(b)). |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | TheCompany shall procure that, following the passing of theIncrease/Authorisation Resolution and the Resolutions, and in any eventno later than the Posting Date, the Directors (and the directors ofWaterford Wedgwood UK) shall convene and hold a meeting of the Board ora duly appointed committee thereof (and of the board of directors ofWaterford Wedgwood UK or a duly appointed committee thereof) to: |

|  |           |                                                                                                                                                                |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (i)  | approve the Prospectus andauthorise the despatch of the Prospectus to certain QualifyingStockholders and the PALs to certain Qualifying Non CRESTStockholders; |

|  |            |                                                                                                                                                                                                                                                                                           |
|--|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (ii)  | provisionally allot theOrdinary 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 Sponsor. |

The Company will procure thatcopies of the resolutions referred to in this Clause 5.l(b), certifiedby the company secretary of the Company and of Waterford Wedgwood UK(respectively) as having been duly passed, are provided to Sponsor andto the Underwriter as soon as reasonably practicable after being passedand in any event prior to Admission.

12

----

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | TheCompany undertakes to Sponsor and to the Underwriter not to give, or,so far as it is within its powers, not to permit there to be given, anydirection to Sponsor, the Underwriter or the Directors, 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 this Agreement. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (d)  | The Company undertakesto Sponsor and to the Underwriter to procure that Waterford Wedgwood UKshall not give, or so far as it is within its powers, not to permit tobe given, any direction to Sponsor, the Underwriter or the directors ofWaterford Wedgwood UK, and not to take any action, which isinconsistent with its obligations or any of the powers or authoritiesconferred by it under this Agreement and, in particular, not to createany adverse interest over the Rights Issue Units to be allotted andissued by it pursuant to this Agreement. |

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

The Company hereby confirms that the RightsIssue Units will, as from the date when they become Fully Paid Rights,rank pari passu in all respects with the Stock Units then in issue and,in particular, will, after such date, rank in full for all dividendsand other distributions declared, made and paid on the Stock Unitsafter the date of their allotment (nil paid).

|           |                       |
|-----------|-----------------------|
| 5.3  | Overseas Stockholders |

The following arrangements will apply to certainentitlements under the Rights Issue of overseas Stockholders:

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | The Rights Issue Unitshave not been, and will not be, registered under the United StatesSecurities Act of 1933, as amended (the "US SecuritiesAct"), or relevant securities legislation in Canada,Australia or Japan. Accordingly, Qualifying Stockholders who haveregistered addresses in Canada, Australia, Japan or the United Statesor their respective territories or possessions or any areas subject totheir respective jurisdictions ("ExcludedHolders") will not be sent a PAL unless they have firstsatisfied the Company that they may take up their entitlement to RightsIssue Units in accordance with an applicable exemption from localsecurities law. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                      |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | Qualifying Stockholders(not being Excluded Holders) with registered addresses in a RestrictedJurisdiction will not be sent a PAL unless they have satisfied theCompany prior to the PALs being posted to them that they may subscribefor Rights Issue Units under the terms of the Rights Issue inaccordance with an applicable exemption from local securities law. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | Sponsor and theUnderwriter acknowledge that the Rights Issue Units have not been andwill not be registered under the US Securities Act and may not beoffered or sold within the United States or to, or for the account orbenefit of, U.S. persons except in accordance with Regulation S underthe US Securities Act ("Regulation S") orpursuant to an exemption from the registration requirements of the USSecurities Act. Sponsor and the Underwriter agree that they will notoffer or sell the Rights Issue Units as part of their initial allotmentat any time until 40 days after the commencement of the Rights Issuewithin the United States or to or for the account or benefit of U.S.persons, except in either case in accordance with Regulation S.Accordingly, none of Sponsor, the Underwriter or any person acting ontheir behalf has engaged or will engage in any directed selling effortin the United States with respect to the Rights Issue Units. Sponsorand the Underwriter will send to each broker/dealer or sub-underwritersto which it sells in reliance on Regulation S during such 40 day perioda confirmation 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 theUnderwriter agree that no such securities will be offered or |

13

----

|  |        |                                                                                                                                                                                                                                                                                                                                                                                      |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |   | sold by or on behalf of them or anysub-underwriters in the United States except by a broker/dealerregistered under the United States Securities Exchange Act of 1934, asamended (the "Exchange Act"), in the UnitedStates or pursuant to a valid exemption from such requirements underthe Exchange Act. Terms used in this paragraph have the meaning givento them by Regulation S. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (d)  | Sponsor and theUnderwriter acknowledge that each Qualifying Stockholder who is in theUnited States and who wishes to exercise a right to purchase RightsIssue Units will be required to execute a representation letter in aform acceptable to the Company. Such representation letter will requirethe investor 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. |

|          |                                  |
|----------|----------------------------------|
| 6.  | SPONSOR / UNDERWRITEROBLIGATIONS |

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

Fractions of Rights Issue Units("fractional entitlements") will not beprovisionally allotted to Qualifying Stockholders but will beaggregated, provisionally allotted to Sponsor and sold in accordancewith the provisions of Clause 6.2.

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

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | TheCompany shall inform Sponsor of the number of Rights Issue Unitsprovisionally allotted to Sponsor in accordance with Clause 6.1,representing the aggregate of fractional entitlements. Sponsor shalluse its reasonable endeavours to procure that the rights to subscribeall or as many as is reasonably practicable of such Rights Issue Unitsare sold through the Stock Exchanges nil paid at a price equal to, orat a premium over, the expenses of sale (including any VAT thereon) assoon as practicable but no later than by 11.00 am on the Closing Date.Immediately after such sale takes place, the Company shall deliver toSponsor nil paid split provisional allotment letters in the names anddenominations required by Sponsor. Sponsor shall account to theReceiving Agent for the net proceeds of sale (after deduction ofexpenses, including any VAT thereon) of those Rights Issue Units thathave been sold and the net proceeds shall be paid to and retained forthe benefit of the Company in accordance with Clause 7.1. |

|  |           |                                                                                                                                                                                                                               |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | If the rights tosubscribe for the Rights Issue Units referred to in Clause 6.2(a) havenot been sold before 11.00 am on the Closing Date, they will be dealtwith in accordance with the remaining provisions of this Clause 6. |

|           |                                |
|-----------|--------------------------------|
| 6.3  | Procedures on the Closing Date |

If by 11.00 am on the Closing Date (or otherwiseas provided in the Prospectus) duly completed PALs in respect of allthe 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 Underwriter shall cease to have any obligations under the followingsub-Clauses of this Clause 6. The Rights Issue Units comprised in PALswhich have been so lodged and accompanied by cheques or otherremittances for the Price in respect of the Rights Issue Units thesubject of such PALs (provided that such cheques or other remittanceshave not been dishonoured by such time) are for the purposes of thisClause 6 described as having been "taken up"(and, accordingly, all other Rights Issue Units, including any RightsIssue Units representing the aggregate of fractional entitlements whichare not sold as provided in Clause 6.2, are described as having been"not taken up") provided that, if the Companyso elects, Rights Issue Units shall be deemed to have been taken upif:

14

----

|  |           |                                                                                                                                                                                                                                                                                                              |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | PALsand accompanying remittances are received late (the cover bearing alegible postmark dated not later than the Business Day prior to theClosing Date) provided that such fact is notified to Sponsor and to theUnderwriter by not later than 11.00 am on the second Business Day afterthe Closing Date; 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 11.00 amon the second Business Day after the Closing Date who identifies theRights Issue Units concerned and undertakes to lodge the relevant PALsduly completed in due course. |

|           |                                            |
|-----------|--------------------------------------------|
| 6.4  | Notification to Sponsor and theUnderwriter |

The Company shall from time totime, at the request of Sponsor or the Underwriter, keep Sponsor andthe Underwriter informed of the amount of Rights Issue Unitsprovisionally allotted which have been taken up. If, however, by 11.00am on 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 Underwriter are notified inwriting of the number of Rights Issue Units not taken up.

|           |                                                                             |
|-----------|-----------------------------------------------------------------------------|
| 6.5  | Consultation in connection with proposednotification to the Stock Exchanges |

Sponsorand the Company shall consult as to whether the Stock Exchanges shouldbe notified of the number of Rights Issue Units not taken up beforeSponsor begins to procure subscribers for Rights Issue Units not takenup pursuant to Clause 6.6.

|           |                                                                       |
|-----------|-----------------------------------------------------------------------|
| 6.6  | Sponsor toprocure subscribers for the Rights Issue Units not taken up |

Sponsor will, as agent for the Company, subjectto the provisions of Clauses 6.4 and 6.5, use its reasonable endeavoursto procure subscribers as soon as possible and in any event by notlater than 3.00 pm on the third Business Day following the Closing Datefor all or as many as is reasonably practicable of the Rights IssueUnits not taken up if a price (in respect of each such Rights IssueUnit) equal to, or at a premium over, the sum of (x) the Price and (y)the expenses of procuring such subscribers (including any VAT thereon)can be obtained, provided that Sponsor may at any time after 4.00 pm onthe Business Day following the Closing Date determine that it shall nolonger use its reasonable endeavours to procure subscribers inaccordance with this Clause 6.6, if, in its reasonable opinion, it isunlikely that any such subscribers can be procured as aforesaid, inwhich case it will promptly consult with the Company in relation to thebasis for such determination.

|           |                          |
|-----------|--------------------------|
| 6.7  | Allotment to subscribers |

Forthwith upon Sponsor notifying the Companythat any subscriber has been procured pursuant to Clause 6.6, theCompany will deliver or procure the delivery to Sponsor of dulyreceipted, fully paid PALs in respect of those Rights Issue Unitsand/or, to the extent so directed by Sponsor, will procure that CRESTCois instructed to credit to stock accounts of one or more CREST members(identified by member account ID and participant ID by Sponsor)entitlements to Rights Issue Units as directed by Sponsor, and willensure that the same are enabled for settlement as soon as practicableafter Admission Fully Paid in favour of the persons and in thedenominations required by Sponsor. Subject to the Company deliveringsuch duly receipted fully paid PALs and/or taking such other steps asaforesaid, Sponsor will, not later than 3.00 pm on the fifth BusinessDay following the Closing Date, account to the Company for the proceedsreceived from subscribers 

15

----

(after deduction of the expenses procuringsubscriptions, including any VAT thereon) in accordance with Clause7.1. The Company will distribute the relevant part of the proceeds(after deduction of the Price and of the expenses of procuringsubscriptions, including any VAT thereon) pro rata to QualifyingStockholders who did not take up all the Rights Issue Unitsprovisionally allotted to them, except that individual amounts of lessthan €3.80 per holding will not be distributed but will beretained for the benefit of the Company.

|           |                                     |
|-----------|-------------------------------------|
| 6.8  | Notification to the Stock Exchanges |

Sponsor will, with the prior agreement of theCompany, on behalf of the Company, notify the Stock Exchanges and theUnderwriter by not later than 4.30 pm on the third Business Dayfollowing the Closing Date of the amount of Rights Issue Units taken upand that all such Rights Issue Units which have not been taken up willbe subscribed for by the Underwriter in their respective Proportions orsuch other subscribers as the Underwriter procures pursuant to Clause6.9.

