Document:

Exhibit 4.2

 

	
   

  

 

 

€285,000,000 8.25% Senior Subordinated Notes
due 2013

 

$250,000,000 8.25% Senior Subordinated Notes
due 2013

 

REGISTRATION RIGHTS AGREEMENT

 

Dated as of August 7, 2003

 

by and among

 

VALENTIA TELECOMMUNICATIONS,

 

EIRCOM FUNDING,

 

EIRCOM LIMITED,

 

VALENTIA HOLDINGS LIMITED

 

and

 

DEUTSCHE BANK AG LONDON

 

as representative of the

several Initial Purchasers of Senior Subordinated Notes Listed in Schedule I

to the Purchase Agreement (as hereinafter defined)

 

 

	
   

  

 

 

This Registration Rights Agreement (this “Agreement”) is made and entered into as of
August 7, 2003, by and among Valentia Telecommunications, an unlimited public
company incorporated under the laws of Ireland (the “Company”), eircom
Funding, an unlimited public company incorporated under the laws of Ireland
(the “eircom Funding”), eircom Limited, a limited liability
company incorporated under the laws of Ireland (“eircom”), Valentia Holdings, a company incorporated under
the laws of England (“Holdings,”
and together with the Company and eircom, the
“Guarantors,” and the Guarantors
together with eircom Funding, the
“Issuers”), and Deutsche Bank AG
London, as representative (the “Representative”)
of the initial purchasers of Senior Subordinated Notes set forth in Schedule I
to the Purchase Agreement (as defined below) (each such initial purchaser and
Representative an “Initial Purchaser”
and, collectively, the “Initial Purchasers”),
each of whom has agreed to purchase eircom
Funding’s 8.25% Senior Subordinated Notes due 2013 in aggregate principal
amount of €285,000,000 (the “Euro Senior
Subordinated Notes”) and/or 8.25% Senior Subordinated Subordinated
Notes due 2013 in aggregate principal amount of $250,000,000 (the “Dollar Senior Subordinated Notes” and,
together with the Euro Senior Subordinated Notes, the “Initial Notes”) pursuant to the Purchase Agreement.

 

This Agreement is made pursuant to the
Purchase Agreement, dated July 30, 2003 (the “Purchase
Agreement”), by and among the Issuers and the Initial
Purchasers.  In order to induce the
Initial Purchasers to purchase the Euro Senior Subordinated Notes and the
Dollar Senior Subordinated Notes, the Issuers have agreed to provide the
registration rights set forth in this Agreement.  The execution and delivery of this Agreement is a condition to
the obligations of the Initial Purchasers set forth in Section 5 of the
Purchase Agreement.  Capitalized terms
used herein and not otherwise defined shall have the meaning assigned to them
in the Indenture, dated August 7, 2003, by and among the Issuers and The Bank
of New York, as Trustee (the “Trustee”),
relating to the Initial Notes and the Exchange Notes (as defined in Section 1
herein) (the “Senior Subordinated Indenture”).

 

The parties hereby agree as follows:

 

SECTION
1.      DEFINITIONS

 

As used in this Agreement, the following
capitalized terms shall have the following meanings:

 

Act:  The Securities Act of 1933, as amended.

 

Additional Interest:  As defined in Section 5 hereof.

 

Affiliate:  As defined in Rule 405 of the Act.

 

Broker-Dealer:  Any broker or dealer registered with the
Commission under the Exchange Act.

 

Business Day:  Any day except a Saturday, Sunday or other
day on which the Commission shall not be open for the transaction of business.

 

Closing Date:  The date hereof.

 

 

Commission:  The Securities and Exchange Commission.

 

Consummate:  An Exchange Offer shall be deemed
“Consummated” for purposes of this Agreement upon the occurrence of (a) the
filing and effectiveness under the Act of an Exchange Offer Registration
Statement relating to the Euro Senior Subordinated Exchange Notes or the Dollar
Senior Subordinated Exchange Notes, as the case may be, to be issued in the
Exchange Offer, (b) the maintenance of such Exchange Offer Registration
Statement continuously effective and the keeping of such Exchange Offer open
for a period not less than the minimum period required pursuant to Section 3(b)
hereof, (c) with respect to an Exchange Offer relating to the Euro Senior
Subordinated Notes, the delivery by eircom
Funding to (i) the Euro Book-entry Depositary (as defined in the Euro Deposit
and Custody Agreement) of the Euro Senior Subordinated Exchange Notes (in the
case of notes in bearer form) or (ii) the Registrar (as defined in the Senior
Subordinated Indenture) of the Euro Senior Subordinated Exchange Notes to be
registered (in the case of notes in definitive form), in each case in the same
aggregate principal amount as the aggregate principal amount of Euro Senior
Subordinated Notes tendered by the Holders thereof pursuant to the Exchange Offer
and (d) with respect to an Exchange Offer relating to the Dollar Senior
Subordinated Notes, the delivery by eircom
Funding to (i) the Dollar Book-Entry Depositary (as defined in the Dollar
Deposit and Custody Agreement) of the Dollar Senior Subordinated Exchange Notes
(in the case of notes in bearer form) or (ii) the Registrar (as defined in the
Senior Subordinated Indenture) of the Dollar Senior Subordinated Exchange
Notes, to be registered (in the case of notes in definitive form), in each case
in the same aggregate principal amount as the aggregate principal amount of
Dollar Senior Subordinated Notes tendered by the Holders thereof pursuant to
the Exchange Offer.

 

Consummation Deadline:  As defined in Section 3(b) hereof.

 

Definitive Notes:  As defined in the Senior Indenture.

 

Dollar Deposit and Custody Agreement
means the Deposit and Custody Agreement entered into as of the Closing Date by
The Bank of New York and the Company with respect to the Euro Senior
Subordinated Notes and any Euro Senior Subordinated Exchange Notes.

 

Dollar Senior Subordinated Exchange Notes:  Debt securities of eircom Funding issued under the Senior
Subordinated Indenture having terms identical in all material respects to the
Dollar Senior Subordinated Notes (except that the Dollar Senior Subordinated
Exchange Notes will not contain terms with respect to transfer restrictions or
provisions relating to the matters described in Section 5 hereof).

 

Dollar Senior Subordinated Notes Exchange
Offer: A proposed offer to issue and deliver to
Holders of Dollar Senior Subordinated Notes that are Transfer Restricted
Securities, in exchange for such Dollar Senior Subordinated Notes, a like
aggregate principal amount of Dollar Senior Subordinated Exchange Notes.

 

Euro Deposit and Custody Agreement
means the Deposit and Custody Agreement entered into as of the Closing Date by
The Bank of New York and the Company with respect to the Euro Senior
Subordinated Notes and any Euro Senior Subordinated Exchange Notes.

 

2

 

Euro Senior Subordinated Exchange Notes:  Debt securities of eircom Funding issued under the Indenture
having terms identical in all material respects to the Euro Senior Subordinated
Notes (except that the Euro Senior Subordinated Exchange Notes will not contain
terms with respect to transfer restrictions or provisions relating to the
matters described in Section 5 hereof).

 

Euro Senior Subordinated Notes Exchange Offer:
A proposed offer to issue and deliver to Holders of Euro Senior Subordinated
Notes that are Transfer Restricted Securities, in exchange for such Euro Senior
Subordinated Notes, a like aggregate principal amount of Euro Senior
Subordinated Exchange Notes.

 

Effectiveness Deadline:  As defined in Section 3(a) hereof.

 

Exchange Act:  The Securities Exchange Act of 1934, as
amended.

 

Exchange Notes:  The Dollar Senior Subordinated Exchange
Notes and the Euro Senior Subordinated Exchange Notes.

 

Exchange Offer: The
Dollar Senior Subordinated Notes Exchange Offer or the Euro Senior Subordinated
Notes Exchange Offer, as the case may be (the Dollar Senior Subordinated Notes
Exchange Offer and the Euro Senior Subordinated Notes Exchange Offer together
being the “Exchange Offers”).

 

Exchange Offer Registration Statement:  The Registration Statement or Registration
Statements relating to the Exchange Offers, including the related
Prospectus(es).

 

Filing Deadline:  As defined in Sections 3(a) hereof.

 

Guarantors:  The Guarantors defined in the preamble
hereto and any Person which becomes a guarantor of Notes after the date hereof
pursuant to the terms of the Senior Subordinated Indenture.

 

Holder:  As defined in Section 2 hereof.

 

Indemnified Holder:  As defined in Section 8(a) hereof.

 

Indemnified Person:  As defined in Section 8(c) hereof.

 

Indemnifying Person:  As defined in Section 8(c) hereof.

 

Person:  An individual, partnership, limited
liability company, corporation, trust, unincorporated organization, or a
government or agency or political subdivision thereof.

 

Private Exchange:  As defined in Section 3(c) hereof.

 

Private Exchange Notes:  As defined in Section 3(c) hereof.

 

Prospectus:  The prospectus included in a Registration
Statement at the time such Registration Statement is declared effective, as
amended or supplemented by any prospectus

 

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supplement and by all other
amendments thereto, including post-effective amendments, and all material
incorporated by reference into such Prospectus.

 

Recommencement Date:  As defined in Section 6(d) hereof.

 

Registration Default:  As defined in Section 5 hereof.

 

Registration Statement:  Any registration statement of the Issuers
relating to (a) an offering of any Exchange Notes (including guarantees thereof
by the relevant Guarantors) pursuant to an Exchange Offer or (b) the
registration for resale of Transfer Restricted Securities pursuant to the Shelf
Registration Statement, in each case, (i) that is filed pursuant to the
provisions of this Agreement and (ii) including the Prospectus included
therein, all amendments and supplements thereto (including post effective
amendments) and all exhibits and material incorporated by reference therein.

 

Rule 144:  Rule 144 promulgated under the Act.

 

Shelf Effectiveness Deadline:  As defined in Section 4(a) hereof.

 

Shelf Filing Deadline:  As defined in Section 4(a) hereof.

 

Shelf Registration Statement:  As defined in Section 4 hereof.

 

Suspension Notice:  As defined in Section 6(d) hereof.

 

TIA:  The Trust Indenture Act of 1939, as amended.

 

Transfer Restricted Securities:  Each Initial Note, Private Exchange Note or
Exchange Note (for the purposes of this definition, a “Note”), until the earliest to occur of
(a) the date on which such Note is exchanged by a Person other than a
Broker-Dealer in an Exchange Offer, (b) the date on which such Note has been
disposed of in accordance with a Shelf Registration Statement, (c) following
the exchange by a Broker-Dealer in an Exchange Offer of an Initial Note for an
Exchange Note, the date on which such Exchange Note is sold to a purchaser who
receives from such Broker-Dealer on or prior to the date of such sale a copy of
the Prospectus contained in the applicable Exchange Offer Registration
Statement) or (d) the date on which such Note is distributed to the public
pursuant to Rule 144 under the Act or is eligible for resale pursuant to Rule
144 without volume restriction, if any.

 

SECTION
2.      HOLDERS

 

For purposes of this Agreement, a Person is
deemed to be a “Holder” of
Transfer Restricted Securities whenever such Person owns Transfer Restricted
Securities.

 

SECTION
3.      REGISTERED EXCHANGE OFFER

 

(a)           Unless the Exchange Offers shall
not be permitted by applicable federal law or policy of the Commission, the
Issuers shall use commercially reasonable efforts to (i) cause any Exchange
Offer Registration Statement to be filed with the Commission on or prior to the
date

 

4

 

that is 90 days (or, if the 90th
day is not a Business Day, the first Business Day thereafter) after the Closing
Date (such 90th day or first Business Day thereafter being the “Filing Deadline”), (ii) cause such Exchange
Offer Registration Statement to become effective on or prior to the date that
is 225 days (or, if the 225th day is not a Business Day, the first
Business Day thereafter) after the Closing Date (such 225th day or first
Business Day thereafter being the “Effectiveness Deadline”) and (iii) in connection with the foregoing, (A) file all
pre-effective amendments to such Exchange Offer Registration Statement as may
be necessary in order to cause it to become effective, (B) file, if applicable,
a post-effective amendment to such Exchange Offer Registration Statement
pursuant to Rule 430A under the Act and (C) cause all necessary filings, if
any, in connection with the registration and qualification of the Euro Senior
Subordinated Exchange Notes and the Dollar Senior Subordinated Exchange Notes
to be made under the Blue Sky laws of such states within the United States as
are necessary to permit Consummation of the Exchange Offer, provided, however, that none of the Issuers shall
be required to register or qualify as a foreign corporation where such Issuer
is not now so qualified or to take any action that would subject such Issuer to
general service of process of suits or to taxation, other than as to matters
and transactions relating to the Exchange Offer Registration Statement, in any
jurisdiction where such Issuer is not now so subject.  Any Exchange Offer shall be on the appropriate form permitting
registration of the Euro Senior Subordinated Exchange Notes and Dollar Senior
Subordinated Exchange Notes, as applicable, to be offered in exchange for the
Euro Senior Subordinated Notes and Dollar Senior Subordinated Notes, as
applicable, that are Transfer Restricted Securities and to permit resales of
Euro Senior Subordinated Exchange Notes and Dollar Senior Subordinated Exchange
Notes by certain Broker-Dealers as contemplated by Section 3(c) below.

 

(b)           The Issuers shall use
commercially reasonable efforts to cause any Exchange Offer Registration
Statement to be effective and to keep the relevant Exchange Offer open for the
period required under applicable federal and state securities laws (including
pursuant to any applicable interpretation by the Staff of the Commission) but
in any event at least 20 Business Days after the date on which the relevant
Exchange Offer Registration Statement was declared effective.  The Issuers shall cause the Exchange Offer
to comply with all applicable federal and state securities laws.  No securities other than the Euro Senior
Subordinated Exchange Notes and the guarantees thereof, and the Dollar Senior
Subordinated Exchange Notes and the guarantees thereof, shall be included in
any Exchange Offer Registration Statement, provided, however, that the notes to
be offered in exchange for the Senior Notes due 2013 issued by the Company and
guaranteed by eircom may,
if permitted by applicable federal laws (including policies of the Commission),
be included in any Registration Statement required hereunder, including any
Exchange Offer Registration Statement, so the Company and eircom may use the same Registration
Statement or Registrations Statements to satisfy their obligations under the
Registration Rights Agreement relating to such Senior Notes.  The Issuers shall use commercially
reasonable efforts to cause each Exchange Offer to be Consummated on or prior
to the date that is 40 Business Days after the relevant Exchange Offer
Registration Statement has become effective, unless a later date for
Consummation of such Exchange Offer is required by the federal securities laws
(either such date, the “Consummation Deadline”).

 

5

 

(c)           The Issuers shall include a “Plan of Distribution” section
in the Prospectus contained in any Exchange Offer Registration Statement and
indicate therein that (i) any Broker-Dealer who holds Transfer Restricted
Securities that were acquired for the account of such Broker-Dealer as a result
of market-making activities or other trading activities (other than Transfer
Restricted Securities acquired directly from eircom Funding or any Affiliate of
eircom Funding), may exchange such Transfer Restricted Securities pursuant to
the Exchange Offer, but that such Broker-Dealer may be deemed to be an
“underwriter” within the meaning of the Act and must, therefore, deliver a
prospectus meeting the requirements of the Act in connection with its initial
sale of any Euro Senior Subordinated Exchange Notes or Dollar Senior
Subordinated Exchange Notes received by such Broker-Dealer in the Exchange
Offer and (ii) the Prospectus contained in such Exchange Offer Registration
Statement may be used to satisfy such prospectus delivery requirement.  Such “Plan of Distribution” section shall
also contain all other information with respect to such sales by such
Broker-Dealers that the Commission may require in order to permit such sales
pursuant thereto, but such “Plan of Distribution” shall not name any such
Broker-Dealer or disclose the amount of Transfer Restricted Securities held by
any such Broker-Dealer, except to the extent required by the Commission.

 

In the event that the Company receives notice
from a Broker-Dealer within 20 Business Days of the Consummation of an Exchange
Offer that such Broker-Dealer holds Transfer Restricted Securities that were
acquired for the account of such Broker-Dealer as a result of market-making or
similar activities the Issuers agree, to the extent necessary to ensure that
the relevant Exchange Offer Registration Statement is available for resales of
such Transfer Restricted Securities by such Broker-Dealer, to use commercially
reasonable efforts to keep the Exchange Offer Registration Statement
continuously effective, supplemented and amended as required by and subject to
the provisions of Section 6(c) hereof and in conformity with the requirements
of this Agreement, the Act and the policies, rules and regulations of the
Commission as announced from time to time, for a period of 90 days from the day
on which the Exchange Offer is Consummated, or such shorter period as will
terminate when all Transfer Restricted Securities covered by such Registration
Statement have been sold pursuant thereto. 
The Issuers shall promptly provide sufficient copies of the latest
version of such Prospectus to such Broker-Dealers promptly upon request at any
time during such period to facilitate such resales.

 

If, prior to consummation of the Exchange
Offer, the Initial Purchasers hold any Euro Senior Subordinated Notes or Dollar
Senior Subordinated Notes acquired by them and having, or which are reasonably
likely to be determined to have, the status of an unsold allotment in the
initial distribution, eircom Funding,
upon the written request of the Initial Purchasers simultaneously with the
delivery of the Euro Senior Subordinated Exchange Notes and Dollar Senior
Subordinated Exchange Notes in the Exchange Offer, shall issue and deliver to
the Initial Purchasers in exchange (the “Private
Exchange”) for such Euro Senior Subordinated Notes or Dollar Senior
Subordinated Notes held by the Initial Purchasers a like principal amount of
notes of eircom Funding, that are
substantially identical in all material respects to the Euro Senior
Subordinated Exchange Notes or Dollar Senior Subordinated Exchange Notes, as
applicable (the “Private Exchange Notes”)
(and which are issued pursuant to the same indenture as the Euro Senior
Subordinated Exchange Notes and Dollar Senior Subordinated Exchange Notes)
except for the placement of a restrictive legend on such Private Exchange
Notes.  The Private Exchange Notes shall
bear the same CUSIP number, if any, ISIN number and Common Code as the Euro

 

6

 

Senior Subordinated Exchange Notes or the
Dollar Senior Subordinated Exchange Notes, as applicable, to the extent
permitted by the CUSIP Service Bureau of Standard & Poor’s and other
applicable organizations.

 

Interest on the Exchange Notes and the
Private Exchange Notes will accrue from the last interest payment date on which
interest was paid on the Initial Notes surrendered in exchange therefor or, if
no interest has been paid on the Exchange Notes, from the Closing Date.

 

In connection with the Exchange Offers, eircom Funding shall:

 

(1)           mail
to each Holder a copy of the Prospectus forming part of the Exchange Offer
Registration Statement, together with an appropriate letter of transmittal and
related documents;

 

(2)           utilize
the services of a depositary for the Exchange Offer with an address in London,
England (in the case of the Euro Senior Subordinated Notes) or New York, New
York (in the case of the Dollar Senior Subordinated Notes), which may be either
the Trustee or an affiliate of the Trustee;

 

(3)           permit
Holders to withdraw tendered Initial Notes at any time prior to the close of
business, London time, on the last business day on which the Exchange Offer
shall remain open; and

 

(4)           otherwise
comply in all material respects with all applicable laws, rules and
regulations.

 

As soon as practicable after the close of the
relevant Exchange Offer or the Private Exchange, as the case may be, eircom Funding shall:

 

(1)           accept
for exchange all Initial Notes tendered and not validly withdrawn pursuant to
such Exchange Offer or the Private Exchange;

 

(2)           deliver
to the Trustee or Authenticating Agent (as defined in the Senior Subordinated
Indenture) for cancellation all Initial Notes so accepted for exchange; and

 

(3)           cause
each Trustee promptly to authenticate and deliver to each Holder of the Euro Senior
Subordinated Notes or Dollar Senior Subordinated Notes, Euro Senior
Subordinated Exchange Notes, Dollar Senior Subordinated Exchange Notes or
Private Exchange Notes, as the case may be, in global form in aggregate
principal amount and currency denomination equal to the respective Euro Senior
Subordinated Notes and Dollar Senior Subordinated Notes so accepted for
exchange, as further set forth in the Senior Subordinated Indenture.

 

As a condition to its participation in any
Exchange Offer, each Holder of Transfer Restricted Securities (including,
without limitation, any Holder who is a Broker-Dealer) shall furnish, prior to
the Consummation of such Exchange Offer, a written representation to the
Issuers (which may be contained in the letter of transmittal contemplated by
the relevant Exchange Offer Registration Statement) to the effect that (A) it
is not an Affiliate of eircom

 

7

 

Funding or if it is an Affiliate, that it
will comply with the registration and prospectus delivery requirements of the
Securities Act to the extent applicable, (B) if such Holder is not a
Broker-Dealer, that it is not engaged in, and does not intend to engage in, the
distribution (within the meaning of the Act) of the Euro Senior Subordinated
Exchange Notes or the Dollar Senior Subordinated Exchange Notes, (C) if such
Holder is a Broker-Dealer who holds Transfer Restricted Securities that were
acquired for the account of such Broker-Dealer as a result of market-making
activities or other trading activities (other than Transfer Restricted
Securities acquired directly from eircom
Funding or any Affiliate of eircom
Funding), that it will deliver a prospectus in connection with any resale of
such Euro Senior Subordinated Exchange Notes or Dollar Senior Subordinated
Exchange Notes, (D) it is not engaged in, and does not intend to engage in, and
has no arrangement or understanding with any person to participate in, a
distribution of the Euro Senior Subordinated Exchange Notes or the Dollar
Senior Subordinated Exchange Notes to be issued in the Exchange Offer, (E) it
is acquiring the Euro Senior Subordinated Exchange Notes or the Dollar Senior
Subordinated Exchange Notes in its ordinary course of business and (F) that it
is not acting on behalf of any Person who could not truthfully make the
foregoing representations.  Each Holder
hereby acknowledges and agrees that any Broker-Dealer and any such Holder using
the Exchange Offer to participate in a distribution of Exchange Notes
(1) cannot, under Commission policy as in effect on the date of this
Agreement, rely on the position of the Commission enunciated in Morgan
Stanley and Co., Inc. (available June 5, 1991) and Exxon Capital
Holdings Corporation (available May 13,1988), as interpreted in the
Commission’s letter to Shearman & Sterling dated July 2, 1993,
and similar no-action letters, and (2) must comply with the registration
and prospectus delivery requirements of the Act in connection with a secondary
resale transaction and that such a secondary resale transaction must be covered
by an effective registration statement containing the selling security holder
information required by Item 9B and 9D, as applicable, of Form 20-F under the
Act.

 

SECTION
4.      SHELF REGISTRATION

 

(a)           Shelf Registration.  If (i) eircom Funding
is not required to file an Exchange Offer Registration Statement or Consummate
an Exchange Offer because the relevant Exchange Offer is not permitted by
applicable law or Commission policy or (ii) any Holder of Transfer Restricted
Securities (other than any Holder that is an Affiliate of eircom Funding or any Holder that is
unable to make the representations referred to in Section 3(c)) shall notify
the Company in writing within 20 Business Days following the Consummation of such
Exchange Offer that (A) it is prohibited by law or Commission policy from
participating in such Exchange Offer or (B) such Holder may not resell the Euro
Senior Subordinated Exchange Notes or Dollar Senior Subordinated Exchange Notes
acquired by it in the Exchange Offer to the public without delivering a
prospectus, and the Prospectus contained in the Exchange Offer Registration
Statement is not available for such resales by such Holder, then the Issuers
shall:

 

(x)  use commercially reasonable
efforts to cause to be filed pursuant to Rule 415 under the Act, as promptly as
practicable after the earlier of (i) the date on which eircom Funding determines that it is not
required to file an Exchange Offer Registration Statement or Consummate an
Exchange Offer as a result of clause (a)(i) above and (ii) the date on which
the Company receives the notice specified in clause (a)(ii) above (such
earliest date being the “Shelf Filing
Deadline”), a shelf registration statement on an appropriate form
under the Act, which

 

8

 

may be an amendment to an
Exchange Offer Registration Statement (a “Shelf
Registration Statement”), relating to all Transfer Restricted
Securities of Holders that shall have provided the information required
pursuant to Section 4(b) hereof, provided, however, that in no event shall the
Shelf Filing Deadline pursuant to this section 4(a)(x) be a date prior to the
Filing Deadline that otherwise would have been applicable to an Exchange Offer
Registration Statement pursuant to section 3(a); and

 

(y)  use commercially reasonable
efforts to cause such Shelf Registration Statement to become effective on or
prior to 180 days after the Shelf Filing Deadline (such 180th day the “Shelf Effectiveness Deadline”).

 

If, after the Issuers have filed an Exchange
Offer Registration Statement that satisfies the requirements of Section 3(a)
above, the Issuers are required to file and make effective a Shelf Registration
Statement solely because an Exchange Offer is not permitted under applicable
federal law or policy of the Commission (i.e., in the case of clause (a)(i)
above), then (i) the filing of such Exchange Offer Registration Statement shall
be deemed to have satisfied the requirements of clause (x) above, provided that, in such event, the Issuers
shall remain obligated to meet the Shelf Effectiveness Deadline; and (ii) the
Issuers need not abandon any attempt to cause the Commission to declare the
Exchange Offer Registration Statement effective and they may satisfy their
obligations pursuant to this Section 4 by registering Initial Notes pursuant to
such Exchange Offer Registration Statement rather than such Shelf Registration
Statement.

 

The Issuers shall use commercially reasonable
efforts to keep any Shelf Registration Statement required by this Section 4(a)
continuously effective, supplemented and amended as required by and subject to
the provisions of Sections 6(b) and (c) hereof to the extent necessary to
ensure that it is available for sales of Transfer Restricted Securities by the
Holders thereof entitled to the benefit of this Section 4(a) and to ensure that
it conforms with the requirements of this Agreement, the Act and the policies,
rules and regulations of the Commission as announced from time to time, for a
period of two years following the Closing Date, or such shorter period as will
terminate when all Transfer Restricted Securities covered by such Shelf
Registration Statement (i) have been sold pursuant thereto or (ii) have ceased
to constitute Transfer Restricted Securities. 
In no event shall the Issuers be deemed not to have used commercially
reasonable efforts to keep a Shelf Registration Statement effective and usable
during the requisite period if during such period it takes an action required
by applicable law or permitted or contemplated by Section 6(c)(i), regardless
of whether such action would result in Holders of Transfer Restricted
Securities covered thereby not being able to offer and sell such Transfer
Restricted Securities during that period.

 

(b)           Provision by Holders of Certain
Information in Connection with the Shelf Registration Statement.  No Holder of Transfer Restricted Securities may include any of
its Transfer Restricted Securities in any Shelf Registration Statement pursuant
to this Agreement unless and until such Holder (i) furnishes to eircom Funding in writing, within 10
days after receipt of a request therefor, the information specified in Items 9B
and 9D, as applicable, of Form 20-F under the Act for use in connection with
any Shelf Registration Statement or Prospectus or preliminary Prospectus
included therein, and (ii) unless such Holder is an Initial Purchaser, such
Holder agrees in writing within 10 days after receipt of a request to so agree
to be bound by all of the provision of this Agreement applicable to such
Holder.  No Holder of

 

9

 

Transfer Restricted Securities shall be
entitled to Additional Interest pursuant to Section 5 hereof unless and until
such Holder shall have provided all such information and shall have so agreed
in writing (it being understood that Additional Interest shall cease to accrue
for the benefit of any Holder who fails to provide such information or so agree
in writing).  Each selling Holder agrees
to promptly furnish additional information required to be disclosed in order to
make the information previously furnished to eircom Funding by such Holder not
materially misleading.  The Issuers
shall not be obligated to supplement such Shelf Registration Statement after it
has been declared effective by the Commission more than once per quarterly
period to reflect additional Holders.

 

SECTION
5.      ADDITIONAL INTEREST

 

If (i) any Registration Statement required by
this Agreement is not filed with the Commission on or prior to the applicable
Filing Deadline, (ii) any such Registration Statement has not been declared
effective by the Commission on or prior to the applicable Effectiveness
Deadline unless, in the case of any Exchange Offer Registration Statement, a
Shelf Registration Statement for the relevant series of Initial Notes is
declared effective prior to the Effectiveness Deadline applicable to such
Exchange Offer Registration Statement, (iii) any Exchange Offer has not been
Consummated by the Consummation Deadline applicable to such Exchange Offer,
unless a Shelf Registration Statement for the relevant series of Initial Notes
is declared effective prior to such Consummation Deadline, or (iv) subject to
Section 6(c)(i), any Registration Statement required by this Agreement is filed
and declared effective but thereafter ceases to be effective or fails to be
usable for its intended purpose without being succeeded within 5 Business Days
thereafter by a post-effective amendment to such Registration Statement that
cures such failure and that is itself promptly declared effective  (each such event referred to in clauses (i)
through (iv), a “Registration Default”),
then, subject to Section 6(c)(i), eircom
Funding shall pay to each Holder of Transfer Restricted Securities affected
thereby additional interest (“Additional
Interest”), with respect to the first 90-day period immediately
following the occurrence of the first Registration Default in an amount equal
to a per annum rate of 0.25% on the principal amount of Transfer Restricted
Securities held by such Holder.  The
amount of Additional Interest described in the preceding sentence shall
increase by an additional per annum rate of 0.25% with respect to each
subsequent 90-day period until all Registration Defaults have been cured, up to
a maximum amount of Additional Interest for all Registration Defaults of 1.00%
per annum on the principal amount
of Initial Notes constituting Transfer Restricted Securities; provided that eircom Funding shall in no event be required to pay
Additional Interest for more than one Registration Default at any given
time.  Notwithstanding anything to the
contrary set forth herein, (1) upon filing of an Exchange Offer
Registration Statement (and/or, if applicable, a Shelf Registration Statement)
for the relevant series of Initial Notes, in the case of (i) above,
(2) upon the effectiveness of an Exchange Offer Registration Statement
(and/or, if applicable, a Shelf Registration Statement) for the relevant series
of Initial Notes, in the case of (ii) above, (3) upon Consummation of an
Exchange Offer (or, if applicable, upon the effectiveness of a Shelf
Registration Statement for the relevant series of Initial Notes, in the case of
(iii) above, or (4) upon the filing of a post-effective amendment to the
Registration Statement or an additional Registration Statement that causes the
Exchange Offer Registration Statement (and/or, if applicable, the Shelf
Registration Statement) to again be declared effective or made usable in the
case of (iv) above, the Additional Interest payable with respect to the
Transfer Restricted Securities as a result of such clause (i), (ii), (iii) or
(iv), as applicable, shall cease.

 

10

 

Notwithstanding the foregoing,
(x) all pre-existing Registration Defaults in respect of a series of Initial
Notes shall be deemed cured upon consummation of an Exchange Offer or the
effectiveness of a Shelf Registration Statement for the relevant series of
Initial Notes (for the avoidance of doubt, without prejudice to Additional
Interest already accrued), and (y) Additional Interest shall cease to accrue on
any Initial Note that is no longer a Transfer Restricted Security.

 

All accrued Additional Interest shall be paid
to the Holders entitled thereto, in the manner provided for the payment of
interest in the Senior Subordinated Indenture, on each Interest Payment Date,
as more fully set forth in the Senior Subordinated Indenture and the Initial
Notes.  All obligations of the Issuers
set forth in the preceding paragraph that are outstanding with respect to any
Transfer Restricted Security at the time such security ceases to be a Transfer
Restricted Security shall survive until such time as all such obligations with
respect to such security shall have been satisfied in full.

 

SECTION
6.      REGISTRATION PROCEDURES

 

(a)           Exchange Offer Registration
Statement.  In connection with the Exchange Offer, the
Issuers shall (x) comply with all applicable provisions of Section 6(c) below,
and (y) use commercially reasonable efforts to effect such exchange and to
permit the resale of Exchange Notes by any Broker-Dealer that tendered in the
Exchange Offer Initial Notes that such Broker-Dealer acquired for its own
account as a result of its market making activities or other trading activities
(other than Initial Notes acquired directly from eircom Funding or any of its Affiliates) being sold in accordance
with the intended method or methods of distribution thereof and otherwise in
accordance with Section 3 hereof.

 

(b)           Shelf Registration Statement.  In connection with any Shelf Registration Statement required by
this Agreement, the Issuers shall comply with all the provisions of Section
6(c) below and shall use commercially reasonable efforts to effect such registration
to permit the sale of the Transfer Restricted Securities being sold in
accordance with the intended method or methods of distribution thereof (as
indicated in the information furnished to eircom Funding pursuant to Section
4(b) hereof), and pursuant thereto the Issuers will use commercially reasonable
efforts to (i) prepare and file with the Commission such Shelf Registration
Statement and (ii) to make such Shelf Registration Statement available for the
sale of the Transfer Restricted Securities in accordance with the intended
method or methods of distribution thereof within the time periods and otherwise
in accordance with the provisions hereof.

 

(c)           General Provisions.  In connection with any Registration Statement and any related
Prospectus required by this Agreement, the Issuers shall:

 

(i)            use commercially reasonable
efforts to keep such Registration Statement continuously effective and provide
all requisite financial statements for the period specified in Section 3 or 4
of this Agreement, as applicable.  Upon
the occurrence of any event that would cause any such Registration Statement or
the Prospectus contained therein, during the period the Issuers are required by
this Agreement to keep such Registration Statement effective, (A) to contain an
untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein (in light of the circumstances in
which they were made) not misleading or (B) not to be effective and

 

11

 

usable for resale of Transfer Restricted
Securities during the period required by this Agreement, the Issuers shall file
promptly an appropriate amendment to such Registration Statement curing such
defect, and, if Commission review is required, use commercially reasonable
efforts to cause such amendment to be declared effective as soon as
practicable.  Notwithstanding the
foregoing or any other provision of this Agreement, if the Board of Directors
of eircom Funding determines in
good faith that it is in the best interests of the Issuers not to disclose the
existence of facts surrounding any proposed or pending material corporate
transaction or other material development involving the Issuers, the Issuers
may allow the Shelf Registration to fail to be effective or the Prospectus
contained therein to be unusable as a result of such nondisclosure for up to 90
days in any year during the two-year period of effectiveness required by
Section 4 hereof and no Registration Default would be deemed to occur during
such period.

 

(ii)           subject to Section 6(c)(i), for the applicable period set
forth in Section 3 or 4 hereof, as the case may be, or such shorter period as
will terminate when all Transfer Restricted Securities covered by such
Registration Statement have been sold or have ceased to constitute Transfer
Restricted Securities, (x) prepare and file with the Commission such amendments
and post-effective amendments to the applicable Registration Statement as may
be necessary to keep such Registration Statement effective, (y) cause the
Prospectus to be supplemented by any required Prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 under the Act, and to comply
fully with Rules 424 and 430A, as applicable, under the Act in a timely manner;
and (z) comply with the provisions of the Act with respect to the disposition
of all securities covered by such Registration Statement during the applicable
period in accordance with the intended method or methods of distribution by the
sellers thereof set forth in such Registration Statement or supplement to the
Prospectus;

 

(iii)          with respect to a Shelf Registration Statement, advise the
selling Holders promptly and, if requested by such Persons, confirm such advice
in writing, (A) when the Prospectus or any Prospectus supplement or
post-effective amendment has been filed, and, with respect to any applicable
Registration Statement or any post-effective amendment thereto, when the same
has become effective, (B) of any request by the Commission for amendments to
the Registration Statement or amendments or supplements to the Prospectus or
for additional information relating thereto, (C) of the issuance by the
Commission of any stop order suspending the effectiveness of the Registration
Statement under the Act or of the suspension by any state securities commission
of the qualification of the Transfer Restricted Securities for offering or sale
in any jurisdiction, or the initiation of any proceeding for any of the
preceding purposes, (D) of the existence of any fact or the happening of any
event that makes any statement of a material fact made in the Registration
Statement, the Prospectus, any amendment or supplement thereto or any document
incorporated by reference therein untrue, or that requires the making of any
additions to or changes in the Registration Statement in order to make the
statements therein not misleading, or that requires the making of any additions
to or changes of the Prospectus in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading.  If at any time the Commission shall issue
any stop order suspending the effectiveness of the Registration Statement or
any state securities commission or other regulatory authority

 

12

 

shall issue an order suspending the
qualification or exemption from qualification of the Transfer Restricted
Securities under state securities or Blue Sky laws, the Issuers shall use
commercially reasonable efforts to obtain the withdrawal or lifting of such
order at the earliest possible time;

 

(iv)          subject to Section 6(c)(i), if any fact or event
contemplated by Section 6(c)(iii)(D) above shall exist or have occurred,
prepare a supplement or post-effective amendment to the Registration Statement
or related Prospectus or any document incorporated therein by reference or file
any other required document so that, as thereafter delivered to the purchasers
of Transfer Restricted Securities, the Prospectus will not contain an untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein, is the light of the circumstances under which they
were made, not misleading;

 

(v)           furnish to the Initial Purchasers, before filing with the
Commission, copies of any Registration Statement or any Prospectus included
therein or any amendments or supplements to any such Registration Statement or
Prospectus (including all documents incorporated by reference after the initial
filing of such Registration Statement) and reflect in such Registration
Statement, amendment, Prospectus or supplement 
as filed with the Commission any reasonable comments made by the Initial
Purchasers in writing within 5 Business Days of receipt of such Registration Statement,
amendment, Prospectus or supplement by such Initial Purchaser or selling
Holders of the Transfer Restricted Securities covered by such Registration
Statement in connection with such sale, if any;

 

(vi)          with respect to a Shelf Registration Statement, promptly
prior to the filing of any document that is to be incorporated by reference
into a Registration Statement or Prospectus, provide copies of such document to
the selling Holders, upon the reasonable request of such selling Holders, in
connection with such sale, if any, and make the Issuers’ representatives
reasonably available to discuss customary due diligence matters; provided, however, that any such
discussions shall be coordinate on behalf of the selling Holders by one counsel
designated by and on behalf such selling Holders by one counsel designated by
and on behalf of such other parties as described in Section 7(b) hereof;

 

(vii)         with respect to a Shelf Registration Statement, subject to
appropriate confidentiality agreements being entered into, make available at
reasonable times for inspection by the selling Holders participating in any
disposition pursuant to such Registration Statement and any attorney or
accountant retained by such selling Holders, all relevant financial and other
records, pertinent corporate documents of the Issuers and use commercially
reasonably efforts to cause the Issuers’ officers, directors and employees to
supply all relevant information reasonably requested by any such selling
Holder, attorney or accountant in connection with such Registration Statement
or any post effective amendment thereto subsequent to the filing thereof and
prior to its effectiveness; provided, however, that the foregoing inspection
and information gathering shall be coordinated on behalf of the Initial
Purchasers and the other parties by one counsel designated by and on behalf of
such other parties as described in Section 7(b) hereof;

 

13

 

(viii)        subject to Section 4(b), with respect to a Shelf Registration
Statement, if requested by any selling Holders in connection with such sale, if
any, promptly include in any Registration Statement or Prospectus, pursuant to
a supplement or post-effective amendment if necessary, such information as such
selling Holders may reasonably request to have included therein, including,
without limitation, information relating to the “Plan of Distribution” of the
Transfer Restricted Securities; and make all required filings of such
Prospectus supplement or post-effective amendment as soon as practicable after eircom Funding is notified of the matters
to be included in such Prospectus supplement or post-effective amendment;

 

(ix)           with respect to a Shelf Registration Statement, furnish to
each selling Holder in connection with such sale, if any, without charge, at
least one copy of the Registration Statement, as first filed with the
Commission, and of each amendment thereto, including all documents incorporated
by reference therein and all exhibits (including exhibits incorporated therein
by reference);

 

(x)            with respect to a Shelf
Registration Statement, deliver to each selling Holder, without charge, as many
copies of the Prospectus (including each preliminary Prospectus) and any
amendment or supplement thereto as such Persons reasonably may request; the
Issuers hereby consent to the use (in accordance with law and subject to the
provisions of this Agreement) of the Prospectus and any amendment or supplement
thereto by each of the selling Holders in connection with the offering and the
sale of the Transfer Restricted Securities covered by the Prospectus or any
amendment or supplement thereto;

 

(xi)           with respect to a Shelf Registration Statement, upon the
request of Holders who collectively hold an aggregate principal amount of
Initial Notes in excess of a majority of the amount of the Transfer Restricted
Securities being sold pursuant to such Shelf Registration Statement (the
“Requesting Holders”), enter into an underwriting agreement and make such
representations and warranties and take all such other actions in connection
therewith as may be reasonable and customary in underwritten offerings in order
to expedite or facilitate the disposition of the Transfer Restricted Securities
pursuant to any applicable Shelf Registration Statement contemplated by this
Agreement as may be reasonably requested by the Requesting Holders in
connection with any sale or resale pursuant to any applicable Shelf
Registration Statement; provided, however, that the Issuers shall not be
obligated to enter into any such underwriting agreement on more than four
occasions.  In such connection, the
Issuers shall:

 

(A)          upon the reasonable
request of the Requesting Holders, furnish (or in the case of paragraph (2)
below, use commercially reasonable efforts to cause to be furnished) to each
Requesting Holder, upon the effectiveness of the Shelf Registration Statement:

 

(1)           a certificate, dated
such date, signed on behalf of eircom Funding and each Guarantor by (x)) a
principal financial or accounting officer and (y) another executive officer of
eircom Funding and such Guarantor, confirming, as of the date thereof, the
matters, to the extent

 

14

 

applicable,
set forth in Sections 7(k)(i) and 7(k)(ii) of the Purchase Agreement and such
other similar matters as such Holders may reasonably request and as are
customarily made by issuers to underwriters in underwritten offerings; and

 

(2)           a customary comfort
letter or letters, dated the date of effectiveness of the Shelf Registration
Statement, from the Company’s independent accountants, in the customary form
and covering matters of the type customarily covered in comfort letters to
underwriters in connection with underwritten offerings, and affirming the
matters set forth in the comfort letters delivered pursuant to Sections 6(g)
and 6(h)of the Purchase Agreement; and

 

(B)           deliver such other
documents and certificates as may be reasonably requested by the Requesting
Holders to evidence compliance with clause (A) above and with any customary
conditions contained in any agreement entered into by the Issuers pursuant to
this clause (xi);

 

(xii)          prior to any public offering of Transfer Restricted
Securities pursuant to any Shelf Registration Statement, cooperate with the selling
Holders and their counsel in connection with the registration and qualification
of the Transfer Restricted Securities under the securities or Blue Sky laws of
such jurisdictions as the selling Holders may reasonably request and do any and
all other acts or things necessary or advisable to enable the disposition in
such jurisdictions of the Transfer Restricted Securities covered by the
applicable Registration Statement; provided,
however, that none of the Issuers
shall be required to register or qualify as a foreign corporation where such
Issuer is not now so qualified or to take any action that would subject such
Issuer to general service of process in suits or to taxation in any
jurisdiction where such Issuer is not now so subject;

 

(xiii)         issue, upon the request of any Holder of Euro Senior
Subordinated Notes or Dollar Senior Subordinated Notes covered by any Shelf
Registration Statement contemplated by this Agreement, Euro Senior Subordinated
Exchange Notes having an aggregate principal amount equal to the aggregate
principal amount of Euro Senior Subordinated Notes or Dollar Senior
Subordinated Exchange Notes having an aggregate principal amount equal to the
aggregate principal amount of Dollar Senior Subordinated Notes, respectively,
surrendered to eircom Funding by
such Holder in exchange therefor or being sold by such Holder, such Euro Senior
Subordinated Exchange Notes or Dollar Senior Subordinated Exchange Notes,
respectively, to be registered in the name of such Holder or in the name of the
purchaser(s) of such Euro Senior Subordinated Exchange Notes or Dollar Senior
Subordinated Exchange Notes, respectively; in return, the Euro Senior
Subordinated Notes or Dollar Senior Subordinated Notes held by such Holder
shall be surrendered to eircom
Funding for cancellation;

 

(xiv)        in connection with any sale of Transfer Restricted
Securities constituting Definitive Notes that will result in such securities no
longer being Transfer Restricted Securities, cooperate with the Holders to
facilitate the timely preparation and delivery of certificates representing
such Transfer Restricted Securities that are to be sold and not

 

15

 

bearing any restrictive legends; and to
register such Transfer Restricted Securities in such denominations and such
names as the selling Holders may request at least two Business Days prior to
such sale of Transfer Restricted Securities which are in a form eligible for
deposit;

 

(xv)         provide an ISIN number and Common Code number, and where
applicable a CUSIP number, for all Transfer Restricted Securities not later
than the effective date of a Registration Statement covering such Transfer
Restricted Securities and provide the Trustee under the Senior Subordinated
Indenture with printed certificates for the Transfer Restricted Securities
which are in a form eligible for deposit;

 

(xvi)        otherwise use commercially reasonable efforts to comply with
all applicable rules and regulations of the Commission, and, in the case of the
Company, make generally available to its security holders with regard to any
applicable Registration Statement, as soon as practicable, a consolidated
earnings statement meeting the requirements of Rule 158 (which need not be
audited) covering the twelve-month period beginning with the first month of the
Company’s  first fiscal quarter
commencing after the effective date of the Registration Statement (as such term
is defined in paragraph (c) of Rule 158 under the Act);

 

(xvii)       unless the rating in effect for the Euro Senior Subordinated
Notes or Dollar Senior Subordinated Notes is equally applicable and in effect
for the Euro Senior Subordinated Exchange Notes or Dollar Senior Subordinated
Exchange Notes, respectively, and the Transfer Restricted Securities, use
commercially reasonable efforts to cause the Transfer Restricted Securities
covered by a Registration Statement or the Euro Senior Subordinated Exchange
Notes or Dollar Senior Subordinated Exchange Notes, respectively, as the case
may be, to be rated with the appropriate rating agencies;

 

(xviii)      make an application to list the Euro Senior Subordinated
Exchange Notes and the Dollar Senior Subordinated Exchange Notes on the
Luxembourg Stock Exchange (if the Transfer Restricted Securities are so listed)
and the Irish Stock Exchange and to use commercially reasonable efforts to have
the Euro Senior Subordinated Exchange Notes and the Dollar Senior Subordinated
Exchange Notes admitted to trading on the Luxembourg Stock Exchange (if the
Transfer Restricted Securities are so listed) and the Irish Stock Exchange as
promptly as practicable and thereafter maintain such listing for so long as the
Exchange Notes are outstanding; and

 

(xix)         cause the Senior Subordinated Indenture to be qualified
under the TIA not later than the effective date of the first Registration
Statement required by this Agreement and, in connection therewith, cooperate
with the Trustee to effect such changes to the Senior Subordinated Indenture as
may be required for such Senior Subordinated Indenture to be so qualified in
accordance with the terms of the TIA; and execute and use commercially
reasonable efforts to cause the Trustee to execute, all documents that may be
required to effect such changes and all other forms and documents required to
be filed with the Commission to enable such Senior Subordinated Indenture to be
so qualified in a timely manner.

 

16

 

(d)           Restrictions on Selling Holders.  Each Holder agrees by acquisition of a Transfer Restricted
Security that, upon receipt of the notice referred to in Section 6(c)(iii)(C)
or any notice from eircom Funding of the existence of any fact of the kind
described in Section 6(c)(i) or Section 6(c)(iii)(D) hereof (in each case, a “Suspension Notice”), such Holder will forthwith
discontinue disposition of Transfer Restricted Securities pursuant to the
applicable Registration Statement until (i) such Holder has received copies of
the supplemented or amended Prospectus contemplated by Section 6(c)(iv) hereof,
or (ii) such Holder is advised in writing by eircom Funding that the use of the
Prospectus may be resumed, and has received copies of any additional or
supplemental filings that are incorporated by reference in the Prospectus (in
each case, the “Recommencement Date”).  Each Holder receiving a Suspension Notice
hereby agrees that it will, at the option of and as directed by eircom Funding,
either (i) destroy any Prospectuses, other than permanent file copies, then in
such Holder’s possession which have been replaced by eircom Funding with more
recently dated Prospectuses and confirm such destruction to eircom Funding in
writing or (ii) deliver to eircom Funding (at eircom Funding’s expense) all
copies, other than permanent file copies, then in such Holder’s possession of
the Prospectus covering such Transfer Restricted Securities that was current at
the time of receipt of the Suspension Notice. 
The time period regarding the effectiveness of such Registration
Statement set forth in Section 3 or 4 hereof, as applicable, shall be extended
by a number of days equal to the number of days in the period from and
including the date of delivery of the Suspension Notice to the Recommencement
Date.

 

SECTION
7.      REGISTRATION EXPENSES

 

(a)           All expenses incident to the
Issuers’ performance of or compliance with this Agreement will be borne by
eircom Funding, regardless of whether a Registration Statement becomes
effective, including without limitation: (i) all registration and filing fees
and expenses; (ii) all fees and expenses of compliance with federal
securities and state Blue Sky or securities laws; (iii) all expenses of
printing (including printing certificates, if any, for the Euro Senior
Subordinated Exchange Notes and the Dollar Senior Subordinated Exchange Notes to
be issued in the Exchange Offer and printing of Prospectuses), messenger and
delivery services and telephone; (iv) all fees and disbursements of counsel for
the Issuers; (v) all application and filing fees in connection with listing the
Euro Senior Subordinated Exchange Notes and the Dollar Senior Subordinated
Exchange Notes on a securities exchange or automated quotation system pursuant
to the requirements hereof; (vi) all fees and disbursements of independent
certified public accountants of the Issuers (including the expenses of any
comfort letters required by or incident to such performance);  and (vii) rating agency fees, if any, and
any fees associated with making the Exchange Notes eligible for trading through
Euroclear and Clearstream (in the case of the Euro Senior Subordinated Exchange
Notes) and through the Depositary Trust Company (in the case of the Dollar
Senior Subordinated Exchange Notes).

 

eircom Funding will,
in any event, bear its and the Guarantors’ internal expenses (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), and the expenses of any Person retained
by the Issuers.

 

(b)           In connection with any Shelf
Registration Statement required by this Agreement, the Issuers will reimburse
the Initial Purchasers and the Holders of Transfer Restricted Securities being
registered pursuant to the Shelf Registration Statement for the reasonable fees
and

 

17

 

disbursements of not more than one counsel,
who shall be Simpson Thacher & Bartlett LLP, unless another firm shall be
chosen by the Requesting Holders.

 

SECTION
8.      INDEMNIFICATION

 

(a)           The Issuers, jointly and
severally, agree to indemnify and hold harmless (i) each selling Holder of
Initial Notes (in the case of a Shelf Registration Statement); (ii) any
Broker-Dealer exchanging Initial Notes in the Exchange Offer (in the case of an
Exchange Offer Registration Statement); 
(iii) each Person, if any, who controls any selling Holder or
Broker-Dealer described in clause (i) or (ii) within the meaning of either
Section 15 of the Act or Section 20 of the Exchange Act (any of the persons
referred do in this clause (iii) being hereinafter referred to as a “controlling person”) and (iv) the respective
officers, directors, partners, employees, representatives and agents of any
selling Holder described in clause (i), Broker-Dealer described in clause (ii)
or any controlling person (any person referred to in clause (i), (ii), (iii) or
(iv) may hereinafter be referred to as an “Indemnified Holder”), to the fullest extent
lawful, from and against any and all losses, claims, damages and liabilities
(including without limitation the legal fees and other expenses incurred in
connection with any suit, action or proceeding or any claim asserted) caused by
any untrue statement or alleged untrue statement of a material fact contained
in any Registration Statement, any Prospectus contained therein, or any
preliminary prospectus relating to a Shelf Registration Statement (or any
amendment or supplement thereto if eircom Funding shall have furnished any
amendments or supplements thereto), or caused by any omission or alleged
omission to state therein a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they
are made, not misleading, except insofar as such losses, claims, damages or
liabilities are caused by any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with information
relating to any of the selling Holders or Broker-Dealers furnished in writing
to eircom Funding by such selling Holder expressly for use therein, provided,
however, that the Issuers will not be liable to any selling Holder or
Broker-Dealer (or any person who controls such party within the meaning of
Section 15 of the Act or Section 20 of the Exchange Act) with respect to any
untrue statement or alleged untrue statement or omission or alleged omission of
a material fact made in any preliminary Prospectus to the extent that (x) a
copy of the final Prospectus (as amended or supplemented) was not sent or given
by such selling Holder or Broker-Dealer, at or prior to the written
confirmation of sale of the relevant Initial Notes or Exchange Notes, to the
person asserting such loss, claim, damage or liability and the untrue statement
or alleged untrue statement in or omission or alleged omission from the
preliminary Prospectus was corrected in the final Prospectus, provided that the Issuers had previously
furnished copies of such final Prospectus to such selling Holder or
Broker-Dealer, as the case may be, or (y) at the time of such sale such selling
Holder or Broker-Dealer had received timely written advice from eircom Funding
prior to such sale that the use of such Prospectus, amendment, supplement or
preliminary Prospectus was suspended as provided herein.

 

(b)           Each Holder of Transfer
Restricted Securities and each Person described in clauses (i) through (iv) of
section 8(a) agrees, severally and not jointly, to indemnify and hold harmless
the Issuers, their directors, their officers and each person who controls the
Issuers within the meaning of either Section 15 of the Act or Section 20 of the
Exchange Act, to the same extent as the foregoing indemnity from the Issuers to
each of the Indemnified Holders, but

 

18

 

only with reference to information relating
to such Indemnified Holder furnished in writing to eircom Funding by such
Indemnified Holder expressly for use in any Registration Statement, Prospectus,
preliminary Prospectus or any amendment or supplement thereto.

 

(c)           If any suit, action, proceeding
(including any governmental or regulatory investigation), claim or demand shall
be brought or asserted against any person in respect of which indemnity may be
sought pursuant to Section 8(a) or 8(b) hereof, such person (the “Indemnified Person”) shall promptly notify the
person against whom such indemnity may be sought (the “Indemnifying Person”) in writing, and the
Indemnifying Person, upon request of the Indemnified Person, shall retain
counsel reasonably satisfactory to the Indemnified Person to represent the
Indemnified Person and any others the Indemnifying Person may designate in such
proceeding and shall pay the fees and expenses of such counsel related to such
proceeding.  The Indemnifying Person
shall not be liable for any settlement of any proceeding effected without its
written consent, which consent shall not be unreasonably withheld, but if
settled with such consent or if there be a final judgment for the plaintiff,
the Indemnifying Person agrees to indemnify any Indemnified Person from and
against any loss or liability by reason of such settlement or judgment.  No Indemnifying Person shall, without the
prior written consent of the Indemnified Person, effect any settlement of any
pending or threatened proceeding in respect of which any Indemnified Person is
or could have been a party and indemnity could have been sought hereunder by
such Indemnified Person, unless such settlement includes an unconditional
release of such Indemnified Person from all liability on claims that are the
subject matter of such proceeding.

 

(d)           If the indemnification provided
for in Section 8(a) or 8(b) is unavailable to an Indemnified Person or
insufficient in respect of any losses, claims, damages or liabilities referred
to therein, then each Indemnifying Person, in lieu of indemnifying such
Indemnified Person thereunder, shall contribute to the amount paid or payable
by such Indemnified Person as a result of such losses, claims, damages or
liabilities (i) in such proportion as is appropriate to reflect the relative
benefits received by the Issuers on the one hand and the Indemnified Holder on
the other hand from their sale of Transfer Restricted Securities or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) above but also the relative fault of the Issuers on the one
hand and the Indemnified Holder on the other in connection with the statements
or omissions that resulted in such losses, claims, damages or liabilities, as
well as any other relevant equitable considerations.  The relative fault of the Issuers on the one hand and the
Indemnified Holder on the other hand shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by the Issuers or by the Indemnified Holder and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

 

The Issuers and each Holder agree that it
would not be just and equitable if contribution pursuant to this Section 8 were
determined by pro rata allocation (even if the Holders or the Issuers were
treated as one entity for such purpose) or by any other method of allocation
that does not take account of the equitable considerations referred to in the
immediately preceding paragraph.  The
amount paid or payable by an Indemnified Person as a result of the losses,
claims, damages and liabilities referred to in the immediately preceding

 

19

 

paragraph shall be deemed to include, subject
to the limitations set forth above, any legal or other expenses reasonably
incurred by such Indemnified Person in connection with investigating or
defending any such action or claim. 
Notwithstanding the provisions of this Section 8, in no event shall a
Holder or its related Indemnified Holders be required to contribute any amount
in excess of the amount by which the total received by such Holder with respect
to the sale of Transfer Restricted Securities pursuant to a Registration
Statement exceeds the sum of (A) the amount paid by such Holder for such
Transfer Restricted Securities plus
(B) the amount of any damages that such Holder has otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged
omission.  No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.  The
Holders’ obligations to contribute pursuant to this Section 8(d) are several in
proportion to the respective principal amount of the Transfer Restricted
Securities held by each Holder hereunder and not joint.  The Issuers’ obligations to contribute
pursuant to this Section 8 are joint and several.

 

The remedies provided for in this Section 8
are not exclusive and shall not limit any rights or remedies which may otherwise
be available to any indemnified party at law or in equity.

 

SECTION
9.      RULE 144A AND OTHER INFORMATION

 

The Issuers hereby agree with
each Holder, for so long as any Transfer Restricted Securities remain
outstanding and during any period in which the Issuers (i) are not subject to
Section 13 or 15(d) of the Exchange Act, to make available within a reasonable
period of time to the Initial Purchasers and, upon written request of any
Holder of Transfer Restricted Securities, to any Holder or beneficial owner of
Transfer Restricted Securities in connection with any sale thereof and any
prospective purchaser of such Transfer Restricted Securities designated by such
Holder or beneficial owner, the information required by Rule 144A(d)(4) under
the Act in order to permit resales of such Transfer Restricted Securities
pursuant to Rule 144A and (ii) are subject to Section 13 or 15(d) of the
Exchange Act, to make all filings required thereby in a timely manner in order
to permit resales of Transfer Restricted Securities pursuant to Rule 144.

 

SECTION
10.    UNDERWRITTEN REGISTRATIONS

 

If any of the Transfer Restricted Securities
covered by any Shelf Registration Statement are to be sold in an underwritten
offering, the investment banker or investment bankers and manager or managers
that will manage the offering will be selected by the Requesting Holders and
shall be reasonably acceptable to the Issuers.

 

No Holder of Transfer Restricted Securities
may participate in any underwritten registration hereunder unless such Holder
(a) agrees to sell such Holder’s Transfer Restricted Securities on the basis
provided in any underwriting arrangements approved by the Persons entitled
hereunder to approve such arrangements and (b) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents required under the terms of such underwriting arrangements.

 

20

 

SECTION
11.    MISCELLANEOUS

 

(a)           Remedies.  The Issuers acknowledge and agree that any failure by the Issuers
to comply with their obligations under Sections 3 and 4 hereof may result in
material irreparable injury to the Initial Purchasers or the Holders for which
there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure,
the Initial Purchasers or any Holder may obtain such relief as may be required
to specifically enforce the Issuers’ obligations under Sections 3 and 4 hereof.  The Issuers further agree to waive the
defense in any action for specific performance that a remedy at law would be
adequate.

 

(b)           No Inconsistent Agreements.  The Issuers will not, on or after the date of this Agreement,
enter into any agreement with respect to their securities that is inconsistent
with the rights granted to the Holders in this Agreement or otherwise conflicts
with the provisions hereof.  The parties
hereto agree and acknowledge that the rights granted to the Holders hereunder
do not in any way conflict with and are not inconsistent with the rights
granted to the holders of the Issuers’ securities under any agreement entered
into or in effect on the date hereof.

 

(c)           Amendments and Waivers.  The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to or departures from the provisions
hereof may not be given unless (i) in the case of Section 5 hereof and this
Section 10(c)(i), eircom Funding has obtained the written consent of Holders of
all outstanding Transfer Restricted Securities and (ii) eircom Funding has
obtained the written consent of Holders of a majority of the outstanding
principal amount of Transfer Restricted Securities (excluding Transfer
Restricted Securities held by eircom Funding or its Affiliates).  Notwithstanding the foregoing, a waiver or
consent to departure from the provisions hereof that relates exclusively to the
rights of Holders whose securities are being tendered pursuant to an Exchange
Offer, and that does not affect directly or indirectly the rights of other
Holders whose securities are not being tendered pursuant to such Exchange
Offer, may be given by the Holders of a majority of the outstanding principal
amount of Transfer Restricted Securities subject to such Exchange Offer.

 

(d)           Third Party Beneficiary.  The Holders shall be third party beneficiaries to the agreements
made hereunder between the Issuers, on the one hand, and the Initial
Purchasers, on the other hand, and shall have the right to enforce such agreements
directly to the extent they may deem such enforcement necessary or advisable to
protect its rights or the rights of Holders hereunder.

 

(e)           Acknowledgement.  It is hereby agreed and acknowledged by the Issuers that the Euro
Senior Subordinated Exchange Notes and the Dollar Senior Subordinated Exchange
Notes to be issued pursuant to this agreement represent the same debt already
in existence in respect of the Euro Senior Subordinated Notes and the Dollar
Senior Subordinated Notes, respectively.

 

(f)            Notices.  All notices and other communications provided for or permitted
hereunder shall be made in writing by hand-delivery, first-class mail
(registered or certified, return receipt requested), telex, telecopier, or air courier
guaranteeing overnight delivery:

 

21

 

(i)            if to a Holder, at the address
set forth on the records of the Registrar under the Senior Subordinated
Indenture, with a copy to the Registrar under the Senior Subordinated
Indenture; and

 

(ii)           if to the Issuers:

 

c/o eircom
Limited 

114 St. Stephen’s Green West

Dublin 2

Republic of Ireland

Facsimile: +353 1 679 7468

Attention: Chief Financial Officer

 

with a copy to:

 

Debevoise & Plimpton

Tower 42

International Financial Centre

Old Broad Street

London EC2N 1HQ

England

Facsimile:  +44 20 7588 4180

Attention: James C. Scoville

 

All such notices and communications shall be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if facsimiled; and on the next
business day, if timely delivered to an air courier guaranteeing overnight
delivery.

 

Copies of all such notices, demands or other
communications shall be concurrently delivered by the Person giving the same to
the Trustee at the address specified in the Euro Indenture.

 

Upon the date of filing of the Exchange Offer
Registration Statement or a Shelf Registration Statement, as the case may be,
notice shall be delivered to the Initial Purchasers.

 

(g)           Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon
the successors and assigns of each of the parties, including without limitation
and without the need for an express assignment, subsequent Holders of Transfer
Restricted Securities; provided,
that nothing herein shall be deemed to permit any assignment, transfer or other
disposition of Transfer Restricted Securities in violation of the terms hereof
or of the Purchase Agreement or the Senior Subordinated Indenture.  If any transferee of any Holder shall
acquire Transfer Restricted Securities in any manner, whether by operation of
law or otherwise, such Transfer Restricted Securities shall be held subject to
all of the terms of this Agreement, and by taking and holding such Transfer
Restricted Securities such Person shall be conclusively deemed to have agreed
to be bound by and to perform all of the terms and provisions of this

 

22

 

Agreement, including the restrictions on
resale set forth in this Agreement and, if applicable, the Purchase Agreement,
and such Person shall be entitled to receive the benefits hereof.

 

(h)           Counterparts.  This Agreement may be executed in any number of counterparts and
by the parties hereto in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

 

(i)            Headings.  The headings in this Agreement are for convenience of reference
only and shall not limit or otherwise affect the meaning hereof.

 

(j)            Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

 

(k)           Submission to
Jurisdiction; Appointment of Agent for Service; Waiver.To the fullest
extent permitted by applicable law, the Issuers irrevocably submit to the
non-exclusive jurisdiction of any federal or state court in the Borough of
Manhattan in the City of New York, County and State of New York, United States
of America, in any suit or proceeding based on or arising under this Agreement,
and irrevocably agree that all claims in respect of such suit or proceeding may
be determined in any such court.  The
Issuers, to the fullest extent permitted by applicable law, irrevocably and
fully waive the defense of an inconvenient forum to the maintenance of such
suit or proceeding and irrevocably designates and appoints CT Corporation (the
“Authorized Agent”), for the
later of a period of ten years or until such time as no Initial Notes that
constitute Transfer Restricted Securities are outstanding as its authorized
agent upon whom process may be served in any such suit or proceeding.  The Issuers represent that they have
separately notified the Authorized Agent of such designation and appointment
and that the Authorized Agent has accepted the same in writing.  The Issuers hereby irrevocably authorize and
direct its Authorized Agent to accept such service.  The Issuers further agree that service of process upon its
Authorized Agent and written notice of said service to an Issuer mailed by
first class mail or delivered to its Authorized Agent shall be deemed in every
respect effective service of process upon such Issuer in any such suit or
proceeding.  Nothing herein shall affect
the right of any person to serve process in any other manner permitted by
law.  The Issuers agree that a final
action in any such suit or proceeding shall be conclusive and may be enforced
in other jurisdictions by suit on the judgment or in any other lawful
manner.  Notwithstanding the foregoing,
any action against any Issuer arising out of or based on this Agreement or the
transactions contemplated hereby may also be instituted by any of the Initial
Purchasers, their respective officers and employees or any person who controls
any of the Initial Purchasers within the meaning of the Securities Act in any
competent court in Ireland, and each of the Issuers expressly accept the
jurisdiction of any such court in any such action.

 

Each of the Issuers irrevocably waives, to
the extent permitted by law, any immunity to jurisdiction to which it may
otherwise be entitled (including, without limitation, immunity to pre-judgment
attachment, post-judgment attachment and execution) in any legal suit, action
or proceeding against it arising out of or based on this Agreement or the
transactions contemplated hereby.

 

23

 

The provisions of this Section 11(k) are
intended to be effective upon the execution of this Agreement without any
further action by any of the Issuers or the Initial Purchasers and the
introduction of a true copy of this Agreement into evidence shall be conclusive
and final evidence as to such matters.

 

(l)            Currency Indemnity.The
Issuers shall indemnify each Indemnified Holder against any loss incurred by it
as a result of any judgment or order being given or made and expressed and paid
in a currency (the “Judgment Currency”)
other than euro (in the case of a loss in respect of Euro Senior Subordinated
Notes or Euro Senior Subordinated Exchange Notes) or US dollars (in the case of
a loss in respect of Dollar Senior Subordinated Notes or Dollar Senior
Subordinated Exchange Notes) and as a result of any variation as between (i)
the rate of exchange at which the euro or US Dollar, respectively, amount is
converted into the Judgment Currency for the purpose of such judgment or order
and (ii) the spot rate of exchange in New York, New York at which such
Indemnified Holder on the date of payment of such judgment or order is able to
purchase euro or US Dollars, respectively, with the amount of the Judgment
Currency actually received by such Indemnified Holder.  If the euro or US Dollars, as the case may
be, so purchased are greater than the amount originally due to such Indemnified
Holder hereunder, such Indemnified Holder agrees to pay to eircom Funding an amount equal to the
excess of the euro or US Dollars, as the case may be, so purchased over the
amount originally due to such Indemnified Holder hereunder.  The foregoing shall constitute a separate
and independent obligation of the Issuers and the Indemnified Holders, as the
case may be, and shall continue in full force and effect notwithstanding any
such judgment or order as aforesaid.  The
term “spot rate of exchange” shall include any premiums and costs of exchange
payable in connection with the purchase of, or conversion into, euro or US
Dollars, as applicable.

 

(m)          Severability.  In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid,
illegal or unenforceable, the validity, legality and enforceability of any such
provision in every other respect and of the remaining provisions contained
herein shall not be affected or impaired thereby.

 

(n)           Entire Agreement.  This Agreement together with the Purchase Agreement, and the DTC
Letter of Representations, the Initial Notes, the Euro Deposit and Custody
Agreement, the Dollar Deposit and Custody Agreement and the Senior Subordinated
Indenture, is intended by the parties as a final expression of their agreement
and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained
herein.  There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted with respect to the
Transfer Restricted Securities.  This
Agreement supersedes all prior agreements and understandings between the
parties with respect to such subject matter.

 

(o)           No recourse.  No director, officer, employee, incorporator, member or
stockholder of eircom Funding
or any Guarantor, as such, shall have any liability for any obligations of eircom Funding or any Guarantor under
this Agreement or for any claim based on, in respect of, or by reason of, such
obligations or their creation, and by acquiring the Initial Notes, each Holder
waives and releases all such liability. The waiver and release are part of the
consideration for entry into this Agreement.

 

24

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first written above.

 

 

	
   

  	
  EIRCOM FUNDING

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  VALENTIA TELECOMMUNICATIONS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EIRCOM LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VALENTIA HOLDINGS LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title

  

 

25

 

	
  Deutsche Bank AG London

  
	
  For itself
  and as Representative

  of the several Initial Purchasers named in

  Schedule I of the Purchase Agreement

  
	
   

  	
   

  
	
  By:  Deutsche Bank AG London

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

26Exhibit 4.3

 

 

 

VALENTIA TELECOMMUNICATIONS

 

as the issuer,

 

EIRCOM LIMITED

 

as a guarantor,

 

THE BANK OF NEW YORK

 

as Trustee, Registrar, Transfer Agent and

Paying Agent,

 

THE BANK OF NEW YORK (LUXEMBOURG) S.A.

 

as Luxembourg Paying Agent and Transfer Agent,

 

THE BANK OF NEW YORK, LONDON

 

as Principal Paying Agent and Transfer Agent,

 

AIB/BNY FUND MANAGEMENT (IRELAND) LIMITED

 

as Irish Paying Agent and Transfer Agent

 

- and -

 

The entities from time to time that are Additional Note Guarantors

 

 

SENIOR INDENTURE

 

Dated as of August 7, 2003

 

 

€550,000,000 7.25% Senior Notes due 2013

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE

  
	
  SECTION 1.1   Definitions

  
	
  SECTION 1.2  
  Incorporation by Reference of TIA

  
	
  SECTION 1.3  
  Rules of Construction

  
	
   

  
	
  ARTICLE II
  THE NOTES

  
	
  SECTION 2.1  
  Form and Dating

  
	
  SECTION 2.2  
  Execution and Authentication

  
	
  SECTION 2.3  
  Registrar and Paying Agent

  
	
  SECTION 2.4  
  Paying Agent To Hold Assets in Trust

  
	
  SECTION 2.5  
  List of Holders

  
	
  SECTION 2.6  
  Book-Entry Provisions for Global Notes

  
	
  SECTION 2.7  
  Registration of Transfer and Exchange

  
	
  SECTION 2.8  
  Replacement Notes

  
	
  SECTION 2.9  
  Outstanding Notes

  
	
  SECTION 2.10  
  Treasury Notes

  
	
  SECTION 2.11  
  Temporary Notes

  
	
  SECTION 2.12  
  Cancellation

  
	
  SECTION 2.13  
  Defaulted Interest

  
	
  SECTION 2.14  
  CUSIP, ISIN and Common Code Numbers

  
	
  SECTION 2.15  
  Deposit of Moneys

  
	
  SECTION 2.16  
  Certain Matters Relating to Global Notes

  
	
   

  
	
  ARTICLE III REDEMPTION

  
	
  SECTION 3.1  
  Optional Redemption

  
	
  SECTION 3.2  
  Notices to Trustee

  
	
  SECTION 3.3  
  Selection of Notes to Be Redeemed

  
	
  SECTION 3.4  
  Notice of Redemption

  
	
  SECTION 3.5  
  Effect of Notice of Redemption

  
	
  SECTION 3.6  
  Deposit of Redemption Price

  
	
  SECTION 3.7  
  Notes Redeemed in Part

  
	
   

  
	
  ARTICLE IV
  COVENANTS

  
	
  SECTION 4.1  
  Payment of Notes

  
	
  SECTION 4.2  
  Maintenance of Office or Agency

  
	
  SECTION 4.3  
  Limitation on Indebtedness

  
	
  SECTION 4.4  
  Limitation on Restricted Payments

  
	
  SECTION 4.5  
  Compliance Certificate; Notice of Default

  
	
  SECTION 4.6  
  Limitation on Liens

  
	
  SECTION 4.7  
  Waiver of Stay; Extension or Usury Laws

  
	
  SECTION 4.8  
  Limitation on Lines of Business.

  
	
  SECTION 4.9  
  Limitation on Restrictions on Distributions from Restricted Subsidiaries.

  

 

i

 

	
  SECTION 4.10  
  Limitation on Sales of Assets and Subsidiary Stock

  
	
  SECTION 4.11  
  Limitation on Affiliate Transactions

  
	
  SECTION 4.12  
  Reports.

  
	
  SECTION 4.13  
  Fall-Away of Covenants on Achievement of Investment Grade Status

  
	
  SECTION 4.14  
  Change of Control

  
	
  SECTION 4.15  
  Additional Amounts.

  
	
  SECTION 4.16  
  Corporate Existence

  
	
   

  
	
  ARTICLE V
  SUCCESSOR CORPORATION

  
	
  SECTION 5.1  
  Consolidation and Merger

  
	
   

  
	
  ARTICLE VI DEFAULT AND REMEDIES

  
	
  SECTION 6.1  
  Events of Default

  
	
  SECTION 6.2  
  Acceleration

  
	
  SECTION 6.3  
  Other Remedies

  
	
  SECTION 6.4  
  The Trustee May Enforce Claims Without Possession of Securities

  
	
  SECTION 6.5  
  Rights and Remedies Cumulative

  
	
  SECTION 6.6  
  Delay or Omission Not Waiver

  
	
  SECTION 6.7  
  Waiver of Past Defaults

  
	
  SECTION 6.8  
  Control by Majority

  
	
  SECTION 6.9  
  Limitation on Suits

  
	
  SECTION 6.10  
  Rights of Holders to Receive Payment

  
	
  SECTION 6.11  
  Collection Suit by Trustee

  
	
  SECTION 6.12  
  Trustee May File Proofs of Claim

  
	
  SECTION 6.13  
  Priorities

  
	
  SECTION 6.14  
  Restoration of Rights and Remedies

  
	
  SECTION 6.15  
  Undertaking for Costs

  
	
   

  
	
  ARTICLE VII
  TRUSTEE

  
	
  SECTION 7.1  
  Duties of Trustee

  
	
  SECTION 7.2  
  Rights of Trustee

  
	
  SECTION 7.3  
  Individual Rights of Trustee

  
	
  SECTION 7.4  
  Trustee’s Disclaimer

  
	
  SECTION 7.5  
  Notice of Default

  
	
  SECTION 7.6  
  Report by Trustee to Holders

  
	
  SECTION 7.7  
  Compensation and Indemnity

  
	
  SECTION 7.8  
  Replacement of Trustee

  
	
  SECTION 7.9  
  Successor Trustee by Merger, etc.

  
	
  SECTION 7.10  
  Corporate Trustee Required; Eligibility

  
	
  SECTION 7.11  
  Disqualification; Conflicting Interests

  
	
  SECTION 7.12  
  Preferential Collection of Claims Against Company

  
	
  SECTION 7.13  
  Force Majeure

  

 

ii

 

	
  ARTICLE VIII
  DEFEASANCE AND SATISFACTION AND DISCHARGE
  OF INDENTURE

  
	
  SECTION 8.1  
  Option to Effect Legal Defeasance or Covenant Defeasance

  
	
  SECTION 8.2  
  Legal Defeasance and Discharge

  
	
  SECTION 8.3  
  Covenant Defeasance

  
	
  SECTION 8.4  
  Conditions to Legal or Covenant Defeasance

  
	
  SECTION 8.5  
  Satisfaction and Discharge of Indenture

  
	
  SECTION 8.6  
  Application of Trust Moneys

  
	
  SECTION 8.7  
  Repayment to the Company; Unclaimed Money

  
	
  SECTION 8.8  
  Reinstatement

  
	
   

  
	
  ARTICLE IX
  AMENDMENTS, SUPPLEMENTS AND WAIVERS

  
	
  SECTION 9.1  
  Without Consent of Holders of Notes

  
	
  SECTION 9.2  
  With Consent of Holders of Notes

  
	
  SECTION 9.3  
  Compliance with TIA

  
	
  SECTION 9.4  
  Revocation and Effect of Consents

  
	
  SECTION 9.5  
  Notation on or Exchange of Notes

  
	
  SECTION 9.6  
  Trustee to Sign Amendments, etc.

  
	
   

  
	
  ARTICLE X
  SUBSIDIARY GUARANTEE

  
	
  SECTION 10.1  
  Senior Notes eircom Guarantee

  
	
  SECTION 10.2  
  Limitation on Liability

  
	
  SECTION 10.3  
  No Subrogation

  
	
   

  
	
  ARTICLE XI
  ADDITIONAL NOTE GUARANTORS

  
	
  SECTION 11.1  
  Additional Note Guarantors

  
	
  SECTION 11.2  
  Additional Note Guarantee

  
	
  SECTION 11.3  
  Limitation on Liability

  
	
  SECTION 11.4  
  No Subrogation

  
	
  SECTION 11.5  
  Release.

  
	
   

  
	
  ARTICLE XII
  MISCELLANEOUS

  
	
  SECTION 12.1  
  TIA Controls

  
	
  SECTION 12.2  
  Notices

  
	
  SECTION 12.3  
  Communications by Holders with Other Holders

  
	
  SECTION 12.4  
  Certificate and Opinion as to Conditions Precedent

  
	
  SECTION 12.5  
  Statements Required in Certificate or Opinion

  
	
  SECTION 12.6  
  Rules by Trustee, Paying Agent (Including Principal Paying Agent), Registrar

  
	
  SECTION 12.7  
  Legal Holidays

  
	
  SECTION 12.8  
  Governing Law

  
	
  SECTION 12.9  
  Submission to Jurisdiction; Appointment of Agent for Service

  
	
  SECTION 12.10   Acts of Holders

  
	
  SECTION 12.11   No Personal Liability of Directors,
  Officers and Others

  
	
  SECTION 12.12   Currency Indemnity

  
	
  SECTION 12.13   Currency Calculation

  
	
  SECTION 12.14   Information

  
	
  SECTION 12.15   Successors

  
	
  SECTION 12.16   Counterpart Originals

  

 

iii

 

	
  SECTION 12.17   Severability

  
	
  SECTION 12.18   Table of Contents, Headings, etc.

  
	
  SECTION 12.19   Prescription

  
	
  SECTION 12.20   Benefits of Indenture

  
	
  SECTION 12.21   Waiver of Jury Trial

  

 

	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Form of Initial Global Note

  
	
  Exhibit B

  	
  -

  	
  Form of Initial Definitive Note

  
	
  Exhibit C

  	
  -

  	
  Form of Unrestricted Global Note

  
	
  Exhibit D

  	
  -

  	
  Form of Unrestricted Definitive Note

  
	
  Exhibit E

  	
  -

  	
  Form of Transfer Certificate for Transfer
  from Rule 144A Global

  Note to Regulation S Global Note

  
	
  Exhibit F

  	
  -

  	
  Form of Transfer Certificate for Transfer
  from Regulation S Global

  Note to Rule 144A Global Note

  
	
  Exhibit G

  	
  -

  	
  Form of Supplemental Indenture

  

 

NOTE:  This Table of Contents shall not, for any purpose, be deemed to
be part of this Senior Indenture.

 

iv

 

SENIOR
INDENTURE, dated as of August 7, 2003 (this “Indenture” or the “Senior
Indenture”), among (i) Valentia Telecommunications, a public
unlimited company incorporated under the laws of Ireland as of the date hereof
and having its registered office at 25/28 North Wall Quay, Dublin 1, Ireland as
of the date hereof (the “Company”),
(ii) eircom Limited, a private
limited company that is a subsidiary of the Company incorporated under the laws
of Ireland as of the date hereof and having its registered office at 114 St
Stephen’s Green West, Dublin 2, Ireland as of the date hereof (“eircom”), (iii) The Bank of New York, a
New York banking corporation, as Trustee, Registrar, Paying Agent and transfer
agent, (iv) The Bank of New York (Luxembourg) S.A. as  Paying Agent and transfer agent, (v) The Bank of New York, London
as Principal Paying Agent and transfer agent, (vi) AIB/BNY Fund Management
(Ireland) Limited, as Paying Agent and transfer agent, and (vii) such
additional entities that from time to time are designated as Additional Note
Guarantors (as defined herein) and deliver a supplemental indenture hereto.

 

The Company
has duly authorized the execution and delivery of this Indenture by it to provide
for the issuance of the Notes (as defined herein).  Except as otherwise provided herein, €550,000,000 in aggregate
principal amount of euro-denominated Notes shall be initially issued on the
date hereof.

 

Each party
hereto agrees as follows for the benefit of the other parties and for the equal
and ratable benefit of the Holders of the Notes:

 

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

 

SECTION 1.1  
Definitions. 
For purposes of this Indenture, unless otherwise specifically indicated
herein, the term “consolidated” with respect to any Person refers to such
Person consolidated with its Restricted Subsidiaries, and excludes from such
consolidation any Unrestricted Subsidiary as if such Unrestricted Subsidiary
were not an Affiliate of such Person. 
In addition, for purposes of the following definitions and this
Indenture generally, all ratios and computations based on GAAP shall be made in
accordance with GAAP and shall be based upon the consolidated financial
statements of the Company and its subsidiaries prepared in conformity with
GAAP.  As used in this Indenture, the
following terms shall have the following meanings:

 

“Acquired Indebtedness” means Indebtedness
(i) of a Person or any of its Subsidiaries existing at the time such Person
becomes a Restricted Subsidiary, or (ii) assumed in connection with the
acquisition of assets from such Person, in each case whether or not Incurred by
such Person in connection with such Person becoming a Restricted Subsidiary of
the Company or such acquisition or (iii) of a Person at the time such Person
merges with or into or consolidates with the Company or any Restricted
Subsidiary. Acquired Indebtedness shall be deemed to have been Incurred, with
respect to clause (i) of the preceding sentence, on the date such Person
becomes a Restricted Subsidiary and, with respect to clause (ii) of the
preceding sentence, on the date of consummation of such acquisition of assets
and, with respect to clause (iii) of the preceding sentence, on the date of the
relevant merger or consolidation.

 

1

 

“Additional Assets” means:

 

(1)           any
property or assets (other than Indebtedness and Capital Stock) used or to be
used by the Company or a Restricted Subsidiary, or otherwise useful in the
Company Business (it being understood that capital expenditure on property or
assets already used in the Company Business shall be deemed investment in
Additional Assets);

 

(2)           the
Capital Stock of a Person that is engaged in the Company Business and becomes a
Restricted Subsidiary as a result of the acquisition of such Capital Stock by
the Company or a Restricted Subsidiary of the Company; or

 

(3)           Capital
Stock constituting a minority interest in any Person that at such time is a
Restricted Subsidiary of the Company.

 

“Additional Amounts” shall have the meaning
assigned to it in Section 4.15.

 

“Additional Note Guarantee” shall have the
meaning assigned to it in Section 11.1.

 

“Additional Note Guarantor” shall have the
meaning assigned to it in Section 11.1.

 

“Additional Notes” means any notes
originally issued under the terms of this Indenture after the Issue Date in
addition to the Original Notes, including Notes that may be issued with
identical terms and conditions to the Original Notes but which are denominated
in US Dollars (but, for the avoidance of doubt, excluding any Notes issued
pursuant to Section 2.6(b), 2.6(c), 2.8, 2.11 or 3.7).

 

“Affiliate” of any specified Person means
any other Person, directly or indirectly, controlling or controlled by or under
direct or indirect common control with such specified Person. For the purposes
of this definition, “control” when used with respect to any Person means the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

 

“Affiliate Transaction” has the meaning
assigned to it in Section 4.11.

 

“Agent” means the Principal Paying Agent,
any Registrar, Paying Agent, Transfer Agent, Authenticating Agent or
co-Registrar.

 

“Agent Members” shall have the meaning
assigned to it in Section 2.16.

 

“Applicable Premium” means (x) with respect
to any Senior Euro Note on any redemption date, the excess of: (1) the present
value at such redemption date of (i) the redemption price of such Senior Euro
Note at August 15, 2008 (such redemption price (expressed in percentage of
principal amount) being 107.25%, plus (ii) all required interest payments due
on such Senior Euro Note to and including August 15, 2008 (excluding
accrued but unpaid interest), computed upon the redemption date using a
discount rate equal to the Bund Rate at such redemption date plus 50 basis
points; over (2) the outstanding principal amount of such Senior Euro Note;
and, (y) with respect to any Senior Dollar Note on any redemption date,

 

2

 

the excess of: (1) the present
value at such redemption date of (i) the redemption price of such Senior Dollar
Note at August 15, 2008 (such redemption price (expressed in percentage of
principal amount) being 107.25%, plus (ii) all required interest payments due
on such Senior Dollar Note to and including August 15, 2008 (excluding
accrued but unpaid interest), computed upon the redemption date using a
discount rate equal to the Treasury Rate at such redemption date plus 50 basis
points; over (2) the outstanding principal amount of such Senior Dollar Note,
in each case as calculated by the Company or on behalf of the Company by such
Person as the Company shall designate.

 

“Asset Disposition” means any direct or
indirect sale, lease (other than an operating lease entered into in the
ordinary course of business), transfer, issuance or other disposition, or a
series of related sales, leases, transfers, issuances or dispositions that are
part of a common plan, of shares of Capital Stock of a Subsidiary (other than
directors’ qualifying shares), property or other assets (each referred to for
the purposes of this definition as a “disposition”) by the Company or any of
its Restricted Subsidiaries, including any disposition by means of a merger,
consolidation or similar transaction. Notwithstanding the preceding provisions
of this definition, the following items shall not be deemed to be Asset
Dispositions:

 

(1)           a
disposition by a Restricted Subsidiary to the Company or by the Company or a
Restricted Subsidiary to a Restricted Subsidiary;

 

(2)           the
sale of Cash Equivalents in the ordinary course of business;

 

(3)           a
disposition of inventory or other assets in the ordinary course of business;

 

(4)           a
disposition of obsolete or worn out equipment or equipment that is no longer
useful in the conduct of the business of the Company and its Restricted Subsidiaries;

 

(5)           transactions
permitted under Section 5.1 hereof;

 

(6)           an
issuance of Capital Stock by a Restricted Subsidiary to the Company or to
another Restricted Subsidiary;

 

(7)           the
making of a Permitted Investment or a disposition subject to or made in
accordance with Section 4.4 (including any disposition excluded from the
provisions thereof);

 

(8)           dispositions
of assets in a single transaction or series of related transactions with an
aggregate fair market value in any calendar year of less than €20 million (with
unused amounts in any calendar year being carried over to the next succeeding
calendar year subject to a maximum of €10 million of carried over amounts for
any calendar year);

 

(9)           dispositions
in connection with Permitted Liens;

 

(10)                            dispositions of receivables
in connection with the compromise, settlement or collection thereof in the
ordinary course of business or in bankruptcy or similar proceedings and
exclusive of factoring or similar arrangements;

 

3

 

(11)                            the licensing or
sub-licensing of intellectual property or other general intangibles and
licenses, sub-licenses, leases or subleases of other property in the ordinary
course of business;

 

(12)                            foreclosure, condemnation
or similar action with respect to any property or other assets;

 

(13)                            the sale or discount (with
or without recourse, and on customary or commercially reasonable terms) of
accounts receivable or notes receivable arising in the ordinary course of
business, or the conversion or exchange of accounts receivable for notes
receivable;

 

(14)                            any Financing Disposition;

 

(15)                            any financing transaction
with respect to property built or acquired by the Company or any Restricted
Subsidiary after the Issue Date, including without limitation any
sale/leaseback transaction or asset securitization;

 

(16)                            any disposition of Capital
Stock, Indebtedness or other securities of an Unrestricted Subsidiary;

 

(17)                            any disposition of Capital
Stock of a Restricted Subsidiary pursuant to an agreement or other obligation
with or to a Person (other than the Company or a Restricted Subsidiary) from
whom such Restricted Subsidiary was acquired, or from whom such Restricted
Subsidiary acquired its business and assets (having been newly formed in connection
with such acquisition), entered into in connection with such acquisition; and

 

(18)                            the Transactions, including
but not limited to any disposition made pursuant to, or in connection with, the
Transactions.

 

“Asset Disposition Offer” shall have the
meaning assigned to it in Section 4.10.

 

“Asset Disposition Offer Amount” shall have
the meaning assigned to it in Section 4.10.

 

“Asset Disposition Offer Period” shall have
the meaning assigned to it in Section 4.10.

 

“Asset Disposition Purchase Date” shall
have the meaning assigned to it in Section 4.10.

 

“Authenticating Agent” shall have the
meaning assigned to it in Section 2.2.

 

“Average Life” means, as of the date of
determination, with respect to any Indebtedness or Preferred Stock, the
quotient obtained by dividing (1) the sum of the products of the numbers of
years from the date of determination to the dates of each successive scheduled
principal payment of such Indebtedness or redemption or similar payment with
respect to such Preferred Stock multiplied by the amount of such payment by (2)
the sum of all such payments.

 

“Bank Indebtedness” means any and all
amounts, whether outstanding on the Issue Date or Incurred after the Issue
Date, payable under or in respect of any Credit Facility and any related

 

4

 

notes, collateral documents,
letters of credit and guarantees and any Interest Rate Agreement entered into
in connection with any Credit Facility, including principal, premium, if any,
interest (including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization at the rate specified therein whether or not a
claim for post filing interest is allowed in such proceedings), fees, charges,
expenses, reimbursement obligations, guarantees and all other amounts payable
thereunder or in respect thereof.

 

“Bankruptcy Law” means (i) for purposes of
the Company, eircom or any Note
Guarantor, any bankruptcy, insolvency or other similar statute (including,
without limitation, the relevant provisions of the Companies Act 1963-2001 of
Ireland and the court protection and other provisions of the Companies
(Amendment) Act, 1990 (as amended) of Ireland,and any similar statute), regulation or provision of any
jurisdiction in which the Company is incorporated or conducting business and
(ii) for purposes of the Trustee and the Holders, Title 11, US Code
or any similar United States Federal, state or foreign law for the relief of
creditors.

 

“Board of Directors” means, as to any
Person, the board of directors of such Person or any duly authorized committee
thereof.

 

“Board Resolution” means a duly authorized
resolution of the Board of Directors certified by an Officer and delivered to
the Trustee.

 

“Book-Entry Depositary” means a book-entry
depositary under a Deposit Agreement.

 

“Book-Entry Interests” means the Dollar
Book-Entry Interests and the Euro Book-Entry Interests.

 

“Bund Rate” means the yield to maturity at
the time of computation of direct obligations of the Federal Republic of Germany
(Bunds or Bundesanleihen) with a constant maturity (as officially compiled and
published in the most recent financial statistics that has become publicly
available at least two Business Days (but not more than five Business Days)
prior to the redemption date (or, if such financial statistics are not so
published or available, any publicly available source of similar market data
selected by the Company in good faith)) most nearly equal to the period from
the redemption date to August 15, 2008; provided, however, that if the
period from the redemption date to August 15, 2008 is not equal to the
constant maturity of the direct obligation of the Federal Republic of Germany
for which a weekly average yield is given, the Bund Rate shall be obtained by
linear interpolation (calculated to the nearest one-twelfth of a year) from the
weekly average yields of direct obligations of the Federal Republic of Germany
for which such yields are given, except that if the period from such redemption
date to August 15, 2008 is less than one year, the weekly average yield on
actually traded direct obligations of the Federal Republic of Germany adjusted
to a constant maturity of one year shall be used.