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

The Underwriter hereby 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 foracceptance and payment) and in reliance upon the Warranties given tothe Underwriter by the Company to procure, as agent for the Company,subscribers for the Rights Issue Units having been not"taken up" for the purposes of Clause 6.3 norsubscribed for in accordance with Clause 6.7 and, in default, tosubscribe for such Rights Issue Units itself, by not later than 3.00 pmon the fifth Business Day following the Closing Date, to procurepayment of, or pay to such accounts as may be specified by the Company,the Price for such Rights Issue Units against delivery to it or to itsnominees or designees (as it may request) of duly receipted, fully paidPALs in such names and in such denominations as it may require and/or,to the extent so directed by the Underwriter, against the Companyprocuring that CRESTCo is instructed to credit to stock accounts of oneor more CREST members (identified by member account ID and participantID by the Underwriter) entitlements to Rights Issue Units as directedby the Underwriter, and, as soon as practicable after Admission FullyPaid, the Company ensuring that the same are enabled for settlement infavour of the persons and in the denominations required by theUnderwriter.

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

Sponsor shall use its reasonable endeavours toprocure that Admission occurs on the first Business Day after thePosting Date and in any event (but on a reasonable endeavours basisonly) not later than the Long Stop Date.

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

|           |                                          |
|-----------|------------------------------------------|
| 7.1  | Payment of subscription monies bySponsor |

Sponsor shall procure the paymentfor the Rights Issue Units as set out in Clause 6.2, subject todeduction of:

|  |           |                                                |
|--|-----------|------------------------------------------------|
|  | (a)  | theexpenses of sale referred to in Clause 6.2; |

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

|  |           |                                        |
|--|-----------|----------------------------------------|
|  | (c)  | any expenses referredto in Clause 9.2. |

|           |                                                  |
|-----------|--------------------------------------------------|
| 7.2  | Payment ofsubscription monies by the Underwriter |

Subject to Clause 8.1, the Underwriter shallprocure the payment for the Rights Issue Units as set out in Clause6.9, subject to deduction of the commissions payable by the Companypursuant to Clause 9.1 and any expenses referred to in Clause 9.2.

16

----

|           |             |
|-----------|-------------|
| 7.3  | Bankaccount |

Payment to the Company of amountsreferred to in Clauses 7.1 and 7.2 (subject, in each case, to thedeductions referred to therein) shall be made by telegraphic transferto the account notified in writing to Sponsor and the Underwriter bythe Company prior to the Closing Date and such payment by Sponsor orthe Underwriter shall constitute a full discharge of Sponsor or theUnderwriter in respect of its obligations pursuant to Clauses 6, 7.1,7.2 and 8.1.

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

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

Upon Admission Fully Paid, the Company willdeliver to the Underwriter, or as it may direct, duly receipted, fullypaid PALs in such names and denominations as they shall specify inrespect of the Rights Issue Units referred to in Clause 6.9 and/or, tothe extent so directed by the Underwriter, procure that CRESTCo isinstructed to credit to stock accounts of one or more CREST members(identified by member account ID and participant ID by the Underwriter)entitlements to Rights Issue Units as directed by the Underwriter, andensure that the same are enabled for settlement as soon as practicableafter Admission Fully Paid. Subject to the Company delivering such dulyreceipted fully paid PALs and/or taking such other steps as aforesaid,the Underwriter will pay or cause to be paid to the Company inaccordance with Clause 7.2 the amounts required to be paid by it asspecified in that Clause.

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

The Company will provide the Registrars with allnecessary authorisations and information to enable them to performtheir duties as registrars in accordance with and as contemplated bythis Agreement and the terms of the Rights Issue Documents.

|          |                                |
|----------|--------------------------------|
| 9.  | FEES, COMMISSIONS AND EXPENSES |

|           |                   |
|-----------|-------------------|
| 9.1  | Underwriting Fees |

|  |           |                                                                                                                                                                                                                                                                                               |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | In consideration of thecovenants given and the obligations assumed by them under thisAgreement, the Company will pay to the Underwriter (provided that thisAgreement is not terminated under Clause 2.4 or, in relation to theUnderwriter, under Clauses 12.2 or 12.3) a commission equal to: |

|  |           |                                                                                                                                                                                                               |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (i)  | in respect of the first 30day period commencing on (and including) the date of this Agreement, inaggregate, 2.5% of the Relevant Amount, less an amount equal to2.5% of the Birchfield Deductible Amount; and |

|  |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (ii)  | for each seven days orpart of seven days commencing (if any) after the expiry of the 30 dayperiod referred to in sub Clause 9.l(a)(i) up to and including the CutOff Date (both dates inclusive), an additional commission equal to0.125% of the Relevant Amount less an amount equal to0.125% of the Birchfield Deductible Amount and less an amountequal to 0.125% of the product (expressed in Euro) of (x) thePrice and (y) the number of Rights Issue Units then taken up other thanby the O'Reilly/Goulandris Interests. |

|  |           |                                                                                                                                                                                                                                    |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | In consideration of thecovenants given and the obligations assumed by them under thisAgreement, if this Agreement is terminated under Clauses 2.5, 12.2 or12.3, then the Company will pay to the Underwriter a commission equalto: |

|  |           |                                                                                                                                                                                                                 |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (i)  | in respect of thefirst 30 day period (or any part thereof) commencing on (and including)the date of this Agreement, 1% of the Relevant Amount less anamount equal to 1% of the Birchfield Deductible Amount;and |

17

----

|  |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (ii)  | foreach seven days or part of seven days commencing (if any) after theexpiry of the 30 day period referred to in sub-Clause 9.l(b)(i) up toand including the date on which this Agreement is terminated pursuantto Clauses 2.5, 12.2 or 12.3 (both dates inclusive), an additionalcommission equal to 0.125% of the Relevant Amount less an amountequal to 0.125% of the Birchfield Deductible Amount and less anamount equal to 0.125% of the product (expressed in Euro) of (x)the Price and (y) the number of Rights Issue Units then taken up otherthan by the O'Reilly/Goulandris Interests. |

|  |           |                |
|--|-----------|----------------|
|  | (c)  | In Clause 9.1: |

|  |           |                                                                                                                                                                                                                                           |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (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 aggregateentitled under the terms of the Rights Issue; |

|  |            |                                                                                                                                    |
|--|------------|------------------------------------------------------------------------------------------------------------------------------------|
|  | (ii)  | "**RelevantAmount**" means the product (expressed in Euro) of (x)the Price and (z) the aggregate number of Rights Issue Units; and |

|  |             |                                                                                     |
|--|-------------|-------------------------------------------------------------------------------------|
|  | (iii)  | the term"**Cut Off Date"** means the secondBusiness Day following the Closing Date. |

|  |           |                                                                                                                                                                                               |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (d)  | Payments to theUnderwriter under this Clause 9 are to be made by way of the deductionspermitted by Clause 7.1 or, to the extent that there is no suchdeduction, on demand by the Underwriter. |

|  |           |                                                                                                                                                                                                                     |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (e)  | Out of the commissionsreferred to in this Clause 9.1, the Underwriter will paysub-underwriting commissions (together with any VAT thereon, ifapplicable), if any, in respect of the underwritten Rights IssueUnits. |

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

Provided that Sponsor or, as the case may be,the Underwriter has consulted with the Company prior to the appointmentby it of any professional adviser whose fees are to be discharged bythe Company and provided that the Company has received an estimate ofthe fees, costs and expenses to be paid for such appointment prior tothe date hereof, the Company will bear all costs, charges and expensesof, or incidental to, the satisfaction of the Conditions, the RightsIssue, the issue of the Rights Issue Units and the arrangementsreferred to in this Agreement or contemplated by this Agreement(together with any VAT chargeable thereon), including, withoutlimitation, all fees and expenses payable in connection with Admission,the Engagement Letter, all expenses of the Registrars, printing andadvertising expenses, postage and all reasonable accountancy, actuarialand other professional fees and expenses, including Sponsor's andthe Underwriter's legal advisers' fees. The Company shallupon receipt from Sponsor or, as the case may be, the Underwriter ofinvoices and/or, without prejudice to Clause 7.1, vouchers in respectof the same, reimburse to, or pay on behalf of, Sponsor or theUnderwriter (as the case may be) the amount of any such costs, chargesand expenses which Sponsor or the Underwriter may have paid.

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

Where,pursuant to Clauses 2, 9.1 or 9.2 a sum is payable to Sponsor or to theUnderwriter the Company shall, in addition, pay to Sponsor or theUnderwriter, as appropriate, in respect of VAT, where the payment (orany part of it) constitutes the consideration (or any part thereof) forany supply of services by Sponsor or the Underwriter, as appropriate,to the Company, such amount as equals any VAT properly payable thereon.Where a sum in respect of VAT is paid pursuant to this Clause 9.3,Sponsor or the Underwriter, as appropriate, shall within 10 BusinessDays provide the Company with an appropriate and valid tax invoice inrespect of the supply to which the payment relates, naming the Companyas the recipient of the supply.

18

----

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

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

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | The Company warrants toand agrees with Sponsor that each statement set out in Parts I and IIof the Third Schedule is true, accurate and not misleading as at thedate of this Agreement and agrees with Sponsor that each statement setout in Parts I, II and III of the Third Schedule will be true, accurateand not misleading as of the Posting Date by reference to the facts andcircumstances then existing and be treated as Warranties given and/orrepeated on such date. Such Warranties and agreements are given toSponsor solely in its capacity as sponsor. Sponsor shall not beentitled to bring any action against the Company or any member of theGroup under this Clause 10 or any other provision of this Agreement forany loss or liability that it may suffer or incur arising from itssubscription for Rights Issue Units. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | The Company warrants toand agrees with the Underwriter that each statement set out in Parts IVand V of the Third Schedule is true, accurate and not misleading as atthe date of this Agreement and agrees with the Underwriter that eachstatement set out in Parts IV, V and VI of the Third Schedule will betrue, accurate and not misleading as of the Posting Date by referenceto the facts and circumstances then existing and be treated asWarranties given and/or repeated on such date. |

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

|  |           |                                                                                                                                                                                                                                                                             |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | The Company will,subject to Clause 10.l(a) and to Clause 10.7, indemnify and holdSponsor harmless against any losses, claims, damages, costs, expensesor liabilities arising out of breach by it of any of the Warrantiesgiven by it to Sponsor in terms of this Clause 10. |

|  |           |                                                                                                                                                                                                                                                                       |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | The Company will,subject to Clause 10.7, indemnify and hold the Underwriter harmlessagainst any losses, claims, damages, costs, expenses or liabilitiesarising out of breach by it of any of the Warranties given by it to theUnderwriter in terms of this Clause 10. |

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

The Company undertakes to Sponsor and theUnderwriter that (except to the extent necessary to give effect to thisAgreement) it will not, and will procure (so far as lies within itspower of procurement) that no Group Company will do, allow or procureany act or omission which would constitute a breach of any Warrantyeither when given or repeated or which would cause any Warranty tobecome untrue, inaccurate or misleading in any respect by reference tothe facts then existing if the Warranties were to be given at any timebefore the Posting Date.

|            |                                          |
|------------|------------------------------------------|
| 10.4  | Warrantiesnot extinguished by completion |

Subject tothe provisions of this Clause 10, the Warranties shall not in anyrespect be extinguished or affected by the completion of all mattersand arrangements contemplated by this Agreement.

|            |                  |
|------------|------------------|
| 10.5  | Notice of breach |

The Company undertakes to Sponsor and theUnderwriter that, until the earlier of Admission and the date on whichthis Agreement is terminated, it will notify Sponsor and theUnderwriter in writing as soon as practicable if it becomes aware ofany matter which constitutes a breach of any Warranty or which would,or would 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 timebefore Admission.

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

If before Admission Fully Paid, Sponsor or theUnderwriter receive a notice pursuant to Clause 10.5 or otherwisebecome aware of any Warranty being untrue, inaccurate or misleading by

19

----

reference to the facts then existing or ofany circumstance which would, or would be likely to, cause anyWarranty, if given at such time, to become untrue, inaccurate ormisleading by reference to the facts then existing, Sponsor and/or theUnderwriter (as appropriate) shall consult with the Board and (providedthis Agreement has not, at the relevant time, been terminated) mayrequire the Company at its own expense to make or cause to be made anannouncement and/or despatch a communication to potential subscribersfor the Rights Issue Units, such announcement or communication to beapproved by Sponsor and/or the Underwriter after consultation with theBoard.

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

Without prejudice to Clause 11 and except in thecase of fraud, wilful misrepresentation, deliberate concealment orgross negligence:

|  |           |                                                                                                                                                                                                                                                                                 |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (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 2007; and |

|  |           |                                                                                                                                                                                                                                      |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | no claim may be made bySponsor against the Company for breach of Warranty or under Clause10.2(a) unless the aggregate amount of all such claims exceeds€50,000 in which case the full amount of all claims shallbecome payable. |

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

If the Revenue Commissioners or any other taxingauthority brings into charge to tax any sum payable under theWarranties or indemnities contained in this Agreement then the amountso payable shall be grossed up by such amount as will ensure that,after deduction of the tax so chargeable, there shall remain a sumequal to the amount that would otherwise be payable under such Warrantyor indemnity.

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

|  |           |                                                                                                                                                                                              |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | The Companyacknowledges that Sponsor has entered into this Agreement in relianceupon, inter alia, the Warranties given by it to Sponsor and the releaseand indemnity contained in Clause 11. |

|  |           |                                                                                                                                                                                                              |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | The Companyacknowledges that the Underwriter has entered into this Agreement inreliance upon, inter alia, the Warranties given by it to theUnderwriter and the release and indemnity contained in Clause 11. |

|  |           |                                                                                                                                                                                                                         |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | Each of the Warrantiesshall be construed separately and independently and shall not belimited or restricted by reference to, or inference from, the terms ofany other of them or any other provision of this Agreement. |

|             |                                         |
|-------------|-----------------------------------------|
| 10.10  | Action materially affecting RightsIssue |

The Company will not, and willprocure that none of the Subsidiary Undertakings will, between the datehereof and the Closing Date, enter into any agreement, commitment orarrangement which is material in the context of the business or affairsof the Group (taken as a whole) or which would, or would be likely to,materially and adversely affect the Rights Issue, without the priorconsent of the Underwriter, such consent not to be unreasonablywithheld or delayed.

20

----

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

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

The Company shall not make or assert a claimagainst Sponsor, any Davy Relevant Person, the Underwriter or anyUnderwriter Relevant Person to recover, and none of Sponsor, any DavyRelevant Person, the Underwriter or any Underwriter Relevant Personshall have any liability to the Company or the Directors for, any loss,liability or cost incurred by any of them arising:

|  |           |                                                                                                                                                                                     |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | out of the performanceby Sponsor, any Davy Relevant Person, the Underwriter or anyUnderwriter Relevant Person of Sponsor's or theUnderwriter's obligations under this Agreement; or |

|  |           |                                                                                                                                                                                     |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | in connection with theperformance by Sponsor, any Davy Relevant Person the Underwriter or anyUnderwriter Relevant Person of any matter incidental to or related tothe 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, the Underwriter or the Underwriter Relevant Person.The Company will procure that no Director or Group Company will make orassert such claim or seek to establish such liability.

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

TheCompany will indemnify and hold Sponsor, all Davy Relevant Persons, theUnderwriter and all Underwriter Relevant Persons harmless against anylosses, claims, damages, liabilities incurred or suffered by Sponsor,any Davy Relevant Person, the Underwriter and any Underwriter RelevantPerson arising:

|  |           |                                                                                                                                                                                                                                                |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | outof or in connection with the performance by, as the case may be,Sponsor or any Davy Relevant Person of Sponsor's obligations, orthe Underwriter or any Underwriter Relevant Person of theUnderwriter's obligations under this Agreement; or |

|  |           |                                                                                                                                     |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | in connection with theRights Issue and the preparation and publication of the Rights IssueDocuments, including, without limitation: |

|  |           |                                                                                                                   |
|--|-----------|-------------------------------------------------------------------------------------------------------------------|
|  | (i)  | the Prospectus notcontaining or being alleged not to contain all the information requiredto be stated therein; or |

|  |            |                                                                                                                                                                 |
|--|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (ii)  | any statement contained inthe Prospectus 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 oralleged breach of the laws or regulations of any country resulting fromthe issue, offer or underwriting of the Rights Issue or the publicationor distribution of the Rights Issue Documents or the performance of theterms of this Agreement; or |

|  |           |                                                                                                                                                                                                        |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (d)  | out of the Companyfailing to comply with any of the requirements imposed upon it by theIrish Stock Exchange, the London Stock Exchange or the UK ListingAuthority in connection with the Rights Issue, |

including, without limitation, all losses,claims, damages, liabilities and costs incurred as a result ofinvestigating, 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, the Underwriter or the Underwriter RelevantPerson or a breach by Sponsor or a Davy Relevant Person of its dutiesor obligations under any system by which it is regulated but, withoutprejudice to Clause 10.2, excluding any loss which Sponsor, any DavyRelevant Person, the Underwriter or the Underwriter Relevant Person maysuffer or incur arising from any reduction in the value of any of theRights Issue Units at any 

21

----

time unless such loss arising from any suchreduction in value results from, or is attributable to, or would nothave arisen but for (in each case directly or indirectly), the neglectof the Company of, or a default by the Company in performing, any ofits obligations under this Agreement (including, without limitation,any breach of the Warranties) provided always that nothing in thisClause 11.2 shall oblige the Company to indemnify any person where todo so would constitute a breach of section 200 of the Companies Act1963.

|            |                 |
|------------|-----------------|
| 11.3  | Acknowledgement |

The Company hereby acknowledges that Sponsor andthe Underwriter shall not be responsible to the Company for verifyingthe accuracy and fairness of any information contained in the RightsIssue Documents or otherwise published by the Company in connectionwith the transactions described in the Prospectus, save, in the case ofSponsor, for those matters which Sponsor has agreed to verify in theVerification Notes.