 

“Business Day” means each day that is not a
Saturday, Sunday or other day on which banking institutions in Luxembourg City,
Luxembourg, London, United Kingdom, Dublin, Ireland or New York, New York are
authorized or required by law to close.

 

5

 

“Capital Stock” of any Person means any and
all shares of, rights to purchase, warrants or options for, or other
equivalents of or interests in (however designated), equity of such Person,
including any Preferred Stock, but excluding any debt securities convertible
into such equity.

 

“Capitalized Lease Obligation” means an
obligation that is required to be classified and accounted for as a capitalized
lease for financial reporting purposes in accordance with GAAP. The amount of
Indebtedness represented by such obligation will be the capitalized amount of
such obligation at the time any determination thereof is to be made as
determined in accordance with GAAP, and the Stated Maturity thereof will be the
date of the last payment of rent or any other amount due under such lease prior
to the first date such lease may be terminated without penalty.

 

“Cash Equivalents” means

 

(1)                                  securities issued or
directly and fully guaranteed or insured by the United States Government or a
member state of the European Union on the date of this Indenture or any agency
or instrumentality of either thereof (provided that the full faith and credit
of the United States or such member state is pledged in support thereof),
having maturities of not more than one year from the date of acquisition;

 

(2)                                  certificates of deposit,
time deposits, eurodollar time deposits, overnight bank deposits or bankers’
acceptances having maturities of not more than one year from the date of
acquisition thereof issued by any lender party to the Senior Secured Credit
Agreement or by any bank or trust company (x) the long-term debt of which is
rated at the time of acquisition thereof at least “A” or the equivalent thereof
by Standard & Poor’s Ratings Services, or “A2” or the equivalent thereof by
Moody’s Investors Service, Inc. (or if at the time neither is issuing
comparable ratings, then a comparable rating of another nationally recognized
rating agency), or (y) having combined capital and surplus in excess of €500
million;

 

(3)                                  repurchase
obligations with a term of not more than seven days for underlying securities
of the types described in clauses (1) and (2) entered into with any bank
meeting the qualifications specified in clause (2) above;

 

(4)                                  commercial paper
rated at the time of acquisition thereof at least “A-2” or the equivalent thereof
by Standard & Poor’s Ratings Services or “P-2” or the equivalent thereof by
Moody’s Investors Service, Inc., or carrying an equivalent rating by an
internationally recognized rating agency, if both of the two named rating
agencies cease publishing ratings of investments, and in any case maturing
within one year after the date of acquisition thereof; and

 

(5)                                  interests in any
investment company or money market fund which invests 95% or more of its assets
in instruments of the type specified in clauses (1) through (4) above.

 

“Change in Tax Law” has the meaning
assigned to it in Paragraph 9 of any Initial Note and Paragraph 8 of any
Exchange Note.

 

6

 

“Change of Control” means

 

(1)                                  any
“person” or “group” of related persons (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders,
becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act), directly or indirectly, of more than 50% of the total voting
power of the Voting Stock of the Company (provided that for the purposes of
this clause, (x) so long as the Company is a Subsidiary of Holdings or a
Successor Parent, no such person or group shall be deemed to become the “beneficial
owner” (as so defined) of any Voting Stock of the Company unless such person or
group shall become the “beneficial owner” (as so defined), directly or
indirectly, of more than 50% of the total voting power of the Voting Stock of
Holdings or such Successor Parent, respectively, (y) no Change of Control shall
be deemed to occur by reason of the Company becoming a Subsidiary of a
Successor Parent and (z) any Voting Stock of which any Permitted Holder is the
“beneficial owner” (as so defined) shall not in any case be included in any
Voting Stock of which any such person or group is the “beneficial owner” (as so
defined);

 

(2)                                  the
first day on which a majority of the members of the Board of Directors of the
Company are not Continuing Directors; or

 

(3)                                  the
sale, lease, transfer, conveyance or other disposition (other than by way of
merger or consolidation), in one or a series of related transactions, of all or
substantially all of the assets of the Company and its Restricted Subsidiaries
taken as a whole to a Person, other than one or more Permitted Holders, and any
“person” or “group” of related persons (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders,
is at that time or becomes the “beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of
the total voting power of the Voting Stock of such transferee Person in such
disposition (provided that for the purposes of this clause, so long as such
transferee Person is a Subsidiary of a parent Person, (x) no such person or
group shall be deemed to be or become a “beneficial owner” (as so defined) of
more than 50% of the total voting power of the Voting Stock of such transferee
Person unless such person or group shall be or become a “beneficial owner” (as
so defined) of more than 50% of the total voting power of the Voting Stock of
such parent Person, (y) no Change of Control shall be deemed to occur by reason
of such transferee Person becoming a Subsidiary of a Successor Parent and (z)
any Voting Stock of which any Permitted Holder is the “beneficial owner” (as so
defined) shall not in any case be included in any Voting Stock of which any
such person or group is the “beneficial owner” (as so defined)).

 

“Change of Control Offer” has the meaning
assigned to it in Section 4.14.

 

“Change of Control Payment” has the meaning
assigned to it in Section 4.14.

 

“Change of Control Payment Date” has the
meaning assigned to it in Section 4.14.

 

7

 

“Clearing Agency” means (i) with respect to
Euro Notes, one or more of Euroclear, Clearstream, or the successor of either
of them, in each case acting directly, or through a custodian, nominee or
depositary, as holder of Depositary Interests in the Euro Global Notes, and
(ii) with respect to Dollar Notes, The Depositary Trust Company, or the
successor thereof, acting directly, or through a custodian, nominee or
depositary, as holder of Depositary Interests in the Dollar Global Notes.

 

“Clearstream” means Clearstream Banking, société
anonyme.

 

“Code” means the United States Internal
Revenue Code of 1986, as amended.

 

“Commodity Hedging Agreements” means in
respect of a Person any commodity purchase contract, commodity futures or
forward contract, commodities option contract or other similar contract
(including derivative agreements or arrangements) to which such Person is a
party or a beneficiary.

 

“Common Depositary” means the common
depositary for Euroclear and Clearstream, or its nominee and their respective
successors or, as applicable, such other nominee of or custodian for Euroclear
and/or Clearstream, as applicable, as may be acceptable to the Company and
named or otherwise appointed in accordance with the customary practices or
policies of such Depositary or Depositaries.

 

“Common Stock” means with respect to any
Person, any and all shares, interests or other participations in, and other
equivalents (however designated and whether voting or nonvoting) of such Person’s
common stock whether or not outstanding on the Issue Date, and includes,
without limitation, all series and classes of such common stock.

 

“Company” means the party named as such in
this Indenture until any successor replaces it in accordance with the terms of
this Indenture and thereafter means any such successor.

 

“Company Business” means the
telecommunications business and related telecommunications activities and any
services, activities or businesses incidental or related or similar thereto; any
businesses and activities engaged in by the Company and its Subsidiaries on the
Issue Date; and any businesses and activities that are related, complementary,
incidental, ancillary or similar to any of the foregoing, or are extensions,
developments or expansions of any thereof.

 

“Company Order” means a written order or
request signed in the name of the Company by an Officer of the Company or a
member of the Board of Directors of the Company.

 

“Consolidated EBITDA” for any period means,
without duplication, the Consolidated Net Income for such period, plus the
following to the extent deducted in calculating such Consolidated Net Income:

 

(1)                                  Consolidated
Interest Expense and Receivables Fees;

 

(2)                                  provision
for Consolidated Income Taxes;

 

8

 

(3)                                  consolidated
depreciation expense;

 

(4)                                  consolidated
amortization expense (including but not limited to amortization of goodwill and
intangibles, amortization of pension surpluses, and amortization or write-off
of financing costs), impairment charges recorded in respect of intangibles, and
redundancy, voluntary leaving and related annuity stream costs;

 

(5)                                  other non-cash
charges reducing Consolidated Net Income (excluding any such non-cash charge to
the extent it represents an accrual of or reserve for cash charges in any
future period); and

 

(6)                                  amounts written off
financial assets and investments held as current assets.

 

“Consolidated Income Taxes” means taxes or
other payments based on income, profits or capital of any of the Company and
its Restricted Subsidiaries whether or not paid, estimated, accrued or required
to be remitted to any governmental authority.

 

“Consolidated Interest Expense” means, for
any period, the sum, without duplication, of the following (in each case
determined in accordance with GAAP):

 

(1)                                  the
consolidated interest receivable/payable and similar charges of the Company and
its Restricted Subsidiaries, whether paid or accrued, including any such
interest and charges consisting of:

 

(a)          interest expense attributable to Capitalized Lease
Obligations;

 

(b)         amortization of debt discount and debt issuance
cost;

 

(c)          non-cash interest expense;

 

(d)         recurring commissions, discounts and other fees and
charges owed with respect to letters of credit and bankers’ acceptance
financing; and

 

(e)          costs associated with Hedging Obligations.

 

“Consolidated Leverage” means the sum of
the aggregate outstanding Indebtedness of the Company and its Restricted
Subsidiaries (excluding Hedging Obligations) as of the relevant date of
calculation on a consolidated basis in accordance with GAAP.

 

“Consolidated Leverage Ratio” means as of
any date of determination, the ratio of (x) Consolidated Leverage at such date
to (y) the aggregate amount of Consolidated EBITDA for the period of the most
recent four consecutive fiscal quarters ending prior to the date of such
determination for which consolidated financial statements of the Company are
available, provided, however, that for the purposes of calculating Consolidated
EBITDA for such period, if, as of such date of determination:

 

(1)                                  since the beginning
of such period the Company or any Restricted Subsidiary will have disposed of
any company, any business, or any group of assets

 

9

 

constituting an operating unit of a business (any such disposition, a “Sale”) or if the transaction giving rise
to the need to calculate the Consolidated Leverage Ratio is such a Sale,
Consolidated EBITDA for such period will be reduced by an amount equal to the
Consolidated EBITDA (if positive) attributable to the assets which are the
subject of such Sale for such period or increased by an amount equal to the
Consolidated EBITDA (if negative) attributable thereto for such period;

 

(2)                                  since the beginning
of such period the Company or any Restricted Subsidiary (by merger or
otherwise) will have made an Investment in any Person that thereby becomes a
Restricted Subsidiary, or otherwise acquires any company, any business, or any
group of assets constituting an operating unit of a business (any such
Investment or acquisition, a “Purchase”)
including any such Purchase occurring in connection with a transaction causing
a calculation to be made hereunder, Consolidated EBITDA for such period will be
calculated after giving pro forma effect
thereto as if such Purchase occurred on the first day of such period; and

 

(3)                                  since the beginning
of such period any Person (that became a Restricted Subsidiary or was merged
with or into the Company or any Restricted Subsidiary since the beginning of
such period) will have made any Sale or any Purchase that would have required
an adjustment pursuant to clause (1) or (2) above if made by the Company or a
Restricted Subsidiary since the beginning of such period, Consolidated EBITDA
for such period will be calculated after giving pro forma effect thereto as if such Sale or Purchase
occurred on the first day of such period.

 

For purposes
of this definition and the definition of Consolidated Senior Leverage Ratio,
(i) whenever pro forma effect is
to be given to any transaction or calculation under this definition, the pro forma calculations will be as
determined in good faith by a responsible financial or accounting officer of
the Company (including without limitation in respect of anticipated expense and
cost reductions and synergies) and (ii) in determining the amount of
Indebtedness outstanding on any date of determination, pro forma effect shall be given to any
Incurrence, repayment, repurchase, defeasance or other acquisition, retirement
or discharge of Indebtedness on such date.

 

“Consolidated Net Income” means, for any
period, the Profit (Loss) Attributable to Group Shareholders of the Company and
its Restricted Subsidiaries determined on a consolidated basis in accordance
with GAAP; provided, however,
that there will not be included in such Consolidated Net Income:

 

(1)                                  any
net income (loss) of any Person if such Person is not a Restricted Subsidiary,
except that:

 

(a) subject to
the limitations contained in clause (3) below, the Company’s equity in the net
income of any such Person for such period will be included in such Consolidated
Net Income up to the aggregate amount of cash actually distributed by such
Person during such period to the Company or a Restricted Subsidiary as a
dividend or other distribution (subject, in the case of a dividend or other

 

10

 

distribution
to a Restricted Subsidiary, to the limitations contained in clause (2) below);
and

 

(b) the
Company’s equity in a net loss of any such Person (other than an Unrestricted
Subsidiary) for such period will be included in determining such Consolidated
Net Income to the extent of the aggregate Investment of the Company or any of
its Restricted Subsidiaries in such Person;

 

(2)                                  any
net income (loss) of any Restricted Subsidiary (other than eircom or any other Note Guarantor) if
such Subsidiary is subject to restrictions, directly or indirectly, on the
payment of dividends or the making of distributions by such Restricted
Subsidiary, directly or indirectly, to the Company by operation of the terms of
such Restricted Subsidiary’s charter or any agreement, instrument, judgment,
decree, order, statute or governmental rule or regulation applicable to such
Restricted Subsidiary or its stockholders (other than (x) restrictions that
have been waived or otherwise released, (y) restrictions pursuant to the Senior
Notes, the Senior Subordinated Notes, this Indenture or the Senior Subordinated
Indenture and (z) restrictions in effect on the Issue Date with respect to a
Restricted Subsidiary and other restrictions with respect to such Restricted
Subsidiary that taken as a whole are not materially less favorable to the
Noteholders than such restrictions in effect on the Issue Date), except that:

 

(a) subject to
the limitations contained in clause (3) below, the Company’s equity in the net
income of any such Restricted Subsidiary for such period will be included in
such Consolidated Net Income up to the aggregate amount of cash that could have
been distributed by such Restricted Subsidiary during such period to the
Company or another Restricted Subsidiary as a dividend (subject, in the case of
a dividend to another Restricted Subsidiary, to the limitation contained in
this clause); and

 

(b) the
Company’s equity in a net loss of any such Restricted Subsidiary for such
period will be included in determining such Consolidated Net Income to the
extent of the aggregate Investment of the Company or any of its other
Restricted Subsidiaries in such Restricted Subsidiary;

 

(3)                                  any
gain (or loss) realized upon the sale or other disposition of any asset of the
Company or any Restricted Subsidiaries (including pursuant to any
sale/leaseback transaction) which is not sold or otherwise disposed of in the ordinary
course of business (as determined in good faith by the Board of Directors of
the Company);

 

(4)                                  any
extraordinary, exceptional, unusual or nonrecurring gain, loss or charge
(including without limitation any fees, expenses and charges associated with
the Transactions or any acquisition, merger or consolidation after the Issue
Date);

 

(5)                                  the
cumulative effect of a change in accounting principles;

 

(6)                                  any
non-cash compensation charge arising from any grant of stock, stock options or
other equity based awards;

 

11

 

(7)                                  all
deferred financing costs written off and premiums paid in connection with any
early extinguishment of Indebtedness;

 

(8)                                  any
unrealized gains or losses in respect of Currency Agreements;

 

(9)                                  any
unrealized foreign currency transaction gains or losses in respect of
Indebtedness of any Person denominated in a currency other than the functional
currency of such Person; and

 

(10)                            any
unrealized foreign currency translation or transaction gains or losses in
respect of Indebtedness or other obligations of the Company or any Restricted
Subsidiary owing to the Company or any Restricted Subsidiary.

 

“Consolidated Senior Leverage” means the
sum of the aggregate outstanding Senior Debt of the Company and its Restricted
Subsidiaries, calculated as of the relevant date of calculation on a
consolidated basis in accordance with GAAP.

 

“Consolidated Senior Leverage Ratio” means
as of any date of determination, the ratio of (x) Consolidated Senior Leverage
at such date to (y) the aggregate amount of Consolidated EBITDA for the period
of the most recent four consecutive fiscal quarters ending prior to the date of
such determination for which consolidated financial statements of the Company
are available, provided, however,
that Consolidated EBITDA for such period shall be calculated in the same manner
as specified in the proviso to the definition of “Consolidated Leverage Ratio.”

 

“Continuing Directors” means, as of any
date of determination, any member of the Board of Directors of the Company who:
(1) was a member of such Board of Directors on the date of this  Indenture; or (2) was nominated for election
or elected to such Board of Directors with the approval of a majority of the
Continuing Directors who were members of such Board of Directors at the time of
such nomination or election, or with the approval, directly or indirectly, of
one or more Permitted Holders.

 

“Corporate Trust Office” means an office of
the Trustee at which at any time its corporate trust business shall be
administered, which office at the date hereof is located at One Canada Square,
London E14 5AL, United Kingdom, Attention: 
Corporate Trust Administration, or such other address as the Trustee may
designate from time to time by notice to the Holders and the Company, or the
principal corporate trust office of any successor Trustee (or such other
address as such successor Trustee may designate from time to time by notice to
the Holders and the Company).

 

“Covenant Defeasance” has the meaning
assigned to it in Section 8.3.

 

“Credit Facility” means, with respect to
the Company, one or more debt facilities or arrangements (including, with
limitation, the Senior Secured Credit Agreement or commercial paper facilities)
with banks or other institutions providing for revolving credit loans, term
loans, receivables financing (including through the sale of receivables to such
institutions or to special purpose entities formed to borrow from such
institutions against such receivables), letters of credit or other
Indebtedness, in each case, as amended, restated, modified, renewed, refunded,
replaced, restructured, refinanced, repaid, increased or extended in whole or
in part from time to time (and

 

12

 

whether in whole or in part and
whether or not with the original administrative agent and lenders or another
administrative agent or agents or other banks or institutions and whether
provided under the original Senior Secured Credit Agreement or one or more
other credit or other agreements, indentures, financing agreements or
otherwise) and in each case including all agreements, instruments and documents
executed and delivered pursuant to or in connection with the foregoing
(including but not limited to any notes and letters of credit issued pursuant
thereto and any guarantee and collateral agreement, patent and trademark
security agreement, mortgages or letter of credit applications and other
guarantees, pledges, agreements, security agreements and collateral
documents).  Without limiting the
generality of the foregoing, the term “Credit Facility” shall include any
agreement or instrument (i) changing the maturity of any Indebtedness incurred
thereunder or contemplated thereby, (ii) adding Subsidiaries of the Company as
additional borrowers or guarantors thereunder, (iii) increasing the amount of
Indebtedness incurred thereunder or available to be borrowed thereunder or (iv)
otherwise altering the terms and conditions thereof.

 

“Currency Agreement” means in respect of a
Person any foreign exchange contract, currency swap agreement, futures
contract, option contract, derivative or other similar agreement as to which
such Person is a party or a beneficiary.

 

“Custodian” means any receiver, trustee,
assignee, liquidator, examiner, administrator, sequestration or similar
official under any Bankruptcy Law.

 

“DTC” means The Depositary Trust Company,
or the successor thereof, acting directly, or through a custodian, nominee or
depositary, as registered Holder of Book-Entry Interests representing the
Dollar Global Notes.

 

“Default” means any event which is, or
after notice or passage of time or both would be, an Event of Default.

 

“Default Interest Payment Date” has the
meaning assigned to it in Section 2.13.

 

“Definitive Notes” means Notes in
definitive registered form substantially in the form of Exhibits B and D
hereto.

 

“Deposit Agreement” means (i) in respect of
Euro Global Notes, the Euro Deposit Agreement and (ii) in respect of Dollar
Global Notes, the Dollar Deposit Agreement.

 

“Depositary Interest” means an interest in a
Global Note issued by a Book-Entry Depositary to DTC in respect of a Dollar
Global Note or to the Common Depositary in respect of a Euro Global Note in
accordance with a Deposit Agreement.

 

“Designated Non-Cash Consideration” means
the fair market value (determined in good faith by the Company) of non-cash
consideration received by the Company or one of its Restricted Subsidiaries in
connection with an Asset Disposition that is so designated as Designated
Non-Cash Consideration pursuant to an Officer’s Certificate, setting forth the
basis of such valuation, less the amount of cash, Cash Equivalents or Temporary
Cash Investments received in connection with a subsequent payment, redemption,
retirement, sale or other disposition of such Designated Non-Cash
Consideration. A particular item of Designated Non-Cash Consideration will no
longer be

 

13

 

considered to be outstanding
when it has been paid, redeemed or otherwise retired or sold or otherwise
disposed of in compliance with Section 4.10.

 

“Directive” has the meaning assigned to it
in Section 4.15.

 

“Disinterested Director” means, with
respect to any Affiliate Transaction, a member of the Board of Directors of the
Company having no material direct or indirect financial interest in or with
respect to such Affiliate Transaction. A member of the Board of Directors of
the Company shall not be deemed to have such a financial interest by reason of
such member’s holding Capital Stock of the Company or any Parent or any
options, warrants or other rights in respect of such Capital Stock.

 

“Disqualified Stock” means, with respect to
any Person, any Capital Stock of such Person which by its terms (or by the
terms of any security into which it is convertible or for which it is
exchangeable) or upon the happening of any event:

 

(1)                                  matures
or is mandatorily redeemable pursuant to a sinking fund obligation or
otherwise;

 

(2)                                  is
convertible or exchangeable for Indebtedness or Disqualified Stock (excluding
Capital Stock which is convertible or exchangeable solely at the option of the
Company or a Restricted Subsidiary); or

 

(3)                                  is
redeemable at the option of the holder of the Capital Stock in whole or in
part, in each case on or prior to the earlier of the date (a) of the Stated
Maturity of the Senior Notes or (b) on which there are no Senior Notes
outstanding, provided that only
the portion of Capital Stock which so matures or is mandatorily redeemable, is
so convertible or exchangeable or is so redeemable at the option of the holder
thereof prior to such date will be deemed to be Disqualified Stock; provided, further, that any Capital Stock
that would constitute Disqualified Stock solely because the holders thereof
have the right to require the Company to repurchase such Capital Stock upon the
occurrence of a change of control or asset sale (howsoever defined or referred
to) shall not constitute Disqualified Stock; and provided, further that (x) Management Stock shall not
constitute Disqualified Stock solely because it matures or is mandatorily
redeemable, is convertible or exchanges or is redeemable at the option of the
holder thereof as a result of, or on the occurrence of, the termination,
dismissal, retirement, disability or death of any Management Investor or any
event or circumstances arising out of the employment or engagement of such
Management Investor and (y) Capital Stock issued as provided in clause (9) of
the definition of “Transactions” and cancelled on or before payment of the
amounts referred to in clause (11) of the definition of “Transactions” shall
not constitute Disqualified Stock.

 

“Dollar Book-Entry Interests” means individual
book-entry interests in a Depositary Interest in a Dollar Global Note.

 

“Dollar Deposit Agreement” means a deposit and
custody agreement dated the Note Issue Date in relation to the first issuance
(if any) of Dollar Global Notes hereunder, such

 

14

 

agreement to be substantially
in the form of the Euro Deposit Agreement with such changes as are necessary to
reflect the issuance of Dollar Notes through DTC (including the issue of
certificateless rather than certificated depositary interests), and entered
into among the Company, the Book-Entry Depositary in respect of the Dollar
Notes and the custodian therefor.

 

“Dollar Global Note” means a Global Note
denominated in US Dollars.

 

“Dollar Notes” means Notes denominated in US
Dollars, if issued.

 

“Dollar Regulation S Global Note” has the
meaning assigned to it in Section 2.1.

 

“Dollar Rule 144A Note” has the meaning
assigned to it in Section 2.1.

 

“eircom Funding Intercompany Loan” means
the intercompany loan from eircom
Funding to the Company of the net proceeds of the issue of the Senior
Subordinated Notes.

 

“eircom Senior Indebtedness” means the
following obligations, whether outstanding on the date of this Indenture or
thereafter issued, without duplication:

 

(1) any Guarantee of the
Bank Indebtedness by eircom and
all other Guarantees by eircom of
Senior Indebtedness of the Company; and

 

(2) all obligations
consisting of principal of and premium, if any, accrued and unpaid interest on,
and fees and other amounts relating to, all other Indebtedness of eircom.

 

eircom Senior Indebtedness includes
interest accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to eircom
regardless of whether post-filing interest is allowed in such proceeding.

 

Notwithstanding
anything to the contrary in the preceding paragraph, eircom Senior Indebtedness will not include:

 

(1)                                  any
Indebtedness Incurred in violation of Section 4.3 (but no such violation
shall be deemed to exist for the purposes of this paragraph (1) if any holder
of such Indebtedness or such holder’s representative shall have received an
Officer’s Certificate of the Company to the effect that such Incurrence of such
Indebtedness does not (or, in the case of a revolving credit or similar
facility, the Incurrence of the entire committed amount at the date on which
the initial borrowing thereunder is made would not) violate Section 4.3);

 

(2)                                  any
obligations of eircom to another
Restricted Subsidiary or the Company;

 

(3)                                  any
liability for national, local or other taxes owed or owing by eircom;

 

15

 

(4)                                  any
accounts payable or other liability to trade creditors arising in the ordinary
course of business (including Guarantees thereof or instruments evidencing such
liabilities);

 

(5)                                  any
Indebtedness of eircom that is
expressly subordinate in right of payment to any other Indebtedness of eircom, including, without limitation, any
Note Guarantor Subordinated Obligations; or

 

(6)                                  (6)
any Capital Stock.

 

“eircom Subordinated Obligation” means any
Indebtedness of eircom (whether
outstanding on the Issue Date or thereafter Incurred) which is expressly
subordinate in right of payment to the obligations of eircom under its Senior Notes eircom Guarantee pursuant to a written
agreement.

 

“Equity Offering” means a sale of Capital
Stock (x) that is a sale of Capital Stock of the Company (other than
Disqualified Stock), or (y) proceeds of which in an amount equal to or
exceeding the Redemption Amount (as defined in the Notes) are contributed to
the Company or any of its Restricted Subsidiaries.

 

“ESOT” means eircom ESOP Trustee Limited in its capacity as trustee of
the eircom Employee Share
Ownership Trust, the eircom
Approved Profit Sharing Trust and/or the Valentia Share Trust and its
successors and assigns in such capacities.

 

“ESOT Loan” means the loan by the Company
to ESOT in an aggregate principal amount of €50,051,000 as at the Issue Date.

 

“ESOT Preference Shares” means Preferred
Stock of any Parent at any time held by or for the benefit of ESOT or any
Related Person thereof.

 

“Euro Book-Entry Interests” means
individual book-entry interests in a Depositary Interest in a Euro Global Note.

 

“Euro Deposit Agreement” means the deposit and
custody agreement dated the date hereof relating to the Euro Global Notes among
the Company, the Book-Entry Depositary in respect of the Euro Notes and the
custodian therefor.

 

“Euroclear” means Euroclear Bank S.A./N.V.

 

“Euro Equivalent” means, with respect to
any monetary amount in a currency other than euro, at any time of determination
thereof by the Company, the amount of euro obtained by converting such currency
other than euro involved in such computation into euro at the spot rate for the
purchase of euro with the applicable currency other than euro as published in
the Financial Times in the “Exchange
Rates” column under the heading “Currency Trading” (or, if the Financial Times is no longer published, or
if such information is no longer available in the Financial Times, such source as may be selected in good
faith by the Company) on the date of such determination.

 

16

 

“Euro Global Note” means a Global Note
denominated in euro.

 

“Euro Notes” means Notes denominated in euro.

 

“European Government Obligations” means any
security that is (i) a direct obligation of Ireland, Belgium, the Netherlands,
France, Germany or any other country that is a member of the European Monetary
Union, for the payment of which the full faith and credit of such country is
pledged or (ii) an obligation of a person controlled or supervised by and
acting as an agency or instrumentality of any such country the payment of which
is unconditionally guaranteed as a full faith and credit obligation by such
country, which, in either case under the preceding clause (i) or (ii), is not callable
or redeemable at the option of the issuer thereof.

 

“Euro Regulation S Global Note” shall have the
meaning assigned to it in Section 2.1.

 

“Euro Rule 144A Global Note” shall have the
meaning assigned to it in Section 2.1.

 

“Event of Default” has the meaning assigned
to it in Section 6.1.

 

“Excess Proceeds” has the meaning assigned
to in Section 4.10.

 

“Exchange Act” means the United States
Securities Exchange Act of 1934, as amended, and the rules and regulations of
the SEC promulgated thereunder.

 

“Exchange Notes” means the Notes to be
issued in exchange for Initial Notes or Additional Notes pursuant to an
Exchange Offer.

 

“Exchange Offer” means an offer by the
Company, pursuant to a Registration Rights Agreement, to Holders of Notes, to
issue and deliver to such Holders, in exchange for their Notes, a like
aggregate principal amount of Exchange Notes registered under the Securities
Act.

 

“Excluded Contribution” means Net Cash
Proceeds or property or assets received by the Company as capital contributions
to the Company after the Issue Date or from the issuance or sale (other than to
a Restricted Subsidiary) of Capital Stock (other than Disqualified Stock) of
the Company, in each case to the extent designated as an Excluded Contribution
pursuant to an Officer’s Certificate of the Company.

 

“Fairness Opinion” has the meaning assigned
to it in Section 4.11.

 

“Financing Disposition” means any sale,
transfer, conveyance or other disposition of property or assets by the Company
or any Subsidiary thereof to any Receivables Entity, or by any Receivables
Subsidiary, in each case in connection with the Incurrence by a Receivables
Entity of Indebtedness, or obligations to make payments to the obligor on
Indebtedness, which may be secured by a Lien in respect of such property or
assets.

 

“Foreign Subsidiary” means (a) any
Restricted Subsidiary of the Company that is not a company incorporated in
Ireland and (b) any Restricted Subsidiary of the Company that has no material
assets other than securities of one or more Foreign Subsidiaries, and other
assets relating to an ownership interest in any such securities or
subsidiaries.

 

17

 

“GAAP” means generally accepted accounting
principles in the Republic of Ireland as in effect on the Issue Date (for
purposes of the definitions of the terms “Consolidated EBITDA,” “Consolidated
Interest Expense,” “Consolidated Leverage Ratio,” “Consolidated Net Income,”
“Consolidated Senior Leverage Ratio,” and “Total Assets,” all defined terms in
this Indenture to the extent used in or relating to any of the foregoing
definitions, and all ratios and computations based on any of the foregoing
definitions) and as in effect from time to time (for all other purposes of this
Indenture). All ratios and calculations based on GAAP contained in this
Indenture shall be computed in conformity with GAAP.

 

“Global Note” shall mean one or more
Regulation S Global Notes, Rule 144A Global Notes or Unrestricted Global Notes.

 

“Guarantee” means any obligation,
contingent or otherwise, of any Person directly or indirectly guaranteeing any
Indebtedness of any other Person, including any such obligation, direct or
indirect, contingent or otherwise, of such Person:

 

(1) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness of such other Person;
or

 

(2) entered into primarily for purposes of
assuring in any other manner the obligee of such Indebtedness of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part);

 

provided, however, that the term “Guarantee”
will not include endorsements for collection or deposit in the ordinary course
of business. The term “Guarantee” used as a verb has a corresponding meaning.

 

“Hedging Obligations” of any Person means
the obligations of such Person pursuant to any Interest Rate Agreement,
Currency Agreement or Commodity Hedging Agreement.

 

“Holder” or “holder” means, for so long as the Senior Notes are
represented by global notes, such bearer thereof, which shall initially be the
relevant Book Entry Depositary and, in the event that Definitive Notes are
issued, each Person in whose name the Senior Notes are registered on the
Registrar’s books.

 

“Holdings” means Valentia Holdings Limited,
a limited company incorporated under the laws of England, and any successor in
interest thereto.

 

“Incur” means issue, create, assume, enter
into any Guarantee of, incur or otherwise become liable for; provided, however, that any Indebtedness
or Capital Stock of a Person existing at the time such Person becomes a
Restricted Subsidiary (whether by merger, consolidation, acquisition or
otherwise) will be deemed to be Incurred by such Restricted Subsidiary at the
time it becomes a Restricted Subsidiary; and the terms “Incurred” and “Incurrence” have meanings correlative to the foregoing.

 

18

 

“Indebtedness” means, with respect to any
Person on any date of determination (without duplication):

 

(1)                                  the principal of
indebtedness of such Person for borrowed money;

 

(2)                                  the principal of
obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments;

 

(3)                                  all reimbursement
obligations of such Person in respect of letters of credit, bankers’ acceptances
or other similar instruments (the amount of such obligations being equal at any
time to the aggregate then undrawn and unexpired amount of such letters of
credit or other instruments plus the aggregate amount of drawings thereunder
that have been reimbursed);

 

(4)                                  the principal
component of all obligations of such Person to pay the deferred and unpaid
purchase price of property (except trade payables), which purchase price is due
more than one year after the date of placing such property in service or taking
final delivery and title thereto;

 

(5)                                  Capitalized Lease
Obligations of such Person;

 

(6)                                  the principal
component of all obligations of such Person with respect to any Disqualified
Stock or, with respect to any Restricted Subsidiary that is not a Note
Guarantor, any Preferred Stock (but excluding, in each case, any accrued
dividends);

 

(7)                                  the principal
component of all Indebtedness of other Persons secured by a Lien on any asset
of such Person, whether or not such Indebtedness is assumed by such Person; provided, however, that the amount of such
Indebtedness will be the lesser of (a) the fair market value of such asset at
such date of determination (as determined in good faith by the Company) and (b)
the amount of such Indebtedness of such other Persons;

 

(8)                                  Guarantees by such
Person of the principal component of Indebtedness of other Persons to the
extent Guaranteed by such Person; and

 

(9)                                  to the extent not
otherwise included in this definition, net obligations of such Person under
Currency Agreements and Interest Rate Agreements (the amount of any such
obligations to be equal at any time to the termination value of such agreement
or arrangement giving rise to such obligation that would be payable by such
Person at such time).

 

The term “Indebtedness” shall not include
Subordinated Shareholder Funding or Management Proceeds Funding.

 

The amount of
Indebtedness of any Person at any date shall be determined as set forth above
or otherwise provided in this Indenture, or otherwise shall equal the amount thereof
that would appear on a balance sheet of such Person (excluding any notes
thereto) prepared in accordance with GAAP.

 

19

 

“Indenture” means this Indenture, as
amended, modified or supplemented from time to time in accordance with the
terms hereof.

 

“Initial Agreement” has the meaning
assigned to it in Section 4.9.

 

“Initial Global Notes” means the Dollar
Regulation S Global Note, the Dollar Rule 144A Global Note, the Euro
Regulation S Global Note and the Euro Rule 144A Global Note.

 

“Initial Lien” has the meaning assigned to
it in Section 4.6.

 

“Initial Notes” means the Company’s
euro-denominated 7.25% Senior Notes due 2013 issued on the Issue Date (and any
Notes issued in respect thereof pursuant to Section 2.6(b), 2.6(c), 2.7,
2.8, 2.11 or 3.7).

 

“Initial Purchasers” means the several
initial purchasers named as such in Schedule I to the Purchase Agreement,
dated as of July 30, 2003, among the Company, eircom, Valentia Holdings Limited, Valentia Funding and such
initial purchasers.

 

“Interest Rate Agreement” means with
respect to any Person any interest rate protection agreement, interest rate
future agreement, interest rate option agreement, interest rate swap agreement,
interest rate cap agreement, interest rate collar agreement, interest rate
hedge agreement or other similar agreement or arrangement as to which such
Person is party or a beneficiary.

 

“Investment” means, with respect to any
Person, all investments by such Person in other Persons (including Affiliates)
in the form of any direct or indirect advance, loan or other extensions of
credit (other than advances or extensions of credit to customers, suppliers,
directors, officers or employees of any Person in the ordinary course of
business, and excluding any debt or extension of credit represented by a bank
deposit other than a time deposit) or capital contribution to (by means of any
transfer of cash or other property to others or any payment for property or
services for the account or use of others), or any purchase or acquisition of
Capital Stock, Indebtedness or other similar instruments issued by, such
Person, in each case and all other items that are or would be classified as
investments on a balance sheet prepared in accordance with GAAP; provided that endorsements of negotiable
instruments and documents in the ordinary course of business will not be deemed
to be an Investment.

 

For purposes
of Section 4.4:

 

(1)                                  “Investment” will
include the portion (proportionate to the Company’s equity interest in a
Restricted Subsidiary to be designated as an Unrestricted Subsidiary) of the
fair market value of the net assets of such Restricted Subsidiary of the
Company at the time that such Restricted Subsidiary is designated an
Unrestricted Subsidiary; provided, however, that
upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Company
will be deemed to continue to have a permanent “Investment” in an Unrestricted
Subsidiary in an amount (if positive) equal to (a) the Company’s “Investment”
in such Subsidiary at the time of such redesignation less (b) the portion
(proportionate to the Company’s equity interest in such Subsidiary) of the fair
market value of the net assets (as conclusively determined by the Board of
Directors of the

 

20

 

Company in good faith) of such Subsidiary at the time that such
Subsidiary is so re-designated a Restricted Subsidiary; and

 

(2)                                  any property
transferred to or from an Unrestricted Subsidiary will be valued at its fair
market value at the time of such transfer, in each case as determined in good
faith by the Board of Directors of the Company.

 

Guarantees
shall not be deemed to be Investments. The amount of any Investment outstanding
at any time shall be the original cost of such Investment, reduced (at the
Company’s option) by any dividend, distribution, interest payment, return of
capital, repayment or other amount or value received in respect of such
Investment.

 

“Investment Grade Status” shall occur when
the Senior Notes receive both of the following:

 

(3)                                  a rating of “Baa3”
(or the equivalent) or higher from Moody’s Investors Service, Inc. or any of
its successors or assigns; and

 

(4)                                  a rating of “BBB-”
(or the equivalent) or higher from Standard & Poor’s Ratings Services, or
any of its successors or assigns,

 

or, in the
event that either of such rating agencies shall cease rating the Senior Notes,
such other reputable rating agency in its place as the Company shall select.

 

“Irish Taxing Jurisdiction” has the meaning
assigned to it in Section 4.15.

 

“Issue Date” means August 7, 2003, the
first date on which Initial Notes are issued.

 

“Legal Defeasance” has the meaning assigned
to it in Section 8.2.

 

“Lien” means any mortgage, pledge, security
interest, encumbrance, lien or charge of any kind (including any conditional
sale or other title retention agreement or lease in the nature thereof).

 

“Management Advances” means loans or
advances made to, or guarantees with respect to loans or advances made to,
directors, officers, employees or consultants of any Parent, the Company or any
Restricted Subsidiary: (x) in respect of travel, entertainment or moving
related expenses incurred in the ordinary course of business; (y) in respect of
moving related expenses incurred in connection with any closing or
consolidation of any facility; or (z) in the ordinary course of business and
(in the case of this clause (z)) not exceeding €2.5 million in the aggregate
outstanding at any time.

 

“Management Investors” means the officers,
directors, employees and other members of the management of or consultants to
any Parent, the Company or any of their respective Subsidiaries, or spouses,
family members or relatives thereof, or any trust, partnership or other entity
for the benefit of or the beneficial owner of which (directly or indirectly) is
any of the foregoing, or any of their heirs, executors, successors and legal
representatives, who at any date

 

21

 

beneficially own or have the
right to acquire, directly or indirectly, Capital Stock of the Company or any
Parent.

 

“Management Proceeds Funding” means any
loan made from time to time by any Parent to the Company of the proceeds of any
issue of Management Stock; provided that:

 

(1)                                  such loan is
subordinated in right of payment to the prior repayment of the Senior Notes in
the event of any Default, bankruptcy, reorganization, liquidation, winding-up
or other disposition of assets of the Company;

 

(2)                                  such loan does not
mature prior to the first anniversary of the final maturity of the Senior
Notes;

 

(3)                                  such loan is not
secured by any asset of the Company or a Restricted Subsidiary;

 

(4)                                  such loan does not
contain any covenant that requires the maintenance of financial ratios, or
includes financial tests, in each case relating to the financial performance or
condition of the Company; and

 

(5)                                  the terms of such
loan do not, prior to payment in full of the Senior Notes or satisfaction and
discharge of this Indenture, either (x) permit or require any payment of
principal or interest thereon not permitted under Section 4.4 or (y)
provide the right to accelerate such loan or declare a default or event of
default or take any enforcement action in the event that any payment of
principal or interest thereon is not made.

 

“Management Stock” means Capital Stock of
the Company or of any Parent (including any options, warrants or other rights
in respect thereof) held by any of the Management Investors.

 

“Maturity Date” means August 15, 2013.

 

“Net Available Cash” from an Asset
Disposition means cash payments received (including any cash payments received
by way of deferred payment of principal pursuant to a note or installment
receivable or otherwise and net proceeds from the sale or other disposition of
any securities received as consideration, but only as and when received, but
excluding any other consideration received in the form of assumption by the acquiring
person of Indebtedness or other obligations relating to the properties or
assets that are the subject of such Asset Disposition or received in any other
non-cash form) therefrom, in each case net of:

 

(1)                                  all legal,
accounting, investment banking, title and recording tax expenses, commissions
and other fees and expenses Incurred, and all national and local taxes required
to be paid or accrued as a liability under GAAP (after taking into account any
available tax credits or deductions and any tax sharing agreements), as a
consequence of such Asset Disposition;

 

(2)                                  all payments made on
any Indebtedness which is secured by any assets subject to such Asset
Disposition, in accordance with the terms of any Lien upon such

 

22

 

assets, or which must by its terms, or in order to obtain a necessary
consent to such Asset Disposition, or by applicable law be repaid out of the
proceeds from such Asset Disposition;

 

(3)                                  all distributions and
other payments required to be made to minority interest holders in Subsidiaries
or joint ventures as a result of such Asset Disposition; and

 

(4)                                  the deduction of
appropriate amounts required to be provided by the seller as a reserve, in
accordance with GAAP, against any liabilities associated with the assets
disposed of in such Asset Disposition and retained by the Company or any
Restricted Subsidiary after such Asset Disposition.

 

“Net Cash Proceeds,” with respect to any
issuance or sale of Capital Stock, means the cash proceeds of such issuance or
sale net of attorneys’ fees, accountants’ fees, underwriters’ or placement
agents’ fees, listing fees, discounts or commissions and brokerage, consultant
and other fees and charges actually Incurred in connection with such issuance
or sale and net of taxes paid or payable as a result of such issuance or sale
(after taking into account any available tax credit or deductions and any tax
sharing arrangements).

 

“New York Corporate Trust Office” means an
office of the Trustee at which at any time its corporate trust business shall
be administered, which office at the date hereof is located at 101 Barclay
Street, New York NY 10286, Attention: 
Corporate Trust Administration, or such other address as the Trustee may
designate from time to time by notice to the Holders and the Company, or the
principal corporate trust office of any successor Trustee (or such other
address as such successor Trustee may designate from time to time by notice to
the Holders and the Company).

 

“Note Guarantee” means (i) the Senior Notes
eircom Guarantee and (ii) any
Additional Note Guarantee.

 

“Note Guarantor” means (i) eircom, in its capacity as guarantor of
the Senior Notes and (ii) each Additional Note Guarantor, in its capacity as an
additional guarantor of the Senior Notes.

 

“Note Guarantor Subordinated Obligation”
means any Indebtedness of a Note Guarantor (including eircom) (whether outstanding on the Issue
Date or thereafter Incurred) which is expressly subordinate in right of payment
to the obligations of such Note Guarantor under its guarantee of the Senior
Notes pursuant to a written agreement.

 

“Note Issue Date” means, with respect to the
issuance of any Note that is an Initial Note or an Additional Note, the date of
issuance of such Note.

 

“Notes” means the Initial Notes, any
Additional Notes and the Exchange Notes (and any Notes issued pursuant to
Sections 2.6(b), 2.6(c), 2.7, 2.8, 2.11 or 3.7).

 

“Officer” means, with respect to any
Person, (x) the Chairman of the Board, the Chief Executive Officer, the President,
the Chief Financial Officer, any Vice President, the Treasurer or the Secretary
(a) of such Person or (b) if such Person is owned or managed by a single
entity,

 

23

 

of such entity or, or (y) any
other individual designated as an “Officer” for the purposes of this Indenture
by the Board of Directors of such Person.

 

“Officer’s Certificate” means, with respect
to any Person, a certificate signed by one Officer of such Person.

 

“Opinion of Counsel” means a written
opinion from legal counsel who is reasonably acceptable to the Senior Trustee.
The counsel may be an employee of or counsel to the Company.

 

“Original Notes” means the Initial Notes
and any Exchange Notes issued in exchange therefor.

 

“Parent” means Holdings and any other
Person of which the Company at any time is or becomes a Subsidiary after the
Issue Date.

 

“Parent Expenses” means:

 

(1)                                  costs (including all
professional fees and expenses) incurred by any Parent in connection with
reporting obligations under or otherwise incurred in connection with compliance
with applicable laws, applicable rules or regulations of any governmental,
regulatory or self-regulatory body or stock exchange, this Indenture, the
Senior Subordinated Indenture or any other agreement or instrument relating to
Indebtedness of the Company or any Restricted Subsidiary, including in respect
of any reports filed with respect to the Securities Act, Exchange Act or the
respective rules and regulations promulgated thereunder;

 

(2)                                  indemnification
obligations of any Parent owing to directors, officers, employees or other
Persons under its charter or by-laws or pursuant to written agreements with any
such Person;

 

(3)                                  obligations of any
Parent in respect of director and officer insurance (including premiums
therefor);

 

(4)                                  fees and expenses
payable by any Parent in connection with the Transactions,

 

(5)                                  professional fees and
expenses and other operational expenses of any Parent related to the ownership
or operation of the business of the Company or any of its Restricted
Subsidiaries;

 

(6)                                  fees and expenses
incurred by ESOT in the ordinary course of business; and

 

(7)                                  expenses incurred by
any Parent in connection with any public offering of Capital Stock or
Indebtedness (x) where the net proceeds of such offering are intended to be
received by or contributed or loaned to the Company or a Restricted Subsidiary,
or (y) in a prorated amount of such expenses in proportion to the amount of
such net proceeds intended to be so received, contributed or loaned, or (z)
otherwise on an interim basis

 

24

 

prior to completion of such offering so long as any Parent shall cause
the amount of such expenses to be repaid to the Company or the relevant Restricted
Subsidiary out of the proceeds of such offering promptly if completed.