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

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | TheCompany agrees with Sponsor for its benefit and as trustee for all DavyRelevant Persons that the indemnity obligations of the Company underClause 11.2 shall be in addition to any liability which the Company mayotherwise have to Sponsor and any Davy Relevant Person (as the case maybe) and shall be binding upon and inure to the benefit of anysuccessors, heirs and personal representatives of the Company, Sponsorand all Davy Relevant Persons. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | The Company agrees withthe Underwriter, for its benefit and as trustee for all of theUnderwriter Relevant Persons, that the indemnity obligations of theCompany under Clause 11.2 shall be in addition to any liability whichthe Company may otherwise have to the Underwriter and the UnderwriterRelevant Person (as the case may be) and shall be binding upon andinure to the benefit of any successors, heirs and personalrepresentatives of the Company, the Underwriter and all UnderwriterRelevant Persons. |

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

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | Sponsorshall, as soon as reasonably practicable after it becomes aware of anyclaims made or threatened against it or any Davy Relevant Person whichmay occasion a liability on the Company under Clause 11, notify theCompany in writing of any such claims and Sponsor shall, at the requestof the Company, use all reasonable endeavours to avoid, dispute,resist, appeal, compromise or defend any claim (unless in thereasonable opinion of Sponsor after consultation with the Company, thereputation or standing of Sponsor would thereby be affected adverselyto a material extent, in which case Sponsor shall be at liberty tosettle the claim) upon being fully indemnified and secured by theCompany against all costs, damages and expenses thereby incurred, inwhich event Sponsor shall not make, and shall procure that no DavyRelevant Person makes any admission as to liability or any compromisein respect of any such claim without the prior written consent of theCompany, such consent not to be unreasonably withheld or delayed. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | The Underwriter shallas soon as reasonably practicable after it becomes aware of any claimsmade or threatened against it or any Underwriter Relevant Person whichmay occasion a liability on the Company under Clause 11, notify theCompany in writing of any such claims and the Underwriter shall, at therequest of the Company, use all reasonable endeavours to avoid, disputeresist, appeal, compromise or defend any claim (unless in thereasonable opinion of the Underwriter after consultation with theCompany, the reputation or standing of the Underwriter (or in the caseof Birchfield, any shareholder of Birchfield) would thereby be affectedadversely to a material extent, in which case the Underwriter shall beat liberty to settle the claim) upon being fully indemnified andsecured by the |

22

----

|  |        |                                                                                                                                                                                                                                                                                                                                                                      |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |   | Company against all costs, damages andexpenses thereby incurred, in which event the Underwriter shall notmake, and shall procure that no Underwriter Relevant Person shall makeany admission as to liability or any compromise in respect of any suchclaim without the prior written consent of the Company, such consentnot to be unreasonably withheld or delayed. |

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

The rights and remedies contained in thisAgreement are cumulative and not exclusive of rights or remediesprovided by law.

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

|            |                                              |
|------------|----------------------------------------------|
| 12.1  | Limitation on ability to terminate orrescind |

Neither Sponsor nor the Underwriterwill have the right to terminate or rescind this Agreement for anyreason other than pursuant to Clauses 2.4, 12.2 and 12.3, but theforegoing shall be without prejudice to any other rights which Sponsoror the Underwriter may have in respect of any breach of this Agreementby the Company.

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

If at any time before the time at which theCondition in Clause 2.l(k) is fulfilled:

|  |           |                                                                                                                                                                                                                                                                                                                         |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | it shall come to thenotice of the Underwriter or Sponsor that any Warranty given to it wasnot, when given, true, accurate and not misleading in any respect byreference to the facts existing at the time the Warranty was given andas a result could be expected to have a material adverse effect on theRights Issue; |

|  |           |                                                                                                                                                                                                                                                                                                          |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | amatter has arisen after the date of this Agreement which would haverendered any Warranty, if repeated at that time, to be untrue,inaccurate or misleading by reference to the facts then existing in anyrespect and as a result could be expected to have a material adverseeffect on the Rights Issue; |

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

|  |           |                                                            |
|--|-----------|------------------------------------------------------------|
|  | (d)  | a materialadverse change occurs with respect to the Group, |

then the Underwriter or Sponsor may, afterconsultation with the Company, in their absolute discretion by noticein writing to the Company given before such time, terminate itsobligations under this Agreement with immediate effect and Clause 2.4will apply in respect of any terminating party as if this Agreement hadbeen terminated pursuant to Clause 2.4.

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

If at any time before the time at which theCondition in Clause 2.l(k) is fulfilled, there shall have occurred anychange in national or international financial, monetary, military,economic or political or stock market conditions which, in thereasonable opinion of Sponsor or the Underwriter arrived at in goodfaith would, or would be likely to, be materially prejudicial to theCompany, any other member of the Group or to the Application or theoffering constituted by the Rights Issue or to the acquisition of theRights Issue Units by persons pursuant thereto, then Sponsor or theUnderwriter may, in its absolute discretion, by notice in writing tothe Company given before such time, terminate its obligations underthis Agreement with immediate effect and Clause 2.4 will apply inrespect of any terminating party as if this Agreement had beenterminated pursuant to Clause 2.4.

23

----

|           |                                    |
|-----------|------------------------------------|
| 13.  | CONTINUINGOBLIGATIONS AND CONSENTS |

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

The Company undertakes to Sponsor and to theUnderwriter that it will:

|  |           |                                                                                                                  |
|--|-----------|------------------------------------------------------------------------------------------------------------------|
|  | (a)  | apply the sums receivedby it pursuant to the Rights Issue for the purposes to be described inthe Prospectus; and |

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

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

The Company undertakes to Sponsorand to the Underwriter to use all reasonable endeavours to ensure thatthe Subsidiary Undertakings comply with those provisions of thisAgreement which are applicable to them.

|            |          |
|------------|----------|
| 13.3  | Consents |

Sponsor, in each of its capacities as sponsorand as underwriter pursuant to the underwriting agreement dated 21October 2004 between the parties hereto (the "2004Agreement"), and the Underwriter each confirms its consentto the Rights Issue for the purposes of the 2004 Agreement.

|           |                               |
|-----------|-------------------------------|
| 14.  | ANNOUNCEMENTS AND INFORMATION |

|            |                |
|------------|----------------|
| 14.1  | No publication |

From the date of this Agreement until theClosing Date the Company undertakes to Sponsor and the Underwriter notto make any public statement (in response to enquiries or otherwise) orpublish any document or information which relates to the Rights Issueor which relates to any member of the Group unless:

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

|  |           |                                                                                                                                          |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | the statement, documentor information is required by law or the Irish Stock Exchange or the UKListing 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 Underwriter asto the content, 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 Underwriterprior to any such statement or publication.

|            |                                |
|------------|--------------------------------|
| 14.2  | References to public statement |

In Clause 14.1 references to making a publicstatement or publishing a document or information include authorisingor permitting another person to do so.

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

The parties undertake to each other to use alltheir reasonable endeavours to ensure that any public statement ordocument or information which any member of the Group proposes to makeor publish and which requires to be released to the Irish StockExchange or the London Stock Exchange or the UKLA shall be released,where practicable, simultaneously on the Irish Stock Exchange and theLondon Stock Exchange or to the UKLA or, where not so practicable, onthe same day.

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

The parties agree thatwhere any information, which is required by law or by any regulatoryauthority to be disclosed, is disclosed by Sponsor to the StockExchanges or the UKLA or the Irish Takeover Panel in relation to theGroup or the Rights Issue such disclosure shall not be a breach ofclient confidentiality.

24

----

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

Sponsor hereby undertakesthat, where it is required by law or any regulatory body to discloseany information 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 |

Nowaiver by any party hereto of any breach or non-fulfilment by any otherparty of any provision of this Agreement shall be deemed to be a waiverof any subsequent or other breach of that or any other provision hereofand no failure to exercise or delay in exercising any right or remedyunder this Agreement shall constitute a waiver thereof. No single orpartial exercise of any right or remedy under this Agreement shallconstitute a waiver thereof. No single or partial exercise of any suchright or remedy under this Agreement shall preclude or restrict thefurther exercise of any such right or remedy. The rights and remediesof the parties provided in this Agreement are cumulative and notexclusive of any rights and remedies provided by law.

|            |                            |
|------------|----------------------------|
| 15.2  | Agreement remains in force |

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 theUnderwriter or any person procured by it in accordance with Clause 6and notwithstanding that such subscription shall have taken place.

|            |                       |
|------------|-----------------------|
| 15.3  | Warranties continuing |

Subject to the provisions of Clauses 10.7 and11.5, the warranties, indemnities, undertakings, agreements andprovisions contained in this Agreement shall remain in full force andeffect notwithstanding completion of all matters and arrangementscontemplated by this Agreement.

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

Theinvalidity, illegality or unenforceability of any provision of thisAgreement shall not affect the continuation in force of the remainderof this Agreement.

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

Dates, times or periods referred toin this Agreement shall not be of the essence except for theAnnouncement Date, the Posting Date and the Long Stop Date in respectof which the date shall be of the essence.

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

Novariation of this Agreement or any of the documents in the agreed formshall be valid unless it is in writing and signed by or on behalf ofeach of the parties hereto.

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

This Agreement may be executed in any number ofcounterparts each of which when executed by one or more of the partieshereto shall constitute an original but all of which shall constituteone and the same instrument.

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

This Agreement and any documentsreferred to herein constitute the entire agreement between the partieswith respect to the subject matter of this Agreement.

25

----

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

Any notice to be given pursuant to the terms ofthis Agreement must be given in writing to the party due to receivesuch notice at its address or number set out below:

|            |  |                                                           |  |                   |  |  |  |  |  |  |
|------------|--|-----------------------------------------------------------|--|-------------------|--|--|--|--|--|--|
| **Party**  |  | **Address**                                               |  | **FacsimileNo.**  |
| Sponsor    |  | Davy House49 Dawson Street Dublin 2 Ireland               |  | + 353 1 6796366   |
| Company    |  | EmbassyHouseHerbert Park Lane Ballsbridge Dublin 4Ireland |  | + 353 16070177    |
| Birchfield |  | PO Box N-858Lyford Manor Lyford Cay NassauBahamas         |  | + 1 (242) 3626616 |
|            |

|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | or such other addressas may have been notified for the purpose to the other parties inaccordance with this Clause. Notice shall be sent by pre-paid recordeddelivery or pre-paid registered post (air mail if overseas) or byfacsimile transmission and shall be deemed to be given in the case ofposting (in the absence of evidence of earlier receipt) within fortyeight hours after posting or six days if sent by air mail and in thecase of facsimile transmission on completion of the transmission (asconfirmed in a successful transmission report) if such transmission isreceived prior to 5.00 pm on a Business Day or, if received after thattime or on a day which is not a Business Day, on the next Business Dayprovided that a confirmation copy is sent on that date by pre-paid postas aforesaid. |

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

|  |           |                                         |
|--|-----------|-----------------------------------------|
|  | (a)  | ThisAgreement is governed by Irish law. |

|  |           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (b)  | Each party irrevocablyagrees that the Irish courts shall have non-exclusive jurisdiction tohear and determine any suit, action or proceedings, and to settle anydisputes, which may arise out of or in connection with this 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 WHEREOF thisAgreement has been entered into the day and year first hereinwritten.