 

“Pari Passu Senior Notes” has the meaning
assigned to it in Section 4.10.

 

“Paying Agent” means any Person authorized
by the Company to pay the principal of (and premium, if any) or interest on any
Senior Notes on behalf of the Company.

 

“Payor” has the meaning assigned to it in
Section 4.15.

 

“Permitted Asset Swap” means the concurrent
purchase and sale or exchange of related business assets or a combination of
related business assets and cash, Cash Equivalents or Temporary Cash
Investments between the Company or any of its Restricted Subsidiaries and
another Person.

 

“Permitted Holders” means, collectively,
(i) PV III Investment (Cayman) Limited, PV Investment (Cayman) Limited, PV III
(O) Investment (Cayman) Limited, Providence Equity Partners, Inc., Knightstown
Investor Limited, EMOF L.L.C., Lionheart Ventures (Overseas) Limited, ESOT, The
Goldman Sachs Group, Inc., Yoghal Trading Limited, Aurum Nominees Limited,
A&L Goodbody, and any one or more Persons whose beneficial ownership
constitutes or results in a Change of Control in respect of which a Change of
Control Offer is made in accordance with the requirements of this Indenture,
(ii) any Senior Management Investor, (iii) any Affiliate or Related Person of
any Permitted Holder described in the preceding clause (i), and any successor
to any such Permitted Holder, Affiliate or Related Person and (iv) any Person
who is acting as an underwriter in connection with a public or private offering
of Capital Stock of any Parent or the Company, acting in such capacity.

 

“Permitted Investment” means an Investment by
the Company or any Restricted Subsidiary in:

 

(1)                                  a Restricted
Subsidiary, the Company or a Person that is engaged in any Company Business and
will, upon the making of such Investment, become a Restricted Subsidiary;

 

(2)                                  another Person if
such Person is engaged in any Company Business and as a result of such
Investment such other Person is merged or consolidated with or into, or transfers
or conveys all or substantially all its assets to, the Company or a Restricted
Subsidiary;

 

(3)                                  cash, Cash
Equivalents and Temporary Cash Investments;

 

(4)                                  receivables owing to
the Company or any Restricted Subsidiary created or acquired in the ordinary
course of business;

 

(5)                                  payroll, travel and
similar advances to cover matters that are expected at the time of such
advances ultimately to be treated as expenses for accounting purposes and that
are made in the ordinary course of business;

 

25

 

(6)                                  Management Advances;

 

(7)                                  Capital Stock,
obligations or securities received in settlement of debts created in the
ordinary course of business and owing to the Company or any Restricted
Subsidiary, or as a result of foreclosure, perfection or enforcement of any
Lien, or in satisfaction of judgments or pursuant to any plan of reorganization
or similar arrangement including upon the bankruptcy or insolvency of a debtor;

 

(8)                                  Investments made as a
result of the receipt of non-cash consideration from a sale or other
disposition of property or assets, including without limitation an Asset
Disposition, in each case, that was made in compliance with Section 4.10;

 

(9)                                  Investments in
existence on, or made pursuant to legally binding commitments in existence on,
the Issue Date;

 

(10)                            Currency Agreements,
Interest Rate Agreements, Commodity Hedging Agreements and related Hedging
Obligations, which transactions or obligations are Incurred in compliance with
Section 4.3;

 

(11)                            Investments by the Company
or any of its Restricted Subsidiaries, together with all other Investments
pursuant to this clause (11), in an aggregate amount at the time of such
Investment not to exceed the greater of €125 million and 2.5% of Total Assets
outstanding at any one time;

 

(12)                            pledges or deposits (x)
with respect to leases or utilities provided to third parties in the ordinary
course of business or (y) otherwise described in the definition of “Permitted
Liens” or made in connection with Liens permitted under Section 4.6;

 

(13)                            (x) investments in any
Receivables Subsidiary, or in connection with a Financing Disposition by or to
any Receivables Entity, including Investments of funds held in accounts
permitted or required by the arrangements governing such Financing Disposition
or any related Indebtedness, or (y) any promissory note issued by the Company
or any Parent, provided that if
any Parent receives cash from the relevant Receivables Entity in exchange for
such note, an equal cash amount is contributed, directly or indirectly, by any
Parent to the Company;

 

(14)                            the Senior Notes; and

 

(15)                            any Investment to the
extent made using Capital Stock of the Company (other than Disqualified Stock),
Subordinated Shareholder Funding or Capital Stock of any Parent, as
consideration.

 

“Permitted Liens” means, with respect to
any Person:

 

(1)                                  Liens securing any of
the following:

 

(i) Indebtedness Incurred (a) pursuant to any
Credit Facility (including but not limited to in respect of letters of credit
or bankers’ acceptances issued or

 

26

 

created thereunder), and any Refinancing
Indebtedness in respect thereof and Guarantees in respect of such Indebtedness
or (b) by a Receivables Subsidiary secured by a Lien on all or part of the
assets disposed of in, or otherwise Incurred in connection with, a Financing
Disposition, in a maximum aggregate principal amount at any time outstanding
not exceeding (A) €1.4 billion plus (B) in the case of any refinancing of any Credit
Facility or any portion thereof, the aggregate amount of fees, underwriting
discounts, premiums and other costs and expenses incurred in connection with
such refinancing;

 

(ii) Indebtedness Incurred (a) pursuant to
any Credit Facility (including but not limited to in respect of letters of
credit or bankers’ acceptances issued or created thereunder), and any
Refinancing Indebtedness in respect thereof and Guarantees in respect of such
Indebtedness or (b) by a Receivables Subsidiary secured by a Lien on all or
part of the assets disposed of in, or otherwise Incurred in connection with, a
Financing Disposition, in an aggregate principal amount not exceeding, at the
time such Indebtedness is so Incurred, and taken together with any other
Indebtedness then outstanding and secured by any Lien pursuant to this clause
(ii), an amount equal to (x) 3.0 times Consolidated EBITDA for the period of
the most recent four consecutive fiscal quarters ending prior to the date of
such Incurrence for which consolidated financial statements of the Company are
available (provided, however, that Consolidated EBITDA for such period shall be
calculated in the same manner as specified in the proviso to the definition of
“Consolidated Leverage Ratio”)
minus (y) the aggregate principal amount of Indebtedness then outstanding and
secured by a Lien pursuant to the preceding clause (i); or

 

(iii) Guarantees of any Indebtedness
permitted to be secured by a Lien pursuant to the preceding clause (i) or (ii);

 

(2)                                  pledges, deposits or
Liens under workmen’s compensation laws, unemployment insurance laws, social
security laws or similar legislation, or insurance-related obligations
(including, without limitation, pledges or deposits securing liability to
insurance carriers under insurance or self-insurance arrangements), or in
connection with bids, tenders, completion guarantees, contracts (other than for
borrowed money) or leases, or to secure utilities, licenses, public or
statutory obligations, or to secure surety, judgment, appeal or performance
bonds (or other similar bonds, instruments or obligations), or as security for
contested taxes or import or customs duties or for the payment of rent, or
other obligations of like nature in each case incurred in the ordinary course
of business;

 

(3)                                  Liens imposed by law,
including carriers’, warehousemen’s, mechanics’, landlords’, materialmen’s and
repairmen’s or other like Liens, in each case for sums not yet overdue for a
period of more than 60 days or that are bonded or being contested in good faith
by appropriate proceedings;

 

27

 

(4)                                  Liens for taxes,
assessments or other governmental charges not yet delinquent or the non-payment
of which in the aggregate would not reasonably be expected to have a material
adverse effect on the Company and its Restricted Subsidiaries, or which are
being contested in good faith by appropriate proceedings provided appropriate
reserves required pursuant to GAAP have been made in respect thereof;

 

(5)                                  Liens in favor of issuers
of surety, performance or other bonds or letters of credit or bankers’
acceptances issued pursuant to the request of and for the account of the
Company or any Restricted Subsidiary in the ordinary course of its business;

 

(6)                                  encumbrances, ground
leases, easements (including reciprocal easement agreements), survey
exceptions, or reservations of, or rights of others for, licenses, rights of
way, sewers, electric lines, telegraph and telephone lines and other similar
purposes, or zoning, building codes or other restrictions (including, without
limitation, minor defects or irregularities in title and similar encumbrances)
as to the use of real properties or Liens incidental to the conduct of the
business of the Company and its Restricted Subsidiaries or to the ownership of
its properties which do not in the aggregate materially adversely affect the
value of said properties or materially impair their use in the operation of the
business of the Company and its Restricted Subsidiaries;

 

(7)                                  Liens securing Hedging
Obligations permitted under this Indenture;

 

(8)                                  leases, licenses,
subleases and sublicenses of assets (including, without limitation, real
property and intellectual property rights);

 

(9)                                  Liens arising out of
judgments, decrees, orders or awards not giving rise to an Event of Default so
long as any appropriate legal proceedings which may have been duly initiated
for the review of such judgment, decree, order or award have not been finally
terminated or the period within which such proceedings may be initiated has not
expired;

 

(10)                            Liens for the purpose of
securing Capitalized Lease Obligations or Purchase Money Obligations, or
securing the payment of all or a part of the purchase price of, or securing
other Indebtedness Incurred to finance or refinance the acquisition,
improvement or construction of, assets or property acquired or constructed in
the ordinary course of business, provided that the aggregate principal amount
of Indebtedness secured by such Liens is otherwise permitted to be Incurred
under this Indenture;

 

(11)                            Liens arising by virtue of
any statutory or common law provisions (or by agreement to the same effect)
relating to banker’s Liens, rights of set-off or similar rights and remedies as
to deposit accounts or other funds maintained with a depositary or financial
institution;

 

(12)                            Liens arising from United
States Uniform Commercial Code financing statement filings (or similar filings
in other applicable jurisdictions) regarding operating

 

28

 

leases entered into by the Company and its Restricted Subsidiaries in
the ordinary course of business;

 

(13)                            Liens existing on, or
provided for under written arrangements existing on, the Issue Date;

 

(14)                            Liens on property, other
assets or shares of stock of a Person at the time such Person becomes a
Restricted Subsidiary (or at the time the Company or a Restricted Subsidiary
acquires such property, other assets or shares of stock, including any
acquisition by means of a merger or consolidation with or into the Company or
any Restricted Subsidiary); provided,
however, that such Liens are not created, incurred or assumed in
connection with, such other Person becoming a Restricted Subsidiary (or such
acquisition of such property, other assets or stock); provided further, however, that such Liens
are limited to all or part of the same property, other assets or stock (plus
improvements, accession, proceeds or dividends or distributions in connection
with the original property, other assets or stock) that secured (or, under the
written arrangements under which such Liens arose, could secure) the
obligations to which such Liens relate;

 

(15)                            Liens securing Indebtedness
or other obligations of a Restricted Subsidiary owing to the Company or another
Restricted Subsidiary, or of the Company owing to a Restricted Subsidiary;

 

(16)                            Liens securing the Senior
Notes or any of the Note Guarantees;

 

(17)                            Liens securing Refinancing
Indebtedness Incurred to refinance Indebtedness that was previously so secured,
provided that any such Lien is limited to all or part of the same property or
assets (plus improvements, accessions, proceeds or dividends or distributions
in respect thereof) that secured (or, under the written arrangements under
which the original Lien arose, could secure) the Indebtedness being refinanced
or is in respect of property that is or could be the security for or subject to
a Permitted Lien hereunder;

 

(18)                            any interest or title of a
lessor under any Capitalized Lease Obligation or operating lease;

 

(19)                            (i) mortgages, liens,
security interests, restrictions, encumbrances or any other matters of record
that have been placed by any government, statutory or regulatory authority,
developer, landlord or other third party on property over which the Company or
any Restricted Subsidiary of the Company has easement rights or on any leased
property and subordination or similar arrangements relating thereto and (ii)
any condemnation or eminent domain proceedings affecting any real property;

 

(20)                            Liens on Capital Stock or
other securities of any Unrestricted Subsidiary that secure Indebtedness or
other obligations of such Unrestricted Subsidiary;

 

(21)                            any encumbrance or
restriction (including, but not limited to, put and call arrangements) with
respect to Capital Stock of any joint venture or similar arrangement pursuant
to any joint venture or similar agreement;

 

29

 

(22)                            Liens on property or assets
under construction (and related rights) in favor of a contractor or developer
or arising from progress or partial payments by a third party relating to such
property or assets;

 

(23)                            Liens on receivables
(including related rights);

 

(24)                            Liens on cash set aside at
the time of the Incurrence of any Indebtedness or government securities
purchased with such cash, in either case to the extent such cash or government
securities prefund the payment of interest on such Indebtedness and are held in
an escrow account or similar arrangement to be applied for such purpose;

 

(25)                            Liens securing or arising
by reason of any netting or set-off arrangement entered into in the ordinary
course of banking or other trading activities;

 

(26)                            Liens arising out of
conditional sale, title retention, consignment or similar arrangements for the
sale of goods entered into in the ordinary course of business;

 

(27)                            Liens securing Indebtedness
or other obligations of a Receivables Subsidiary;

 

(28)                            Liens incurred in the
ordinary course of business with respect to obligations (other than
Indebtedness for borrowed money) which do not exceed €5 million at any one time
outstanding;

 

(29)                            Liens on specific items of
inventory or other goods and proceeds of any Person securing such Person’s
obligations in respect of bankers’ acceptances issued or created for the account
of such Person to facilitate the purchase, shipment or storage of such
inventory or other goods;

 

(30)                            Liens in favor of the
Company or any Note Guarantor; or

 

(31)                            Liens securing Management
Advances.

 

“Permitted Payment” has the meaning
assigned to it in Section 4.4.

 

“Person” means any individual, corporation,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, limited liability company, government or any
agency or political subdivision thereof or any other entity.

 

“Preferred Stock” as applied to the Capital
Stock of any Person, means Capital Stock of any class or classes (however
designated) which is preferred as to the payment of dividends, or as to the
distribution of assets upon any voluntary or involuntary liquidation or
dissolution of such Person, over shares of Capital Stock of any other class of
such Person.

 

“Principal Paying Agent” means The Bank of
New York, London, acting in that capacity.

 

“Purchase Money Obligations” means any
Indebtedness Incurred to finance or refinance the acquisition, leasing,
construction or improvement of property (real or personal) or assets, and

 

30

 

whether
acquired through the direct acquisition of such property or assets or the
acquisition of the Capital Stock of any Person owning such property or assets,
or otherwise.

 

“Private Placement Legend” has the meaning
assigned to it in Section 2.7(g).

 

“Qualified Institutional Buyer” or “QIB” has the meaning assigned to it by
Rule 144A under the Securities Act.

 

“Receivable” means a right to receive
payment arising from a sale or lease of goods or services by a Person pursuant
to an arrangement with another Person pursuant to which such other Person is
obligated to pay for goods or services under terms that permit the purchase of
such goods and services on credit, as determined in accordance with GAAP.

 

“Receivables Entity” means (x) any
Receivables Subsidiary or (y) any other Person that is engaged in the business
of acquiring, selling, collecting, financing or refinancing Receivables,
accounts (as defined in the Uniform Commercial Code as in effect in any
jurisdiction from time to time), other accounts and/or other receivables,
and/or related assets.

 

“Receivables Fees” means distributions or
payments made directly or by means of discounts with respect to any
participation interest issued or sold in connection with, and other fees paid
to a Person that is not a Restricted Subsidiary in connection with, any
Receivables Financing.

 

“Receivables Financing” means any financing
of Receivables of the Company or any Restricted Subsidiary that have been
transferred to a Receivables Entity in a Financing Disposition.

 

“Receivables Subsidiary” means a Subsidiary
of the Company that (a) is engaged solely in the business of acquiring,
selling, collecting, financing or refinancing Receivables, accounts and
receivables (including any thereof constituting or evidenced by chattel paper,
instruments or general intangibles), all proceeds thereof and all rights
(contractual and other), collateral and other assets relating thereto, and any
business or activities incidental or related to such business, and (b)
designated as a “Receivables Subsidiary” by the Board of Directors of the
Company.

 

“Record Date” means the Record Dates
specified in the Notes.

 

“Redemption Date” when used with respect to
any Note to be redeemed, means the date fixed for such redemption pursuant to
this Indenture and Paragraph 8 of the Initial Notes and Paragraph 7 of the
Exchange Notes.

 

“Redemption Price” when used with respect
to any Note to be redeemed, means the price fixed for such redemption pursuant
to this Indenture and Paragraphs 8 and 9 of the Initial Notes and
Paragraphs 7 and 8 of the Exchange Notes.

 

“refinance” means refinance, refund,
replace, renew, repay, modify, restate, defer, substitute, supplement, reissue,
resell or extend (including without limitation pursuant to any defeasance or
discharge mechanism); and the terms “refinances,” “refinanced” and “refinancing”
as used for any purpose in this Indenture or herein shall have a correlative
meaning.

 

31

 

“Refinancing Indebtedness” means
Indebtedness that is Incurred to refund, refinance, replace, exchange, renew, repay
or extend (including pursuant to any defeasance or discharge mechanism) any
Indebtedness existing on the date of this Indenture or Incurred in compliance
with this Indenture (including Indebtedness of the Company that refinances
Indebtedness of any Restricted Subsidiary and Indebtedness of any Restricted
Subsidiary that refinances Indebtedness of another Restricted Subsidiary)
including Indebtedness that refinances Refinancing Indebtedness, provided, however, that:

 

(1) if the
Indebtedness being refinanced constitutes Subordinated Obligations, the
Refinancing Indebtedness has a final Stated Maturity at the time such
Refinancing Indebtedness is Incurred that is the same as or later than the
final Stated Maturity of the Indebtedness being refinanced or, if shorter, the
Senior Notes; and

 

(2) such
Refinancing Indebtedness is Incurred in an aggregate principal amount (or if
issued with original issue discount, an aggregate issue price) that is equal to
or less than the sum of the aggregate principal amount (or if issued with
original issue discount, the aggregate accreted value) then outstanding of the
Indebtedness being refinanced (plus, without duplication, any additional
Indebtedness Incurred to pay interest or premiums required by the instruments
governing such existing Indebtedness and costs, expenses and fees Incurred in
connection therewith); and

 

(3)
if the Indebtedness being refinanced is subordinated in right of payment to the
Senior Notes or any guarantee of the Senior Notes, such Refinancing Indebtedness
is subordinated in right of payment to the Senior Notes or such guarantee on
terms at least as favorable to the holders as those contained in the
documentation governing the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded.

 

“Registrar” has the meaning assigned to it
in Section 2.3.

 

“Registration Rights Agreement” means (i)
the Registration Rights Agreement among the Company, eircom and the Initial Purchasers, relating to the Initial
Notes and dated as of the date of this Indenture, as the same may be amended,
supplemented or modified from time to time in accordance with the terms thereof
and (ii) any similar registration rights agreement relating to Additional
Notes, as the same may be amended, supplemented or modified from time to time
in accordance with the terms thereof.

 

“Regulation S” means Regulation S
(including any successor regulation thereto) under the Securities Act, as it
may be amended from time to time

 

“Regulation S Global Note” has the
meaning assigned to it in Section 2.1.

 

“Regulation S Note” has the meaning
assigned to it in Section 2.1.

 

“Related Person” with respect to any
Permitted Holder means:

 

(1)                                  any controlling
equityholder or majority (or more) owned Subsidiary of such Person; or

 

32

 

(2)                                  in the case of an
individual, any spouse, family member or relative of such individual, any trust
or partnership for the benefit of one or more of such individual and any such
spouse, family member or relative, or the estate, executor, administrator,
committee or beneficiaries of any thereof; or

 

(3)                                  any trust,
corporation, partnership or other Person for which one or more of the Permitted
Holders and other Related Persons of any thereof constitute the beneficiaries,
stockholders, partners or owners thereof, or Persons beneficially holding in
the aggregate a majority (or more) controlling interest therein;

 

(4)                                  in the case of
Providence Equity Partners, Inc., Knightstown Investor Limited, EMOF L.L.C. or
The Goldman Sachs Group, Inc., any investment fund or vehicle managed,
sponsored or advised by such Person or any successor thereto, or by any
Affiliate of such Person or any such successor; or

 

(5)                                  in the case of ESOT,
any beneficiary of the eircom
Employee Share Ownership Trust, the eircom
Approved Profit Sharing Trust or the Valentia Share Trust, and any trustee of
any such beneficiary.

 

“Related Taxes” means:

 

(a) any Taxes,
including but not limited to sales, use, transfer, rental, ad valorem, value
added, stamp, property, consumption, franchise, license, capital, registration,
business, customs, net worth, gross receipts, excise, occupancy, intangibles or
similar Taxes (other than (x) Taxes measured by income and (y) withholding
imposed on payments made by any Parent), required to be paid by any Parent by
virtue of its (1) being incorporated or having Capital Stock outstanding (but
not by virtue of owning stock or other equity interests of any corporation or
other entity other than any Parent, the Company or any of the Company’s
Subsidiaries), or (2) issuing or holding Management Proceeds Funding, or (3)
being a holding company parent of any Parent, the Company or any of the
Company’s Subsidiaries, or (4) receiving dividends from or other distributions
in respect of the Capital Stock of any Parent, the Company, or any of the
Company’s Subsidiaries, or (5) receiving any payments with respect to
Management Proceeds Funding, or (6) having guaranteed any obligations of any
Parent, the Company or any Subsidiary of the Company, or (7) having made any
payment in respect to any of the items for which the Company is permitted to
make payments to any Parent pursuant to Section 4.4, or

 

(b) any Taxes
measured by income for which any Parent is liable up to an amount not to exceed
with respect to such Taxes the amount of any such Taxes that the Company and
its Subsidiaries would have been required to pay on a separate company basis or
on a consolidated basis if the Company and its Subsidiaries had paid tax on a
consolidated, combined, group, affiliated or unitary basis on behalf of an
affiliated group consisting only of the Company and its Subsidiaries and any
Taxes imposed by way of withholding on payments made by one Parent to another
Parent on any financing that is provided, directly or indirectly in relation to
the Company and its Subsidiaries (reduced by any Taxes measured by income
actually paid by the Company and its Subsidiaries).

 

“Relevant Taxing Jurisdiction” has the
meaning assigned to it in Section 4.15.

 

33

 

“Responsible Officer” shall mean, when used
with respect to the Trustee, any officer within the corporate trust department
of the Trustee, including any vice president, assistant vice president,
assistant treasurer, trust officer or any other officer of the Trustee who
customarily performs functions similar to those performed by the Persons who at
the time shall be such officers, respectively, or to whom any corporate trust
matter is referred because of such person’s knowledge of and familiarity with
the particular subject and who shall have direct responsibility for the
administration of this Indenture.

 

“Restricted Global Note” means a Global Note
required to bear the Private Placement Legend pursuant to the terms of this
Indenture.

 

“Restricted Investment” means any
Investment other than a Permitted Investment.

 

“Restricted Payment” has the meaning
assigned to it in Section 4.4.

 

“Restricted Period” has the meaning
assigned to it in Section 2.7(c).

 

“Restricted Subsidiary” means any
Subsidiary of the Company other than an Unrestricted Subsidiary.

 

“Rule 144” means Rule 144 (including
any successor regulation thereto) under the Securities Act, as it may be
amended from time to time.

 

“Rule 144A” means Rule 144A (including
any successor regulation thereto) under the Securities Act, as it may be
amended from time to time.

 

“Rule 144A Global Note” has the meaning
assigned to it in Section 2.1.

 

“Rule 144A Notes” has the meaning assigned
to it in Section 2.1.

 

“SEC” means the United States Securities
and Exchange Commission.

 

“Securities Act” means the United States
Securities Act of 1933, as amended, and the rules and regulations of the SEC
promulgated thereunder.

 

“Senior Debt” means Indebtedness of the
Company or its Restricted Subsidiaries, excluding (1) any Hedging Obligations,
(2) any Subordinated Obligations, Note Guarantor Subordinated Obligations,
Disqualified Stock or Preferred Stock of the Company or any Note Guarantor and
(3) any Indebtedness of eircom
Funding except to the extent that such Indebtedness is Guaranteed by the
Company or any Restricted Subsidiary (other than pursuant to or by reason of
Indebtedness referred to in the preceding clauses (1) or (2)).

 

“Senior Dollar Note” and “Senior Euro Note” means a Dollar Note and
a Euro Note, respectively.

 

“Senior Indebtedness” means, whether
outstanding on the Issue Date or thereafter issued, created, Incurred or
assumed, the Bank Indebtedness and all amounts payable by the Company under or
in respect of all other Indebtedness of the Company, including premiums and
accrued

 

34

 

and unpaid interest (including
interest accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to the Company at the rate specified in the
documentation with respect thereto whether or not a claim for post filing
interest is allowed in such proceeding) and fees relating thereto; provided, however, that Senior
Indebtedness will not include:

 

(1)                                  any Indebtedness
Incurred in violation of Section 4.3 (but no such violation shall be
deemed to exist for the purposes of this clause (1) if any holder of such
Indebtedness or such holder’s representative shall have received an Officer’s
Certificate of the Company to the effect that such Incurrence of such
Indebtedness does not (or, in the case of a revolving credit or similar
facility, the Incurrence of the entire committed amount at the date on which
the initial borrowing thereunder is made would not) violate Section 4.3);

 

(2)                                  any obligation of the
Company to any Restricted Subsidiary;

 

(3)                                  any accounts payable
or other liability to trade creditors arising in the ordinary course of
business (including Guarantees thereof or instruments evidencing such
liabilities);

 

(4)                                  any Indebtedness of
the Company that is expressly subordinate in right of payment to any other
Indebtedness of the Company, including, without limitation, any Subordinated
Obligations; or

 

(5)                                  any Capital Stock.

 

“Senior Management Investors” means the
officers, directors and other members of the management of, or senior
consultants to, any Parent, the Company or any of their respective
Subsidiaries, or spouses, family members or relatives thereof, or any trust,
partnership or other entity for the benefit of, or the beneficial owner of
which (directly or indirectly) is any of the foregoing, or any of their heirs,
executors, successors and legal representatives, who at any date beneficially
own or have the right to acquire, directly or indirectly, Capital Stock of the
Company or the Parent.

 

“Senior Notes” means the Notes.

 

“Senior Notes eircom Guarantee” has the
meaning assigned to it in Section 10.1.

 

“Senior Secured Credit Agreement” means the
Senior Credit Facility to be entered into among the Company, Deutsche Bank AG
London as Facility Agent and the lenders parties thereto from time to time, as
the same may be amended, supplemented, waived or otherwise modified from time
to time or refunded, refinanced, restructured, replaced, renewed, repaid, increased
or extended from time to time (whether in whole or in part, whether with the
original agent and lenders or otherwise, and whether provided under the
original Senior Secured Credit Agreement or otherwise).

 

35

 

“Senior Subordinated Indenture” means the
Senior Subordinated Indenture dated the Issue Date between the Company, eircom Limited, eircom Funding, Holdings, The Bank of New York as Trustee,
and the other parties thereto in respect of the Senior Subordinated Notes.

 

“Senior Subordinated Notes” means eircom Funding’s €285,000,000 8.25% Senior
Subordinated Notes due 2013 and $250,000,000 8.25% Senior Subordinated Notes
due 2013 issued pursuant to the Senior Subordinated Indenture.

 

“Senior Trustee” means the Trustee.

 

“Significant Subsidiary” means any
Restricted Subsidiary that meets any of the following conditions:

 

(1)                                  the Company’s and its
Restricted Subsidiaries’ investments in and advances to the Restricted
Subsidiary exceed 10 percent of the total assets of the Company and its
Restricted Subsidiaries on a consolidated basis as of the end of the most
recently completed fiscal year;

 

(2)                                  the Company’s and its
Restricted Subsidiaries’ proportionate share of the total assets (after
intercompany eliminations) of the Restricted Subsidiary exceeds 10 percent of
the total assets of the Company and its Restricted Subsidiaries on a
consolidated basis as of the end of the most recently completed fiscal year; or

 

(3)                                  the Company’s and its
Restricted Subsidiaries’ equity in the income from continuing operations before
income taxes, extraordinary items and cumulative effect of a change in
accounting principle of the Restricted Subsidiary exceeds 10 percent of such
income of the Company and its Restricted Subsidiaries on a consolidated basis
for the most recently completed fiscal year.

 

“Stated Maturity” means, with respect to
any security, the date specified in such security as the fixed date on which
the payment of principal of such security is due and payable, including
pursuant to any mandatory redemption provision, but shall not include any
contingent obligations to repay, redeem or repurchase any such principal prior
to the date originally scheduled for the payment thereof.

 

“Subordinated Obligation” means any
Indebtedness of the Company (whether outstanding on the Issue Date or
thereafter Incurred) which is expressly subordinate in right of payment to the
Senior Notes pursuant to a written agreement.

 

36

 

“Subordinated Shareholder Funding” means,
collectively, any funds provided to the Company by any Parent, any Affiliate of
any Parent, any Permitted Holder or any other holder of Capital Stock of any
Parent or any Affiliate thereof, in exchange for or pursuant to any security,
instrument or agreement other than Capital Stock, together with any such
security, instrument or agreement and any other security or instrument other
than Capital Stock issued in payment of any obligation under any Subordinated
Shareholder Funding; provided that
such Subordinated Shareholder Funding:

 

(1)                                  does not mature or
require any amortization or other payment of principal prior to the first
anniversary of the maturity of the Senior Notes (other than through conversion
or exchange of any such security or instrument for Capital Stock (other than
Disqualified Stock) or for any other security or instrument meeting the
requirements of this definition);

 

(2)                                  does not require the
payment of cash interest prior to the first anniversary of the maturity of the
Senior Notes;

 

(3)                                  does not accelerate
and has no right to declare a default or event of default or take any
enforcement action prior to the first anniversary of the maturity of the Senior
Notes;

 

(4)                                  is not secured by any
asset of the Company or a Restricted Subsidiary; and

 

(5)                                  is subordinated in
right of payment to the prior payment in full of the Senior Notes in the event
of any Default, bankruptcy, reorganization, liquidation, winding up or other
disposition of assets of the Company.

 

“Subsidiary” means, with respect to any
Person:

 

(1)                                  any corporation, association
or other business entity (other than a partnership, joint venture, limited
liability company or similar entity) of which more than 50% of the total voting
power of shares of Capital Stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees
thereof is at the time of determination owned or controlled, directly or
indirectly, by such Person or one or more of the other Subsidiaries of that
Person or a combination thereof;

 

(2)                                  any partnership,
joint venture, limited liability company or similar entity of which (a) more
than 50% of the capital accounts, distribution rights, total equity and voting
interests or general or limited partnership interests, as applicable, are owned
or controlled, directly or indirectly, by such Person or one or more of the
other Subsidiaries of that Person or a combination thereof whether in the form
of membership, general, special or limited partnership interests or otherwise,
and (b) such Person or any Subsidiary of such Person is a controlling general
partner or otherwise controls such entity.

 

“Subsidiary Guarantee Obligations” has the
meaning assigned to it in Section 10.1.

 

37

 

“Successor Parent” with respect to any
Person means any other Person with more than 50% of the total voting power of
the Voting Stock of which is, at the time the first Person becomes a Subsidiary
of such other Person, “beneficially owned” (as defined below) by one or more
Persons that “beneficially owned” (as defined below) more than 50% of the total
voting power of the Voting Stock of the first Person immediately prior to the
first Person becoming a Subsidiary of such other Person. For purposes hereof,
“beneficially own” has the meaning correlative to the term “beneficial owner,”
as such term is defined in Rules 13d-3 and 13d-5 under the Exchange Act.

 

“Successor Company” has the meaning
assigned to it in Section 5.1(1).

 

“Taxes” means all present and future taxes,
levies, imposts, deductions, charges, duties and withholdings and any charges
of a similar nature (including interest, penalties and other liabilities with
respect thereto) that are imposed by any government or other taxing authority.

 

“Tax Redemption Date” when used with
respect to any Note to be redeemed, means the date fixed for such redemption
pursuant to this Indenture and Paragraph 9 of the Initial Notes and
Paragraph 8 of the Exchange Notes.

 

“Tax Sharing Agreement” means the Tax
Sharing Agreement entered into prior to the Issue Date by the Company, as the
same may be amended, supplemented, waived or otherwise modified from time to
time in accordance with the terms thereof and of this Indenture.

 

“TIA” means the Trust Indenture Act of 1939
(15 USC Sections 77aaa-77bbbb), as it may be amended from time to
time.

 

“Temporary Cash Investments” means any of
the following: (1) any investment in (x) direct obligations of, or obligations
Guaranteed by, (i) Ireland, the United Kingdom, the United States of America,
France or Germany, (ii) any other European Union member state, (iii) any
country in whose currency funds are being held specifically pending application
in the making of an investment or capital expenditure by the Company or a
Restricted Subsidiary in that country with such funds or (iv) any agency or
instrumentality of any such country or member state or (y) direct obligations
of any country recognized by the United States of America rated at least “A” by
S&P or “A-1” by Moody’s (or, in either case, the equivalent of such rating
by such organization or, if no rating of S&P or Moody’s then exists, the
equivalent of such rating by any nationally recognized rating organization),
(2) overnight bank deposits, and investments in time deposit accounts,
certificates of deposit, bankers’ acceptances and money market deposits (or,
with respect to foreign banks, similar instruments) maturing not more than one
year after the date of acquisition thereof issued by (a) any lender under the
Senior Credit Agreement, (b) any institution authorized to operate as a bank in
any of the countries or member states referred to in subclause (1)(x) above or
(c) any bank or trust company organized under the laws of any such country or
member state or any political subdivision thereof, in each case, having capital
and surplus aggregating in excess of €250 million (or the foreign currency
equivalent thereof) and whose long-term debt is rated at least “A” by S&P
or “A-2” by Moody’s (or, in either case, the equivalent of such rating by such
organization or, if no rating of S&P or Moody’s then exists, the equivalent
of such rating by any nationally recognized rating organization) at the time
such Investment is made, (3) repurchase obligations with a term of not more
than 30 days for

 

38

 

underlying
securities of the types described in clause (1) or (2) above entered into with
a Person meeting the qualifications described in clause (2) above, (4)
Investments in commercial paper, maturing not more than 270 days after the date
of acquisition, issued by a Person (other than the Company or any of its
Subsidiaries), with a rating at the time as of which any Investment therein is
made of “P-2” (or higher) according to Moody’s or “A-2” (or higher) according
to S&P (or, in either case, the equivalent of such rating by such
organization or, if no rating of S&P or Moody’s then exists, the equivalent
of such rating by any nationally recognized rating organization), (5)
Investments in securities maturing not more than one year after the date of
acquisition issued or fully guaranteed by any state, commonwealth or territory
of the United States of America or any European Union member state, or by any
political subdivision or taxing authority of any such state, commonwealth,
territory, country or member state, and rated at least “A” by S&P or “A” by
Moody’s (or, in either case, the equivalent of such rating by such organization
or, if no rating of S&P or Moody’s then exists, the equivalent of such
rating by any nationally recognized rating organization), (6) investment funds
investing 95% of their assets in securities of the type described in clauses
(1) through (5) above (which funds may also hold reasonable amounts of cash
pending investment and/or distribution), (7) any money market deposit accounts
issued or offered by a commercial bank organized under the laws of Ireland or
organized and located in a country that is a member of the Organization for
Economic Co-operation and Development, in each case, having capital and surplus
in excess of €250 million (or the foreign currency equivalent thereof) or whose
long term debt is rated at least “A” by S&P or “A2” by Moody’s (or, in
either case, the equivalent of such rating by such organization or, if no
rating of S&P or Moody’s then exists, the equivalent of such rating by any
nationally recognized rating organization) at the time such Investment is made,
(8) investments in money market funds complying with the risk limiting
conditions of Rule 2a-7 (or any successor rule) of the SEC under the Investment
Company Act of 1940, as amended, and (9) similar short-term investments
approved by the Board of Directors of the Company in the ordinary course of
business.

 

“Total Assets” means the consolidated total
assets of the Company and its Restricted Subsidiaries as shown on the most
recent balance sheet (excluding the footnotes thereto) of the Company.

 

“Transactions” means, collectively, any or
all of the following:

 

(1)                                  the organization of
Holdings and the exchange by shareholders of the Company of Capital Stock in
the Company for Capital Stock in Holdings;

 

(2)                                  the registration of eircom Funding and the Company as Irish
public unlimited companies;

 

(3)                                  the transfer of the
entire issued share capital of ESOT from the Company to Holdings;

 

(4)                                  the execution and
delivery of this Indenture and the Senior Subordinated Indenture, the offer and
issuance of the Senior Notes and Senior Subordinated Notes, the provision of
the Note Guarantees by the Note Guarantors and the provision of Guarantees in
respect of the Senior Subordinated Notes;

 

39

 

(5)                                  the entry into of the
Senior Secured Credit Agreement, the finance documents referred to therein and
all other related Credit Facility documentation, and the Incurrence of
Indebtedness thereunder on or prior to the Issue Date or otherwise in
connection with the repayments described in clause (8) below by any of the
Company and its Subsidiaries;

 

(6)                                  the eircom Funding Intercompany Loan;

 

(7)                                  the receipt by the
Company of amounts by way of repayment of the ESOT Loan;

 

(8)                                  the repayment of
amounts outstanding under the credit facility agreement dated 29 June, 2001
among, amongst others, the Company and Deutsche Bank AG London as facility
agent (as subsequently amended, restated, supplemented or varied), the
termination of commitments thereunder and the collaterisation of letters of
credit remaining outstanding (if any);

 

(9)                                  the capitalization by
the Company of any of its reserves and the cancellation, redemption or
repayment by the Company of any Capital Stock issued by the Company to Holdings
in each case to effect or facilitate the payment described in clause (11);

 

(10)                            the cancellation,
redemption or repayment by Holdings of all or any portion of its Capital Stock;

 

(11)                            any payment (i) by the
Company or any of its Subsidiaries to Holdings or any Permitted Holder, whether
by way of dividend, other distribution, loan, repayment, release or
cancellation of a loan, or other payment, on the cancellation, redemption,
repurchase of any Capital Stock or otherwise, of up to €462 million plus the
total amount received by the Company on repayment of the ESOT Loan, (ii) by the
Company to Holdings by way of dividend or other distribution, which payment is
immediately applied in full to repay to the Company any loan pursuant to clause
(i), and (iii) by Holdings of amounts referred to in clause (i) with interest
if applicable; and

 

(12)                            all other transactions
related to the foregoing (including but not limited to the payment of any fees
and expenses related to any of the foregoing).

 

“Treasury Rate” means the yield to maturity
at the time of computation of United States Treasury securities with a constant
maturity (as compiled and published in the most recent Federal Reserve
Statistical Release H.15 (519) which has become publicly available at least two
Business Days (but not more than five Business Days) prior to the redemption
date (or, if such Statistical Release is not so published or available, any
publicly available source of similar market data selected by the Company in
good faith)) most nearly equal to the period from the redemption date to
August 15, 2008; provided, however, that if the period from the redemption
date to August 15, 2008 is not equal to the constant maturity of a United
States Treasury security for which a weekly average yield is given, the
Treasury Rate shall be obtained by linear interpolation (calculated to the
nearest one-twelfth of a year) from the weekly average yields of United States
Treasury securities

 

40

 

for which such
yields are given, except that if the period from the redemption date to
August 15, 2008 is less than one year, the weekly average yield on
actually traded United States Treasury securities adjusted to a constant
maturity of one year shall be used.

 

“Trustee” means the party named as such in
this Indenture until a successor replaces it in accordance with the provisions
of this Indenture and thereafter means such successor.

 

“Unrestricted Definitive Note” means a
Definitive Note not required to bear the Private Placement Legend pursuant to
the terms of this Indenture.

 

“Unrestricted Global Note” means a Global Note
not required to bear the Private Placement Legend pursuant to the terms of this
Indenture.

 

“Unrestricted Subsidiary” means:

 

(1)                                  any Subsidiary of the
Company that at the time of determination shall be designated an Unrestricted
Subsidiary by the Board of Directors of the Company in the manner provided
below; and

 

(2)                                  any Subsidiary of an
Unrestricted Subsidiary.

 

The Board of
Directors of the Company may designate any Subsidiary of the Company (including
any newly acquired or newly formed Subsidiary or a Person becoming a Subsidiary
through merger or consolidation or Investment therein) to be an Unrestricted
Subsidiary only if:

 

(1)                                  such Subsidiary or
any of its Subsidiaries does not own any Capital Stock or Indebtedness of or
have any Investment in, or own or hold any Lien on any property of, any other
Subsidiary of the Company which is not a Subsidiary of the Subsidiary to be so
designated or otherwise an Unrestricted Subsidiary; and

 

(2)                                  such designation and
the Investment of the Company in such Subsidiary complies with Section 4.4
hereof.

 

Any such
designation by the Board of Directors of the Company shall be evidenced to the
Senior Trustee by filing with the Senior Trustee a resolution of the Board of
Directors of the Company giving effect to such designation and an Officer’s
Certificate certifying that such designation complies with the foregoing
conditions.

 

The Board of
Directors of the Company may designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided that immediately after giving effect to such
designation, either (x) the Company could Incur at least €1.00 of additional
Indebtedness (and if any Indebtedness of such Unrestricted Subsidiary is or
would become Senior Debt, €1.00 of additional Senior Debt) pursuant to
Section 4.3(a) on a pro forma basis
taking into account such designation or (y) neither the Consolidated Leverage
Ratio nor the Consolidated Senior Leverage Ratio would be greater than it was
immediately prior to giving effect to such designation.

 

“US Government Obligations” means
securities that are (a) direct obligations of the United States of America for
the timely payment of which its full faith and credit is pledged or 

 

41

 

(b)
obligations of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation of the United
States of America, which, in either case, are not callable or redeemable at the
option of the issuer thereof, and shall also include a depositary receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities Act), as
custodian with respect to any such US Government Obligations or a specific
payment of principal of or interest on any such US Government Obligations held
by such custodian for the account of the holder of such depositary receipt; provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depositary receipt from any amount received by the
custodian in respect of the US Government Obligations or the specific payment
of principal of or interest on the US Government Obligations evidenced by such
depositary receipt.

 

“US Person” means a “US person” as defined
in Rule 902 under the Securities Act or any successor rule.

 

“Voting Stock” of a corporation means all
classes of Capital Stock of such corporation then outstanding and normally
entitled to vote in the election of directors.

 

“Wholly-Owned Subsidiary” means a
Restricted Subsidiary of the Company, all of the Capital Stock of which (other
than directors’ qualifying shares or shares required by any applicable law or
regulation to be held by a Person other than the Company or another
Wholly-Owned Subsidiary) is owned by the Company or another Wholly-Owned
Subsidiary.

 

SECTION 1.2   Incorporation
by Reference of TIA.  This Indenture
is subject to the mandatory provisions of the TIA which as of the date hereof
and thereafter as in effect are incorporated by reference in, and made a part
of, this Indenture.  The following TIA
terms used in this Indenture have the following meanings:

 

“Commission”
means the SEC;

 

“indenture
securities” means the Notes;

 

“indenture
security holder” means a Holder;

 

“indenture to
be qualified” means this Indenture;

 

“indenture
trustee” or “institutional trustee” means the Trustee; and

 

“obligor” on
the indenture securities means the Company or any other obligor on the Notes
(including any Note Guarantor).

 

All other TIA
terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by an SEC rule and not otherwise
defined herein have the meanings assigned to them therein.

 

42

 

SECTION 1.3  
Rules of Construction.  Unless
the context otherwise requires:

 

(a)  a term defined in this Indenture has the meaning
assigned to it in this Indenture;

 

(b)  an accounting term not otherwise defined in this
Indenture has the meaning assigned to it in accordance with Irish GAAP;

 

(c)  ”or” is not exclusive;

 

(d)  words in the singular include the plural, and words in
the plural include the singular;

 

(e)   “herein,” “hereof” and “hereunder” and other words of
similar import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision.

 

(f)  all references to “$” or “US Dollars” shall refer to the
lawful currency of the United States;

 

(g)  all references to “€” or “euro” are to the lawful
currency of the participating member states of the Third Stage of European
Economic and Monetary Union of the Treaty Establishing the European Community;
and

 

(h)  any reference to “Section” or “Article” refers to a
“Section” or “Article” of this Indenture.

 

ARTICLE II

 

THE NOTES

 

SECTION 2.1  
Form and Dating.  (a) The Initial
Notes, Additional Notes that are not Exchange Notes and the notation thereon
relating to the Trustee’s certificate of authentication thereof, shall be
substantially in the form of Exhibits A or B, as applicable.  The Exchange Notes, and the notation
relating to the Trustee’s certificate of authentication thereof, shall be
substantially in the form of Exhibits C or D, as applicable.  The Notes may have such appropriate
insertions, omissions, substitutions, notations, legends, endorsements,
identifications and other variations as are required or permitted by law, stock
exchange rule or Clearing Agency rule or usage, any agreements to which the
Company or any Note Guarantors are subject, if any, or any other customary
usage, or as may consistently herewith be determined by an Officer of the
Company, as evidenced by the execution of such Notes (provided always that any
such notation, legend, endorsement, identification or variation is in a form
acceptable to the Company).  Each Note
shall be dated the date of its issuance and shall show the date of its
authentication.