26

----

FIRST SCHEDULE

MATERIAL SUBSIDIARY UNDERTAKINGS

Name

Waterford Crystal(Manufacturing) Ltd Josiah Wedgwood & Sons Ltd RosenthalAG Waterford Crystal Ltd Stuart & Sons Ltd WaterfordWedgwood Australia Ltd Waterford Wedgwood Canada Inc.Waterford Wedgwood USA Inc. Waterford Wedgwood Japan LtdWaterford Wedgwood Retail Ltd Josiah Wedgwood & Sons (Exports)Ltd Josiah Wedgwood (Malaysia) Pte Ltd Waterford WedgwoodTrading Singapore Pte. Ltd Waterford Wedgwood (Taiwan) LtdWedgwood GmbH W/C Imports Inc. Spring International GmbHSpring USA Corporation Cashs Mail Order Limited StatumLimited Waterford Wedgwood U.K. plc Wedgwood LtdWaterford Wedgwood Inc. Waterford Glass Research and DevelopmentLtd Waterford Wedgwood Employee Share Ownership Plan (Jersey)Ltd Waterford Wedgwood GmbH Waterford Wedgwood LinensInc. Ashling Corporation Royal Doulton plc Royal Doulton(UK) Limited PT Doulton Royal Doulton Australia PtyLimited Royal Doulton Canada Limited Royal Doulton Hong KongLimited Royal Doulton Japan KK Royal Doulton USAInc.

27

----

SECOND SCHEDULE

PART I

DELIVERY OF DOCUMENTS TO SPONSOR AT EXECUTION

|          |                                                                                                          |
|----------|----------------------------------------------------------------------------------------------------------|
| 1.  | A copy of the resolutions of the Board andof the board of directors of Waterford Wedgwood UK approving:- |

|  |            |                                            |
|--|------------|--------------------------------------------|
|  | (i)   | the Rights Issue andthe Press Release; and |

|  |            |                                   |
|--|------------|-----------------------------------|
|  | (ii)  | this Agreement and its execution. |

|          |                                       |
|----------|---------------------------------------|
| 2.  | A certified copy of the PressRelease. |

28

----

PART II

DELIVERY OF DOCUMENTS TOSPONSORON OR PRIOR TO THE POSTING DATE

|          |                                                                                                                                                                                                                                                                                                                                                                                        |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | A letter, in a form satisfactory to Sponsoracting reasonably, from the Company addressed to Sponsor confirmingthat, taking into account (a) the financing facilities available to itand (b) the proceeds of the Rights Issue, the working capital availableto the Group is sufficient for its present requirements, that is for atleast the next 12 months from the Announcement Date. |

|          |                                                                                                                                                                                                                                                                                                                                     |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | Two copies of the Prospectus, together withevidence of approval by the Irish Stock Exchange and UK ListingAuthority, each duly signed and dated by each of the Directors and thedirectors of Waterford Wedgwood UK or by his agent duly authorised inwriting, together with two certified copies of the authority of anysuch agent. |

|          |                               |
|----------|-------------------------------|
| 3.  | Two copies of the form ofPAL. |

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

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

|  |           |                                                                                                                                                                                                                                                                                                                                         |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | the minutes of themeeting(s) of the Board and the meeting(s) 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)  | 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 acting reasonably. |

|          |                                                                                                                                                                                                                                                                                                                                                                               |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | A copy (certified by a Director or thesecretary of the Company or by a director or the secretary of WaterfordWedgwood UK, as appropriate) of a responsibility letter from or onbehalf of each of the Directors and the directors of Waterford WedgwoodUK, in a form satisfactory to Sponsor acting reasonably, confirming hisacceptance of responsibility for the Prospectus. |

|          |                                                                                                                                                                                                                        |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 9.  | A letter from the auditors of the Companyaddressed to Sponsor and the Company confirming the accuracy of theextraction of financial information in the Prospectus, in a formsatisfactory to Sponsor acting reasonably. |

|           |                                                                                                                                                                                                                                                                                                     |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.  | A letter from the Company to Sponsor andthe Underwriter confirming that, save as disclosed in the Prospectus,there has been no significant change in the financial or tradingposition of the Group since the date to which the Group's mostrecent consolidated financial statements were published. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 11.  | A letter from the auditors of the Companyaddressed to Sponsor and the Company in a form acceptable to Sponsor,acting reasonably, reporting on the Working Capital Estimates andconfirming that the statement as to sufficiency of working capitalavailable to the Group as contained in the section of the Prospectusentitled "Working Capital" has been madeafter due and careful enquiry by the Company and that the persons orinstitutions providing finance have confirmed in writing that therelevant facilities exist, together with a copy of each such writtenconfirmation. |

|           |                                                                                                                                                                                                                                                                                              |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.  | A letter from the Companyaddressed to Sponsor confirming that the Directors have had explainedto them the nature of their responsibilities and obligations asdirectors of a listed company under the Listing Rules and confirmingmatters in relation to paragraph 2.13 of the Listing Rules. |

29

----

|           |                                                                         |
|-----------|-------------------------------------------------------------------------|
| 13.  | Schedule 3As andForm 1s duly executed for and on behalf of the Company. |

|           |                                                                                                                                                                                                                                                                                                                                           |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14.  | Two originals of the letter, specified inparagraph 5.5 of the Listing Rules, relating to the contents of theProspectus, each duly signed by each of the Directors and the directorsof Waterford Wedgwood UK or by his agent duly authorised in writing(and, in the case of execution by an agent, a certified copy of suchauthorisation). |

|           |                                                                                                                               |
|-----------|-------------------------------------------------------------------------------------------------------------------------------|
| 15.  | A letter from theCompany addressed to Sponsor in substantially the form set out in theFourth Schedule dated the Posting Date. |

|           |                        |
|-----------|------------------------|
| 16.  | The Enablement Letter. |

|           |                                                                                                                                                                                                                             |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 17.  | Evidence in a form satisfactory to Sponsoracting reasonably of the fulfilment of all of those Conditionscontained in Clause 2.1 which fall to be fulfilled (and which have notbeen waived) on or prior to the Posting Date. |

30

----

PART III

DELIVERY OF DOCUMENTSTO SPONSOR ON THE CLOSING DATE

A letter from the Companyaddressed to Sponsor in substantially the form set out in the SixthSchedule dated the Closing Date.

31

----

PART IV

DELIVERY OF DOCUMENTS TOTHE UNDERWRITER AT EXECUTION

|          |                                                                                                         |
|----------|---------------------------------------------------------------------------------------------------------|
| 1.  | A copy ofthe resolutions of the Board and of the board of directors of WaterfordWedgwood UK approving:- |

|  |           |                                            |
|--|-----------|--------------------------------------------|
|  | (i)  | the Rights Issue andthe Press Release; and |

|  |            |                                  |
|--|------------|----------------------------------|
|  | (ii)  | this Agreement and itsexecution. |

|          |                                       |
|----------|---------------------------------------|
| 2.  | A certified copy of the PressRelease. |

|          |                                                                                                                                                                                                 |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | A copy of the deed ofundertaking and the relationship agreement entered into by Sir AnthonyO'Reilly, Mr Peter John Goulandris and Waterford Wedgwood plc onor about the date of this agreement. |

|          |                                                                                                                      |
|----------|----------------------------------------------------------------------------------------------------------------------|
| 4.  | Acopy of the Form of Proxy and a copy of the circular published inconnection with the Extraordinary General Meeting. |

32

----

PART V

DELIVERY OF DOCUMENTS TOTHE UNDERWRITERON OR PRIOR TO THE POSTING DATE

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | Copies of the letters referred to in Part IIof this Second Schedule (provided that, in relation to the letter fromthe auditors referred to in paragraph 2 thereof, the auditors haveauthorised the Company to disclose such letter to the Underwriter andthe Company shall, subject to provision of any non-reliance or otherform of letter from the Underwriter as may be required by the auditors,use reasonable endeavours to obtain such authorisation) and, in thecase of letters referred to in paragraphs 1 and 4 of Part II, addressedto the Underwriter rather than Sponsor. |

|          |                                |
|----------|--------------------------------|
| 2.  | The Working Capital Estimates. |

|          |                                                                                                                                                                                                                                                                                                                             |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | A copy of the Prospectus, together withevidence of approval by the Irish Stock Exchange and UK ListingAuthority, each duly signed and dated by each of the Directors and thedirectors of Waterford Wedgwood UK or by his agent duly authorised inwriting, together with a certified copy of the authority of any suchagent. |

|          |                            |
|----------|----------------------------|
| 4.  | A copy of the form of PAL. |

|          |                                               |
|----------|-----------------------------------------------|
| 5.  | One signed original of the VerificationNotes. |

|          |            |
|----------|------------|
| 6.  | A copy of: |

|  |           |                                                                                                                                                                                                                                                                                                                                         |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | the minutes of themeeting(s) of the Board and the meeting(s) 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)  | 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. |

|          |                                                                                                                                                                                                        |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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 acting reasonably. |

|          |                                                                                                                                                                                                                                                                                                                                                                               |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | A copy (certified by a Director or thesecretary of the Company or by a director or the secretary of WaterfordWedgwood UK, as appropriate) of a responsibility letter from or onbehalf of each of the Directors and the directors of Waterford WedgwoodUK, in a form satisfactory to Sponsor acting reasonably, confirming hisacceptance of responsibility for the Prospectus. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 9.  | A letter from the auditors of the Companyaddressed to Sponsor and the Company confirming the accuracy of theextraction of financial information in the Prospectus in a formsatisfactory to Sponsor acting reasonably (provided that the auditorshave authorised the Company to disclose such letter to the Underwriterand the Company shall, subject to provision of any non-reliance orother form of letter from the Underwriter as may be required by theauditors, use reasonable endeavours to obtain such authorisation). |

|           |                                                                                                                                                                                       |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.  | A letter from the Company addressed to theUnderwriter confirming the sufficiency of working capital available tothe Group in a form satisfactory to the Underwriter actingreasonably. |

|           |                                                                                                                                                                                                                                                                                         |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 11.  | A letter from the Companyto the Underwriter confirming that, save as disclosed in theProspectus, there has been no significant change in the financial ortrading position of the Group since the date to which the Group'smost recent consolidated financial statements were published. |

|           |                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.  | A certified copy of the letter from theauditors of the Company addressed to Sponsor and the Company in a formacceptable to Sponsor, acting reasonably, reporting on the WorkingCapital Estimates and confirming that the statement as to sufficiencyof working capital available to the Group, as contained in the sectionof the Prospectus entitled "Working Capital"has been made |

33

----

|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | after due and careful enquiry by the Companyand that the persons or institutions providing finance have confirmedin writing that the relevant facilities exist, together with a copy ofeach such written confirmation (provided that the auditors haveauthorised the Company to disclose such letter to the Underwriter andthe Company shall, subject to provision of any non- reliance or otherform of letter from the Underwriter as may be required by the auditors,use reasonable endeavours to obtain such authorisation). |

|           |                                                                                                                                      |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------|
| 14.  | A letter from the Company addressed to theUnderwriter in substantially the form set out in the Fifth Scheduledated the Posting Date. |

|           |                                                                                                                                                                                                                                      |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 15.  | Evidence in aform satisfactory to the Underwriter, 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. |

34

----

PART VI

DELIVERY OF DOCUMENTS TOTHE UNDERWRITER ON THE CLOSING DATE

A letter from the Companyaddressed to the Underwriter in substantially the form set out in theSeventh Schedule dated the Closing Date.

35

----

THIRD SCHEDULE

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

PART I

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | The implementation of the Rights Issue, andthe publication and despatch of the Rights Issue Documents, will complyin all respects with the relevant provisions of the Companies Acts, theRegulations, the CREST Regulations, the Listing Rules and all otherrelevant laws and regulations and will comply in all material respectswith, and will not infringe, any agreements and obligations to whichthe Company or any of the Subsidiary Undertakings is a party or bywhich the Company or any of the Subsidiary Undertakings is bound. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | All sums due in respect of the issuedcapital of each member of the Group have been paid to and received bythe relevant member of the Group and there are no authorised butunissued shares or outstanding options or other rights to subscribe foror call for the allotment of any share or loan capital of any member ofthe Group other than those disclosed in the Group's most recentlypublished annual consolidated financial statements. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | Subject to the passing of the WaiverResolution, the Resolutions, the Increase/Authorisation Resolution, theBoard Resolutions and to the resolutions referred to in Clause 5.1(b),the Company, the Directors and Waterford Wedgwood UK and its directorshave all necessary power under the Memorandum and Articles ofAssociation of the Company and Waterford Wedgwood UK, and allauthorisations, 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 Wedgwood UK. |

|          |                                                                                                                                                                                           |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.  | The Rights Issue Units will be allotted andissued in accordance with the Rights Issue Documents free from allencumbrances, claims, liens or other third party rights of whatsoevernature. |

|          |                                                                                                                                                                                                                                                                                                                                           |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.  | The Rights Issue Units will, asfrom the date when they become Fully Paid Rights, rank pari passu inall respects with the Stock Units then in issue and, in particular,will, after such date, rank in full for all dividends and otherdistributions declared, paid or made on the Stock Units after the dateof their allotment (nil paid). |

|          |                                                                                                                                                                                                                                                                                                                                                                                                  |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | Allwritten information supplied to Sponsor or its agents or advisors bythe Company or, to the extent authorised by the Company, by its agentsor advisors for the purposes of the Rights Issue and the arrangementscontemplated by this Agreement is true and accurate in all materialrespects and all forecasts and estimates given or implied have beenmade after due and proper consideration. |

36

----

PART II

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

In this Part II referencesto the Company shall, except where the context otherwise requires, bedeemed to include additional and separate references also to eachSubsidiary Undertaking, whether or not it was a subsidiary of theCompany at the relevant time.

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | Since theAccounts Date, save as disclosed in the press release dated 4 May,2005, the circular from the Company to its shareholders dated 27 May2005, the preliminary year end results dated 16 June, 2005, and theProspectus from the Company to its shareholders dated on or about27  June  2005, (unless disclosure of any of the mattersset out in paragraphs (a) to (e) below would not be required in orderto prevent the Prospectus being untrue, inaccurate or misleading in anymaterial respect): |

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

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

|  |           |                                                                                                                                                                                                                                                                               |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | the Company has notdisposed of any of its assets other than in the ordinary course oftrading and has not entered into any material contract or commitment ofan unusual and/or unusually onerous nature or assumed any materialliabilities (including contingent liabilities); |

|  |           |                                                                                                                          |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------|
|  | (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 notincurred any tax liability which could reasonably be consideredmaterial in respect of carrying on its business in the ordinarycourse. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | Save as disclosed in the Form 20F filed by the Company on 30 September, 2004 and the Prospectus fromthe Company to its shareholders dated on or about 27  June2005, the Company is not engaged in any litigation, arbitration orsimilar proceedings of material importance in the context of the Groupnor, so far as the Company is aware, are any such litigation,arbitration or similar proceedings threatened or pending and there areno circumstances known to the Company, after due and careful enquiry,which are likely to give rise to any such litigation, arbitration orsimilar proceedings. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                             |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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 other assets. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                    |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.  | No event has occurred or, to the best of theknowledge, information and belief of the Company, is about to occur byreason of the happening of which any secured or unsecured borrowings ofthe Company, in an amount material as against the overall borrowings ofthe Group taken as a whole, have become or would with the giving ofnotice or the lapse of time become repayable prior to maturity. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.  | Save for grants of options under the ShareOption Schemes and the Employee Participation Schemes or pursuant tothe Company's scrip dividend plan there are in force no optionsor other agreements or arrangements which call for the issue to anyperson or accord to any person the right to call for the issue of anyshares in the capital of the Group or any other securities of anymember of the Group. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                          |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.  | The execution ofthis Agreement and the consummation of the transactions contemplated byit will not, nor is likely to, cause the Company or any of theSubsidiary Undertakings to lose the benefit of any material right orprivilege which it presently enjoys or any person who normally doesbusiness with the Company or the relevant Subsidiary Undertakings notto continue to do so on the same basis. |

37

----

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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 a whole. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | Each member of the Group has been dulyincorporated and has full corporate power and authority to carry on itsbusiness as at the date this Warranty is given or repeated and hascarried on such business in compliance with all legal requirementsapplicable to such business (save where the failure to do so would nothave a material adverse effect on the Group taken as a whole) and asfar as the Company is aware having made due and careful enquiry, eachmember of the Group holds all licences, permissions, authorisations andconsents necessary to enable it to carry on the same business in allmaterial respects as hitherto carried on (including, withoutlimitation, all necessary planning and other consents or permissions inrelation to the properties owned or occupied by it and all consents,authorisations and licences required under environmental and health andsafety legislation) and so far as the Company is aware all suchlicences, permissions, authorisations and consents are in full forceand 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 of events. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 9.  | With respect to the Accounts and eachannouncement made by or on behalf of the Company to either of the StockExchanges or the UK Listing Authority since the date of publication ofthe Accounts, at the date that the Accounts were published or, as thecase may be, at the date such announcement was made, all statementscontained therein (other than expressions of opinion, intention orexpectation of the Directors) were true and fair in all materialrespects and not misleading in any material respect and, in accordancewith the facts and do not omit anything likely to affect the import ofsuch statements and all expressions of opinion, intention orexpectation of the Directors contained therein were when made fair andhonestly held by the Directors and had been made on reasonable groundsand were fairly based and so far as the Company is aware, none of thestatements or expressions were or are rendered misleading in anymaterial respect by the omission of any information. |

|           |                                                                                                                                    |
|-----------|------------------------------------------------------------------------------------------------------------------------------------|
| 10.  | Since the Accounts Date all informationrequired by Rules 9.1 and 9.2 of the Listing Rules has been notified tothe Stock Exchanges. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 11.  | The entry intothis Agreement and the performance by the Company of its obligationsunder this Agreement, including the offer, allotment and issue of theRights Issue Units in accordance with the Rights Issue Documents andthe provisions of this Agreement will comply with the Articles ofAssociation of the Company and Waterford Wedgwood UK, FSMA, the ListingRules and all other relevant laws and regulations of the United Kingdomand Ireland. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.  | The amounts borrowed bythe Company do not exceed any limitation on its borrowing contained inits Articles of Association and any debenture or other deed or documentbinding upon it and the Company has no outstanding loan capital and hasnot engaged in financing of a type which would not require to be shownor reflected in audited accounts (other than factoring of its debts) orborrowed any money which it has not repaid, save for borrowingsspecified in the Prospectus. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 13.  | TheCompany maintains appropriate insurance cover against fire and otherrisks upon all its assets and public and employer's liability,taking into account the nature and scale of its activities and theprovisions of agreements binding upon it and such insurance is now inforce and the Company is not aware of any fact or matter which wouldlead to any such insurance being vitiated or repudiated and there is noclaim which is material in the context of the Group taken as a wholewhich is pending or outstanding and all premiums in respect of suchinsurances have been duly paid. |

38

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PART III

WARRANTIES ANDREPRESENTATIONS FOR THE BENEFIT OF SPONSOR (GIVEN ON THE POSTING DATEONLY)