 

The terms and
provisions contained in the Notes, annexed hereto as Exhibits A, B, C, D
shall constitute, and are hereby expressly made, a part of this Indenture and,
to the extent applicable, the Company, each Note Guarantor, the Trustee and the
Principal Paying Agent, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby.  The Notes will initially be represented by
the Initial Global Notes.  Global Notes
shall be issuable only in bearer form and Definitive Notes, if any, shall be
issuable only in 

 

43

 

registered
form.  The Global Notes shall be
deposited with the applicable Book-Entry Depositary or a custodian therefor in
accordance with the Deposit Agreements.

 

(b) Notes
offered and sold in their initial distribution in reliance on Regulation S
shall be initially issued in global form without interest coupons, substantially
in the form of Exhibit A hereto, with such applicable legends as are
provided in Exhibit A hereto, except as otherwise permitted herein.  Such Global Notes shall be referred to
collectively herein as the “Regulation S
Global Notes,” such Global Notes denominated in euro shall be
referred to collectively herein as the “Euro
Regulation S Global Note” and such Global Notes denominated in US
Dollars shall be referred to collectively herein as the “Dollar Regulation S Global Note.”  The respective aggregate principal amounts
of the Euro Regulation S Global Note and the Dollar Regulation S
Global Note may from time to time be increased or decreased by adjustments made
on the records of the Trustee, as hereinafter provided (or by the issue of
further Regulation S Global Notes), in connection with a corresponding
decrease or increase in the aggregate principal amount of the Euro Rule 144A
Global Note (as defined below) or the Dollar Rule 144A Global Note (as defined
below), respectively, or in consequence of the issue of Definitive Notes or
additional Regulation S Notes, as hereinafter provided.  The Regulation S Global Note and all
other Initial Notes that are not Rule 144A Notes (as defined below) shall
collectively be referred to herein as the “Regulation S
Notes.”

 

(c)
Notes offered and sold
in their initial distribution in reliance on Rule 144A shall be initially
issued in global form without interest coupons, substantially in the form of
Exhibit A hereto, with such applicable legends as are provided in
Exhibit A, except as otherwise permitted herein.  Such Global Notes shall be referred to collectively herein as the
“Rule 144A Global Notes,” such
Global Notes denominated in euro shall be referred to collectively herein as
the “Euro Rule 144A Global Note”
and such Global Notes denominated in US Dollars shall be referred to
collectively herein as the “Dollar Rule 144A
Global Note.”  The respective
aggregate principal amounts of the Euro Rule 144A Global Note and the Dollar
Rule 144A Global Note may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as hereinafter provided (or by
the issue of further Rule 144A Global Notes), in connection with a
corresponding decrease or increase in the aggregate principal amount of the
Euro Regulation S Global Note or the Dollar Regulation S Global Note,
respectively, or in consequence of the issue of Definitive Notes or additional
Rule 144A Notes, as hereinafter provided. 
The Rule 144A Global Note and all other Initial Notes offered and sold
in their initial distribution in reliance on Rule 144A under the Securities Act
shall collectively be referred to herein as the “Rule 144A Notes.”

 

As long as the
Notes are in global form, the Principal Paying Agent (in lieu of the Trustee) shall
be responsible for:

 

(i)                                     paying
sums due on the Global Notes; and

 

(ii)                                  arranging on behalf
of and at the expense of the Company for notices in respect of Notes to be
communicated to Holders of Notes in accordance with the terms of this
Indenture.  Each reference in this
Indenture to the performance of duties set forth in clauses (i) and (ii),
above, by the Trustee includes performance of such duties by the Principal
Paying Agent in respect of Notes.

 

44

 

SECTION 2.2  
Execution and Authentication. 
One Officer shall sign, or one member of the Board of Directors shall
sign, the Notes for the Company by manual or facsimile signature.

 

If an Officer
or member of the Board of Directors of the Company whose signature is on a Note
was an Officer or member of the Board of Directors at the time of such
execution but no longer holds that office or position at the time the Trustee
authenticates the Note, the Note shall be valid nevertheless.

 

A Note shall
not be valid until an authorized signatory of the Trustee manually signs the
certificate of authentication on the Note. 
The signature shall be conclusive evidence that the Note has been
authenticated under this Indenture.

 

Except as
otherwise provided herein, the aggregate principal amount of Notes which may be
outstanding at any time under this Indenture is not limited in amount.  The Trustee shall authenticate such Notes
which shall consist of (i) Initial Notes which are Euro Notes for original
issue on the Issue Date in an aggregate principal amount not to exceed
€550,000,000, (ii) Additional Notes (including Dollar Notes) from time to time
for issuance after the Issue Date to the extent otherwise permitted hereunder
(including, without limitation, under Section 4.3) and (iii) Exchange
Notes from time to time for issue in principal amount for issuance in exchange
for a like principal amount of Initial Notes or Additional Notes pursuant to an
Exchange Offer, in each case upon receipt of a Company Order in the form of an
Officer’s Certificate.  Exchange Notes
may have such distinctive series designation, and such changes in the form
thereof, as are specified in a Company Order with respect thereto.  Additional Notes will be treated as the same
series of Notes as the Original Notes for all purposes under this Indenture,
including, without limitation, for purposes of waivers, amendments, redemptions
and offers to purchase.  Such Company
Order shall specify the aggregate principal amount of Notes to be
authenticated, the series and type of Notes, the date on which the Notes are to
be authenticated, the issue price and the date from which interest on such
Notes shall accrue, whether the Notes are to be Original Notes or Additional
Notes and whether such Notes are to be Exchange Notes, whether the Notes are to
be issued as Definitive Notes or Global Notes and whether or not the Notes
shall bear the Private Placement Legend, or such other information as the
Trustee may reasonably request.  In
authenticating the Notes, the Trustee shall be entitled to receive, and shall
be fully protected in relying upon, an Opinion of Counsel to the effect that
the conditions precedent provided for in this Indenture which relate to the
authentication and delivery of the Notes have been satisfied.  Upon receipt of a Company Order, the Trustee
shall authenticate Notes in substitution of Notes originally issued to reflect
any name change of the Company.

 

The Trustee
may appoint an authenticating agent (“Authenticating
Agent”) reasonably acceptable to the Company to authenticate
Notes.  Unless otherwise provided in the
appointment, an Authenticating Agent may authenticate Notes whenever the
Trustee may do so.  Each reference in
this Indenture to authentication by the Trustee includes authentication by such
Authenticating Agent.  An Authenticating
Agent has the same rights as an Agent to deal with the Company and Affiliates
of the Company.

 

The Notes
shall be issuable only in denominations of €1,000 or $1,000, as the case may
be, and any integral multiples thereof.

 

45

 

SECTION 2.3  
Registrar and Paying Agent.  The
Company shall maintain an office or agency in the Borough of Manhattan, The
City of New York, where (a) Definitive Notes, if any, may be presented or
surrendered for registration of transfer or for exchange (such office or
agency, the “Registrar”) (b)
Global Notes (and Definitive Notes, if issued) may be presented or surrendered
for payment (“Paying Agent”) and
(c) notices and demands in respect of such Global Notes (and Definitive Notes,
if issued) and this Indenture may be served. 
In addition, in all instances, the Company shall ensure that a Paying
Agent is maintained in London, England. 
In the event that Definitive Notes representing Euro Notes (“Euro Definitive Notes”) are issued, (a)
Euro Definitive Notes may be presented or surrendered for registration of
transfer or for exchange, (b) Euro Definitive Notes may be presented or
surrendered for payment and (c) notices and demands in respect of such Euro
Definitive Notes and this Indenture may be served at an office of the Registrar
or Principal Paying Agent, as applicable, in London, England.  The Registrar shall keep a register of the
Definitive Notes, if any, and of their transfer and exchange.

 

In addition,
for so long as any Notes are listed on the Luxembourg Stock Exchange or the
Irish Stock Exchange and the rules of such stock exchange so require, the
Company shall have appointed a Person located in Luxembourg and/or a Person
located in Dublin, respectively, each of which is reasonably acceptable to the
Trustee as an additional paying agent and transfer agent for the relevant
series of Notes. The Company will, to the extent practicable, maintain a paying
agent in a European Union member state that will not be obliged to withhold or
deduct tax pursuant to the Directive.

 

The Company
may change the Paying Agent or Registrar for any series of Notes without prior
notice to the Holders of such Notes. However, if and for so long as the Notes are
listed on the Luxembourg Stock Exchange and the rules of such exchange so
require, the Company will publish notice of the change in the Paying Agent and
Registrar in a daily newspaper with general circulation in Luxembourg (which is
expected to be the Luxemburger Wort)
or (in the case of Definitive Notes) in addition to such publication, mailed by
first-class mail to each Holder’s registered address.  If and for so long as the Senior Notes are listed on the Irish
Stock Exchange and the rules of such exchange so require, the Company shall
also comply with applicable publication requirements of such exchange,
including where appropriate the delivery of notices to the Companies
Announcement Office of the Irish Stock Exchange.  The Company or any of its Subsidiaries may act as Paying Agent or
Registrar in respect of any series of Senior Notes.

 

The Company,
upon written notice to the Trustee, may appoint one or more co-Registrars and
one or more additional Paying Agents reasonably acceptable to the Trustee.  The term “Registrar” includes any
co-Registrar and the term “Paying Agent” includes any additional Paying
Agent.  The Company initially appoints
(i) The Bank of New York in the Borough of Manhattan, The City of New York, as
Registrar and Paying Agent, (ii) The Bank of New York, London, as Principal
Paying Agent, (iii) The Bank of New York (Luxembourg) in Luxembourg as an
additional Paying Agent and transfer agent, and (iv) AIB/BNY Fund Management
(Ireland) Limited in Dublin as an additional Paying Agent and transfer agent,
in each case until such time as either such entity has resigned or a successor
has been appointed.  The Company agrees
that if and for so long as the Notes are listed on the Luxembourg Stock Exchange
and the rules of such exchange so require, the Company shall maintain a
co-Registrar in Luxembourg and hereby initially appoints The Bank of New York
(Luxembourg) as a co-Registrar.

 

46

 

In respect of
Definitive Notes, if any, payment of principal will be made upon the surrender
of such Definitive Notes at the office of the Paying Agent, including, if any,
the Paying Agent in Luxembourg.  In the
case of a transfer of a Definitive Note in part, upon surrender of the
Definitive Note to be transferred, a Definitive Note shall be issued to the
transferee in respect of the principal amount transferred and a Definitive Note
shall be issued to the transferor in respect of the balance of the principal
amount of the transferred Definitive Note at the office of any transfer agent,
including, if any, the transfer agent in Luxembourg.  In all circumstances, the Company shall ensure that the Paying
Agents, other than the Irish Paying Agent, shall be located outside Ireland.

 

For the
avoidance of doubt, upon the issuance of Definitive Notes, if any, Holders will
be able to receive principal and interest on the Notes and will be able to
transfer Definitive Notes at the Luxembourg office of such paying and transfer
agent, subject to the right of the Company to mail payments in accordance with
the terms of this Indenture.

 

SECTION 2.4  
Paying Agent To Hold Assets in Trust. 
The Company shall require each Paying Agent other than the Trustee, the
Principal Paying Agent and the Luxembourg Paying Agent to agree in writing that
each Paying Agent shall hold in trust for the benefit of Holders or the Trustee
all assets held by the Paying Agent for the payment of principal of, Additional
Amounts, if any, premium, if any, or interest on, the Notes, and shall notify
the Trustee of any Default by the Company or any Note Guarantor in making any
such payment.  The Company at any time
may require a Paying Agent to distribute all assets held by it to the Trustee
and account for any assets disbursed and the Trustee may at any time during the
continuance of any payment Default, upon written request to a Paying Agent,
require such Paying Agent to distribute all assets held by it to the Trustee
and to account for any assets distributed. 
Upon distribution to the Trustee of all assets that shall have been
delivered by the Company to the Paying Agent, the Paying Agent shall have no
further liability for such assets.

 

SECTION 2.5  
List of Holders.  In the event
that Definitive Notes are issued, the Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of Holders of Notes. 
If the Trustee is not the Registrar, the Company shall furnish to the
Trustee before each Record Date and at such other times as the Trustee may
request in writing a list as of such date and in such form as the Trustee may
reasonably require of the names and addresses of Holders of Notes, which list
may be conclusively relied upon by the Trustee.

 

SECTION 2.6  
Book-Entry Provisions for Global Notes. 
(a)  The Global Notes initially shall (i) be issued in bearer
form, (ii) be delivered to the relevant Book-Entry Depositary or its custodian
as described in Section 2.1 and (iii) bear legends to the extent required
by Section 2.7(g).

 

(b)  Notwithstanding any other provisions of this Indenture,
the relevant Deposit Agreement will provide that Global Notes may not be
transferred except (i) as a whole by the relevant Book-Entry Depositary to a
nominee or custodian of such Book-Entry Depositary or by a nominee or custodian
of such Book-Entry Depositary to such Book-Entry Depositary or, in each case,
to another successor of such Book-Entry Depositary or a nominee or custodian of
such successor and (ii) in connection with transfers, exchanges and cancellations
pursuant to Sections

 

47

 

2.7, 2.8 or
2.12 hereof or in accordance with the relevant Deposit Agreement.  For the avoidance
of doubt and notwithstanding the foregoing, a Global Note denominated in US Dollars
may not be transferred or exchanged for a Global Note denominated in euro, and
a Global Note denominated in euro may not be transferred or exchanged for a
Global Note denominated in US Dollars. 
The Deposit Agreements, as agreed by the parties thereto, provide that
transfer of all or any portion of the Depositary Interests may only be made
through the book-entry system maintained by the relevant Book-Entry Depositary
and, unless and until the relevant Book-Entry Interests are exchanged for
Definitive Notes, the Depositary Interests held by a Clearing Agency
(including, where relevant, through the Common Depositary) may not be
transferred except as a whole by a Clearing Agency to a nominee of a Clearing
Agency or by a nominee of a Clearing Agency to a Clearing Agency or another
nominee of a Clearing Agency or by a Clearing Agency or any nominee to a
successor of a relevant Clearing Agency or a nominee of the successor.  Global Notes may be
transferred or exchanged for Definitive Notes in accordance with the rules and
procedures of the relevant Clearing Agency and the provisions of this
Section 2.6.  All Global Notes
shall be exchanged by the Company (with authentication by the Trustee upon
receipt of a Company Order) for one or more Definitive Notes, if (a) any
Clearing Agency notifies the Company at any time that it is unwilling or unable
to continue as depositary for Depositary Interests representing the Global
Notes and a successor depositary is not appointed within 90 days of such
notification, (b) the Book-Entry Depositary notifies the Company at any time
that it is unwilling or unable to continue as book-entry depositary and a
successor book-entry depositary is not appointed by Company within
90 days, (c) any Clearing Agency so requests following an Event of Default
hereunder or (d) in whole (but not in part) at any time if the Company in its
sole discretion determines and notifies the Trustee in writing that it elects
to cause the issuance of Definitive Notes. 
If an Event of Default occurs and is continuing, the Company shall, at
the written request of the Holder thereof, exchange all or part of a Global
Note for one or more Definitive Notes (with authentication by the Trustee upon
receipt of a Company Order); provided,
however, that the principal amount at maturity of such Definitive
Notes and such Global Note after such exchange shall be, in each case, €1,000
or integral multiples thereof (in the case of a Euro Note) or $1,000 or
integral multiples thereof (in the case of a Dollar Note).  Whenever all of a Global Note is exchanged
for one or more Definitive Notes, it shall be surrendered by the Holder thereof
to the Trustee for cancellation. 
Whenever a part of a Global Note is exchanged for one or more Definitive
Notes, the Global Note shall be surrendered by the Holder thereof to the
Trustee who shall cause an adjustment to be made to Schedule A of such
Global Note such that the principal amount of such Global Note will be equal to
the portion of such Global Note not exchanged and shall thereafter return such
Global Note to such Holder.  Exchanges
of Global Notes for Definitive Notes shall be made at no expense to holders of
Book-Entry Interests or the Trustee.  A
Global Note may not be exchanged for a Definitive Note other than as provided
in this Section 2.6(b).  Every Note
authenticated and delivered in exchange for or in lieu of a Global Note, or any
portion thereof, pursuant to Section 2.8, 2.11 or 3.7 or otherwise, shall
be authenticated and delivered in the form of, and shall be, a Global Note.  For the avoidance of doubt and
notwithstanding any provision in this Section 2.6(b), a Global Note
denominated in US Dollars or a Book-Entry Interest therein cannot be exchanged
for, or transferred to a Person who takes delivery thereof in the form of a Definitive
Note denominated in euro, and a Global Note denominated in euro or a Book-Entry
Interest therein cannot be exchanged for, or transferred to a Person who takes
delivery thereof in the form of, a Definitive Note denominated in US Dollars.

 

48

 

(c)  In connection with the transfer of a Global Note as an
entirety to beneficial owners pursuant to paragraph (b) of this
Section 2.6, a Global Note shall be deemed to be surrendered to the
Trustee for cancellation, and the Company shall execute, and the Trustee shall
upon written instructions from the Company authenticate and make available for
delivery, to each beneficial owner identified by the relevant Book-Entry
Depositary in exchange for its beneficial interest in the Global Notes, an
equal aggregate principal amount of Definitive Notes of authorized
denominations.

 

(d)  Transfer and exchange of Global Notes shall be by
delivery, but each Global Note issued and authenticated hereunder shall be in
bearer form and shall initially be delivered to the Book-Entry Depositary or
its custodian, and each such Global Note shall constitute a single note for all
purposes of this Indenture.  In all
cases, Definitive Notes delivered in exchange for any Depositary Interests
representing Global Notes will be registered in the names, and issued in any
approved denominations, requested by or on behalf of the relevant Clearing
Agency or its nominee in accordance with its customary procedures.  In no event will Definitive Notes in bearer
form be issued.

 

(e)  Any Definitive Note delivered in exchange for an
interest in a Global Note pursuant to paragraph (b) of this Section 2.6
shall, except as otherwise provided by Section 2.8, bear the Private
Placement Legend.

 

SECTION 2.7  
Registration of Transfer and Exchange. 
(a)  Notwithstanding any provision to the contrary herein, so
long as a Note remains outstanding, transfers of beneficial interests in Global
Notes or transfers of Definitive Notes, in whole or in part, shall be made only
in accordance with this Section 2.7. 
For the avoidance of doubt, Book-Entry Interests in a Global Note
denominated in US Dollars cannot be exchanged for, or transferred to a Person
who takes delivery in the form of, a Book-Entry Interest in a Global Note
denominated in euro, and Book-Entry Interests in a Global Note denominated in
euro cannot be exchanged for, or transferred to a Person who takes delivery in
the form of, a Book-Entry Interest in a Global Note denominated in US Dollars.

 

(b)  If a holder of a Book-Entry Interest in a Dollar Rule
144A Global Note or Euro Rule 144A Global Note wishes at any time to exchange
its interest in such Rule 144A Global Note for an interest in the Dollar
Regulation S Global Note or Euro Regulation S Global Note, respectively, or to
transfer its interest in such Rule 144A Global Note to a Person who wishes to
take delivery thereof in the form of an interest in such Regulation S Global
Note, such holder may, subject to the rules and procedures of the relevant Clearing
Agency, to the extent applicable, and subject to the requirements set forth in
the following sentence, exchange or cause the exchange or transfer or cause the
transfer of such interest for an equivalent Book-Entry Interest in such Euro
Regulation S Global Note or Dollar Regulation S Global Note, as
applicable.  Upon (1) written
instructions given in accordance with the procedures of the Clearing Agency, to
the extent applicable, from or on behalf of a holder of a Book-Entry Interest
in the relevant Rule 144A Global Note, directing the credit of a Book-Entry
Interest in the corresponding Regulation S Global Note in an amount equal to
the Book-Entry Interest in the Rule 144A Global Note to be exchanged or
transferred, (2) a written order given in accordance with the procedures of the
Clearing Agency, to the extent applicable, containing information regarding
the  account to be credited with such
increase and the name of such account and (3) receipt

 

49

 

by the
relevant Book-Entry Depositary of a certificate in the form of Exhibit E given
by the holder of such Book-Entry Interest stating that the exchange or transfer
of such interest has been made pursuant to and in accordance with Rule 903 or
Rule 904 of Regulation S or with Rule 144 under the Securities Act, the
Book-Entry Depositary shall present the relevant Initial Global Notes to the
Trustee or its agent to reduce the principal amount of the relevant Rule 144A
Global Note and to increase the principal amount of the corresponding
Regulation S Global Note by the principal amount of the beneficial interest in
the Rule 144A Global Note to be so transferred by annotation thereon or in the
records of the Trustee (and an appropriate notation shall be made by the Trustee
thereon or in the records of the Trustee). 
The Trustee or its agent shall then promptly deliver appropriate
instructions to the Clearing Agency to reduce or reflect on its records a
reduction of the Book-Entry Interests in the relevant Rule 144A Global Note by
the aggregate principal amount of the interest in such Rule 144A Global Note to
be so exchanged or transferred from the relevant participant, and the Trustee
shall promptly deliver appropriate instructions to the Clearing Agency
concurrently with such reduction, to increase or reflect on its records an
increase of the principal amount of Book-Entry Interests in such Regulation S
Global Note by the aggregate principal amount of the interests in such Rule
144A Global Note to be so exchanged or transferred, and to credit or cause to
be credited to the account of the Person specified in such instructions a
Book-Entry Interest in such Regulation S Global Note equal to the reduction in
the principal amount of such Book-Entry Interests in the relevant Rule 144A
Global Note.

 

(c)  If a holder of a Book-Entry Interest in a Dollar
Regulation S Global Note or a Euro Regulation S Global Note wishes at any time
to exchange its interest in such Regulation S Global Note for an interest in
the Dollar Rule 144A Global Note or Euro Rule 144A Global Note, respectively,
or to transfer its interest in such Regulation S Global Note to a Person who
wishes to take delivery thereof in the form of an interest in such Rule 144A
Global Note, such holder may, subject to the rules and procedures of the
relevant Clearing Agency, to the extent applicable, and to the requirements set
forth in the following sentence, exchange or cause the exchange or transfer or
cause the transfer of such interest for an equivalent Book-Entry Interest in
such Dollar Rule 144A Global Note or Euro Rule 144A Global Note.  Upon (l) written instructions given in
accordance with the procedures of the Clearing Agency, to the extent
applicable, from or on behalf of a holder of a Book-Entry Interest in the relevant
Regulation S Global Note directing the credit of a Book-Entry Interest in the
corresponding Rule 144A Global Note in an amount equal to the Book-Entry
Interest in the Regulation S Global Note to be exchanged or transferred, (2) a
written order given in accordance with the procedures of the Clearing Agency,
to the extent applicable, containing information regarding the account to be
credited with such increase and the name of such account and (3) if during the
period prior to or on the 40th day after the later of the commencement of the
offering of the Notes and the relevant Note Issue Date (the “Restricted Period”), receipt by the
relevant Book-Entry Depositary of a certificate in the form of Exhibit F given
by the holder of such Book-Entry Interest and stating that the Person
transferring such interest in such Regulation S Global Note reasonably believes
that the Person acquiring such interest in such Rule 144A Global Note is a
Qualified Institutional Buyer (as defined in Rule 144A) and is obtaining such
Book-Entry Interest in a transaction meeting the requirements of Rule 144A and
any applicable securities laws of any state of the United States or any other
jurisdiction, the Book-Entry Depositary shall present the relevant Initial
Global Notes to the Trustee or its agent to reduce the principal amount of the
relevant Regulation S Global Note and to increase the principal amount of the
corresponding Rule 144A

 

50

 

Global Note by
the principal amount of the beneficial interest in the Regulation S Global Note
to be so transferred by annotation thereon (and an appropriate notation shall
be made thereon by the Trustee).  The
Trustee or its agent shall then promptly deliver appropriate instructions to
the Clearing Agency to reduce or reflect on its records a reduction of the
Book-Entry Interests in the relevant Regulation S Global Note by the aggregate
principal amount of the interest in such Regulation S Global Note to be
exchanged or transferred, and the Trustee shall promptly deliver appropriate
instructions to the Clearing Agency concurrently with such reduction, to
increase or reflect on its records an increase of the principal amount of
Book-Entry Interests in such Rule 144A Global Note by the aggregate principal
amount of the interest in such Regulation S Global Note to be so exchanged or
transferred, and to credit or cause to be credited to the account of the Person
specified in such instructions a Book-Entry Interest in such Rule 144A Global
Note equal to the reduction in the principal amount of such Book-Entry
Interests in the Regulation S Global Note. 
After the expiration of the Restricted Period, the certification
requirement set forth in clause (3) of the second sentence of this
Section 2.7(c) will no longer apply to such transfers.

 

(d)  Any Book-Entry Interest in one of the Global Notes that
is transferred to a Person who takes delivery in the form of an interest in
another Global Note will, upon transfer, cease to be an interest in such Global
Note and become an interest in the other Global Note and, accordingly, will
thereafter be subject to all transfer restrictions and other procedures
applicable to Book-Entry Interests in such other Global Note for as long as it
remains such an interest.

 

(e)  In the event that a Global Note is exchanged for
Definitive Notes, pursuant to Section 2.6(b), or a Definitive Note is
exchanged for another such Definitive Note, or a Definitive Note is exchanged
for a Book-Entry Interest in a Global Note, such Notes may be exchanged or
transferred for one another only in accordance with (i) such procedures as are
substantially consistent with the provisions of Sections 2.7(b) and (c) above
(including the certification requirements intended to ensure that such
exchanges or transfers comply with Rule 144, Rule 144A or Regulation S, as the
case may be) and as may be from time to time adopted by the Company and the
Trustee.  For the avoidance of doubt and
notwithstanding the foregoing, a Global Note denominated in US Dollars or
Book-Entry Interests therein and Definitive Notes denominated in US Dollars
cannot be exchanged for, or transferred to a Person who takes delivery in the
form of, a Definitive Note denominated in euro, and a Global Note denominated
in euro or Book-Entry Interests therein and Definitive Notes denominated in
euro cannot be exchanged for, or transferred to a Person who takes delivery in
the form of, a Definitive Note denominated in US Dollars.

 

(f)  Prior to the
expiration of the Restricted Period, beneficial interests in the Regulation S
Global Note may not be transferred to a U.S. person or for the account or
benefit of a U.S. person within the meaning of Rule 902 under the Securities
Act except to a person whom the transferor reasonably believes is purchasing or
acquiring such beneficial interest for its own account or for the account or
accounts as to which it exercises sole investment discretion and is a QIB
within the meaning of Rule 144A and otherwise in a transaction meeting the
requirements of Rule 144A and in accordance with all applicable securities laws
of any state of the United States or any other jurisdiction and in accordance
with the requirements of this Indenture. 
Until the expiration of the Restricted Period, Book-Entry Interests in
the Regulation S Global Notes may only be held through Euroclear and
Clearstream (or, in the case of a Book-Entry Interest in 

 

51

 

a Regulation S
Dollar Global Note, through an account of Euroclear or Clearstream (or the DTC
Depositary thereof) in DTC.

 

(g)  Each Note issued hereunder, including each Note issued
in exchange therefor, unless such Note is sold or exchanged pursuant to an
effective registration statement under the Securities Act, shall, upon
issuance, bear the following legend (the “Private
Placement Legend”):

 

“THIS NOTE OF VALENTIA TELECOMMUNICATIONS (THE
“COMPANY”) HAS NOT BEEN REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS
AMENDED (THE “US SECURITIES ACT”), OR OTHER SECURITIES LAWS OF ANY STATE OR
OTHER JURISDICTION.  NEITHER THIS NOTE
NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
SUCH REGISTRATION UNLESS THE TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE US SECURITIES ACT.

 

THE
HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF (WITHOUT PREJUDICE TO THE BEARER
NATURE HEREOF)  (1) REPRESENTS THAT
(A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER
THE US SECURITIES ACT) OR (B) IT IS NOT A US PERSON AND IS ACQUIRING THIS
NOTE IN AN “OFFSHORE TRANSACTION” PURSUANT TO RULE 904 OF REGULATION S UNDER
THE US SECURITIES ACT, (2) AGREES THAT IT WILL NOT PRIOR TO (X) THE
DATE WHICH IS TWO YEARS (OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE
144(k) UNDER THE US SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER) AFTER
THE LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR OF ANY PREDECESSOR OF THIS
NOTE) OR THE LAST DAY ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS
THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE) AND (Y) SUCH
LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW (THE “RESALE
RESTRICTION TERMINATION DATE”), OFFER, SELL OR OTHERWISE TRANSFER THIS NOTE
EXCEPT (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT
WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE US SECURITIES ACT, (C) FOR SO
LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE US
SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE US SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A UNDER THE US SECURITIES ACT, (D) PURSUANT TO OFFERS AND SALES TO
NON-US PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE US SECURITIES ACT OR (E) PURSUANT TO ANY OTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE US SECURITIES
ACT, AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS NOTE IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND; PROVIDED THAT
THE COMPANY, THE TRUSTEE AND THE REGISTRAR SHALL HAVE THE RIGHT PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER 

 

52

 

PURSUANT TO CLAUSE (D) PRIOR TO THE END OF THE
40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN THE MEANING OF REGULATION S UNDER
THE US SECURITIES ACT OR PURSUANT TO CLAUSE (E) PRIOR TO THE RESALE
RESTRICTION TERMINATION DATE TO REQUIRE THAT AN OPINION OF COUNSEL,
CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO THE COMPANY, THE
TRUSTEE AND THE REGISTRAR IS COMPLETED AND DELIVERED BY THE TRANSFEROR. THIS
LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,”
“UNITED STATES” AND “US PERSON” HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S
UNDER THE US SECURITIES ACT.”

 

The Private Placement Legend shall not be removed from such Note except
as provided in this Section 2.7(g). 
The Private Placement Legend shall be removed from a Note as provided by
and in accordance with the terms of the penultimate sentence of the Private
Placement Legend.  Upon the satisfaction
of the terms of such sentence, the Trustee, upon receipt of a Company Order,
shall authenticate and deliver in exchange for such Note another Note or Notes
having an equal aggregate principal amount that does not bear such legend.  If the Private Placement Legend has been
removed from a Note as provided above, no other Note issued in exchange for all
or any part of such Note shall bear such legend, unless the Company has
reasonable cause to believe that such other Note is a “restricted security”
within the meaning of Rule 144 and instructs the Trustee to cause a legend
to appear thereon.

 

(h)  By its acceptance of any Note bearing the Private
Placement Legend, each Holder of such a Note acknowledges the restrictions on
transfer of such Note set forth in this Indenture and in the Private Placement
Legend and that such restrictions also apply to transfers of any beneficial
interests in these Notes and agrees that it will transfer such Note only as
provided in this Indenture.

 

Neither
the Trustee nor any Agent shall have any obligation or duty to monitor,
determine or inquire as to compliance with any restrictions on transfer imposed
under this Indenture or under applicable law with respect to any transfer of
any interest in any Note (including any transfers between or among Agent
Members of a relevant Clearing Agency or beneficial owners of interests in any
Global Note) other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do so if and
when expressly required by the terms of, this Indenture, and to examine the
same to determine substantial compliance as to form with the express
requirements hereof.

 

The
Registrar and each Book-Entry Depositary shall retain copies of all letters,
notices and other written communications received pursuant to Section 2.6
or this Section 2.7.  The Company
shall have the right to inspect and make copies of all such letters, notices or
other written communications at any reasonable time upon the giving of
reasonable written notice to the Registrar.

 

(i)  Definitive Notes shall be transferable only upon the
surrender of a Definitive Note for registration of transfer.  When a Definitive Note is presented to the
Registrar or a co-registrar with a request to register a transfer, the
Registrar shall register the transfer as requested if its 

 

53

 

requirements
for such transfers and the requirements of this Indenture are met.  When Definitive Notes are presented to the
Registrar or a co-registrar with a request to exchange them for an equal
principal amount of Definitive Notes of other denominations, the Registrar
shall make the exchange as requested if the same requirements are met.  To permit registration of transfers and
exchanges, the Company shall execute and, upon receipt of a Company Order, the
Trustee shall authenticate Definitive Notes at the Registrar’s or
co-registrar’s request.

 

(j)  The Company shall not be required to make, and the Registrar
need not register transfers or exchanges of, Definitive Notes (i) that have
been selected for redemption (except, in the case of Definitive Notes to be
redeemed in part, the portion thereof not to be redeemed) or (ii) for a period
of 15 days prior to a selection of Definitive Notes to be redeemed.

 

(k)  Prior to the due presentation for registration of
transfer of any Definitive Note, the Company, eircom,
any Note Guarantor, the Trustee, the Paying Agent, the Registrar or any
co-registrar may deem and treat the Person in whose name a Definitive Note is
registered as the absolute owner of such Definitive Note for the purpose of
receiving payment of principal, interest, or Additional Amounts, if any, on
such Definitive Note and for all other purposes whatsoever, whether or not such
Definitive Note is overdue, and none of the Company, eircom, any Note Guarantor, the Trustee, the Paying Agent,
the Registrar or any co-registrar shall be affected by notice to the contrary.

 

(l)  Upon the occurrence of an Exchange Offer, the Company
shall issue, and upon receipt of a Company Order in accordance with
Section 2.2 hereof, the Trustee shall authenticate, (i) one or more
Unrestricted Global Notes denominated in US Dollars or euro, as the case may
be, in an aggregate principal amount equal to the aggregate principal amount of
the Dollar Book-Entry Interests in the Depositary Interests representing the
Dollar Regulation S Global Note and the Dollar Rule 144A Global Note taken
together, or the principal amount of the Euro Book-Entry Interests in the
Depositary Interests representing the Euro Regulation S Global Note and the
Euro Rule 144A Global Note taken together, as the case may be, tendered in
response to the Exchange Offer, and shall exchange such Unrestricted Global
Notes for that portion of each Dollar Regulation S Global Note and Dollar Rule
144A Global Note or Euro Regulation S Global Note and Euro Rule 144A Global
Note, as the case may be (to the extent such portions of such Global Notes are
accepted pursuant to the Exchange Offer) in accordance with the terms of the
relevant Deposit Agreement, and (ii) one or more Unrestricted Definitive Notes
denominated in US Dollars or euro, as the case may be, in an aggregate
principal amount equal to the principal amount of Definitive Notes denominated
in US Dollars or euro, as the case may be, tendered and accepted pursuant to
the Exchange Offer.

 

(m)  (A) A Book-Entry Interest related to any Restricted
Global Note may be exchanged by any holder thereof for a Book-Entry Interest
related to an Unrestricted Global Note, or transferred to a Person who takes
delivery thereof in the form of a Book-Entry Interest related to an
Unrestricted Global Note only if (1) such exchange or transfer is effected
pursuant to an Exchange Offer in which the Book-Entry Interests are accepted
pursuant to and in accordance with such Exchange Offer in exchange for
Book-Entry Interests in such Unrestricted Global Note (including pursuant to
any certification procedures that may be required in relation to such Exchange
Offer), (2) such transfer is effected pursuant to a registration statement
entered into in relation to, and in accordance with, an applicable Registration
Rights Agreement, (3) such 

 

54

 

transfer is
effected by a broker-dealer pursuant to a registration statement related to an
Exchange Offer and in accordance with the applicable Registration Rights
Agreement, or (4) in circumstances where, in relation to such Book-Entry
Interests, the conditions for the removal of the Private Placement Legend set
forth in Section 2.7(g) are satisfied.

 

(B) If a holder of a Book-Entry Interest related to a Restricted Global
Note wishes at any time to exchange its interest in such Restricted Global Note
for an interest in an Unrestricted Global Note in accordance with the terms of
this Indenture, or to transfer its interest in such Restricted Global Note to a
Person who wishes to take delivery thereof in the form of an interest in such
Unrestricted Global Note, such holder may, subject to the rules and procedures
of the relevant Clearing Agency, to the extent applicable, and subject to the
requirements set forth in the following sentence and paragraph (A) of this
Section 2.7(m), exchange or cause the exchange or transfer or cause the
transfer of such interest for an equivalent Book-Entry Interest in such
Unrestricted Global Note, as applicable. 
Upon (1) written instructions given in accordance with the provisions of
the relevant Deposit Agreement and the procedures of the Clearing Agency, to
the extent applicable, from or on behalf of a holder of a Book-Entry Interest
in the relevant Restricted Global Note, directing the credit of a Book-Entry
Interest related to the Unrestricted Global Note in an amount equal to the
Book-Entry Interest related to the Restricted Global Note to be exchanged or
transferred, (2) a written order given in accordance with the procedures of the
Clearing Agency, to the extent applicable, containing information regarding the  account to be credited with such increase
and the name of such account and (3) receipt by the relevant Book-Entry
Depositary of a certificate stating that the exchange or transfer of such
interest has been made pursuant to and in accordance with this Indenture, the
Book-Entry Depositary shall present the relevant Global Notes to the Trustee or
its agent to reduce the principal amount of the relevant Restricted Global Note
and to increase the principal amount of the corresponding Unrestricted Global
Note by the principal amount of the beneficial interest in the Restricted
Global Note to be so transferred by annotation thereon or in the records of the
Trustee (and an appropriate notation shall be made by the Trustee thereon or in
the records of the Trustee).

 

(n)  No service charge will be made for any registration or
transfer or exchange of the Notes, but the Trustee and the Paying Agent and
transfer agents in Luxembourg and Ireland may require payment by a transferor
of a sum sufficient to pay all taxes or other governmental charges in
connection with any transfer or exchange pursuant to this Section 2.7
(other than in respect of an Exchange Offer, except as otherwise provided in a
Registration Rights Agreement).

 

(o)  All Notes issued upon any transfer or exchange pursuant
to the terms of this Indenture will evidence the same debt and will be entitled
to the same benefits under this Indenture as the Notes surrendered upon such
transfer or exchange.

 

(p)  The Registrar
shall effect and register, upon receipt of a written request from the Company
so to do, a transfer not otherwise provided for by this Section 2.7, such
registration to be done in accordance with the otherwise applicable provisions
of Section 2.7, upon the furnishing by the proposed transferor or
transferee to the Company and the Trustee of a written opinion of counsel
(which opinion and counsel are satisfactory to the Company and the Trustee) to
the effect that, and/or such other certifications or information as the Company
may require to confirm that, the proposed transfer is being made pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act.

 

55

 

SECTION 2.8  
Replacement Notes.  If a
mutilated Definitive Note is surrendered to the Registrar, if a mutilated
Global Note is surrendered to the Company or if the Holder of a Note provides
evidence to the reasonable satisfaction of the Company and the Trustee that
such Note has been lost, destroyed or wrongfully taken, the Company shall issue
and, upon receipt of a Company Order, the Trustee shall authenticate a
replacement Note in such form as the Note being replaced if the requirements of
the Trustee, the Registrar, the Company, eircom and any Note Guarantor are
met.  If required by the Trustee, the
Registrar, or the Company, such Holder must provide an indemnity bond or other
indemnity, sufficient in the judgment of the Company, the Registrar and the
Trustee, to protect the Company, eircom, and any Note Guarantor, the
Registrar, the Trustee and any Agent from any loss which any of them may suffer
if a Note is replaced.  The Company may
charge such Holder for any tax or other governmental charge that may be imposed
on or in relation to the issuance of any replacement Note and for its
reasonable, out-of-pocket expenses in replacing a Note, including reasonable
fees and expenses of counsel and of the Trustee.  If any such mutilated, lost, destroyed or wrongfully taken Note
has become or is about to become due and payable, the Company in its discretion
may, instead of issuing a replacement Note, pay such Note.  Every replacement Note is an additional
obligation of the Company, eircom and any Note Guarantor.  The provisions of this Section 2.8 are
exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement of mutilated, destroyed, lost or
wrongfully taken Notes.

 

SECTION 2.9  
Outstanding Notes.  Notes
outstanding at any time are all the Notes that have been authenticated by the
Trustee except those cancelled by it, those delivered to it for cancellation,
those reductions in the Global Note effected in accordance with the provisions
hereof and those described in this Section as not outstanding.  Subject to Section 2.10, a Note does
not cease to be outstanding because the Company or any of its Affiliates holds
the Note.

 

If a
Note is replaced pursuant to Section 2.8 (other than a mutilated Note
surrendered for replacement), it ceases to be outstanding unless a Responsible
Officer of the Trustee receives proof satisfactory to it and the Company that
the replaced Note is held by a bona fide
purchaser.  A mutilated Note ceases to
be outstanding upon surrender of such Note and replacement thereof pursuant to
Section 2.8.

 

If the
principal amount of any Note is considered paid under Section 4.1, it
ceases to be outstanding and interest and Additional Amounts, if any, on it
cease to accrue.

 

If on
a Redemption Date or the Maturity Date the Paying Agent holds cash in euro
sufficient to pay all of the principal, interest, and Additional Amounts, if
any, due on the Notes payable on that date, then on and after that date such
Notes cease to be outstanding and interest, and Additional Amounts, if any, on
such Notes cease to accrue.

 

SECTION 2.10  
Treasury Notes.  In determining
whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver or consent, Notes owned by the Company or its Affiliates
shall be disregarded, except that, for the purposes of determining whether the
Trustee shall be protected in relying on any such direction, waiver or consent,
only Notes that a Responsible Officer of the Trustee actually knows are so
owned shall be disregarded.

 

56

 

For
purposes of determining whether such Holders have so concurred, the Trustee may
require an Officer’s Certificate listing Notes owned by the Company, a
Subsidiary of the Company or (to the Company’s knowledge) an Affiliate of the
Company.

 

SECTION 2.11  
Temporary Notes.  In the event
that Definitive Notes become issuable under the Indenture, until permanent
Definitive Notes are ready for delivery, the Company may prepare and the
Trustee shall authenticate temporary Definitive Notes upon receipt of a Company
Order in the form of an Officer’s Certificate. 
The Officer’s Certificate shall specify the amount of temporary
Definitive Notes to be authenticated and the date on which the temporary Definitive
Notes are to be authenticated.  Temporary
Definitive Notes shall be substantially in the form of permanent Definitive
Notes but may have variations that the Company considers appropriate for
temporary Definitive Notes.  Without
unreasonable delay, the Company shall prepare and the Trustee shall
authenticate upon receipt of a Company Order pursuant to Section 2.2
permanent Definitive Notes in exchange for temporary Definitive Notes.  Holders of temporary Definitive Notes shall
be entitled to all of the benefits of this Indenture.

 

SECTION 2.12  
Cancellation.  The Company at any
time may deliver Notes to the Trustee for cancellation.  The Registrar and the Paying Agent shall
forward to the Trustee any Notes surrendered to them for transfer, exchange or
payment.  The Trustee, or at the
direction of the Trustee, the Registrar or the Paying Agent, and no one else,
shall cancel and, at the written direction of the Company, shall dispose of
(subject to the record retention requirements of the Exchange Act) all Notes
surrendered for transfer, exchange, payment or cancellation; provided,
however, that the Trustee may, but shall not be required to, destroy
such canceled Notes.  Subject to
Section 2.7, the Company may not issue new Notes to replace Notes that it
has paid or delivered to the Trustee for cancellation.  If the Company shall acquire any of the
Notes, such acquisition shall not operate as a redemption or satisfaction of
the Indebtedness represented by such Notes unless and until the same are
surrendered to the Trustee for cancellation pursuant to this Section 2.12.

 

SECTION 2.13  
Defaulted Interest.  If the
Company defaults in a payment of interest on the Notes, it shall pay the
defaulted interest, plus (to the extent lawful) any interest payable on the
defaulted interest, to the Holders thereof. 
If such default in payment of interest continues for 30 days, the
Company shall (in the case of Definitive Notes) establish a subsequent special
Record Date, which date shall be the fifteenth day next preceding the date
fixed by the Company for the payment of defaulted interest.  If no special Record Date is required to be
established pursuant to the immediately preceding sentence, (i) in the case of
Definitive Notes, Holders of record on the original Record Date shall be
entitled to such payment of defaulted interest and any such interest payable on
the defaulted interest and (ii) in the case of Global Notes, Holders on the
Default Interest Payment Date (as defined in the next sentence) shall be
entitled to such payment of defaulted interest and any such interest payable on
the defaulted interest.  The Company
shall notify the Trustee and Paying Agent in writing of the amount of defaulted
interest proposed to be paid on each Note and the date of the proposed payment
(a “Default
Interest Payment Date”), and at the same time the Company shall
deposit with the Trustee or Paying Agent an amount of money equal to the
aggregate amount proposed to be paid in respect of such defaulted interest or
shall make arrangements reasonably satisfactory to the Trustee or Paying Agent
for such deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to such
defaulted interest as in this Section 2.13; provided,

 

57

 

however, that in no
event shall the Company deposit monies proposed to be paid in respect of
defaulted interest later than 10:00 a.m. London time (in relation to Euro
Notes) or 10:00 a.m. New York time (in relation to Dollar Notes) on the
proposed Default Interest Payment Date with respect to defaulted interest to be
paid on the Note.  In the case of
Definitive Notes, at least 15 days before the subsequent special Record
Date, if applicable, the Company shall publish in a leading newspaper having a
general circulation in New York (which is expected to be The Wall Street Journal) and
(if and so long as the Notes are listed on the Luxembourg Stock Exchange and/or
the Irish Stock Exchange and the rules of such Stock Exchange shall so require)
a leading newspaper having a general circulation in Luxembourg (which is
expected to be the Luxemburger Wort) and/or Dublin (which is
expected to be the Irish Times), as the case may be, and, in
addition to such publication, mail by first-class mail to each Holder’s
registered address, with a copy to the Trustee, a notice that states the
subsequent special Record Date, the payment date and the amount of defaulted
interest.  In the case of Global Notes,
at least 15 days before the Default Interest Payment Date, the Company
shall publish in a leading newspaper having a general circulation in New York
(which is expected to be The Wall Street Journal) and (if and so
long as the Notes are listed on the Luxembourg Stock Exchange and the rules of
such stock exchange shall so require) a leading newspaper having a general
circulation in Luxembourg (which is expected to be the Luxemburger Wort) and (if
and so long as the Notes are listed on the Irish Stock Exchange and the rules
of such stock exchange shall so require) a leading newspaper having a general
circulation in Dublin (which is expected to be the Irish Times), with a copy to
the Trustee, a notice that states the Default Interest Payment Date, the
payment date and the amount of defaulted interest to be paid.  In addition (if and so long as the Notes are
listed on the Irish Stock Exchange and the rules of such stock exchange shall
so require) copies of all notices transmitted to Holders shall be delivered to
the Companies Announcement Office of the Irish Stock Exchange.