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | All statements of fact containedin the Rights Issue Documents are true and accurate and not misleading.All statements of opinion, intention or expectation contained in theRights Issue Documents are made on reasonable grounds after due andproper consideration, are fair and honest, and there are no facts knownor which could on reasonable enquiry have been known to the Companywhich are not disclosed in the Prospectus the omission of which wouldmake misleading in any material respect any statement therein, whetherof fact or opinion, and in particular: |

|  |           |                                                                                                                                                                                                                                                                |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | the financialinformation contained in the Prospectus gives a true and fair view ofthe profits and source of funds and cash flows for the financial periodcovered by the report and of the state of affairs of the Group as atthe end of such financial period; |

|  |           |                                                                                        |
|--|-----------|----------------------------------------------------------------------------------------|
|  | (b)  | the reasons for theRights Issue are fairly and accurately described in the Prospectus; |

|  |           |                                                                                                                                                                                                                                                                                                                                |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | the Pro FormaConsolidated Balance Sheet included in the Prospectus has been properlycompiled on the basis of the Group's audited consolidatedfinancial statements for the twelve months ended 31 March 2005, asadjusted for the acquisition of Royal Doulton plc and its subsidiariesand the net proceeds of the Rights Issue; |

|  |           |                                                                                                                                                                                        |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (d)  | the interests (if any)of the Directors in the share capital of the Company and in contractsand arrangements with the Company are fairly and accurately describedin the Prospectus; and |

|  |           |                                                                                                                                                         |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (e)  | the Company has nomaterial subsidiaries other than those identified in the Prospectus andthe Company is not itself the subsidiary of any other company. |

|          |                                                                                                                                                                                                                                                                                                                                                                |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | The Prospectus contain all such informationas investors and their professional advisers would reasonably requireand reasonably expect to find in the Prospectus for the purpose ofmaking an informed assessment of the assets and liabilities, financialposition, profits and losses and prospects of the Group and of therights attaching to the Stock Units. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | Allstatements made by or with the express authority of the Company inconnection with the Application for certain information to be omittedfrom the Prospectus as being inapplicable or of minor importance onlyand not such as would influence assessment of the assets andliabilities, financial position, profits and losses and prospects ofthe Group or any other reason permitted by the applicable ListingRules, were when made, and continue to be, true and accurate in allmaterial respects. |

|          |                                                                                                                                                                                                                                                                         |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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 material respects. |

|          |                                                                                                                                                                                                                                        |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.  | The Working Capital Estimates have beenapproved by the Board and have been prepared after due and carefulenquiry and on the basis and assumptions stated in the Working CapitalEstimates, which the Company believes to be reasonable. |

|          |                                                                                                                                                                                                                                                                     |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.  | Upon satisfaction of the Conditions andsubject to the Underwriter complying with its underwriting obligationscontained in Clause 6 of this Agreement, the Group will have sufficientworking capital for at least the period of 12 months following thePosting Date. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.  | Except pursuant to thosepension arrangements disclosed in the Prospectus or in the auditedaccounts made up to the Accounts Date, the Company is not under anyliability or obligation (whether or not legally enforceable) which ismaterial 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

----

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | The Company hasnot done or omitted to do any act, matter or thing in respect of anyagreement relating to intellectual property material to the Group takenas a whole which would impinge (to an extent which is material to theGroup taken as a whole) upon the validity or enforceability of the sameor 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 2005. Save as disclosed in the Prospectus, the Companyowns or licences all intellectual property material to the Group takenas a whole relating to the business of the Company free from all liens,charges and encumbrances and none of such intellectual property is thesubject of any claim, opposition, assertion, infringement, attack,right, action or other restriction or arrangement of whatsoever naturewhich does or may impinge upon the validity, enforceability orownership of the same or the utilisation thereof by the Company to anextent which is material in the context of the Group. To the best ofthe knowledge, information and belief of the Company, having made dueand careful enquiry, none of the activities of the Company infringesany right of any other person relating to intellectualproperty. |

40

----

PART IV

WARRANTIES ANDREPRESENTATIONS FOR THE BENEFIT OF THE UNDERWRITER (GIVEN ON THE DATEOF THIS AGREEMENT AND ON THE POSTING DATE)

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | The implementation of the Rights Issue, andthe publication and despatch of the Rights Issue Documents, will complyin all respects with the relevant provisions of the Companies Acts, theRegulations, the CREST Regulations, the Listing Rules and all otherrelevant laws and regulations and will comply in all material respectswith, and will not infringe, any agreements and obligations to whichthe Company or any of the Subsidiary Undertakings is a party or bywhich the Company or any of the Subsidiary Undertakings is bound. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | All sums due in respect of the issuedcapital of each member of the Group have been paid to and received bythe relevant member of the Group and there are no authorised butunissued shares or outstanding options or other rights to subscribe foror call for the allotment of any share or loan capital of any member ofthe Group other than those disclosed in the Group's most recentlypublished annual consolidated financial statements. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | Subject to the passing of the WaiverResolution, the Resolutions, the Increase/Authorisation Resolution, theBoard Resolutions and to the resolutions referred to in Clause 5.l(b),the Company, the Directors and Waterford Wedgwood UK and its directorshave all necessary power under the Memorandum and Articles ofAssociation of the Company and Waterford Wedgwood UK and allauthorisations, 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 Wedgwood UK. |

|          |                                                                                                                                                                                           |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.  | The Rights Issue Units will be allotted andissued in accordance with the Rights Issue Documents free from allencumbrances, claims, liens or other third party rights of whatsoevernature. |

|          |                                                                                                                                                                                                                                                                                                                                           |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.  | The Rights Issue Units will, asfrom the date when they become Fully Paid Rights, rank pari passu inall respects with the Stock Units then in issue and, in particular,will, after such date, rank in full for all dividends and otherdistributions declared, paid or made on the Stock Units after the dateof their allotment (nil paid). |

|          |                                                                                                                                                                                                                                                                                                                                                                                                  |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | Allwritten information supplied to Sponsor or its agents or advisors bythe Company or, to the extent authorised by the Company, by its agentsor advisors for the purposes of the Rights Issue and the arrangementscontemplated by this Agreement is true and accurate in all materialrespects and all forecasts and estimates given or implied have beenmade after due and proper consideration. |

41

----

PARTV

WARRANTIES AND REPRESENTATIONS FOR THE BENEFIT OF THEUNDERWRITER (GIVEN ON THE DATE OF THIS AGREEMENT AND ON THE POSTINGDATE)

In this Part V references to the Company shall, exceptwhere the context otherwise requires, be deemed to include additionaland separate references also to each Subsidiary Undertaking, whether ornot it was a subsidiary of the Company at the relevant time.

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | Since the Accounts Date, save as disclosedin the press release dated 4 May, 2005, the circular from the Companyto its shareholders dated 27 May 2005, the preliminary year end resultsdated 16 June 2005 and the Prospectus from the Company to itsshareholders dated on or about 27 June 2005, (unless disclosure of anyof the matters set out in paragraphs (a) to (e) below would not berequired in order to prevent the Prospectus being untrue, inaccurate ormisleading m any material respect): |

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

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

|  |           |                                                                                                                                                                                                                                                                                |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | the Company) has notdisposed of any of its assets other than in the ordinary course oftrading and has not entered into any material contract or commitment ofan unusual and/or unusually onerous nature or assumed any materialliabilities (including contingent liabilities); |

|  |           |                                                                                                                          |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------|
|  | (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 notincurred any tax liability which could reasonably be consideredmaterial in respect of carrying on its business in the ordinarycourse. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | Save as disclosed in the Form20-F filed by the Company on 30 September, 2004 and the Prospectus fromthe Company to its shareholders dated on or about 27  June2005, the Company is not engaged in any litigation, arbitration orsimilar proceedings of material importance in the context of the Groupnor, so far as the Company is aware, are any such litigation,arbitration or similar proceedings threatened or pending and there areno circumstances known to the Company, after due and careful enquiry,which are likely to give rise to any such litigation, arbitration orsimilar proceedings. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                               |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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 other assets. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                    |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.  | No event has occurred or, to the best of theknowledge, information and belief of the Company, is about to occur byreason of the happening of which any secured or unsecured borrowings ofthe Company, in an amount material as against the overall borrowings ofthe Group taken as a whole, have become or would with the giving ofnotice or the lapse of time become repayable prior to maturity. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.  | Save for grants of options under the ShareOption Schemes and the Employee Participation Schemes or pursuant tothe Company's scrip dividend plan there are in force no optionsor other agreements or arrangements which call for the issue to anyperson or accord to any person the right to call for the issue of anyshares in the capital of the Group or any other securities of anymember of the Group. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                          |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.  | The execution ofthis Agreement and the consummation of the transactions contemplated byit will not, nor is likely to, cause the Company or any of theSubsidiary Undertakings to lose the benefit of any material right orprivilege which it presently enjoys or any person who normally doesbusiness with the Company or the relevant Subsidiary Undertakings notto continue to do so on the same basis. |

42

----

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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 a whole. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | Each member of the Group has been dulyincorporated and has full corporate power and authority to carry on itsbusiness as at the date this Warranty is given or repeated and hascarried on such business in compliance with all legal requirementsapplicable to such business (save where the failure to do so would nothave a material adverse effect on the Group taken as a whole) and asfar as the Company is aware, having made due and careful enquiry, eachmember of the Group holds all licences, permissions, authorisations andconsents necessary to enable it to carry on the same business in allmaterial respects as hitherto carried on (including, withoutlimitation, all necessary planning and other consents or permissions inrelation to the properties owned or occupied by it and all consents,authorisations and licences required under environmental and health andsafety legislation) and so far as the Company is aware all suchlicences, permissions, authorisations and consents are in full forceand 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 of events. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 9.  | With respect to the Accounts and eachannouncement made by or on behalf of the Company to either of the StockExchanges or the UK Listing Authority since the date of publication ofthe Accounts, at the date that the Accounts were published or, as thecase may be, at the date such announcement was made, all statementscontained therein (other than expressions of opinion, intention orexpectation of the Directors) were true and fair in all materialrespects and not misleading in any material respect and are inaccordance with the facts and do not omit anything likely to affect theimport of such statements and all expressions of opinion, intention orexpectation of the Directors contained therein were when made fair andhonestly held by the Directors and had been made on reasonable groundsand were fairly based and so far as the Company is aware, none of thestatements or expressions were or are rendered misleading in anymaterial respect by the omission of any information. |

|           |                                                                                                                                    |
|-----------|------------------------------------------------------------------------------------------------------------------------------------|
| 10.  | Since the Accounts Date all informationrequired by Rules 9.1 and 9.2 of the Listing Rules has been notified tothe Stock Exchanges. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 11.  | The entry intothis Agreement and the performance by the Company of its obligationsunder this Agreement, including the offer, allotment and issue of theRights Issue Units in accordance with the Rights Issue Documents andthe provisions of this Agreement will comply with the Articles ofAssociation of the Company and Waterford Wedgwood UK, FSMA, the ListingRules and all other relevant laws and regulations of the United Kingdomand Ireland. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.  | The amounts borrowed bythe Company do not exceed any limitation on its borrowing contained inits Articles of Association and any debenture or other deed or documentbinding upon it and the Company has no outstanding loan capital and hasnot engaged in financing of a type which would not require to be shownor reflected in audited accounts (other than factoring of its debts) orborrowed any money which it has not repaid, save for borrowingsspecified in the Prospectus. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 13.  | TheCompany maintains appropriate insurance cover against fire and otherrisks upon all its assets and public and employer's liability,taking into account the nature and scale of its activities and theprovisions of agreements binding upon it and such insurance is now inforce and the Company is not aware of any fact or matter which wouldlead to any such insurance being vitiated or repudiated and there is noclaim which is material in the context of the Group taken as a wholewhich is pending or outstanding and all premiums in respect of suchinsurances have been duly paid. |