 

SECTION 2.14  
CUSIP, ISIN and Common Code Numbers. 
The Company in issuing the Notes may use a “CUSIP”, “ISIN” or “Common
Code” number, and if so, the Trustee shall use the CUSIP, ISIN and Common Code
number in notices of redemption or exchange as a convenience to Holders; provided,
however, that any such notice may state that no representation is
made as to the correctness or accuracy of the CUSIP, ISIN and Common Code
number printed in the notice or on the Notes, and that reliance may be placed only
on the other identification numbers printed on the Notes.  The Company shall promptly notify the
Trustee in writing of any change in any CUSIP, ISIN or Common Code number.

 

SECTION 2.15  
Deposit of Moneys.  On each
interest payment date and on the Maturity Date, the Company shall deposit with
the Trustee or its designated Paying Agent (which shall be the Principal Paying
Agent unless otherwise notified to the Company by the Trustee) in immediately
available funds money sufficient to make cash payments, if any, due on such
interest payment date or on the Maturity Date, as the case may be, on all Notes
then outstanding.  Such payments shall
be made by the Company by such time on such interest payment date or the Maturity
Date as may be notified by the Paying Agent from time to time to the Company as
being reasonably necessary to permit the Paying Agent to remit payment to the
Holders on such interest payment date or Maturity Date, as the case may be (but
which time shall in no event be earlier than 10.00 a.m. London time, if the
case of Euro Notes, or 10.00 a.m. New York time, in the case of Dollar Notes).

 

58

 

SECTION 2.16  
Certain Matters Relating to Global Notes.  (a)  Neither the Company nor the Trustee nor any of
their respective agents shall have any responsibility or liability for any
aspect of the records relating to or payments made on account of beneficial
ownership interests of a Global Note or a Depositary Interest, or for
maintaining, supervising or reviewing any records relating to such beneficial
ownership interests.  Members of or
participants in a Clearing Agency (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Note held by the Book-Entry
Depositary or its custodian, or under such Global Note, and the Book-Entry
Depositary or its custodian may be treated by the Company, the Trustee and any
agent of the Company or the Trustee as the absolute owner of such Global Note
for all purposes whatsoever. 
Notwithstanding the foregoing, nothing herein shall prevent the Company,
the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the
Book-Entry Depositary or impair, as between the Clearing Agency and its Agent
Members, the operation of customary practices governing the exercise of the
rights of a Holder of any Note.

 

(b)  The Holder of any Global Note may grant proxies and
otherwise authorize any Person, including the relevant Clearing Agency and
their Agent Members and Persons that may hold interests through Agent Members,
to take any action which a Holder is entitled to take under this Indenture or
the Notes.

 

ARTICLE III

REDEMPTION

 

SECTION 3.1  
Optional Redemption.  The Notes
may be redeemed, as a whole or from time to time in part, upon the terms and at
the redemption prices set forth in the Notes. 
Any redemption pursuant to this Section 3.1 shall be made pursuant
to the provisions of this Article III.

 

SECTION 3.2  
Notices to Trustee.  If the
Company elects to redeem Initial Notes pursuant to Paragraph 8 or 9 of
such Notes or Exchange Notes pursuant to Paragraph 7 or 8 thereof it shall
notify the Trustee and the Principal Paying Agent in writing of the Redemption
Date and the principal amount of Notes to be redeemed at least 30 days but not
more than 60 days before the Redemption Date (or such shorter period as the
Trustee in its sole discretion shall determine).  The Company shall give notice of redemption as required under the
relevant paragraph of the Notes pursuant to which such Notes are being
redeemed.  Any redemption and notice
may, at the Company’s discretion, be subject to the satisfaction of one or more
conditions precedent.

 

SECTION 3.3  
Selection of Notes to Be Redeemed. 
If less than all of the Notes are to be redeemed at any time, selection
of such Notes for redemption will be made by the Trustee in compliance with the
requirements of the principal national securities exchange, if any, on which
such Notes are listed, and/or in compliance with the requirements of each
relevant Clearing Agency, or if such Notes are not so listed or such exchange
prescribes no method of selection and the Notes are not held through a Clearing
Agency or such Clearing Agency prescribes no method of selection, on a pro rata basis, by lot or by such other
method as the Trustee in its sole discretion shall deem fair and appropriate
(and in such manner as complies with applicable legal

 

59

 

and exchange requirements); provided, however, that no Note of €1,000
(in the case of Euro Notes) or $1,000 (in the case of Dollar Notes) in
aggregate principal amount or less shall be redeemed in part.  In the event of partial redemption by lot,
the particular Notes to be redeemed shall be selected, unless otherwise
provided herein, not less than 30 nor more than 60 days prior to the Redemption
Date by the Trustee from the outstanding Notes not previously called for
redemption.

 

SECTION 3.4  
Notice of Redemption.  At least
30 days but not more than 60 days before a Redemption Date, the Company shall,
so long as the Notes are in global form, publish in a leading newspaper
having a general circulation in New York (which is expected to be The Wall
Street Journal) (and, if and so long as the Notes are listed on the
Luxembourg Stock Exchange and the rules of such stock exchange shall so
require, a newspaper having a general circulation in Luxembourg
(which is expected to be the Luxemburger Wort)) or in the case of
Definitive Notes, in addition to such publication, mail to Holders by
first-class mail, postage prepaid, at their respective addresses as they appear
on the registration books of the Registrar (any such mailed notice, if
mailed in the manner provided in this Section 3.4, to be conclusively
deemed to have been given, whether or not the Holder receives such
notice).  If and for so long as the
Senior Notes are listed on the Irish Stock Exchange and the rules of such
exchange so require, notice of such redemption shall be sent to the Companies
Announcements Office of such exchange. 
At the Company’s request made at least 30 days before the Redemption
Date (or such shorter period as the Trustee in its sole discretion shall
determine), the Trustee shall give the notice of redemption in the Company’s
name and at the Company’s expense; provided, however, that the Company shall
deliver to the Trustee an Officer’s Certificate requesting that the Trustee
give such notice and setting forth the information to be stated in such notice
as provided in the following items.  Any
defect, other than a material defect, in any redemption notice shall not affect
the validity of the proceedings for the redemption of any Note.  Each such notice for redemption shall
identify the Notes to be redeemed and shall state:

 

(a)   the expected Redemption Date;

 

(b)   the Redemption Prices (and the fact that accrued and
unpaid interest, as well as Additional Amounts, if, any, shall also be paid);

 

(c)   the name and address of the relevant Paying Agent;

 

(d)   the place where the Notes called for redemption must be
surrendered to collect the Redemption Price as well as accrued and unpaid
interest, and Additional Amounts, if any;

 

(e)   that, unless the Company does not make the redemption
payment (whether because any conditions to redemption have not been met or
otherwise), interest and Additional Amounts, if any, on Notes called for
redemption cease to accrue on and after the Redemption Date, and the only
remaining right of the Holders of such Notes is to receive payment of the
Redemption Price upon surrender to the Paying Agent of the Notes redeemed;

 

(f)   (i) if any Global Note is being redeemed in part,
the portion of the principal amount of such Note to be redeemed and that, after
the Redemption Date, interest and Additional Amounts, if any, shall cease to
accrue on the portion called for redemption, and upon surrender 

 

60

 

of such Global
Note, the Global Note with a notation on Schedule A thereof adjusting the
principal amount thereof to be equal to the unredeemed portion, will be
returned and (ii) if any Definitive Note is being redeemed in part, the
portion of the principal amount of such Note to be redeemed, and that, after
the Redemption Date, upon surrender of such Definitive Note, a new Definitive
Note or Notes in aggregate principal amount equal to the unredeemed portion
thereof will be issued in the name of the Holder thereof, upon cancellation of
the original Note;

 

(g)   if fewer than all the Notes are to be redeemed, the
identification of the particular Notes (or portion thereof) to be redeemed, as
well as the aggregate principal amount of Notes to be redeemed and the
aggregate principal amount of Notes to be outstanding after such partial
redemption;

 

(h)   the paragraph of the Notes pursuant to which the Notes
are to be redeemed;

 

(i)   the CUSIP, ISIN or Common Code number, and that no
representation is made as to the correctness or accuracy of the CUSIP, ISIN or
Common Code number, if any, listed in such notice or printed on the Notes; and

 

(j)  the conditions to redemption, if any, specified by the
Company.

 

SECTION 3.5  
Effect of Notice of Redemption. 
Subject to the fulfillment of any conditions to redemption specified in
Section 3.4, once notice of redemption is given in accordance with
Section 3.4, Notes called for redemption become due and payable on the
Redemption Date and at the Redemption Price plus accrued and unpaid interest,
if any, and Additional Amounts, if any. 
Upon surrender to the Trustee or Paying Agent, such Notes called for
redemption shall be paid at the Redemption Price (which shall include accrued
and unpaid interest thereon, if any, and Additional Amounts, if any, to the
Redemption Date), but (in the case of Definitive Notes) installments of
interest, the maturity of which is on or prior to the Redemption Date, shall be
payable to Holders of record at the close of business on the relevant Record
Dates.

 

SECTION 3.6  
Deposit of Redemption Price.  On
or prior to 10:00 a.m. London time (in the case of Euro Notes) or 10:00 a.m.
New York time (in the case of Dollar Notes) on the Redemption Date, the Company
shall deposit with the Trustee or its designated Paying Agent (which shall be
the Principal Paying Agent unless otherwise notified to the Company by the Trustee)
cash in euro (in the case of Euro Notes) or US Dollars (in the case of Dollar
Notes) sufficient to pay the Redemption Price plus accrued and unpaid interest,
if any, and Additional Amounts, if any, of all Notes to be redeemed on that
date.  The Paying Agent shall promptly
return to the Company any cash so deposited which is not required for that
purpose upon the written request of the Company.

 

If the
Company complies with the preceding paragraph, then, unless the Company does
not make the redemption payment (whether because any conditions to redemption
have not been met or otherwise), interest and Additional Amounts on the Notes
to be redeemed will cease to accrue on and after the applicable Redemption
Date, whether or not such Notes are presented for payment.  With respect to Definitive Notes, if a
Definitive Note is redeemed on or after an interest Record Date but on or prior
to the related interest payment date, then any accrued and 

 

61

 

unpaid interest, and Additional Amounts, if any, shall
be paid to the Person in whose name such Note was registered at the close of
business on such Record Date.  If any
Note called for redemption shall not be so paid upon surrender for redemption
because of the failure of the Company to comply with the preceding paragraph,
interest, and Additional Amounts, if any, shall be paid on the unpaid
principal, from the Redemption Date until such principal is paid, in each case
at the rate provided in the Notes and in Section 4.1.

 

SECTION 3.7  
Notes Redeemed in Part.  Upon
surrender and cancellation of a Definitive Note that is redeemed in part (with,
if the Company or the Trustee so requires, the endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly
executed by, the Holder thereof or his attorney duly authorized in writing),
the Company shall execute and upon receipt of a Company Order the Trustee shall
authenticate for the Holder without a service charge a new Definitive Note
equal in principal amount to the unredeemed portion of the Definitive Note
surrendered and canceled; provided, however, that each such
Definitive Note shall be in a principal amount at maturity of €1,000 (in the
case of Euro Notes) or $1,000 (in the case of Dollar Notes) or an integral
multiple thereof.  Upon surrender of a
Global Note that is redeemed in part, the Paying Agent shall forward such
Global Note to the Trustee who shall make a notation on Schedule A thereof
to reduce the principal amount of such Global Note to an amount equal to the
unredeemed portion of the Global Note surrendered; provided, however, that each
such Global Note shall be in a principal amount at maturity of €1,000 or
$1,000, as applicable, or an integral multiple thereof.

 

ARTICLE IV

 

COVENANTS

 

SECTION 4.1  
Payment of Notes. 
(a)  The Company shall pay the principal, premium, if any, interest
and Additional Amounts, if any, on the Notes in the manner provided in such
Notes and this Indenture.  An
installment of principal of or interest on the Notes shall be considered paid
on the date it is due if the Trustee or Paying Agent (including the Principal
Paying Agent) holds on or prior to the time designated by the Paying Agent to
the Company in accordance with Section 2.15, on that date money deposited
by the Company in immediately available funds and designated for, and
sufficient to pay the installment in full and is not prohibited from paying
such money to the Holders pursuant to the terms of this Indenture.

 

(b)  The Company shall pay, to the extent such payments are
lawful, interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and on overdue installments of interest
(without regard to any applicable grace periods), and on any overdue Additional
Amounts, from time to time on demand at the rate borne by the Notes.

 

(c)  Interest will be computed on the basis of a 360-day year
comprised of twelve 30-day months.

 

SECTION 4.2  
Maintenance of Office or Agency. 
The Company shall maintain the office or agency (which office may be an
office of the Trustee or an affiliate of the Trustee, Registrar or
co-Registrar) required under Section 2.3 where Notes may be surrendered
for registration of transfer or for exchange and where notices and demands to
or upon the Company 

 

62

 

in respect of the Notes and
this Indenture may be served.  The
Company shall give prompt written notice to the Trustee of the location, and
any change in the location, of such office or agency.  If at any time the Company shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or
served at the address of the Trustee set forth in Section 12.2.  The Company hereby initially designates the
office of the New York Corporate Trust Office of the Trustee as its initial
office or agency outside Ireland as required under Section 2.3
hereof.  If the Notes are listed on the
Luxembourg Stock Exchange and the rules of such exchange so require, the
Company will appoint The Bank of New York (Luxembourg), or such other Person
located in Luxembourg and reasonably acceptable to the Trustee, as an
additional paying and transfer agent.

 

SECTION 4.3  
Limitation on Indebtedness. 
(a)  The Company will not, and will not permit any of its
Restricted Subsidiaries to, Incur any Indebtedness (including Acquired
Indebtedness); provided, however,
that the Company, eircom, eircom Funding and any Note Guarantor may
Incur Indebtedness if on the date of such Incurrence and after giving pro forma effect thereto, (x) the
Consolidated Leverage Ratio for the Company and its Restricted Subsidiaries is
less than 5.00 to 1.00 and (y) in the case only of an Incurrence of Senior
Debt, the Consolidated Senior Leverage Ratio for the Company and its Restricted
Subsidiaries is less than 3.50 to 1.00.

 

(b)  Section 4.3(a) will not prohibit the Incurrence of
the following Indebtedness:

 

(1) Indebtedness Incurred
(a) pursuant to any Credit Facility (including but not limited to in respect of
letters of credit or bankers’ acceptances issued or created thereunder), and
any Refinancing Indebtedness in respect thereof and Guarantees in respect of
such Indebtedness or (b) by a Receivables Subsidiary secured by a Lien on all
or part of the assets disposed of in, or otherwise Incurred in connection with,
a Financing Disposition, in a maximum aggregate principal amount at any time
outstanding not exceeding (A) €1.4 billion plus (B) in the case of any
refinancing of any Credit Facility or any portion thereof, the aggregate amount
of fees, underwriting discounts, premiums and other costs and expenses incurred
in connection with such refinancing;

 

(2) (a) Guarantees in
respect of Indebtedness permitted to be secured by a Lien pursuant to clause
(1) of the definition of “Permitted Liens,” (b) Guarantees by the Company or
any Note Guarantor of Indebtedness or any other obligation or liability of the
Company, any Note Guarantor or eircom
Funding (other than any Indebtedness incurred by the Company, any Note
Guarantor or eircom Funding, as
the case may be, in violation of this Section 4.3), including, without
limitation, any Guarantees of the Senior Notes, (c) Guarantees by the Company
or any Restricted Subsidiary of Indebtedness or any other obligation or
liability of any Restricted Subsidiary (except, in the case of Guarantees
issued by a Restricted Subsidiary, eircom
Funding) that is not a Note Guarantor (other than of any Indebtedness incurred
by such Restricted Subsidiary in violation of this Section 4.3), (d)
without limiting Section 4.6, Indebtedness of the Company or any Note
Guarantor arising by reason of any Lien granted by or applicable to such Person
securing Indebtedness of the Company or any Note Guarantor (other than any
Indebtedness incurred by the Company or such Note Guarantor, as the case may
be, 

 

63

 

in violation of
this Section 4.3(b)), or (e) without limiting Section 4.6,
Indebtedness of any Restricted Subsidiary that is not a Note Guarantor arising
by reason of any Lien granted by or applicable to such Person securing
Indebtedness of any Restricted Subsidiary that is not a Note Guarantor or eircom Funding (other than any
Indebtedness incurred by such Restricted Subsidiary in violation of this
Section 4.3);

 

(3) Indebtedness of the
Company owing to and held by any Restricted Subsidiary or Indebtedness of a
Restricted Subsidiary owing to and held by the Company or any Restricted
Subsidiary; provided, however, that:

 

(a) any subsequent
issuance or transfer of Capital Stock or any other event which results in any
such Indebtedness being beneficially held by a Person other than the Company or
a Restricted Subsidiary of the Company; and

 

(b) any sale or
other transfer of any such Indebtedness to a Person other than the Company or a
Restricted Subsidiary of the Company,

 

shall be deemed,
in each case, to constitute an Incurrence of such Indebtedness by the Company
or such Subsidiary, as the case may be and provided
further that if a Restricted Subsidiary that is not a Note Guarantor
owns or holds such Indebtedness and the Company or any Note Guarantor is the
obligor on such Indebtedness, such Indebtedness is expressly subordinated to
the prior payment in full of all obligations with respect to the Senior Notes;

 

(4) Indebtedness
represented by: (a) the Senior Notes (other than any Additional Notes) and any
exchange notes issued in exchange for any Senior Notes; (b) Note Guarantees;
(c) the Senior Subordinated Notes issued on the Issue Date and any exchange
notes issued in exchange therefor; (d) the Senior Subordinated Notes Valentia
Guarantee and the Senior Subordinated Notes eircom
Guarantee; (e) any Indebtedness (other than the Indebtedness described in
Section 4.3(b)(1) and (3)) outstanding on the Issue Date; (f) any Refinancing
Indebtedness Incurred in respect of any Indebtedness described in this
Section 4.3(b)(4) or Section 4.3(b)(5) or Incurred pursuant to
Section 4.3(a); and (g) any Management Advances;

 

(5) Indebtedness of a
Restricted Subsidiary Incurred and outstanding on the date on which such
Restricted Subsidiary was acquired by the Company (other than Indebtedness
Incurred (a) to provide all or any portion of the funds utilized to consummate
the transaction or series of related transactions pursuant to which a
Restricted Subsidiary became a Restricted Subsidiary or was otherwise acquired
by the Company or (b) otherwise in connection with such acquisition); provided, however, that at the time such
Restricted Subsidiary is acquired by the Company, (x) the Company would have
been able to Incur €1.00 of additional Indebtedness (and if the Indebtedness
Incurred pursuant to this clause (5) includes Senior Debt, €1.00 of additional
Senior Debt) pursuant to Section 4.3(a) after giving effect to the
Incurrence of such Indebtedness pursuant to this Section 4.3(b)(5) or (y)
neither the Consolidated Leverage Ratio nor the Consolidated Senior Leverage
Ratio would be greater than it was immediately prior to giving effect to such
acquisition;

 

64

 

(6) Indebtedness under
Currency Agreements, Interest Rate Agreements and Commodity Hedging Agreements
entered into for bona fide hedging
purposes of the Company or its Restricted Subsidiaries and not for speculative
purposes (as determined in good faith by the Board of Directors or senior
management of the Company);

 

(7) Indebtedness
represented by Capitalized Lease Obligations or Purchase Money Obligations, and
in each case any Refinancing Indebtedness in respect thereof, in an aggregate
principal amount not to exceed the greater of €150 million and 3.75% of Total
Assets;

 

(8) Indebtedness Incurred
in respect of (a) workers’ compensation claims, self-insurance obligations,
performance, surety, judgment, appeal or other similar bonds, instruments or
obligations and completion guarantees provided by the Company or a Restricted
Subsidiary, or relating to liabilities or obligations incurred, in the ordinary
course of business, (b) letters of credit, bankers’ acceptances or other
similar instruments or obligations issued, or relating to liabilities or
obligations incurred, in the ordinary course of business and (c) the financing
of insurance premiums in the ordinary course of business;

 

(9) Indebtedness arising
from agreements of the Company or a Restricted Subsidiary providing for
guarantees, indemnification, obligations in respect of earnouts or other
adjustments of purchase price or, in each case, similar obligations, in each
case, Incurred or assumed in connection with the acquisition or disposition of
any business or assets or Person or any Capital Stock of a Subsidiary (other
than guarantees of Indebtedness incurred by any Person acquiring or disposing
of such business or assets or such Subsidiary for the purpose of financing such
acquisition or disposition);

 

(10) Indebtedness arising
from the honoring by a bank or other financial institution of a check, draft or
similar instrument drawn against insufficient funds in the ordinary course of
business, provided, however, that
such Indebtedness is extinguished within five business days of Incurrence; and

 

(11) in addition to the
items referred to in Sections 4.3(b)(1) through (10) above, Indebtedness of the
Company and its Restricted Subsidiaries in an aggregate outstanding principal
amount which, when taken together with the principal amount of all other
Indebtedness Incurred pursuant to this Section 4.3(b)(11) and then
outstanding, will not exceed the greater of €100 million and 2.5% of Total
Assets at any time outstanding.

 

(c)  For purposes of determining compliance with, and the
outstanding principal amount of any particular Indebtedness Incurred pursuant
to and in compliance with, this Section 4.3:

 

(1) in the event that
Indebtedness meets the criteria of more than one of the types of Indebtedness
described in Sections 4.3(a) and (b), the Company, in its sole discretion, will
classify, and may from time to time reclassify, such item of Indebtedness and
only be required to include the amount and type of such Indebtedness in one of
such clauses;

 

65

 

(2) all Indebtedness
outstanding on the date of this Indenture under the Senior Secured Credit
Agreement shall be deemed initially Incurred on the Issue Date under
Section 4.3(b)(1) and not Sections 4.3(a) or (b)(3), and may not be
reclassified pursuant to Section 4.3(c)(1);

 

(3) Guarantees of, or
obligations in respect of letters of credit, bankers’ acceptances or other
similar instruments relating to, or Liens securing, Indebtedness which is
otherwise included in the determination of a particular amount of Indebtedness
shall not be included;

 

(4) if obligations in
respect of letters of credit, bankers’ acceptances or other similar instruments
are Incurred pursuant to any Credit Facility and are being treated as Incurred
pursuant to Sections 4.3(b)(1) or (11) and the letters of credit, bankers’
acceptances or other similar instruments relate to other Indebtedness, then
such other Indebtedness shall not be included;

 

(5) the principal amount
of any Disqualified Stock of the Company or a Restricted Subsidiary, or
Preferred Stock of a Restricted Subsidiary that is not a Note Guarantor, will
be equal to the greater of the maximum mandatory redemption or repurchase price
(not including, in either case, any redemption or repurchase premium) or the
liquidation preference thereof;

 

(6) Indebtedness
permitted by this Section 4.3 need not be permitted solely by reference to
one provision permitting such Indebtedness but may be permitted in part by one
such provision and in part by one or more other provisions of this
Section 4.3 permitting such Indebtedness; and

 

(7) the amount of
Indebtedness issued at a price that is less than the principal amount thereof
will be equal to the amount of the liability in respect thereof determined in
accordance with GAAP.

 

(d)  Accrual of interest, accrual of dividends, the accretion
of accreted value, the accretion or amortization of original issue discount,
the payment of interest in the form of additional Indebtedness and the payment
of dividends in the form of additional shares of Preferred Stock or
Disqualified Stock will not be deemed to be an Incurrence of Indebtedness for
purposes of this Section 4.3. The amount of any Indebtedness outstanding
as of any date shall be (i) the accreted value thereof in the case of any
Indebtedness issued with original issue discount and (ii) the principal amount
or liquidation preference thereof, in the case of any other Indebtedness.

 

(e)  If at any time an Unrestricted Subsidiary becomes a Restricted
Subsidiary, any Indebtedness of such Subsidiary shall be deemed to be Incurred
by a Restricted Subsidiary of the Company as of such date (and, if such
Indebtedness is not permitted to be Incurred as of such date under this
Section 4.3, the Company shall be in Default of this Section 4.3).

 

(f)  For purposes of determining compliance with any
euro-denominated restriction on the Incurrence of Indebtedness, the
euro-equivalent principal amount of Indebtedness denominated 

 

66

 

in another
currency shall be calculated based on the relevant currency exchange rate in
effect on the date such Indebtedness was Incurred, in the case of term
Indebtedness, or first committed, in the case of revolving credit Indebtedness;
provided that (x) if such Indebtedness is Incurred to refinance other
Indebtedness denominated in a currency other than euros, and such refinancing
would cause the applicable euro-dominated restriction to be exceeded if
calculated at the relevant currency exchange rate in effect on the date of such
refinancing, such euro-dominated restriction shall be deemed not to have been
exceeded so long as the principal amount of such refinancing Indebtedness does
not exceed the principal amount of such Indebtedness being refinanced, (y) the
euro-equivalent principal amount of any such Indebtedness outstanding on the
Issue Date shall be calculated based on the relevant currency exchange rate in
effect on the Issue Date and (z) the euro equivalent principal amount of
Indebtedness denominated in a currency other than euros and incurred pursuant
to the Senior Secured Credit Agreement shall be calculated based on the
relevant currency exchange rate in effect on, at the Company’s option, (i) the
Issue Date, (ii) the date on which any of the respective commitments under the
Senior Secured Credit Agreement shall be reallocated among facilities or
subfacilities thereunder, or on which such rate is otherwise calculated for any
purpose thereunder, or (iii) the date of Incurrence.  Notwithstanding any other provision of this Section 4.3, the
maximum amount of Indebtedness that the Company may Incur pursuant to this
Section 4.3 shall not be deemed to be exceeded solely as a result of
fluctuations in the exchange rate of currencies. The principal amount of any
Indebtedness Incurred to refinance other Indebtedness, if Incurred in a
different currency from the Indebtedness being refinanced, shall be calculated
based on the currency exchange rate applicable to the currencies in which such
Refinancing Indebtedness is denominated that is in effect on the date of such
refinancing.

 

SECTION 4.4  
Limitation on Restricted Payments. 
The Company will not, and will not permit any of its Restricted
Subsidiaries, directly or indirectly, to:

 

(1) declare or pay any dividend or make any distribution on or in
respect of its Capital Stock (including any payment in connection with any
merger or consolidation involving the Company or any of its Restricted
Subsidiaries) except:

 

(a) dividends or distributions payable in
Capital Stock of the Company (other than Disqualified Stock) or in options,
warrants or other rights to purchase such Capital Stock of the Company; and

 

(b) dividends or
distributions payable to the Company or a Restricted Subsidiary (and, in the
case of any such Restricted Subsidiary making such dividend or distribution, to
other holders of its Capital Stock on no more than a pro rata basis, measured
by value);

 

(2) purchase, redeem,
retire or otherwise acquire for value any Capital Stock of the Company or any
direct or indirect Parent of the Company held by Persons other than the Company
or a Restricted Subsidiary of the Company (other than in exchange for Capital
Stock of the Company (other than Disqualified Stock));

 

(3) purchase, repurchase,
redeem, defease or otherwise acquire or retire for value, prior to scheduled
maturity, scheduled repayment or scheduled sinking fund payment, 

 

67

 

any Subordinated
Obligations or Note Guarantor Subordinated Obligations (other than (x) any such
purchase, repurchase, redemption, defeasance or other acquisition or retirement
in anticipation of satisfying a sinking fund obligation, principal installment
or final maturity, in each case due within one year of the date of purchase,
repurchase, redemption, defeasance or other acquisition or retirement and (y)
any Indebtedness (other than the eircom
Funding Intercompany Loan) incurred pursuant to Section 4.3(b)(3) or any
Subordinated Shareholder Funding or Management Proceeds Funding; or

 

(4) make any Restricted
Investment in any Person;

 

(any such dividend, distribution, purchase,
redemption, repurchase, defeasance, other acquisition, retirement or Restricted
Investment referred to in Sections 4.4(a)(1) through (4) hereof are referred to
herein as a “Restricted Payment”),
if at the time the Company or such Restricted Subsidiary makes such Restricted
Payment:

 

(A) a Default shall have
occurred and be continuing (or would result therefrom);

 

(B) the Company is not
able to Incur an additional €1.00 of Indebtedness pursuant to
Section 4.3(a) after giving effect, on a pro
forma basis, to such Restricted Payment; or

 

(C) the aggregate amount
of such Restricted Payment and all other Restricted Payments made subsequent to
the Issue Date (and not returned or rescinded) would exceed the sum of:

 

(i) 50% of Consolidated
Net Income for the period (treated as one accounting period) from the first day
of the first fiscal quarter commencing after the Issue Date to the end of the
most recent fiscal quarter ending prior to the date of such Restricted Payment
for which consolidated financial statements of the Company are available (or,
in case such Consolidated Net Income is a deficit, minus 100% of such deficit);

 

(ii) 100% of the
aggregate Net Cash Proceeds, and Fair Market Value (as determined in accordance
with the next succeeding sentence) of property or assets, received by the
Company from the issue or sale of its Capital Stock (other than Disqualified
Stock) or Subordinated Shareholder Funding or Management Proceeds Funding
subsequent to the Issue Date or other capital contributions subsequent to the
Issue Date (other than (x) Net Cash Proceeds or property or assets received
from an issuance or sale of such Capital Stock to a Restricted Subsidiary of
the Company, (y) Net Cash Proceeds or property or assets to the extent that any
Restricted Payment has been made from such proceeds in reliance on clause (6)
of the next succeeding paragraph, and (z) Excluded Contributions);

 

(iii) 100% of the
aggregate Net Cash Proceeds, and Fair Market Value (as determined in accordance
with Section 4.4(b) hereof) of property or assets, received by the Company
or any Restricted Subsidiary from the issuance or sale (other than to the Company
or a Restricted Subsidiary of the Company) by the Company or any Restricted
Subsidiary subsequent to the Issue Date of any 

 

68

 

Indebtedness that
has been converted into or exchanged for Capital Stock of the Company (other
than Disqualified Stock) or Subordinated Shareholder Funding or Management
Proceeds Funding (plus the amount of any cash, and the Fair Market Value of any
other property or assets, received by the Company or any Restricted Subsidiary
upon such conversion or exchange); and

 

(iv) the amount equal to
the net reduction in Restricted Investments made by the Company or any of its
Restricted Subsidiaries resulting from:

 

(A) repurchases,
redemptions or other acquisitions or retirements of any such Restricted
Investment, proceeds realized upon the sale or other disposition to a Person
other than the Company or a Restricted Subsidiary of any such Restricted
Investment, repayments of loans or advances or other transfers of assets
(including by way of dividend, distribution, interest payments or returns of
capital) to the Company or any Restricted Subsidiary of the Company; or

 

(B) the redesignation of
Unrestricted Subsidiaries as Restricted Subsidiaries (valued in each case as
provided in the definition of “Investment”)
not to exceed, in the case of any Unrestricted Subsidiary, the amount of
Investments previously made by the Company or any Restricted Subsidiary in such
Unrestricted Subsidiary, which amount in each case under this clause (iv) was
included in the calculation of the amount of Restricted Payments; provided, however, that no amount will be
included in Consolidated Net Income for purposes of the preceding clause (i) to
the extent that it is (at the Company’s option) included under this clause (iv).

 

(b)  The Fair Market Value of property or assets other than
cash for the purposes of Section 4.4(a) shall be the fair market value
thereof as determined in good faith by the Company and (A) for property or
assets so determined to have a Fair Market Value in excess of €15 million, the
Fair Market Value shall be set forth in an Officer’s Certificate; or (B) for
property or assets so determined to have a Fair Market Value in excess of €30
million, the Fair Market Value shall be set forth in a resolution approved by
at least a majority of the Board of Directors of the Company attached to an
Officer’s Certificate.

 

(c)  The foregoing provisions will not prohibit any of the
following (collectively, “Permitted Payments”):

 

(1) any purchase,
repurchase, redemption, defeasance or other acquisition or retirement of
Capital Stock, Disqualified Stock, Subordinated Shareholder Funding, Management
Proceeds Funding, Subordinated Obligations or Note Guarantor Subordinated
Obligations made by exchange (including any such exchange pursuant to the
exercise of a conversion right or privilege in connection with which cash is
paid in lieu of the issuance of fractional shares) for, or out of the proceeds
of the substantially concurrent sale of, Capital Stock of the Company (other
than Disqualified Stock), Subordinated Shareholder Funding or Management
Proceeds Funding or a substantially 

 

69

 

concurrent capital
contribution to the Company; provided,
however, that (a) such purchase, repurchase, redemption, defeasance,
acquisition or retirement will be excluded in subsequent calculations of the
amount of Restricted Payments and (b) to the extent so applied, the Net Cash
Proceeds or Fair Market Value of property or assets from such sale of Capital
Stock, Subordinated Shareholder Funding or Management Proceeds Funding will be
excluded from Section 4.4(a)(C)(ii);

 

(2) any purchase,
repurchase, redemption, defeasance or other acquisition or retirement of
Subordinated Obligations or Note Guarantor Subordinated Obligations made by
exchange for, or out of the proceeds of the substantially concurrent sale of,
Refinancing Indebtedness permitted to be Incurred pursuant to Section 4.3;
provided, however, that such
purchase, repurchase, redemption, defeasance, acquisition or retirement will be
excluded in subsequent calculations of the amount of Restricted Payments;

 

(3) any purchase,
repurchase, redemption, defeasance or other acquisition or retirement of
Disqualified Stock of the Company or a Restricted Subsidiary made by exchange
for or out of the proceeds of the substantially concurrent sale of Disqualified
Stock of the Company or a Restricted Subsidiary, as the case may be, that, in
each case, is permitted to be Incurred pursuant to Section 4.3 and that in
each case constitutes Refinancing Indebtedness; provided, however, that such purchase, repurchase,
redemption, defeasance, acquisition or retirement will be excluded in
subsequent calculations of the amount of Restricted Payments;

 

(4) any purchase,
redemption, repurchase, defeasance or other acquisition or retirement of
Subordinated Obligations or Note Guarantor Subordinated Obligations:

 

(A) from Net Available
Cash to the extent permitted under Section 4.10;

 

(B) to the extent
required by the agreement governing such Subordinated Obligations or Note
Guarantor Subordinated Obligations, following the occurrence of a Change of
Control (or other similar event described therein as a “change of control”), but only if the
Company shall have complied with Section 4.14 and, if required, purchased
all Senior Notes tendered pursuant to the offer to repurchase all the Senior
Notes required thereby, prior to purchasing, redeeming, repurchasing, defeasing
or otherwise acquiring or retiring such Subordinated Obligations or Note
Guarantor Subordinated Obligations; or

 

(C) consisting of
Acquired Indebtedness;

 

provided,
however, that such purchase, redemption, repurchase,
defeasance or other acquisition or retirement will be excluded in subsequent
calculations of the amount of Restricted Payments;

 

(5) dividends paid within
60 days after the date of declaration if at such date of declaration such
dividend would have complied with this provision; provided, however,  

 

70

 

that such
dividends will be included in subsequent calculations of the amount of
Restricted Payments;

 

(6) so long as no Default
or Event of Default has occurred and is continuing, the purchase, repurchase,
redemption, defeasance or other acquisition, cancellation or retirement for
value of Capital Stock of the Company, any Restricted Subsidiary or any Parent
(including any options, warrants or other rights in respect thereof) and loans,
advances, dividends or distributions (or payments in respect of any Management
Proceeds Funding) by the Company to any Parent to permit any Parent to
purchase, repurchase, redeem, defease or otherwise acquire, cancel or retire
for value Capital Stock of the Company, any Restricted Subsidiary or any Parent
(including any options, warrants or other rights in respect thereof), or
payments to purchase, repurchase, redeem, defease or otherwise acquire, cancel
or retire for value Capital Stock of the Company, any Restricted Subsidiary or
any Parent (including any options, warrants or other rights in respect
thereof), in each case from Management Investors, such payments, loans,
advances, dividends or distributions not to exceed an amount (net of repayments
of any such loans or advances) equal to (1) €10 million, plus (2) €5 million
multiplied by the number of calendar years that have commenced since the Issue
Date plus (3) the Net Cash Proceeds received by the Company since the Issue
Date (including, without limitation, through receipt of proceeds from the
issuance or sale of its Capital Stock to a Parent or the incurrence of any
Management Proceeds Funding) from, or as a capital contribution from, the
issuance or sale to Management Investors of Capital Stock (including any
options, warrants or other rights in respect thereof), to the extent such Net
Cash Proceeds are not included in any calculation under
Section 4.4(a)(C)(ii), provided,
however, that the amount of such payments will be included in
subsequent calculations of the amount of Restricted Payments;

 

(7) the declaration and
payment of dividends to holders of any class or series of Disqualified Stock,
or of any Preferred Stock of a Restricted Subsidiary that is not a Note
Guarantor, Incurred in accordance with Section 4.3; provided that the payment of such
dividends will be excluded from the calculation of Restricted Payments;

 

(8) purchases,
repurchases, redemptions, defeasance or other acquisitions or retirements of
Capital Stock deemed to occur upon the exercise of stock options, warrants or
other rights in respect thereof if such Capital Stock represents a portion of
the exercise price thereof; provided,
however, that such purchases, repurchases, redemptions, defeasance
or other acquisitions or retirements will be excluded from subsequent
calculations of the amount of Restricted Payments;

 

(9) dividends, loans,
advances or distributions to any Parent or other payments by the Company or any
Restricted Subsidiary in amounts equal to:

 

(A) the amounts required
for any Parent to pay any Parent Expenses or any Related Taxes;

 

(B) the amounts which
constitute, or are payment in respect of, a surrender of group relief actually
utilized by the Company or any Restricted Subsidiary;

 

71

 

(C) the amounts payable
pursuant to any Tax Sharing Agreement; and

 

(D) amounts constituting
payments satisfying the requirements of Sections 4.11(c)(14) or (15),

 

provided
that such dividends, loans, advances, distributions or other
payments will be excluded from subsequent calculations of the amount of
Restricted Payments;

 

(10) the payment by the
Company of, or loans, advances, dividends or distributions to any Parent to
pay, dividends on the common stock or equity of the Company or any Parent
following a public offering of such common stock or equity, in an amount not to
exceed in any fiscal year 6% of the aggregate gross proceeds received by the
Company in or from such public offering, provided
that  the net amount of
such payments will be included in subsequent calculations of Restricted
Payments;

 

(11) Restricted Payments
(including loans or advances) in an aggregate amount outstanding at any time
not to exceed €75 million (net of repayments of any such loans or advances), provided that  the net amount of such payments will be included in
subsequent calculations of Restricted Payments;

 

(12) payments by the
Company, or loans, advances, dividends or distributions to any Parent to make
payments, to holders of Capital Stock of the Company or any Parent in lieu of
the issuance of fractional shares of such Capital Stock, not to exceed €200,000
in the aggregate outstanding at any time, provided
that the net amount of such payments will be included in subsequent
calculations of Restricted Payments;

 

(13) dividends or other
distributions of Capital Stock, Indebtedness or other securities of
Unrestricted Subsidiaries, provided that such dividends or other distributions
shall be excluded in subsequent calculations of Restricted Payments;

 

(14) Investments in an
aggregate amount outstanding at any time not to exceed the aggregate cash
amount of Excluded Contributions, or consisting of non-cash Excluded
Contributions, or Investments in exchange for or using as consideration
Investments previously made under this Section 4.4(c)(14), provided that the amount of such
Investments shall be excluded from the calculation of Restricted Payments;

 

(15) the Transactions,
including but not limited to any Restricted Payment pursuant to or in
connection with, the Transactions, provided that
the amount of such payments shall be excluded in subsequent calculations of the
amount of Restricted Payments;

 

(16) any payment by way
of loan, advance, dividend, distribution, contribution, or otherwise (i) to any
Parent to permit any Parent to pay a cash dividend on the ESOT Preference
Shares or to make a loan, advance, dividend, distribution, contribution, or
other payment to the ESOT or (ii) to the ESOT, which payments shall not exceed
an amount equal to €3.5 million in the aggregate per year, plus interest in the
form of a notional dividend or distribution that accrues on such amount to the
extent unpaid,

 

72

 

provided
that the net amount of such payments will be included in
subsequent calculations of Restricted Payments; and

 

(17) payment of any Receivables
Fees, provided that the net
amount of such payments will be excluded in subsequent calculations of the
amount of Restricted Payments.

 

The amount of
all Restricted Payments (other than cash) shall be the fair market value on the
date of such Restricted Payment of the asset(s) or securities proposed to be
paid, transferred or issued by the Company or such Restricted Subsidiary, as
the case may be, pursuant to such Restricted Payment. The fair market value of
any cash Restricted Payment shall be its face amount and the fair market value
of any non-cash Restricted Payment shall be determined conclusively by the
Board of Directors of the Company acting in good faith.

 

SECTION 4.5  
Compliance Certificate; Notice of Default.  The Company shall deliver to the Trustee, within 90 days after
the end of each fiscal year, an Officer’s Certificate stating that, to the best
of the signer’s knowledge, no Default occurred during such year and at the date
of such certificate there is no Default which has occurred and is continuing
or, if such signer does know of such Default, the certificate shall describe
its status, with particularity and what action the Company is taking or
proposes to take with respect thereto. 
The Officer’s Certificate shall also notify the Trustee should the
Company elect to change the manner in which it fixes its fiscal year end.  Upon becoming aware of a Default, the
Company also shall deliver to the Trustee, within 30 days thereafter,
written notice of any events of which it is aware which would constitute a
Default, their status and what action the Company is taking or proposes to take
in respect thereof.  The Company shall
also comply with TIA Section 314(a)(4).

 

SECTION 4.6  
Limitation on Liens.  The Company
will not, and will not permit eircom
or any other Note Guarantor to, directly or indirectly, create, Incur or suffer
to exist any Lien (other than Permitted Liens) upon any of its property or
assets (including Capital Stock of Restricted Subsidiaries of the Company),
whether owned on the Issue Date or acquired thereafter, which Lien is securing
any Indebtedness (such Lien, the “Initial
Lien”), unless contemporaneously with the Incurrence of such Initial
Lien effective provision is made to secure the Indebtedness due under this
Indenture and the Senior Notes or, in respect of Liens on any Note Guarantor’s
property or assets, such Note Guarantor’s Note Guarantee, equally and ratably
with (or prior to, in the case of Liens with respect to Subordinated
Obligations or Note Guarantor Subordinated Obligations, as the case may be) the
Indebtedness secured by such Initial Lien for so long as such Indebtedness is
so secured. Any such Lien thereby created in favor of the Senior Notes will be
automatically and unconditionally released and discharged upon (i) the release
and discharge of the Initial Lien to which it relates, or (ii) any sale,
exchange or transfer to any Person other than the Company or any Note Guarantor
of the property or assets secured by such Initial Lien.

 

SECTION 4.7  
Waiver of Stay; Extension or Usury Laws.  The Company covenants (to the extent that it may lawfully do so)
that it shall not at any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay or extension law or any
usury law or other law that would prohibit or forgive the Company from paying
all or any portion of the principal of and/or interest on the Notes as
contemplated herein, wherever enacted, 

 

73

 

now or at any time hereafter in
force, or which may affect the covenants or the performance of this Indenture,
and (to the extent that it may lawfully do so) the Company hereby expressly
waives all benefit or advantage of any such law, and covenants that it will not
hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted,

 

SECTION 4.8  
Limitation on Lines of Business. 
The Company will not, and will not permit any Restricted Subsidiary to,
engage in any business other than the Company Business, except to such extent
as would not be material to the Company and its Restricted Subsidiaries taken
as a whole.

 

SECTION 4.9  
Limitation on Restrictions on Distributions from Restricted Subsidiaries.

 

(a)  The Company will not, and will not permit any Restricted
Subsidiary to, create or otherwise cause or permit to exist or become effective
any consensual encumbrance or consensual restriction on the ability of any
Restricted Subsidiary to:

 

(A) pay dividends or make any other distributions on its Capital Stock
or pay any Indebtedness or other obligations owed to the Company or any
Restricted Subsidiary;

 

(B) make any loans or advances to the Company or any Restricted
Subsidiary; or

 

(C) transfer any of its property or assets to the Company or any
Restricted Subsidiary,

 

provided that (x) the priority of any
Preferred Stock in receiving dividends or liquidating distributions prior to
dividends or liquidating distributions being paid on Common Stock and (y) the
subordination of (including but not limited to, the application of any
standstill requirements to) loans or advances made to the Company or any
Restricted Subsidiary to other Indebtedness Incurred by the Company or any
Restricted Subsidiary, shall not be deemed to constitute such an encumbrance or
restriction.

 

(b)  The provisions of the preceding paragraph will not
prohibit:

 

(1) any encumbrance or restriction pursuant
to any Credit Facility, this Indenture, any Senior Notes, the Senior
Subordinated Indenture, any Senior Subordinated Notes, or any agreement or
instrument in effect at or entered into on the date of this Indenture;

 

(2) any encumbrance or restriction pursuant
to an agreement or instrument of a Person or relating to any Capital Stock or
Indebtedness of a Person, entered into on or before the date on which such
Person was acquired by or merged or consolidated with or into the Company or
any Restricted Subsidiary, or on which such agreement or instrument is assumed
by the Company or any Restricted Subsidiary in connection with an acquisition
of assets (other than Capital Stock or Indebtedness Incurred as consideration
in, or to provide all or any portion of the funds utilized to consummate, the
transaction or series of related transactions pursuant to which such Person
became a Restricted Subsidiary or was acquired by the Company or was merged or
consolidated with or into the Company or any Restricted Subsidiary or in
connection with the transaction) and outstanding on such date, provided that,
for the purposes of this Section 4.9(b)(2), if another Person is the
Successor Company, any Subsidiary thereof or 

 

74

 

agreement or instrument of such Person or any such Subsidiary shall be
deemed acquired or assumed by the Company or any Restricted Subsidiary when
such Person becomes the Successor Company;

 

(3) any encumbrance or
restriction pursuant to an agreement or instrument effecting a refunding,
replacement or refinancing of Indebtedness Incurred pursuant to, or that
otherwise extends, renews, refunds, refinances or replaces, an agreement or
instrument referred to in Sections 4.9(b)(1) or (2) or this
Section 4.9(b)(3) (an “Initial
Agreement”) or contained in any amendment, supplement or other
modification to an agreement referred to in Sections 4.9(b)(1) or (2) or this
Section 4.9(b)(3); provided, however, that
the encumbrances and restrictions with respect to such Restricted Subsidiary
contained in any such agreement or instrument are no less favorable in any
material respect to the holders of the Senior Notes taken as a whole than the
encumbrances and restrictions contained in such agreements and instruments
referred to in Sections 4.9(b)(1) or (2) (as determined in good faith by the
Company);

 

(4) any encumbrance or restriction:

 

(A) that restricts in a
customary manner the subletting, assignment or transfer of any property or
asset that is subject to a lease, license or similar contract, or the
assignment or transfer of any lease, license or other contract;

 

(B) (x) by virtue of any
transfer of, agreement to transfer, option or right with respect to, or Lien
on, any property or assets of the Company or any Restricted Subsidiary or (y)
contained in mortgages, pledges or other security agreements permitted under
this Indenture or securing Indebtedness of the Company or a Restricted
Subsidiary to the extent such encumbrances or restrictions restrict the
transfer of the property or assets subject to such mortgages, pledges or other
security agreements; or

 

(C) pursuant to customary
provisions restricting dispositions of real property interests set forth in any
reciprocal easement agreements of the Company or any Restricted Subsidiary;

 

(5) any encumbrance or
restriction pursuant to (a) Purchase Money Obligations and (b) Capitalized
Lease Obligations permitted under this Indenture, in each case, that impose
encumbrances or restrictions on the property or assets so acquired;

 

(6) any encumbrance or
restriction with respect to a Restricted Subsidiary (or any of its property or
assets) imposed pursuant to an agreement entered into for the direct or
indirect sale or disposition to a Person of all or substantially all the
Capital Stock or assets of such Restricted Subsidiary (or the property or
assets that are subject to such restriction) pending the closing of such sale
or disposition;

 

(7) customary provisions
in leases, joint venture agreements and other agreements and instruments
entered into in the ordinary course of business;

 

75

 

(8) encumbrances or
restrictions arising or existing by reason of applicable law or any applicable
rule, regulation or order, or required by any regulatory authority;

 

(9) any encumbrance or
restriction on cash or other deposits or net worth imposed by customers under
agreements entered into in the ordinary course of business;

 

(10) any encumbrance or
restriction that arises or is agreed to in the ordinary course of business and
does not detract from the value of property or assets of the Company or any
Restricted Subsidiary in any manner material to the Company or such Restricted
Subsidiary;

 

(11) any encumbrance or
restriction pursuant to Currency Agreements, Interest Rate Agreements or
Commodity Hedging Agreements; or

 

(12) any encumbrance or
restriction arising pursuant to an agreement or instrument (a) relating to any
Indebtedness permitted to be Incurred subsequent to the Issue Date pursuant to
Section 4.3, (i) if the encumbrances and restrictions contained in any
such agreement or instrument taken as a whole are not materially less favorable
to the Holders of the Senior Notes than the encumbrances and restrictions
contained in the Initial Agreements (as determined in good faith by the Company),
or (ii) if such encumbrance or restriction is not materially more
disadvantageous to the Holders of the Senior Notes than is customary in
comparable financings (as determined in good faith by the Company) and either
(x) the Company determines that such encumbrance or restriction will not
materially affect the Company’s ability to make principal or interest payments
on the Senior Notes as and when they come due or (y) such encumbrance or
restriction applies only if a default occurs in respect of a payment or
financial covenant relating to such Indebtedness, or (b) relating to any
working capital Indebtedness or sale of receivables by a Foreign Subsidiary or
to Indebtedness of or a Financing Disposition to or by any Receivables Entity.

 

SECTION 4.10  
Limitation on Sales of Assets and Subsidiary Stock

 

(a)  The
Company will not, and will not permit any of its Restricted Subsidiaries to,
make any Asset Disposition unless:

 

(1) the Company or such
Restricted Subsidiary, as the case may be, receives consideration (including by
way of relief from, or by any other Person assuming responsibility for, any
liabilities, contingent or otherwise) at least equal to the fair market value
(such fair market value to be determined on the date of contractually agreeing
to such Asset Disposition), as determined in good faith by the Board of
Directors of the Company whose determination shall be conclusive (including as
to the value of all non-cash consideration), of the shares and assets subject
to such Asset Disposition;

 

(2) in the case of any
Asset Disposition (or series of related Asset Dispositions) and unless the
Asset Disposition is a Permitted Asset Swap, at least 75% of the consideration
from such Asset Disposition (excluding any consideration by way of relief from,
or by any other Person assuming responsibility for, any liabilities, contingent
or 

 

76

 

otherwise, other
than Indebtedness) received by the Company or such Restricted Subsidiary, as
the case may be, is in the form of cash, Cash Equivalents or Temporary Cash
Investments; and

 

(3) an amount equal to
100% of the Net Available Cash from such Asset Disposition is applied by the
Company or such Restricted Subsidiary, as the case may be:

 

(A) to the extent the
Company or any Restricted Subsidiary, as the case may be, elects (or is
required by the terms of any Senior Indebtedness or Indebtedness of a
Restricted Subsidiary), to prepay, repay or purchase Senior Indebtedness or
Indebtedness of a Restricted Subsidiary (other than any Disqualified Stock or
Note Guarantor Subordinated Obligations) (in each case other than Indebtedness
owed to the Company or a Restricted Subsidiary) within 365 days from the later
of the date of such Asset Disposition and the receipt of such Net Available
Cash; provided, however, that, in
connection with any prepayment, repayment or purchase of Indebtedness pursuant
to this Section 4.10(a)(3)(A), the Company or such Restricted Subsidiary
will retire such Indebtedness and will cause the related commitment (if any) to
be permanently reduced in an amount equal to the principal amount so prepaid,
repaid or purchased; or

 

(B) to the extent the
Company or such Restricted Subsidiary elects, to invest in or commit to invest
in Additional Assets (including by means of an investment in Additional Assets
by a Restricted Subsidiary with Net Available Cash received by the Company or
another Restricted Subsidiary) within 365 days from the later of (x) the date
of such Asset Disposition and (y) the receipt of such Net Available Cash; provided, however, that any such
reinvestment in Additional Assets made pursuant to a definitive agreement or a
commitment approved by the Board of Directors of the Company that is executed
or approved within such time will satisfy this requirement, so long as such
investment is consummated within 6 months of such 365th day; provided that, pending the final
application of any such Net Available Cash in accordance with clause (A) or
clause (B) above, the Company and its Restricted Subsidiaries may temporarily
reduce Indebtedness or otherwise invest such Net Available Cash in any manner
not prohibited by this Indenture.

 

(b)  Any Net Available Cash from Asset Dispositions that is
not applied or invested or committed to be applied or invested as provided in
the preceding paragraph will be deemed to constitute “Excess Proceeds.”  On the 366th day after an Asset Disposition,
if the aggregate amount of Excess Proceeds exceeds €20 million, the Company
will be required to make an offer (“Asset
Disposition Offer”) to all holders of Senior Notes and, to the
extent the Company elects, to all holders of other Senior Indebtedness
outstanding requiring the Company to make an offer to purchase such Senior
Indebtedness with the proceeds from any Asset Disposition (“Pari Passu Senior Notes”), to purchase the
maximum principal amount of Senior Notes and any such Pari Passu Senior Notes
to which the Asset Disposition Offer applies that may be purchased out of the
Excess Proceeds, at an offer price in cash in an amount equal to 100% of the
principal amount of the Senior Notes and Pari Passu Senior Notes plus accrued
and unpaid interest and 

 

77

 

Additional
Amounts, if any, to the date of purchase, in accordance with the procedures set
forth in this Indenture or the agreements governing the Pari Passu Senior
Notes, as applicable, in each case in integral multiples of €1,000 in the case
of Senior Euro Notes or $1,000 in the case of Senior Dollar Notes.

 

(c)  To the extent that the aggregate amount of Senior Notes
and Pari Passu Senior Notes so validly tendered and not properly withdrawn
pursuant to an Asset Disposition Offer is less than the Excess Proceeds, the
Company may use any remaining Excess Proceeds for general corporate purposes,
subject to other covenants contained in this Indenture. If the aggregate
principal amount of the Senior Notes surrendered in any Asset Disposition Offer
by holders thereof and other Pari Passu Senior Notes surrendered by holders or
lenders, collectively, exceeds the amount of Excess Proceeds, the Excess
Proceeds shall be allocated among the Senior Notes and Pari Passu Senior Notes
to be purchased on a pro rata basis on the basis of the aggregate principal
amount of tendered Senior Notes and Pari Passu Senior Notes. For the purposes
of calculating the principal amount of any such Indebtedness not denominated in
euro, such Indebtedness shall be calculated by converting any such principal
amounts into their Euro Equivalent determined as of a date selected by the
Company that is within the Asset Disposition Offer Period. Upon completion of any
Asset Disposition Offer, the amount of Excess Proceeds shall be reset at zero.

 

(d)  Any Net Available Cash payable in respect of the Senior
Notes pursuant to this Section 4.10 will be apportioned between the Senior
Dollar Notes and the Senior Euro Notes in proportion to the respective
aggregate principal amounts of Senior Dollar Notes and Senior Euro Notes
validly tendered and not withdrawn, based upon the Euro Equivalent of such
principal amount of Senior Dollar Notes determined as of a date selected by the
Company that is within the Asset Disposition Offer Period. To the extent that
any portion of Net Available Cash payable in respect of the Senior Notes is
denominated in a currency other than the currency in which the relevant Senior
Notes are denominated, the amount thereof payable in respect of such Senior
Notes shall not exceed the net amount of funds in the currency in which such
Senior Notes are denominated that is actually received by the Company upon
converting such portion into such currency.

 

(e)  The Asset Disposition Offer, in so far as it relates to
the Senior Notes, will remain open for a period of 20 Business Days following
its commencement, except to the extent that a longer period is required by
applicable law (the “Asset Disposition Offer
Period”). No later than five Business Days after the termination of
the Asset Disposition Offer Period (the “Asset
Disposition Purchase Date”), the Company will purchase the principal
amount of Senior Notes and, to the extent it elects, Pari Passu Senior Notes
required to be purchased by it pursuant to this Section 4.10 (the “Asset Disposition Offer Amount”) or, if
less than the Asset Disposition Offer Amount has been so validly tendered, all
Senior Notes and, to the extent it elects, Pari Passu Senior Notes validly
tendered in response to the Asset Disposition Offer.

 

(f)  In the case of certificated Senior Notes, if the Asset
Disposition Purchase Date is on or after an interest record date and on or
before the related interest payment date, any accrued and unpaid interest will
be paid to the Person in whose name a Senior Note is registered at the close of
business on such record date, and no additional interest will be payable to
holders who tender Senior Notes pursuant to the Asset Disposition Offer. In the
case of global bearer Senior 

 

78

 

Notes, the
Company will pay accrued and unpaid interest to the Change of Control Payment
Date to the Holders on such date.

 

(g)  On or before the Asset Disposition Purchase Date, the
Company will, to the extent lawful, accept for payment, on a pro rata basis to the extent necessary,
the Asset Disposition Offer Amount of Senior Notes and, to the extent it
elects, Pari Passu Senior Notes or portions of Senior Notes and, to the extent
it elects, Pari Passu Senior Notes so validly tendered and not properly
withdrawn pursuant to the Asset Disposition Offer, or if less than the Asset
Disposition Offer Amount has been validly tendered and not properly withdrawn,
all Senior Notes and Pari Passu Senior Notes so validly tendered and not
properly withdrawn, in each case in integral multiples of €1,000 or $1,000, as
the case may be. The Company will deliver to the Senior Trustee an Officer’s
Certificate stating that such Senior Notes or portions thereof were accepted
for payment by the Company in accordance with the terms of this
Section 4.10. The Company or the Paying Agent, as the case may be, will
promptly (but in any case not later than five Business Days after termination
of the Asset Disposition Offer Period) mail or deliver to each tendering holder
of Senior Notes an amount equal to the purchase price of the Senior Notes so
validly tendered and not properly withdrawn by such holder or lender, as the
case may be, and accepted by the Company for purchase, and the Company will
promptly issue a new Senior Note, and the Senior Trustee, upon delivery of an
Officer’s Certificate from the Company will authenticate and mail or deliver
(or cause to be transferred by book entry) such new Senior Note to such holder,
in a principal amount equal to any unpurchased portion of the Senior Note
surrendered; provided that each such new Senior Note will be in a principal
amount of €1,000 in the case of Senior Euro Notes or $1,000 in the case of
Senior Dollar Notes, or an integral multiple of €1,000 or $1,000, as the case
may be. Any Senior Note not so accepted will be promptly mailed or delivered
(or transferred by book entry) by the Company to the holder thereof.

 

(h)  For the purposes of Section 4.10(a)(2), the
following will be deemed to be cash:

 

(1) the assumption by the
transferee of Indebtedness of the Company (other than Disqualified Stock or
Subordinated Obligations of the Company) or Indebtedness of a Restricted
Subsidiary (other than Note Guarantor Subordinated Obligations) and the release
of the Company or such Restricted Subsidiary from all liability on the
principal amount of such Indebtedness in connection with such Asset
Disposition;

 

(2) securities, notes or
other obligations received by the Company or any Restricted Subsidiary of the
Company from the transferee that are promptly converted by the Company or such
Restricted Subsidiary into cash;

 

(3) Indebtedness of any
Restricted Subsidiary that is no longer a Restricted Subsidiary as a result of
such Asset Disposition, to the extent that the Company and each other
Restricted Subsidiary are released from any Guarantee of payment of the
principal amount of such Indebtedness in connection with such Asset
Disposition;

 

(4) consideration consisting
of Indebtedness of the Company or any Restricted Subsidiary; and

 

79

 

(5) any Designated
Non-Cash Consideration received by the Company or any Restricted Subsidiary in
such Asset Dispositions having an aggregate fair market value, taken together
with all other Designated Non-Cash Consideration received pursuant to this
Section 4.10 that is at that time outstanding, not to exceed 10% of Total
Assets at the time of the receipt of such Designated Non-Cash Consideration
(with the fair market value of each item of Designated Non-Cash Consideration
being measured at the time received and without giving effect to subsequent
changes in value).

 

(i)  The Company will comply, to the extent applicable, with
the requirements of Section 10(e) of the Exchange Act and any other
securities laws or regulations in connection with the repurchase of Senior
Notes pursuant to this Indenture. To the extent that the provisions of any
securities laws or regulations conflict with provisions of this
Section 4.10, the Company will comply with the applicable securities laws
and regulations and will not be deemed to have breached its obligations under
this Indenture by virtue of any conflict.

 

SECTION 4.11  
Limitation on Affiliate Transactions. 
(a)  The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, enter into or conduct any
transaction (including the purchase, sale, lease or exchange of any property or
the rendering of any service) with any Affiliate of the Company (an “Affiliate Transaction”) unless:

 

(1) the terms of such
Affiliate Transaction taken as a whole are not materially less favorable to the
Company or such Restricted Subsidiary, as the case may be, than those that
could be obtained in a comparable transaction at the time of such transaction
in arm’s-length dealings with a Person who is not such an Affiliate;

 

(2) in the event such
Affiliate Transaction involves an aggregate consideration in excess of €10
million, the terms of such transaction have been approved by a majority of the
members of the Board of Directors; and

 

(3) in the event such
Affiliate Transaction involves an aggregate consideration in excess of €20
million, the Company has received a written opinion (a “Fairness Opinion”) from an independent
investment banking, accounting or appraisal firm of internationally recognized
standing (as determined by the Company in good faith) that such Affiliate
Transaction is fair, from a financial standpoint, to the Company and its
Restricted Subsidiaries or is not materially less favorable than those that
might reasonably have been obtained in a comparable transaction at such time on
an arm’s-length basis from a Person that is not an Affiliate.

 

(b)  Any Affiliate Transaction shall be deemed to have
satisfied the requirements set forth in Section 4.11(a)(2) if (x) such
Affiliate Transaction is approved by a majority of the Disinterested Directors
or (y) in the event that there are no such directors, a Fairness Opinion is
provided with respect to such Affiliate Transaction.

 

(c)  The provisions of the preceding paragraph will not apply
to:

 

80

 

(1) any Restricted
Payment permitted to be made pursuant to Section 4.4 hereof, any Permitted
Payment, any Permitted Investment or any transaction specifically excluded from
the definition of the term “Restricted Payment;”

 

(2) any issuance or sale
of Capital Stock, options, other equity-related interests or other securities,
or other payments, awards or grants in cash, securities or otherwise pursuant
to, or the funding of, or entering into, or maintenance of, any employment,
consulting, collective bargaining, or benefit plan, program, agreement or arrangement,
related trust or other similar agreement and other compensation arrangements,
options, warrants or other rights to purchase Capital Stock of the Company or
any Parent, restricted stock plans, long-term incentive plans, stock
appreciation rights plans, participation plans or similar employee benefits or
consultants’ plans (including, without limitation, valuation, health,
insurance, deferred compensation, severance, retirement, savings or similar
plans, programs or arrangements) and/or indemnities provided on behalf of
officers, employees or directors or consultants approved by the Board of
Directors of the Company, in each case in the ordinary course of business;

 

(3) any Management
Advances and any Management Proceeds Funding and any payments in respect
thereof;

 

(4) any transaction with
the Company, any Restricted Subsidiary or any Receivables Entity;

 

(5) the payment of
reasonable fees and reimbursement of expenses to, and indemnities provided on
behalf of, directors, officers or employees of the Company, any Restricted
Subsidiary of the Company or any Parent (whether directly or indirectly and
including through any Person owned or controlled by any of such directors,
officers or employees);

 

(6) the entry into and
performance of obligations of the Company or any of its Restricted Subsidiaries
under the terms of, any transaction arising out of and any payments pursuant
to, any agreement or instrument in effect as of or on the Issue Date, as these
agreements and instruments may be amended, modified, supplemented, extended,
renewed or refinanced from time to time in accordance with the other terms of
this Section 4.11;

 

(7) any transaction with
an officer or director in the ordinary course of business not involving more
than €100,000 in any one case;

 

(8) execution, delivery
and performance of any Tax Sharing Agreement;

 

(9) the Transactions, all
transactions in connection therewith (including but not limited to the
financing thereof), and all fees or expenses paid or payable in connection with
the Transactions;

 

(10) transactions with
customers, clients, suppliers or purchasers or sellers of goods or services, in
each case in the ordinary course of business and otherwise in compliance with
the terms of this Indenture, which are fair to the Company or the 

 

81

 

relevant
Restricted Subsidiary in the reasonable determination of the Board of Directors
of the Company or the senior management of the Company or the relevant
Restricted Subsidiary, as applicable, or are on terms no less favorable than
those that could reasonably have been obtained at such time from an
unaffiliated party;

 

(11) any transaction in
the ordinary course of business between the Company or any Restricted
Subsidiary and any Affiliate of the Company controlled by the Company that is
an Unrestricted Subsidiary or a joint venture or similar entity;

 

(12) any surrender of
group relief or payment in respect thereof;

 

(13) issuances or sales
of Capital Stock (other than Disqualified Stock) of the Company or options,
warrants or other rights to acquire such Capital Stock;

 

(14) payments by the
Company or any Restricted Subsidiary to any Permitted Holder (whether directly
or indirectly, including without limitation through any Parent) for financial
advisory, financing, underwriting or placement services or in respect of other
investment banking activities, including without limitation in connection with
acquisitions or divestitures, which payments satisfy the requirements of
Section 4.11(a)(1) and are approved by a majority of the Disinterested
Directors; and

 

(15) payment to any
Permitted Holder of all reasonable out of pocket expenses incurred by any
Permitted Holder in connection with its direct or indirect investment in the
Company and its Subsidiaries.

 

SECTION 4.12  
Reports.  Notwithstanding that
the Company may not be subject to the reporting requirements of Section 13
or Section 15(d) of the Exchange Act, for so long as any Senior Notes are
outstanding, the Company will provide to the Senior Trustee:

 

(1) within 120 days after
the end of the Company’s fiscal year, information substantially identical to
that which would be required to be included in an Annual Report on Form 20-F
(as in effect on June 30, 2002) by a foreign private issuer subject to the
Exchange Act, including all annual financial information that would be required
by Form 20-F if the Company were required to prepare and file such form,
including an “Operating and Financial Review and Prospects” section, a
“Business Description” section and a “Management and Shareholders”
section, and, in relation to the annual financial statements therein only,
which will be prepared in accordance with GAAP, a report thereon by the
Company’s independent auditors, which will be prepared in accordance with Irish
auditing standards; provided that
the Company shall not be required to include: (A) any reconciliation of any
line items to US GAAP nor any other US GAAP disclosures nor any audit under US
generally accepting auditing standards; (B) any segment data other than net
sales by geographic segments; (C) the disclosures required by Item 11 of such
form; (D) the exhibits required by such form; or (E) separate financial
statements for any of its affiliates, even if such statements would be required
to be included on Form 20-F pursuant to a rule or rules under Regulation S-X,
as promulgated by the SEC; provided further that
the Company shall not be required to provide such information with respect to
the fiscal year ended March 31, 2003;

 

82

 

(2) within 60 days after
the end of each of the first three fiscal quarters in each fiscal year of the
Company, beginning with the fiscal quarter ended June 30, 2003, all
quarterly financial statements of the Company (but in GAAP) that would be
required by Form 10-Q (as in effect on June 30, 2003) if the Company were
required to prepare and file such form, including a financial review consisting
of a discussion of (A) the financial condition and results of operations of the
Company and material changes between the current quarterly period and the
quarterly period of the prior year, (B) material developments in the business
of the Company and (C) financial developments and trends in the business in
which the Company is engaged; and

 

(3) the following
information that would be required to be filed with the SEC in current reports
on Form 8-K (as in effect on June 30, 2003) if the Company were required
to file such reports: all the information set forth in Items (1), (2), (3), (4)
and (5) of Form 8-K; and with respect to Item (7), an unaudited pro forma
balance sheet as of a recent date of the Company giving effect to the acquired
business and an unaudited pro forma income statement (which income statement
shall be deemed to suffice so long as it (together with any supplemental
information provided therewith) permits the calculation of earnings before
interest, taxes, depreciation and amortization (EBITDA) derived from accounting
data prepared under GAAP) for the fiscal year recently ended and for the most
recent quarter of the Company giving effect to the acquired business, in each
case, all such information above to be provided within the time periods
applicable to each item in Form 8-K and the general instructions thereof.

 

(b)  Substantially concurrently with the issuance to the
Senior Trustee of the reports specified in Sections 4.12(a)(1) and (2), the
Company shall also (1) use its commercially reasonable efforts (i) to post
copies of such reports on such website as may be then maintained by the Company
and its subsidiaries or (ii) otherwise to provide substantially comparable
public availability of such reports (as determined by the Company in good
faith) or (2) to the extent the Company determines in good faith that it cannot
make such reports available in the manner described in the preceding clause (1)
after the use of its commercially reasonable efforts, furnish such reports to
the Holders and prospective purchasers of the Senior Notes, upon their request.

 

(c)  In the event the Company becomes an SEC registrant and
subject to the reporting requirements of Section 13(a) or 15(d) of the
Exchange Act, or elects to comply with such provisions, the Company will, for
so long as it continues to file the reports required by Section 13(a) with
the SEC, make available to the Trustee the annual reports, information,
documents and other reports that the Company is, or would be, required to file
with the SEC pursuant to such Section 13(a) or 15(d). Upon complying with
the foregoing requirement, the Company will be deemed to have complied with
Sections 4.12(a) and (b).

 

(d)  In addition, so long as the Senior Notes remain
outstanding and during any period during which the Company is not subject to
Section 13 or 15(d) of the Exchange Act nor exempt therefrom pursuant to
Rule 12g3-2(b), the Company shall furnish to the Holders and prospective
purchasers of the Senior Notes, upon their request, the information required to
be delivered pursuant to Rule 144A(d)(4) under the Securities Act.

 

83

 

(e)  For so long as the Senior Notes are listed on the
Luxembourg Stock Exchange or the Irish Stock Exchange and to the extent that
the rules of such Stock Exchange require, the above information will also be
made available in Luxembourg through the offices of the Paying Agent in
Luxembourg or in Ireland through the offices of the Company, as the case may
be.

 

(f)  Delivery of such reports, information and documents to
the Trustee is for informational purposes only and the Trustee’s receipt of
such shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officer’s Certificates).

 

SECTION 4.13  
Fall-Away of Covenants on Achievement of Investment Grade Status

 

If, at
any time after the Issue Date, the Senior Notes achieve Investment Grade
Status, then Sections 4.3, 4.4, 4.9, 4.10, 4.11, 4.14, 5.1(a)(3) and any
related default provisions of this Indenture (including, without limitation,
those set out in Section 6.1(4) and 6.1(5) to the extent that they apply
to such covenants) will cease to be effective and will not be applicable to the
Company and its Restricted Subsidiaries.

 

SECTION 4.14  
Change of Control  

 

(a)  If a Change of Control occurs, subject to the terms of
this Section 4.14, each holder will have the right to require the Company
to repurchase all of such holder’s Senior Notes at a purchase price in cash
equal to 101% of the principal amount of the Senior Notes plus accrued and
unpaid interest and Additional Amounts, if any, to the date of purchase
(subject, in the case of Definitive Notes, to the right of holders of record on
the relevant record date to receive interest due on the relevant interest
payment date); provided, however, that
the Company shall not be obliged to repurchase Senior Notes pursuant to this
Section 4.14(a) in the event that the Company has unconditionally
exercised its right to redeem all of the Senior Notes in compliance with this
Indenture and the Notes or all conditions to such redemption have been
satisfied or waived.

 

(b)  Unless the Company has unconditionally exercised its right
to redeem all the Senior Notes in compliance with this Indenture and the Notes
or all conditions to such redemption have been satisfied or waived, no later
than the date that is 30 days after any Change of Control, the Company will
mail a notice (the “Change of Control Offer”)
to each holder, with a copy to the Senior Trustee (and, if the Senior Notes are
at that time listed on the Luxembourg Stock Exchange or the Irish Stock
Exchange, to such Stock Exchange), stating:

 

(1) that a Change of
Control has occurred or may occur and that such holder has the right to require
the Company to purchase such holder’s Senior Notes at a purchase price in cash
equal to 101% of the principal amount of such Senior Notes plus accrued and
unpaid interest and Additional Amounts, if any, to the date of purchase (in the
case of Definitive Notes, subject to the right of holders of record on a record
date to receive interest on the relevant interest payment date) (the “Change of Control Payment”);

 

84

 

(2) the repurchase date
(which shall be no earlier than 30 days nor later than 60 days from the date
such notice is mailed) (the “Change of
Control Payment Date”);

 

(3) the procedures
determined by the Company, consistent with this Indenture, that a holder must
follow in order to have its Senior Notes repurchased; and

 

(4) if such notice is
mailed prior to the occurrence of a Change of Control, that the Change of
Control Offer is conditional on the occurrence of such Change of Control.

 

(c)  On the Change of Control Payment Date, if the Change of
Control shall have occurred, the Company will, to the extent lawful:

 

(1) accept for payment
all Senior Notes properly tendered pursuant to the Change of Control Offer;

 

(2) deposit with the
Paying Agent an amount equal to the Change of Control Payment in respect of all
Senior Notes so tendered; and

 

(3) deliver or cause to
be delivered to the Senior Trustee the Senior Notes so accepted together with
an Officer’s Certificate stating the aggregate principal amount of the Senior
Notes or portions of Senior Notes being purchased by the Company.

 

(d)  The Paying Agent will promptly mail to each holder of
Senior Notes so tendered the Change of Control Payment for such Senior Notes,
and the Senior Trustee will promptly authenticate and mail (or cause to be
transferred by book entry) to each holder a new Senior Note equal in principal
amount to any unpurchased portion of the Senior Notes surrendered, if any;
provided that each such new Senior Note will be in a principal amount of €1,000
(in the case of Euro Notes) or $1,000 (in the case of Dollar Notes), as the
case may be, or an integral multiple thereof.

 

(e)  If and for so long as the Senior Notes are listed on the
Luxembourg Stock Exchange and the rules of such exchange so require, the
Company will publish such public announcement in Luxembourg in a daily
newspaper with general circulation in Luxembourg (which is expected to be the Luxemburger Wort) and for so long as the
Senior Notes are listed on the Irish Stock Exchange and the rules of such
exchange so require, procure the deliver of such announcement to the Companies
Announcements Office of the Irish Stock Exchange.  In the case of Definitive Notes, if the Change of Control Payment
Date is on or after an interest record date and on or before the related
interest payment date, any accrued and unpaid interest and Additional Amounts,
if any, will be paid to the Person in whose name a Senior Note is registered at
the close of business on such record date, and no additional interest will be
payable to holders who tender pursuant to the Change of Control Offer. In the
case of Global Notes, the Company will pay accrued and unpaid interest and
Additional Amounts, if any, to the Change of Control Payment Date to the
Holders on such date.

 

(f)  The Change of Control provisions described above will be
applicable whether or not any other provisions of this Indenture are
applicable. Except as described above with respect to a Change of Control, this
Indenture does not contain provisions that permit the holders to require 

 

85

 

that the
Company repurchase or redeem the Senior Notes in the event of a takeover,
recapitalization or similar transaction.

 

(g)  The Company will not be required to make a Change of
Control Offer upon a Change of Control if a third party makes the Change of
Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Indenture applicable to a Change of Control
Offer made by the Company and purchases all Senior Notes validly tendered and
not withdrawn under such Change of Control Offer.

 

(h)  The Company will comply, to the extent applicable, with
the requirements of Section 14(e) of the Exchange Act and any other
securities laws or regulations in connection with the repurchase of Senior
Notes pursuant to this Section 4.14. To the extent that the provisions of
any securities laws or regulations conflict with provisions of this Indenture,
the Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under the Change of Control
provisions of this Indenture by virtue of the conflict.

 

SECTION 4.15  
Additional Amounts.  All payments
made by the Company, any Note Guarantor or a successor of any of the foregoing
(each a “Payor”) on the Senior Notes will be made without withholding or
deduction for, or on account of, any present or future taxes, duties,
assessments or governmental charges of whatever nature (“Taxes”) unless the withholding or
deduction of such Taxes is then required by law. If any deduction or
withholding for, or on account of, any Taxes imposed or levied by or on behalf
of:

 

(1) Ireland or any
political subdivision or governmental authority thereof or therein having power
to tax;

 

(2) any jurisdiction from
or through which payment on the Senior Notes, the Senior Notes eircom Guarantee or any Additional Note
Guarantee is made, or any political subdivision or governmental authority
thereof or therein having the power to tax; or

 

(3) any other
jurisdiction in which the Payor is organized or otherwise considered to be a
resident for tax purposes, or any political subdivision or governmental
authority thereof or therein having the power to tax (each of Sections
4.15(a)(1), (2) and (3), a “Relevant Taxing
Jurisdiction”),

 

will at any time be required from any payments made
with respect to the Notes, including payments of principal, redemption price,
interest or premium, if any, the Payor will pay (together with such payments)
such additional amounts (the “Additional
Amounts”) as may be necessary in order that the net amounts received
in respect of such payments by the Holders of the Senior Notes or the Senior
Trustee, as the case may be, after such withholding or deduction (including any
such deduction or withholding from such Additional Amounts), equal the amounts
which would have been received in respect of such payments on the Senior Notes
in the absence of such withholding or deduction; provided, however, that no such Additional Amounts will be
payable with respect to:

 

86

 

(1) any Taxes that would
not have been so imposed but for the existence of any present or former
connection between the relevant holder (or between a fiduciary, settlor,
beneficiary, member or shareholder of, or possessor of power over the relevant
holder, if the relevant holder is an estate, nominee, trust or corporation) and
the Relevant Taxing Jurisdiction (including being a citizen or resident or
national of, or carrying on a business or maintaining a permanent establishment
in, or being physically present in, the Relevant Taxing Jurisdiction) other
than by the mere ownership or holding of such Senior Note or the receipt of
payments in respect thereof;

 

(2) any Taxes that would
not have been so imposed if (i) the holder of the Senior Note had made a
declaration of non-residence or any other claim or filing for exemption to
which it is entitled (provided that
(x) such declaration of non-residence or other claim or filing for exemption is
required by the applicable law of the Relevant Taxing Jurisdiction as a
precondition to exemption from the requirement to deduct or withhold all or a
part of any such Taxes and (y) at least 30 days prior to the first payment date
with respect to which such declaration of non-residence or other claim or
filing for exemption is required under the applicable law of the Relevant
Taxing Jurisdiction, the relevant holder at that time has been notified (in
accordance with the procedures set forth in Section 3.4) by the Payor or
any other person through whom payment may be made that a declaration of
non-residence or other claim or filing for exemption is required to be made),
or (ii) in the case of Taxes imposed by or on behalf of Ireland or any
political subdivision or governmental authority thereof or therein having the
power to tax (each of the foregoing an “Irish
Taxing Jurisdiction”), the holder of the Senior Note had provided
such other evidence as is reasonably necessary to enable the Payor or any other
person through whom payment may be made to determine the residence of the
holder (provided that (x) such
determination of residence is necessary under the applicable laws of the Irish
Taxing Jurisdiction to determine the application of the exemption from the
requirement to deduct or withhold all or a part of any such Taxes and (y) at
least 30 days prior to the first payment date with respect to which such
determination is required under the applicable law of the Irish Taxing
Jurisdiction, the relevant holder at that time has been notified (in accordance
with the procedures set forth in each relevant Note under the caption
“Selection and Notice of Redemption”) by the Payor or any other person through
whom payment may be made that such evidence must be provided);

 

(3) any Senior Note
presented for payment (where presentation is required) more than 30 days after
the relevant payment is first made available for payment to the Holder (except
to the extent that the Holder would have been entitled to Additional Amounts
had the Senior Note been presented during such 30 day period);

 

(4) any Taxes that are
payable otherwise than by withholding from a payment of the principal of,
premium, if any or interest, if any, on the Senior Notes or under any Note
Guarantee;

 

(5) any estate,
inheritance, gift, sale, transfer, personal property or similar tax, assessment
or other governmental charge;

 

87

 

(6) any Taxes imposed on
a payment to an individual and required to be made pursuant to the European
Union Directive (the “Directive”)
on the taxation of savings implemented by the ECOFIN Council meeting of
June 3, 2003 or any law implementing or complying with, or introduced in
order to conform to, such Directive;

 

(7) any Taxes imposed in
connection with a Senior Note presented for payment by or on behalf of a Holder
or beneficial owner who would have been able to avoid such Tax by presenting
the relevant Senior Note to, or otherwise accepting payment from, another
paying agent in a member state of the European Union; or

 

(8) any combination of
the above.

 

Such
Additional Amounts will also not be payable where, had the beneficial owner of
the Senior Note been the Holder of the Senior Note, it would not have been
entitled to payment of Additional Amounts by reason of any of clauses (1) to
(8) inclusive above.

 

(b)  The Payor will (i) make any required withholding or
deduction and (ii) remit the full amount deducted or withheld to the Relevant
Taxing Jurisdiction in accordance with applicable law. The Payor will use all
reasonable efforts to obtain certified copies of tax receipts evidencing the
payment of any Taxes so deducted or withheld from each Relevant Taxing
Jurisdiction imposing such Taxes and will provide such certified copies to the
Senior Trustee.

 

The
Payor will attach to each certified copy a certificate stating (x) that the
amount of withholding Taxes evidenced by the certified copy was paid in connection
with payments in respect of the principal amount of Senior Notes then
outstanding and (y) the amount of such withholding Taxes paid per €1,000
principal amount of the Senior Euro Notes or per $1,000 principal amount of the
Senior Dollar Notes, as the case may be.

 

(c)  If any Payor will be obligated to pay Additional Amounts
under or with respect to the Senior Notes, any Senior Notes eircom Guarantee or any Additional Note
Guarantee, at least 30 days prior to the date of such payment the Payor will
deliver to the Senior Trustee an Officer’s Certificate stating the fact that
such Additional Amounts will be payable, the amounts so payable and will set
forth such other information necessary to enable the Senior Trustee to pay such
Additional Amounts to holders of Senior Notes on the payment date (unless such
obligation to pay Additional Amounts arises less than 45 days prior to the
payment date, in which case the Payor may deliver such Officer’s Certificate as
promptly as practicable after the date that is 30 days prior to the payment
date).

 

(d)  Wherever in this Indenture, the Senior Notes or any Note
Guarantee there are mentioned, in any context:

 

(1) the payment of
principal,

 

(2) purchase prices in
connection with a purchase of Senior Notes,

 

(3) interest, or

 

88

 

(4) any other amount
payable on or with respect to any of the Senior Notes or the Senior Notes eircom Guarantee, such reference shall be
deemed to include payment of Additional Amounts as described under
Section 4.15 to the extent that, in such context, Additional Amounts are,
were or would be payable in respect thereof.

 

(e)  The Payor will pay any present or future stamp, court or
documentary taxes, or any similar taxes, charges or levies which arise in any
jurisdiction from the execution, delivery, registration or enforcement of any
Senior Notes or any other document or instrument referred to therein (other
than a transfer of the Senior Notes) excluding any such taxes, charges or
similar levies imposed by any jurisdiction outside Luxembourg, Ireland, the
United States, the United Kingdom or any jurisdiction in which a Paying Agent
is located. The foregoing obligations will survive any termination, defeasance
or discharge of this Indenture and will apply mutatis
mutandis to any jurisdiction in which any successor to a Payor is
organized or any political subdivision or taxing authority or agency thereof or
therein.

 

SECTION 4.16  
Corporate Existence  

 

Except
as otherwise permitted by Article V, each of the Company and eircom shall do or cause to be done all
things necessary to preserve and keep in full force and effect its respective
corporate existence and the corporate, partnership, limited liability or other
existence of each of them in accordance with the respective organizational
documents (as the same may be amended from time to time) of each such Person
and their rights (charter and statutory).

 

ARTICLE V

 

SUCCESSOR CORPORATION

 

SECTION 5.1  
Consolidation and Merger. 
(a)  The Company will not consolidate with or merge with or
into, or convey, transfer or lease all or substantially all its assets to, any
Person, unless:

 

(1) the resulting,
surviving or transferee Person (the “Successor
Company”) will be a Person organized and existing under the laws of
the Republic of Ireland or any member state of the European Union as of the
Issue Date, or the United States of America, any State of the United States or
the District of Columbia and the Successor Company (if not the Company) will
expressly assume, by supplemental indenture, executed and delivered to the
Senior Trustee, in form reasonably satisfactory to the Senior Trustee, all the
obligations of the Company under the Senior Notes and this Indenture;

 

(2) immediately after
giving effect to such transaction (and treating any Indebtedness that becomes
an obligation of the Successor Company or any Subsidiary of the Successor
Company as a result of such transaction as having been Incurred by the
Successor Company or such Subsidiary at the time of such transaction), no
Default or Event of Default shall have occurred and be continuing;

 

89

 

(3) immediately after
giving effect to such transaction, either (A) the Successor Company would be
able to Incur at least an additional €1.00 of Indebtedness (and if the amount
of Senior Debt of the Successor Company following such transaction is greater
than the Senior Debt of the Company and its Restricted Subsidiaries immediately
prior thereto, €1.00 of additional Senior Debt) pursuant to Section 4.3(a)
or (B) neither the Consolidated Leverage Ratio nor the Consolidated Senior
Leverage Ratio would be greater than it was immediately prior to giving effect
to such transaction;

 

(4) eircom (unless it is the other party to the
transactions above, in which case Section 5.1(a)(1) shall apply) shall
have by supplemental indenture confirmed that its Senior Notes eircom Guarantee shall apply to such
Person’s obligations in respect of this Indenture and the Senior Notes; and

 

(5) the Company shall
have delivered to the Senior Trustee an Officer’s Certificate and an Opinion of
Counsel, each to the effect that such consolidation, merger or transfer and
such supplemental indenture (if any) comply with this Indenture, provided that in giving an Opinion of
Counsel, counsel may rely on an Officer’s Certificate as to any matters of
fact.

 

Any Indebtedness that becomes an obligation of the
Company or any Restricted Subsidiary (or that is deemed to be Incurred by any
Restricted Subsidiary that becomes a Restricted Subsidiary) as a result of any
such transaction undertaken in compliance with this Section 5.1(a), and
any Refinancing Indebtedness with respect thereto, shall be deemed to have been
Incurred in compliance with Section 4.3.

 

(b)  For purposes of this Section 5.1, the sale, lease,
conveyance, assignment, transfer, or other disposition of all or substantially
all of the properties and assets of one or more Subsidiaries of the Company,
which properties and assets, if held by the Company instead of such
Subsidiaries, would constitute all or substantially all of the properties and
assets of the Company on a consolidated basis, shall be deemed to be the
transfer of all or substantially all of the properties and assets of the
Company.

 

(c)  The Successor Company will succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture, but, in the case of a lease of all or substantially all its
assets, the predecessor Company will not be released from its obligation to pay
the principal of and interest on the Senior Notes.

 

(d)  Notwithstanding Sections 5.1(a)(2) and (3) (which do not
apply to transactions referred to in this Section 5.1(d)), (x) any
Restricted Subsidiary of the Company may consolidate with, merge into or
transfer all or part of its properties and assets to the Company, (y) the
Company may merge with or into eircom
and (z) the Company may merge with an Affiliate incorporated or organized for
the purpose of changing the legal domicile of the Company, reincorporating the
Company in another jurisdiction, or changing the legal form of the Company; provided that, in the case of a Restricted
Subsidiary that merges into the Company, the Company will not be required to
comply with Section 5.1(a)(5).

 

90

 

(e)  The Company will not permit eircom to consolidate with or merge with or into any Person
unless:

 

(1) the resulting, surviving or transferee Person (if other than eircom) will be a Wholly-Owned Subsidiary
of the Company (except in the case of a consolidation with or merger of eircom into the Company) organized and
existing under the laws of the Republic of Ireland or any member state of the
European Union as of the date of this Indenture, or the United States of
America, any State of the United States or the District of Columbia and such
Person will expressly assume, by supplemental indenture, executed and delivered
to the Senior Trustee, all the obligations of eircom
under the Senior Notes eircom
Guarantee;

 

(2) immediately after giving effect to such transaction (and treating
any Indebtedness that becomes an obligation of the resulting, surviving or
transferee Person or any Restricted Subsidiary as a result of any such
transaction as having been Incurred by such Person or such Restricted
Subsidiary at the time of such transaction), no Default or Event of Default
shall have occurred and be continuing; and

 

(3) the Company will have delivered to the Senior Trustee an Officer’s
Certificate and an Opinion of Counsel, each to the effect that such
consolidation, merger and transfer and such supplemental indenture (if any)
comply with this Indenture, provided that
in giving an Opinion of Counsel, counsel may rely on an Officer’s Certificate
as to any matters of fact.

 

Notwithstanding
Section 5.1(e)(2) (which does not apply to transactions referred to in
this Section 5.1(e)), in each case if eircom is a Restricted Subsidiary
immediately prior to such transaction, (x) any Restricted Subsidiary of the
Company may consolidate with, merge into or transfer all or part of its
properties and assets to eircom and (y) eircom may merge with an
Affiliate incorporated or organized for the purpose of changing the legal
domicile of eircom,
reincorporating eircom in another jurisdiction, or changing the legal form
of eircom;
provided that, in the case of a
Restricted Subsidiary that merges into eircom, eircom will not be required
to comply with Section 5.1(e)(3).