43

----

PART VI

WARRANTIES ANDREPRESENTATIONS FOR THE BENEFIT OF THE UNDERWRITER (GIVEN ON THEPOSTING DATE ONLY)

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.  | All statements offact contained in the Rights Issue Documents are true and accurate andnot misleading. 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 Prospectus the omission ofwhich would make misleading in any material respect any statementtherein, whether of fact or opinion, and in particular: |

|  |           |                                                                                                                                                                                                                                                                |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (a)  | the financialinformation contained in the Prospectus gives a true and fair view ofthe profits and source of funds and cash flows for the financial periodcovered by the report and of the state of affairs of the Group as atthe end of such financial period; |

|  |           |                                                                                        |
|--|-----------|----------------------------------------------------------------------------------------|
|  | (b)  | the reasons for theRights Issue are fairly and accurately described in the Prospectus; |

|  |           |                                                                                                                                                                                                                                                                                                                                |
|--|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | the Pro FormaConsolidated Balance Sheet included in the Prospectus has been properlycompiled on the basis of the Group's audited consolidatedfinancial statements for the twelve months ended 31 March 2005, asadjusted for the acquisition of Royal Doulton plc and its subsidiariesand the net proceeds of the Rights Issue; |

|  |           |                                                                                                                                                                                                    |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (d)  | the interests (if any)of the Independent Directors in the share capital of the Company and incontracts and arrangements with the Company are fairly and accuratelydescribed in the Prospectus; and |

|  |           |                                                                                                                                                         |
|--|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | (e)  | the Company has nomaterial subsidiaries other than those identified in the Prospectus andthe Company is not itself the subsidiary of any other company. |

|          |                                                                                                                                                                                                                                                                                                                                                                |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | The Prospectus contain all such informationas investors and their professional advisers would reasonably requireand reasonably expect to find in the Prospectus for the purpose ofmaking an informed assessment of the assets and liabilities, financialposition, profits and losses and prospects of the Group and of therights attaching to the Stock Units. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | Allstatements made by or with the express authority of the Company inconnection with the Application for certain information to be omittedfrom the Prospectus as being inapplicable or of minor importance onlyand not such as would influence assessment of the assets andliabilities, financial position, profits and losses and prospects ofthe Group or any other reason permitted by the applicable ListingRules, were when made, and continue to be, true and accurate in allmaterial respects. |

|          |                                                                                                                                                                                                                                       |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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 material respects. |

|          |                                                                                                                                                                                                                                                                     |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.  | Upon satisfaction of the Conditions andsubject to the Underwriter complying with its underwriting obligationscontained in Clause 6 of this Agreement, the Group will have sufficientworking capital for at least the period of 12 months following thePosting Date. |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.  | Except pursuant to thosepension arrangements disclosed in the Prospectus or in the auditedaccounts made up to the Accounts Date, the Company is not under anyliability or obligation (whether or not legally enforceable) which ismaterial 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. |

44

----

|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.  | The Company hasnot done or omitted to do any act, matter or thing in respect of anyagreement relating to intellectual property material to the Group takenas a whole which would impinge (to an extent which is material to theGroup taken as a whole) upon the validity or enforceability of the sameor 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 2005. Save as disclosed in the Prospectus, the Companyowns or licences all intellectual property material to the Group takenas a whole relating to the business of the Company free from all liens,charges and encumbrances and none of such intellectual property is thesubject of any claim, opposition, assertion, infringement, attack,right, action or other restriction or arrangement of whatsoever naturewhich does or may impinge upon the validity, enforceability orownership of the same or the utilisation thereof by the Company to anextent which is material in the context of the Group. To the best ofthe knowledge, information and belief of the Company, having made dueand careful enquiry, none of the activities of the Company infringesany right of any other person relating to intellectualproperty. |

45

----

FOURTH SCHEDULE

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

[Date] 2005

|           |                                                    |
|-----------|----------------------------------------------------|
| TO:  | J & E Davy Davy House49 Dawson Street Dublin 2 |

Dear Sirs

Proposed Rights Issue of 1,691,857,115 Units by Waterford Wedgwoodplc at a price of €0.06 per New Stock Unit (the"Rights Issue")

We refer to theRights Issue and to the Underwriting Agreement relating thereto dated20  June  2005 (the "UnderwritingAgreement"). Words and expressions defined in theUnderwriting Agreement have the same meaning herein.

The Companyhereby confirms to Sponsor that the Company has complied with itsobligations under Clauses 2, 3, 4 and 5 of the Underwriting Agreementsolely to the extent such obligations fall to be performed prior to thedate hereof.

Subject to the limitations contained in Clause 10.7of the Underwriting Agreement, the Company hereby confirms that none ofthe representations and warranties given by it to Sponsor in Clause 10of the Underwriting Agreement is breached or untrue or inaccurate ormisleading in any respect when made, none of such representations andwarranties would be breached or untrue or inaccurate or misleading inany respect were it to be repeated by reference to the facts andcircumstances subsisting at the date hereof and none of theundertakings contained in Clause 10 of the Underwriting Agreement hasbeen breached by the Company.

Yours faithfully

______________________________Director For and on behalfof Waterford Wedgwood plc

46

----

FIFTH SCHEDULE

LETTER OFCONFIRMATION FROM THE COMPANY TO THE UNDERWRITER (GIVEN ON THE POSTINGDATE)

[Date] 2005

|           |                                                                                |
|-----------|--------------------------------------------------------------------------------|
| TO:  | Birchfield Holdings Limited PO Box N-858Lyford Manor Lyford Cay Nassau Bahamas |

Dear Sirs

Proposed Rights Issue of 1,691,857,115Units by Waterford Wedgwood plc at a price of €0.06 perNew Stock Unit (the "Rights Issue")

We refer to the Rights Issue and to the Underwriting Agreementrelating thereto dated 20  June  2005 (the"Underwriting Agreement"). Words andexpressions defined in the Underwriting Agreement have the same meaningherein.

The Company hereby confirms to the Underwriter that theCompany has complied with its obligations under Clauses 2, 3, 4 and 5of the Underwriting Agreement solely to the extent such obligationsfall to be performed prior to the date hereof.

Subject to thelimitations contained in Clause 10.7 of the Underwriting Agreement(solely to the extent that clause applies to claims brought by theUnderwriter), the Company hereby confirms that none of therepresentations and warranties given by it to the Underwriter in Clause10 of the Underwriting Agreement is breached or untrue or inaccurate ormisleading in any respect when made, none of such representations andwarranties would be breached or untrue or inaccurate or misleading inany respect were it to be repeated by reference to the facts andcircumstances subsisting at the date hereof and none of theundertakings contained in Clause 10 of the Underwriting Agreement hasbeen breached by the Company.

Yours faithfully

______________________________Director For and on behalfof Waterford Wedgwood plc

47

----

SIXTH SCHEDULE

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

[Closing Date]

|           |                                                    |
|-----------|----------------------------------------------------|
| TO:  | J & E Davy Davy House49 Dawson Street Dublin 2 |

Dear Sirs

Proposed Rights Issue of 1,691,857,115 Units by Waterford Wedgwoodplc at a price of €0.06 per New Stock Unit (the"Rights Issue")

We refer to theRights Issue and to the Underwriting Agreement relating thereto dated20  June  2005 (the "UnderwritingAgreement"). Words and expressions defined in theUnderwriting Agreement have the same meaning herein.

The Companyhereby confirms to Sponsor that the Company has complied with itsobligations under Clauses 2, 3, 4 and 5 of the Underwriting Agreementsolely to the extent such obligations fall to be performed prior to thedate hereof.

Subject to the limitations contained in Clause 10.7of the Underwriting Agreement, the Company hereby confirms that none ofthe undertakings contained in Clause 10 of the Underwriting Agreementhas been breached by the Company.

Yours faithfully

______________________________Director For and on behalfof Waterford Wedgwood plc

48

----

SEVENTH SCHEDULE

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

[Closing Date]

|            |                                                                               |
|------------|-------------------------------------------------------------------------------|
| TO:   | Birchfield Holdings Limited POBox N-858 Lyford Manor Lyford Cay NassauBahamas |

Dear Sirs

Proposed Rights Issue of1,691,857,115 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 20  June2005 (the "Underwriting Agreement"). Wordsand expressions defined in the Underwriting Agreement have the samemeaning herein.

The Company hereby confirms to the Underwriterthat 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 the 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 behalfof Waterford Wedgwood plc

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|                                 |  |                                                           |  |  |  |  |
|---------------------------------|--|-----------------------------------------------------------|--|--|--|--|
| **SIGNED**by                    |  | Tony Garry                                                |
| dulyauthorised                  |  |                                                      |
| for and on behalf of            |  |                                                      |
| **J&E DAVY**                |  |                                                      |
| in the presenceof:              |  | Breeda McRann Secretary 49 DawsonStreet Dublin 2          |
|             |  |                                                      |
| **SIGNED**by                    |  | Patrick Dowling                                           |
| dulyauthorised                  |  |                                                      |
| for and on behalf of            |  |                                                      |
| **WATERFORD WEDGWOOD plc**      |  |                                                      |
| in thepresence of:              |  | Ken Casey Solicitor Dublin2                               |
|             |  |                                                      |
| **SIGNED**by                    |  | Tim J.Scanlon                                             |
| dulyauthorised                  |  |                                                      |
| for and on behalf of            |  |                                                      |
| **BIRCHFIELD HOLDINGS LIMITED** |  |                                                      |
| in thepresence of:              |  | Éanna Mellett Solicitor,30 Herbert Street, Dublin2 |
|                                 |

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