 

(f)  In the event of an occurrence of any of the events described
in this Article V, the Company will, if the Notes are then listed on the
Luxembourg Stock Exchange and if the rules of such exchange require, inform the
Luxembourg Stock Exchange of the occurrence of such event and provide a
supplement to the Offering Memorandum setting forth reasonable details
concerning the occurrence of such event. 
If and for so long as the Notes are listed on the Luxembourg Stock
Exchange and the rules of such exchange so require, the Company will publish
notice of the occurrence of any of the events described in this Article V
in Luxembourg in a daily newspaper with general circulation in Luxembourg
(which is expected to be the Luxemburger
Wort).

 

(g)  In the event of an occurrence of any of the events
described in this Article V, the Company will, if the Notes are then
listed on the Irish Stock Exchange and if the rules of such exchange require,
inform the Irish Stock Exchange of the occurrence of such event and provide a
supplement to the Offering Memorandum setting forth reasonable details
concerning the 

 

91

 

occurrence of
such event.  If and for so long as the
Notes are listed on the Irish Stock Exchange and the rules of such exchange so
require, the Company will comply with applicable publication requirements of
such exchange.

 

ARTICLE VI

 

DEFAULT AND REMEDIES

 

SECTION 6.1  
Events of Default.  Whenever used
herein with respect to the Notes, “Event of
Default” means any one of the following events which shall have
occurred and be continuing:

 

(1) default in any
payment of interest or Additional Amounts on any Senior Note issued under this
Indenture when due, continued for 30 days;

 

(2) default in the
payment of principal of or premium, if any, on any Senior Note issued under this
Indenture when due at its Stated Maturity, upon optional redemption, upon
required repurchase, upon declaration or otherwise;

 

(3) failure of eircom (or any Successor Company thereof)
to be a Wholly-Owned Subsidiary of the Company, save in a transaction permitted
by Section 5.1 pursuant to which either the Successor Company remains a
Wholly-Owned Subsidiary of the Company or eircom
or any Successor Company of eircom
merges into the Company;

 

(4) failure by the
Company to comply for 30 days after notice by the Senior Trustee or the holders
of 25% in principal amount of the outstanding Senior Notes with any of its
obligations under Section 4.3, 4.4, 4.6, 4.8, 4.9, 4.10, 4.11 or 5.1 (in
each case, other than a failure to purchase Senior Notes which will constitute
an Event of Default under clause (2) above);

 

(5) failure by the
Company to comply for 60 days after notice by the Senior Trustee or the holders
of 25% in principal amount of the outstanding Senior Notes with its other
agreements contained in this Indenture;

 

(6) default under any
mortgage, indenture or instrument under which there may be issued or by which
there may be secured or evidenced any Indebtedness for money borrowed by the
Company or any of its Restricted Subsidiaries (or the payment of which is
guaranteed by the Company or any of its Restricted Subsidiaries), other than
Indebtedness owed to the Company or a Restricted Subsidiary, whether such
Indebtedness or guarantee now exists, or is created after the date of this
Indenture, which default:

 

(a) is caused by a
failure to pay principal of, or interest or premium, if any, on such
Indebtedness prior to the expiration of the grace period provided in such
Indebtedness (“payment default”);
or

 

(b) results in the
acceleration of such Indebtedness prior to its maturity (the “cross acceleration provision”);

 

92

 

and, in each case,
the principal amount of any such Indebtedness, together with the principal
amount of any other such Indebtedness under which there has been a payment
default or the maturity of which has been so accelerated, aggregates €25
million or more;

 

(7) (A) a court having
jurisdiction in the premises enters a decree or order for (i)  appointment
of a receiver, liquidator, assignee, custodian, trustee, examiner,
administrator, sequestration or similar official of the Company or any of its
Significant Subsidiaries or a group of Restricted Subsidiaries that, taken
together (as of the latest audited consolidated financial statements of the Company
and its Restricted Subsidiaries), would constitute a Significant Subsidiary or
for all or substantially all of the property and assets of the Company or any
of its Significant Subsidiaries or a group of Restricted Subsidiaries that,
taken together (as of the latest audited consolidated financial statements of
the Company and its Restricted Subsidiaries), would constitute a Significant
Subsidiary, which appointment remains in effect for a period of 30 consecutive
days, or (ii) the winding up or liquidation of the affairs of the Company
or any of its Significant Subsidiaries or a group of Restricted Subsidiaries
that, taken together (as of the latest audited consolidated financial
statements of the Company and its Restricted Subsidiaries), would constitute a
Significant Subsidiary and, in each case, such decree or order shall remain
unstayed and in effect for a period of 30 consecutive days; or (B)
the Company or any of its Significant Subsidiaries or a group of Restricted
Subsidiaries that, taken together (as of the latest audited consolidated
financial statements of the Company and its Restricted Subsidiaries), would
constitute a Significant Subsidiary (i) commences a voluntary case
(including taking any action for the purpose of winding up) under any applicable
bankruptcy, insolvency, examination, court protection or other similar law now
or hereafter in effect, or consents to the entry of an order for relief in an
involuntary case under any such law, (ii) consents to the appointment of
or taking possession by a receiver, liquidator, assignee, custodian,
trustee, examiner, administrator, sequestration or similar official of the
Company or any of its Significant Subsidiaries or a group of Restricted
Subsidiaries that, taken together (as of the latest audited consolidated
financial statements of the Company and its Restricted Subsidiaries), would
constitute a Significant Subsidiary or for all or substantially all of the
property and assets of the Company or any of its Significant Subsidiaries or a
group of Restricted Subsidiaries that, taken together (as of the latest audited
consolidated financial statements of the Company and its Restricted
Subsidiaries), would constitute a Significant Subsidiary or (iii) effects
any general assignment for the benefit of creditors (the “bankruptcy provisions”);

 

(8) failure by the
Company or any Significant Subsidiary or group of Restricted Subsidiaries that,
taken together (as of the latest audited consolidated financial statements for
the Company and its Restricted Subsidiaries), would constitute a Significant
Subsidiary to pay final judgments aggregating in excess of €25 million
(exclusive of any amounts that a solvent insurance company has acknowledged
liability for), which judgments are not paid, discharged or stayed for a period
of 60 days (the “judgment default provision”);
or

 

(9) save as otherwise
permitted by this Indenture, any Note Guarantee ceases to be in full force and
effect or is declared null and void in a judicial proceeding or any Note
Guarantor denies or disaffirms in writing its obligations under this Indenture
or its Note 

 

93

 

Guarantee, and in
the case of an Additional Note Guarantee such Default (if it is capable of
being cured) continues for 21 days.

 

However,
a default under clause (4) or (5) of this Section 6.1 will not constitute an
Event of Default until the Senior Trustee or the holders of 25% in principal
amount of the outstanding Senior Notes under this Indenture notify the Company
of the default and the Company does not cure such default within the time
specified in clauses (4) and (5) of this paragraph after receipt of such
notice.

 

SECTION 6.2  
Acceleration.  (a)  If
an Event of Default (other than an Event of Default described in clause (7) of
Section 6.1) occurs and is continuing, the Senior Trustee by notice in
writing to the Company or the holders of at least 25% in principal amount of
the outstanding Senior Notes under this Indenture by notice in writing to the
Company and the Senior Trustee, may, and the Senior Trustee at the request of
such holders shall, declare the principal of, premium, if any, and accrued and
unpaid interest and Additional Amounts, if any, on all the Senior Notes under
this Indenture to be due and payable. Upon such a declaration, such principal,
premium and accrued and unpaid interest and Additional Amounts will be due and
payable immediately. In the event of a declaration of acceleration of the
Senior Notes because an Event of Default described in clause (6) of
Section 6.1 has occurred and is continuing, the declaration of
acceleration of the Senior Notes shall be automatically annulled if the event
of default or payment default triggering such Event of Default pursuant to such
clause (6) shall be remedied or cured by the Company or a Restricted Subsidiary
of the Company or waived by the holders of the Indebtedness within 30 days
after the declaration of acceleration with respect thereto and if (1) the
annulment of the acceleration of the Senior Notes would not conflict with any
judgment or decree of a court of competent jurisdiction and (2) all existing
Events of Default, except nonpayment of principal, premium or interest and
Additional Amounts, if any, on the Senior Notes that became due solely because
of the acceleration of the Senior Notes, have been cured or waived.

 

(b)  If an Event of Default described in clause (7) of
Section 6.1 occurs and is continuing, the principal of, premium, if any,
and accrued and unpaid interest and Additional Amounts, if any, on all the
Senior Notes will become and be immediately due and payable without any declaration
or other act on the part of the Senior Trustee or any holders.

 

SECTION 6.3  
Other Remedies.  If an Event of
Default occurs and is continuing, the Trustee may pursue any available remedy
by proceeding at law or in equity to collect the payment of principal of or,
premium, if any, interest, or Additional Amounts, if any, on the Notes or to
enforce the performance of any provision of the Notes or this Indenture.

 

SECTION 6.4  
The Trustee May Enforce Claims Without Possession of Securities.  All rights of action and claims under this
Indenture or the Notes may be prosecuted and enforced by the Trustee without
the possession of any of the Notes or the production thereof in any proceeding
relating thereto.

 

SECTION 6.5  
Rights and Remedies Cumulative. 
Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or wrongfully taken Notes in Section 2.8, no
right or remedy herein conferred upon or reserved to the Trustee or to the 

 

94

 

Holders of Notes is intended to
be exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent or subsequent assertion or employment of any other appropriate right
or remedy.

 

SECTION 6.6  
Delay or Omission Not Waiver.  No
delay or omission of the Trustee or of any Holder of any Note to exercise any
right or remedy accruing upon any Event of Default shall impair any such right
or remedy or constitute a waiver of any such Event of Default or an acquiescence
therein.  Every right and remedy given
by this Article or by law to the Trustee or to the Holders of Notes may be
exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders of Notes.

 

SECTION 6.7  
Waiver of Past Defaults.  Subject
to Sections 6.10 and 9.2, at any time after a declaration of acceleration with
respect to the Notes as described in Section 6.2, the Holders of at least
a majority in principal amount of the outstanding Notes by written notice
to the Trustee, may, on behalf of the Holders of all the Notes, waive any past
or existing Default or Event of Default (except with respect to a continuing
Default or Event of Default in the payment of principal, premium, interest and
Additional Amounts, if any) and rescind and annul a declaration of acceleration
and its consequences if (i) all existing Events of Default, other than the
nonpayment of the principal of, premium, if any, interest and Additional
Amounts, if any, that have become due solely by such declaration of
acceleration, have been cured or waived and (ii) the rescission would not
conflict with any judgment or decree of a court of competent jurisdiction.  Such waiver shall not excuse a continuing Event
of Default in the payment of interest, premium, if any, principal, or
Additional Amounts, if any, on such Note held by a non-consenting Holder. The
Company shall deliver to the Trustee (a) an Officer’s Certificate stating (i)
that the requisite percentage of Holders has consented to such waiver and
attaching copies of such consents and (ii) whether the Officer is aware of any
judgment or decree of a court of competent jurisdiction that could conflict
with such rescission, and (b) if pursuant to (a)(ii) above an Officer states
that they are aware of any judgment or decree of a court of competent
jurisdiction that could conflict with such rescission, an Opinion of Counsel
that such judgment or decree of a court of competent jurisdiction does not
conflict with such rescission.  When a
Default or Event of Default is waived, it is cured and ceases.

 

SECTION 6.8  
Control by Majority.  Subject to
Section 2.10, the Holders of not less than a majority in principal amount
of the outstanding Notes may, by written notice to the Trustee, direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee or exercising any trust or power conferred on it.  Subject to Section 7.1, however, the
Trustee may refuse to follow any direction that conflicts with any applicable
law or this Indenture or that the Trustee determines is unduly prejudicial to
the rights of another Holder of Notes, or that would involve the Trustee in
liability or expense; provided, however, that the Trustee may
take any other action deemed proper by the Trustee which is not inconsistent
with such direction.  Prior to taking
any action under this Indenture, the Trustee will be entitled to
indemnification reasonably satisfactory to it against all losses, liabilities
and expenses caused by taking or not taking such action.

 

95

 

SECTION 6.9  
Limitation on Suits.  Except to
enforce the right to receive payment of principal or interest when due, no
Holder may pursue any remedy with respect to this Indenture or the Notes,
unless:

 

(1)                                  such
Holder has previously given the Trustee written notice that an Event of Default
is continuing;

 

(2)                                  Holders
of at least 25% in principal amount of the outstanding Notes have requested the
Trustee in writing to pursue the remedy;

 

(3)                                  such
Holders have offered the Trustee reasonable security or indemnity against any
loss, liability or expense;

 

(4)                                  the
Trustee has not complied with such request within 60 days after the
receipt of the request and the offer of security or indemnity; and

 

(5)                                  the
Holders of a majority in principal amount of the outstanding Notes have not
given the Trustee a direction that, in the opinion of the Trustee, is
inconsistent with such request within such 60-day period.

 

SECTION 6.10  
Rights of Holders to Receive Payment. 
Notwithstanding any other provision of this Indenture (including,
without limitation, Section 8.9 hereof), the right of any Holder to
receive payment of principal of and interest on a Note, on or after the respective
due dates expressed in such Note, or to bring suit for the enforcement of any
such payment on or after such respective dates, shall not be impaired or
affected without the consent of such Holder.

 

SECTION 6.11  
Collection Suit by Trustee.  If
an Event of Default in payment of principal, premium, if any, interest, or
Additional Amounts, if any, specified in clause (1) or clause (2) of
Section 6.1 occurs and is continuing, the Trustee may recover judgment in
its own name and as trustee of an express trust against the Company or any other
obligor on the Notes for the whole amount of principal and accrued interest
remaining unpaid, or Additional Amounts, if any.

 

SECTION 6.12  
Trustee May File Proofs of Claim. 
The Trustee may file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, accountants and experts)
and the Holders allowed in any judicial proceedings relating to the Company,
its creditors or its property or other obligor on the Notes, its creditors and
its property and shall be entitled and empowered to collect and receive any
monies or other property payable or deliverable on any such claims and to
distribute the same, and any Custodian in any such judicial proceedings is
hereby authorized by each Holder to make such payments to the Trustee and, in
the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agent and counsel, and any other amounts due the Trustee under
Section 7.7.  To the extent that
the payment of any such compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, and any other amounts due the Trustee
under 

 

96

 

Section 7.7 hereof out of
the estate in any such proceeding, shall be denied for any reason, payment of
the same shall be secured by a Lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties which the
Holders of the Notes may be entitled to receive in such proceeding whether in
liquidation or under any plan of reorganization or arrangement or otherwise.

 

SECTION 6.13  
Priorities.  If the Trustee
collects any money or property pursuant to this Article VI, it shall pay
out the money or property in the following order:

 

First:  to the Trustee, the Agents and their agents
and attorneys for amounts due under Section 7.7, including payment of all
reasonable compensation, fees, expense and liabilities incurred, and all
advances made, by the Trustee and the reasonable costs and expenses of
collection;

 

Second:  to Holders for amounts due and unpaid on the
Notes for principal, premium, if any, interest, and Additional Amounts, if any,
ratably, without preference or priority of any kind, according to the amounts
due and payable on the Notes for principal, premium, if any, interest, and
Additional Amounts, if any, respectively; and

 

Third:  to the Company or any other obligor on the
Notes, as their interests may appear, or as a court of competent jurisdiction
may direct.

 

The Trustee,
upon prior notice to the Company, may fix a record date and payment date for
any payment to Holders pursuant to this Section 6.13; provided that the failure to give any such
notice shall not affect the establishment of such record date or payment date
for Holders pursuant to this Section 6.13.

 

SECTION 6.14  
Restoration of Rights and Remedies. 
If the Trustee or any Holder of any Note has instituted any proceeding
to enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders of
Notes shall be restored severally and respectively to their former positions
hereunder and thereafter all rights and remedies of the Trustee and the Holders
of Notes shall continue as though no such proceeding had been instituted.

 

SECTION 6.15  
Undertaking for Costs.  In any
suit for the enforcement of any right or remedy under this Indenture or in any
suit against the Trustee for any action taken or omitted by it as Trustee, a
court in its discretion may require the filing by any party litigant in the
suit of an undertaking to pay the costs of the suit, and the court in its
discretion may assess reasonable costs, including reasonable attorneys’ fees
and expenses, against any party litigant in the suit, having due regard to the
merits and good faith of the claims or defenses made by the party
litigant.  This Section 6.15 does
not apply to a suit by the Trustee, a suit by a Holder pursuant to
Section 6.10, or a suit by a Holder or Holders of more than 10% in
principal amount of the outstanding Notes.

 

97

 

ARTICLE VII

 

TRUSTEE

 

SECTION 7.1  
Duties of Trustee. 
(a)  If an Event of Default actually known to a Responsible
Officer of the Trustee has occurred and is continuing, the Trustee shall
exercise such of the rights and powers vested in it by this Indenture and use
the same degree of care and skill in their exercise as a prudent person would
exercise or use under the circumstances in the conduct of his or her own
affairs.

 

(b)  Except during the continuance of an Event of Default
actually known to the Trustee:

 

(1)                                  The
Trustee and the Agents undertake to perform only those duties as are
specifically set forth herein and no others and no implied covenants or
obligations shall be read into this Indenture against the Trustee or the Agents.

 

(2)                                  In
the absence of bad faith on their part, the Trustee and the Agents may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions and such other
documents delivered to them and conforming to the requirements of this
Indenture.  However, in the case of any
such certificates or opinions which by any provision hereof are required to be
furnished to the Trustee or the Agents, the Trustee or the Agents, as
applicable, shall examine the certificates and opinions to determine whether or
not they conform to the requirements of this Indenture (but need not confirm or
investigate the accuracy of mathematical calculations or other facts stated
therein).

 

(c)  The Trustee may not be relieved from liability for its
own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

 

(1)                                  This
paragraph does not limit the effect of subsection (b) of this
Section 7.1.

 

(2)                                  Neither
the Trustee nor Agent shall be liable for any error of judgment made in good
faith by a Responsible Officer of such Trustee or Agent, unless it is proved
that the Trustee or such Agent was negligent in ascertaining the pertinent
facts.

 

(3)                                  The
Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to
Section 6.8.

 

(d)  No provision of this Indenture shall require the Trustee
or any Agent to expend or risk its own funds or otherwise incur any liability
in the performance of any of its duties hereunder or to take or omit to take
any action under this Indenture or take any action at the request or direction
of Holders if it shall have reasonable grounds for believing that repayment of
such funds is not assured to it or it does not receive an indemnity
satisfactory to it in its sole discretion against such risk, liability, loss,
fee or expense which might be incurred by it in compliance with such request or
direction.

 

(e)  Whether or not therein expressly so provided, every
provision of this Indenture that in any way relates to the Trustee is subject
to subsections (a), (b), (c) and (d) of this Section 7.1.

 

98

 

(f)  Any provision hereof relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section 7.1 and, upon qualification of
this Indenture under the TIA, the TIA.

 

(g)  The rights, privileges, protections, immunities and
benefits given to the Trustee, including, without limitation, its rights to be
indemnified, are extended to, and shall be enforceable by the Trustee in each
of its capacities it which it may serve, and to each Agent, and any custodian,
agents or other persons employed to act hereunder.

 

SECTION 7.2  
Rights of Trustee.  Subject to
Section 7.1:

 

(a)  The Trustee and each Agent may rely conclusively on and
shall be protected from acting or refraining from acting based upon any
document believed by them to be genuine and to have been signed or presented by
the proper person.  Neither the Trustee
nor any Agent shall be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent order, approval, appraisal, bond, debenture,
note, coupon, security or other paper or document, but the Trustee or Agent, as
the case may be, in its discretion, may make reasonable further inquiry or
investigation into such facts or matters stated in such document.  The Trustee shall not be deemed to have
notice or any knowledge of any matter (including without limitation Defaults or
Events of Default) unless a Responsible Officer of the Trustee has actual
knowledge thereof or unless written notice thereof is received by the Trustee
at the Corporate Trust Office and such notice references the Notes and this
Indenture.

 

(b)  Any request, direction, order or demand of the Company
mentioned herein shall be sufficiently evidenced by an Officer’s Certificate or
Company Order and any resolution of the Board of Directors of the Company, as
the case may be, may be sufficiently evidenced by a Board Resolution.

 

(c)  Whenever in the administration of this Indenture the
Trustee, acting reasonably, shall deem it desirable that a matter be proved or
established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the
absence of bad faith on its part, conclusively rely upon an Officer’s
Certificate.

 

(d)  The Trustee may consult with counsel of its selection
and the advice of such counsel or any Opinion of Counsel, as to any legal
matter, shall be full and complete authorization and protection in respect of
any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon.

 

(e)  The Trustee and any Agent may act through their
attorneys and agents and shall not be responsible for the misconduct or
negligence of any agent (other than an agent who is an employee of the Trustee
or such Agent) appointed with due care.

 

(f)  The Trustee shall not be liable for any action it takes
or omits to take in good faith which it reasonably believes to be authorized or
within its rights or powers conferred upon it by this Indenture; provided, however, that the Trustee’s
conduct does not constitute willful misconduct, negligence or bad faith.

 

99

 

(g)  The Trustee shall be entitled to request and conclusively
rely upon an Opinion of Counsel with respect to whether any consent, waiver,
approval, amendment or modification shall have a material adverse effect on the
interests of any Holder.

 

SECTION 7.3  
Individual Rights of Trustee. 
The Trustee or any Agent in its respective individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with
the Company, its Subsidiaries, or their respective Affiliates with the same
rights it would have if it were not the Trustee or an Agent.  The Trustee must comply with
Sections 7.10 and 7.11.

 

SECTION 7.4  
Trustee’s Disclaimer.  The
Trustee and the Agents shall not be responsible for and make no representation
as to the validity, effectiveness, correctness or adequacy of this Indenture,
the offering materials related to the Indenture or the Notes; the Trustee shall
not be accountable for the Company’s use of the proceeds from the Notes or any
money paid to the Company or upon the Company’s direction under any provision
hereof; the Trustee shall not be responsible for the use or application of any
money received by any Agent and it shall not be responsible for any statement
or recital herein of the Company, or any document issued in connection with the
sale of Notes or any statement in the Notes other than the Trustee’s
certificate of authentication.

 

SECTION 7.5  
Notice of Default.  If an Event
of Default occurs and is continuing and a Responsible Officer of the Trustee
receives actual notice of such event, the Trustee shall mail to each Holder, as
their names and addresses appear on the list of Holders described in
Section 2.5, notice of the uncured Default or Event of Default within 90
days after the Trustee receives such notice. 
Except in the case of a Default or Event of Default in payment of
principal of, premium, if any, interest, or Additional Amounts, if any, on any
Note, including the failure to make payment on (i) the Change of Control
Payment Date pursuant to a Change of Control Offer or (ii) the date required
for payment pursuant to an Asset Disposition Offer, the Trustee may withhold
the notice if and so long as a committee of its Responsible Officers in good
faith determines that withholding the notice is in the interest of the Holders.

 

SECTION 7.6  
Report by Trustee to Holders. 
This Section 7.6 shall not be operative as a part of this Indenture
until this Indenture is qualified under the TIA, and, until such qualification,
this Indenture shall be construed as if this Section 7.6 were not
contained herein.

 

Within 60 days
after each September 30 beginning with September 30, 2004, the
Trustee shall, to the extent that any of the events described in TIA
Section 313(a) occurred within the previous twelve months, but not
otherwise, mail to each Holder a brief report dated as of such date that
complies with TIA Section 313(a). 
The Trustee also shall comply with TIA Sections 313(b), 313(c) and
313(d).

 

A copy of each
report at the time of its mailing to Holders shall be mailed to the Company and
filed with the SEC and each securities exchange, if any, on which the Notes are
listed.

 

The Company
shall promptly notify the Trustee in writing if subsequent to the date hereof
the Notes become listed on any securities exchange or of any delisting thereof.

 

100

 

SECTION 7.7  
Compensation and Indemnity.  The
Company shall pay to the Trustee and Agents from time to time such reasonable
compensation as the Company and the Trustee shall from time to time agree in
writing for its acceptance of this Indenture and services hereunder.  The Trustee’s and the Agents’ compensation
shall not be limited by any law on compensation of a trustee of an express
trust.  The Company shall reimburse the
Trustee and Agent upon request for all reasonable disbursements, expenses and
advances (including reasonable fees and expenses of their agents and counsel)
incurred or made by it in addition to the compensation for their services,
except any such disbursements, expenses and advances as may be attributable to
the Trustee’s or any Agent’s negligence, willful misconduct or bad faith.

 

The
Company agrees to pay the reasonable fees and expenses of the Trustee’s legal
counsel, Emmet, Marvin & Martin LLP, no later than 28 days after the Issue
Date in connection with its review and delivery of this Indenture and related
documentation.

 

The Company
shall indemnify each of the Trustee, any predecessor Trustee and the Agents
(which, for purposes of this paragraph, include such Trustee’s and Agents’
affiliates, officers, directors, employees and agents) and in any other
capacity the Trustee may serve hereunder for, and hold them harmless against,
any and all loss, damage, claim, expense or liability (including taxes (other
than taxes based on the income of the Trustee or franchise, doing business or
other similar taxes imposed on the Trustee)) incurred by the Trustee or an
Agent without negligence, willful misconduct or bad faith on the part of any of
them, in connection with acceptance of administration of this trust and
performance of its duties under this Indenture, including the reasonable
expenses and attorneys’ fees and expenses of defending itself against any claim
of liability arising hereunder.  The
Trustee and the Agents shall notify the Company promptly of any claim asserted
against the Trustee or such Agent for which it may seek indemnity.  However, the failure by the Trustee or the
Agent to so notify the Company shall not relieve the Company of its obligations
hereunder.  The Company may defend the
claim and the Trustee or such Agent shall cooperate in the defense (and may
employ its own counsel reasonably satisfactory to the Trustee) at the Company’s
expense.  The Trustee or such Agent may
have separate counsel from the Company in the defense of any claim against them
and the Company shall pay the reasonable fees and expenses of such
counsel.  The Company need not pay for
any settlement made without its written consent, which consent shall not be
unreasonably withheld.

 

To secure the
Company’s payment obligations in this Section 7.7, the Trustee and the
Agents shall have a claim prior to the Notes against all money or property held
or collected by the Trustee and the Agents, in its capacity as Trustee or
Agent, except money or property held in trust to pay principal or premium, if
any, and Additional Amounts, if any, or interest on particular Notes.

 

When the
Trustee or an Agent incurs expenses or renders services after the occurrence of
an Event of Default specified in clause (7) of Section 6.1, the expenses
(including the reasonable fees and expenses of its agents and counsel) and the
compensation for their services may, to the extent permitted by applicable law,
be preferred over the status of the Holders in a proceeding under any
Bankruptcy Law and are intended, to the extent permitted by applicable law, to
constitute expenses of administration under any Bankruptcy Law.  The Company’s obligations under this
Section 7.7 and any claim arising hereunder shall survive the termination
or discharge

 

101

 

of this Indenture, the
resignation or removal of any Trustee or Agent, the discharge of the Company’s
obligations pursuant to Article VIII and any rejection or termination
under any Bankruptcy Law.

 

SECTION 7.8  
Replacement of Trustee.  The
Trustee and any Agent may resign at any time by so notifying the Company in
writing.  The Holders of a majority in
principal amount of the outstanding Notes may remove the Trustee or Agent by so
notifying the Company and the Trustee or such Agent, as the case may be, in
writing and may appoint a successor trustee or agent with the Company’s
consent.  A resignation or removal of
the Trustee or any Agent and appointment of a successor Trustee or Agent, as
the case may be, shall become effective only upon the successor Trustee’s or
Agent’s acceptance of appointment, as the case may be, as provided in this
section.  The Company may remove the
Trustee or an Agent if:

 

(1)                                  the
Trustee or Agent, as the case may be, fails to comply with Section 7.10 or
Section 7.11;

 

(2)                                  the
Trustee or Agent, as the case may be, is adjudged a bankrupt or an insolvent or
an order for relief is entered with respect to the Trustee or Agent, as the
case may be, under any Bankruptcy Law or under any other applicable law;

 

(3)                                  a
receiver or public officer takes charge of the Trustee or Agent, as the case
may be, or its respective property or affairs; or

 

(4)                                  the
Trustee or Agent, as the case may be, becomes incapable of acting with respect
to its duties hereunder.

 

If the Trustee
or an Agent resigns or is removed or if a vacancy exists in the office of
Trustee or Agent for any reason, the Company shall promptly appoint a successor
Trustee or Agent, as the case may be. 
Within one year after the successor Trustee or Agent takes office, the
Holders of a majority in principal amount of the then outstanding Notes may,
with the Company’s consent, appoint a successor Trustee or Agent, as the case
may be, to replace the successor Trustee or Agent appointed by the Company.

 

A successor
Trustee or Agent, as the case may be, shall deliver a written acceptance of its
appointment to the retiring Trustee or Agent and to the Company.  Promptly after that, the retiring Trustee or
Agent, as the case may be, shall transfer, after payment of all sums then owing
to the Trustee or Agent, as the case may be, pursuant to Section 7.7, all
property held by it as Trustee or Agent to the successor Trustee or Agent,
subject to the Lien provided in Section 7.7, the resignation or removal of
the retiring Trustee or Agent, as the case may be, shall become effective, and
the successor Trustee or Agent, as the case may be, shall have all the rights,
powers and duties of the Trustee or Agent under this Indenture.  A successor Trustee or Agent shall mail
notice of its succession to each Holder.

 

If a successor
Trustee or Agent does not take office within 60 days after the retiring Trustee
or Agent resigns or is removed, the retiring Trustee or Agent (as the case may
be), the Company or any Holder who has been a bona
fide Holder for not less than 6 months may petition

 

102

 

any court of competent
jurisdiction, at the expense of the Company, for the appointment of a successor
Trustee or Agent.

 

If the Trustee
or Agent after written request by any Holder who has been a Holder for at least
six months fails to comply with Section 7.10, such Holder may petition any
court of competent jurisdiction for the removal of the Trustee or Agent, as the
case may be, and the appointment of a successor thereto.

 

Notwithstanding
replacement of the Trustee or Agent pursuant to this Section 7.8, the
Company’s obligations under Section 7.7 relating to indemnification and
any amounts already owing or accrued at the time of such replacement shall
continue for the benefit of the retiring Trustee or Agent, as the case may be,
and the Company shall pay to any replaced or removed Trustee or Agent all
amounts owed under Section 7.7 upon such replacement or removal.

 

SECTION 7.9  
Successor Trustee by Merger, etc.  If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all of its corporate trust
business to, another corporation or banking association, the resulting,
surviving or transferee corporation without any further act shall, if such
resulting, surviving or transferee corporation is otherwise eligible hereunder,
be the successor Trustee.  In case any
Notes shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by consolidation, merger or conversion to such
authenticating Trustee may adopt such authentication and deliver the Notes so
authenticated with the same effect as if such successor Trustee had itself
authenticated such Notes.

 

SECTION 7.10  
Corporate Trustee Required; Eligibility.  There shall be at all times a Trustee hereunder which shall be
eligible to act as Trustee under the TIA and shall have a combined capital and
surplus of at least US$50,000,000 and have a New York Corporate Trust Office in
the Borough of Manhattan, The City of New York.  If such Person publishes reports of condition at least annually,
pursuant to law or to the requirements of a federal, State or District of
Columbia supervising or examining authority within the United States of
America, then for the purposes of this Section, the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus
as set forth in its most recent report of condition so published.  If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
promptly in the manner and with the effect hereinafter specified in this
Article.

 

The
Trustee under this Indenture shall always satisfy the requirements of TIA
Sections 310(a)(1), (2) and (5).  The
Trustee shall comply with Section 310(b) of the TIA; provided, however, that there shall be
excluded from the operation of TIA Section 310(b)(1) any indenture or
indentures under which other securities or certificates of interest or participation
in other securities of the Company are outstanding if the requirements for such
exclusion set forth in TIA Section 310(b)(1) are met.

 

SECTION 7.11  
Disqualification; Conflicting Interests.  If the Trustee has or shall acquire a conflicting interest within
the meaning of the TIA, the Trustee shall either eliminate such interest or
resign, to the extent and in the manner provided by, and subject to the
provisions of, the TIA and this Indenture.

 

103

 

SECTION 7.12  
Preferential Collection of Claims Against Company.  The Trustee, in its capacity as Trustee
hereunder, shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b).  A Trustee who has resigned or been removed shall be subject to
TIA Section 311(a) to the extent indicated.

 

SECTION 7.13  
Force Majeure.  In no event shall
the Trustee, in each of its capacities hereunder, be liable for any failure or
delay in the performance of its obligations under this Indenture because of
circumstances beyond its control, including, but not limited to, acts of God,
flood, war (whether declared or undeclared), terrorism, fire, riot, embargo and
government action, including any laws, ordinances, regulations or the like which
restrict or prohibit the providing of the services or the obligations
contemplated by this Indenture.

 

ARTICLE VIII

 

DEFEASANCE AND SATISFACTION AND DISCHARGE OF
INDENTURE

 

SECTION 8.1  
Option to Effect Legal Defeasance or Covenant Defeasance.  The Company may, at any time, with respect
to the Notes, elect to have either Section 8.2 or 8.3 be applied to all
outstanding Notes upon compliance with the conditions set forth below in this
Article VIII.

 

SECTION 8.2  
Legal Defeasance and Discharge. 
Upon the Company’s exercise under Section 8.1 of the option
applicable to this Section 8.2, the Company shall be deemed to have been
discharged from its obligations with respect to all outstanding Notes on the
date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, such Legal Defeasance
means that the Company and the Note Guarantors shall be deemed to have paid and
discharged all the obligations relating to the outstanding Notes and the Notes
shall thereafter be deemed to be “outstanding” only for the purposes of
Section 8.6, Section 8.8 and the other Sections of this Indenture
referred to below in this Section 8.2, and to have satisfied all of their
other obligations under such Notes and this Indenture and cured all then
existing Events of Default (and the Trustee, on demand of and at the expense of
the Company, shall execute proper instruments acknowledging the same), except
for the following which, as regards the Company but not the Note Guarantors,
shall survive until otherwise terminated or discharged hereunder:

 

(1)                                  the
rights of Holders of outstanding Notes to receive payments in respect of the
principal of, premium, if any, interest, and Additional Amounts, if any, on
such Notes on such Notes when such payments are due (including on a Redemption
Date) from the trust created pursuant to this Indenture;

 

(2)                                  the
Company’s obligations with respect to Notes concerning issuing temporary Notes,
or, where relevant, registration of such Notes, mutilated, destroyed, lost or
wrongfully taken Notes and the maintenance of an office or agency for payment
and money for security payments held in trust;

 

(3)                                  the
rights, powers, trusts, duties and immunities of the Trustee, and the Company’s
obligations in connection therewith set forth in Article VII hereof; and

 

104

 

(4)                                  this
Article VIII and the obligations set forth in Section 8.6 hereof.

 

Subject to
compliance with this Article VIII, the Company may exercise its option
under Section 8.2 notwithstanding the prior exercise of its option under
Section 8.3 with respect to the Notes. 
If the Company exercises its Legal Defeasance option, payment of the
Notes may not be accelerated because of an Event of Default and any Note
Guarantee in effect at the time of such Legal Defeasance shall terminate and be
discharged and of no further force and effect.

 

SECTION 8.3  
Covenant Defeasance.  Upon the
Company’s exercise under Section 8.1 of the option applicable to this
Section 8.3, the Company shall be released from any obligations under the
covenants contained in Sections 4.3, 4.4, 4.6, 4.8, 4.9, 4.10, 4.11, 4.12, 4.14
and 5.1 (other than the provisions of Sections 5.1(a)(1) and (2)) hereof with
respect to the outstanding Notes on and after the date the conditions set forth
below are satisfied (hereinafter, “Covenant
Defeasance”) and the Notes shall thereafter be deemed not
“outstanding” for the purposes of any direction, waiver, consent or declaration
or act of Holders (and the consequences of any thereof) in connection with such
covenants, but shall continue to be deemed “outstanding” for all other purposes
hereunder (it being understood that such Notes shall not be deemed outstanding
for accounting purposes).  If the
Company exercises its Covenant Defeasance option, each Note Guarantee will
terminate at such time and be discharged and of no further force and effect.

 

For
the purposes hereof, such Covenant Defeasance means that, (i) with respect to
the outstanding Notes, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and (ii) payment on the
Notes may not be accelerated because of an Event of Default specified in clause
(2) (only insofar as it relates to Section 4.10 or 4.14 hereof), (3) (to
the extent limited by Section 5.1), (4) (insofar as it relates to Sections
4.3, 4.4, 4.6, 4.8, 4.9, 4.11, 4.12, 4.14 and 5.1 (other than the provisions of
Sections 5.1(a)(1) and (2) hereof), (5), (6), (7) (with respect only to
Significant Subsidiaries, including any group of Restricted Subsidiaries
referred to therein), (8) or (9) of Section 6.1 hereof.

 

SECTION 8.4  
Conditions to Legal or Covenant Defeasance.  The following shall be the conditions to the application of
either Section 8.2 or Section 8.3 to the outstanding Notes:

 

(1)                                  the
Company must irrevocably deposit in trust (the “defeasance
trust”), for the benefit of the Holders of the Notes, cash in euros
or European Government Obligations or a combination thereof (in the case of the
Senior Euro Notes) or in dollars or US Government Obligations or a combination
thereof (in the case of the Senior Dollar Notes) as will be sufficient for the
payment of principal, premium, if any, and interest and Additional Amounts, if
any, on the Senior Notes to redemption or maturity, as the case may be, and the
Company must specify whether the Notes are being defeased to maturity or to a
particular redemption date;

 

(2)                                  deliver
to the Senior Trustee (x) an Opinion of Counsel in the United States to the
effect that holders of the relevant Senior Notes will not recognize income,
gain or loss for United States federal income tax purposes as a result of such
deposit and defeasance and

 

105

 

will be subject to United States federal income tax on the same amount
and in the same manner and at the same times as would have been the case if
such deposit and defeasance had not occurred, and (y) an Opinion of Counsel in
the jurisdiction of incorporation of each of the Company and eircom to the effect that the Holders of
the outstanding Senior Notes of the relevant series will not recognize income,
gain or loss for tax purposes in such jurisdiction as a result of such
defeasance and will be subject to income tax in such jurisdiction on the same amounts,
in the same manner and at the same times as would have been the case if such
defeasance had not occurred (and in the case of legal defeasance only, such
Opinion of Counsel in the United States must be based on a ruling of the United
States Internal Revenue Service or other change in applicable United States
federal income tax law),

 

(3)                                  the
Company must deliver to the Trustee an Officer’s Certificate stating that the
deposit was not made by the Company with the intent of preferring the Holders
of such Notes over the other creditors of the Company with the intent of
defeating, hindering, delaying or defrauding creditors of the Company or
others; and

 

(4)                                  the
Company must deliver to the Trustee an Officer’s Certificate and an Opinion of
Counsel (which may rely as to matters of fact on such Officer’s Certificate),
each stating that all conditions precedent relating to the Legal Defeasance or
the Covenant Defeasance referred to in Sections 8.1, 8.2, 8.3 and 8.4 (as
appropriate) have been complied with.

 

SECTION 8.5  
Satisfaction and Discharge of Indenture.  The Indenture will be discharged and will cease to be of further
effect as to all Notes issued, and the Trustee, at the expense of the Company,
shall execute and deliver an instrument acknowledging the satisfaction and
discharge of the Indenture, when (1) either (A) all of the Senior Notes
previously authenticated and delivered (other than certain lost, stolen or
destroyed Notes, and certain Senior Notes for which provision for payment was
previously made and thereafter the funds have been released to the Company)
have been delivered to the Senior Trustee for cancellation or (B) all Senior
Notes not previously delivered to the Senior Trustee for cancellation (i) have
become due and payable, (ii) will become due and payable at their Stated
Maturity within one year or (iii) are to be called for redemption within one
year under arrangements reasonably satisfactory to the Senior Trustee for the
giving of notice of redemption by the Senior Trustee in the name, and at the
expense, of the Company; (2) the Company has deposited or caused to be
deposited with the Senior Trustee money, US Government Obligations, European
Government Obligations, or a combination thereof, in an amount sufficient to
pay and discharge the entire indebtedness on the Senior Notes not previously
delivered to the Senior Trustee for cancellation, for principal, premium, if
any, and interest to the date of deposit (in the case of Senior Notes that have
become due and payable), or to the Stated Maturity or Redemption Date, as the
case may be; (3) the Company has paid or caused to be paid all other sums
payable under this Indenture by the Company; and (4) the Company has delivered
to the Senior Trustee an Officer’s Certificate and an Opinion of Counsel each
to the effect that all conditions precedent under this Section 8.5 have
been complied with, provided that any such counsel may rely on any Officer’s
Certificate as to matters of fact (including as to compliance with the
foregoing clauses (1), (2) and (3)).

 

106

 

SECTION 8.6  
Application of Trust Moneys.  All
cash in euro deposited with the Trustee pursuant to Section 8.4 or 8.5 in
respect of Notes shall be held in trust and applied by it, in accordance with
the provisions of such Notes and this Indenture, to the payment, either
directly or through any Paying Agent as the Trustee may determine, to the
Holders of the Notes of all sums due and to become due thereon for principal,
premium, if any, interest, and Additional Amounts, if any, but such money need
not be segregated from other funds except to the extent required by law.

 

The Company
shall pay and indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against any US Government Obligations or European
Government Obligations deposited pursuant to Section 8.4 or 8.5 or the
principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of outstanding
Notes.

 

SECTION 8.7  
Repayment to the Company; Unclaimed Money.  The Trustee and any Paying Agent shall promptly pay or return to
the Company upon Company Order any cash held by them at any time that is not
required for the payment of the principal of, premium, if any, interest, and
Additional Amounts, if any, on the Notes for which cash has been deposited
pursuant to Section 8.4 or 8.5.

 

Any money held
by the Trustee or any Paying Agent for the payment of the principal of,
premium, if any, interest, and Additional Amounts, if any, on any Note and
remaining unclaimed for two years after such principal, premium, if any,
interest, and Additional Amounts, if any, has become due and payable shall be
paid to the Company upon Company Order or if then held by the Company shall be
discharged from any trust to which it is subject; and the Holder of such Note
shall thereafter, as an unsecured general creditor, look only to the Company
for payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, shall thereupon cease.

 

SECTION 8.8  
Reinstatement.  If the Trustee or
Paying Agent is unable to apply any cash in accordance with Sections 8.2, 8.3,
8.4 or 8.5 by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company’s obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit
had occurred pursuant to Sections 8.2, 8.3, 8.4 or 8.5 until such time as the
Trustee or Paying Agent is permitted to apply all such cash in accordance with
Sections 8.2, 8.3, 8.4 or 8.5; provided, however, that if the Company has
made any payment of interest on, premium, if any, principal, and Additional
Amounts, if any, of any Notes because of the reinstatement of its obligations,
the Company shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money held by the Trustee or Paying Agent.

 

107

 

ARTICLE IX

 

AMENDMENTS, SUPPLEMENTS AND WAIVERS

 

SECTION 9.1  
Without Consent of Holders of Notes. 
Notwithstanding Section 9.2 hereof, the Company, eircom, any Note Guarantor and the Trustee
may amend or supplement this Indenture or the Notes without the consent of any
Holder of a Note or any other Person to:

 

(1)
cure any ambiguity, omission, defect, error or inconsistency;

 

(2)
provide for the assumption by a successor Person of the obligations of the
Company or any Note Guarantor under this Indenture;

 

(3)
provide for uncertificated Senior Notes in addition to or in place of
certificated Senior Notes (provided that the uncertificated Senior Notes are
issued in registered form for purposes of Section 163(f) of the Code, or
in a manner such that the uncertificated Senior Notes are described in
Section 163(f)(2)(B) of the Code);

 

(4)
add to the covenants of the Company for the benefit of the holders or surrender
any right or power conferred upon the Company;

 

(5)
make any change that does not adversely affect the rights of any Holder in any
material respect;

 

(6)
comply with any requirement of the SEC in connection with the qualification of
this Indenture under the Trust Indenture Act;

 

(7)
make such provisions as necessary (as determined in good faith by the Company)
for the issuance of exchange securities or Additional Notes; or

 

(8)
provide for any Restricted Subsidiary to become an Additional Note Guarantor in
accordance with the provisions of Section 11.1 to add Guarantees with
respect to the Senior Notes, to secure the Senior Notes, or to confirm and
evidence the release, termination or discharge of any Guarantee or Lien with
respect to or securing the Senior Notes when such release, termination or discharge
is provided for under this Indenture.

 

Upon the
request of the Company, accompanied by a Board Resolution authorizing the
execution of any such amended or supplemental indenture, subject to
Section 9.6, the Trustee shall join with the Company, eircom and any Note Guarantor in the
execution of any amended or supplemental indenture authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and
stipulations which may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental indenture which adversely
affects its own rights, duties or immunities hereunder or otherwise.

 

The Company
will inform the Luxembourg Stock Exchange and the Irish Stock Exchange, if the
Senior Notes are listed on such exchanges and the rules of such exchanges so
require, of any of the foregoing amendments, supplements and waivers and
provide, if the Senior Notes are listed on such exchanges and the rules of such
exchanges so require, a supplement to the Offering

 

108

 

Memorandum setting forth
reasonable details in connection with any such amendments, supplements or
waivers.

 

SECTION 9.2  
With Consent of Holders of Notes. 
The Company, eircom and the
Trustee may amend or supplement this Indenture, the Notes or any amended or
supplemental indenture with the written consent of the Holders of at least a
majority in principal amount of the Notes then outstanding (including consents
obtained in connection with a purchase of, or tender offer or exchange offer
for, the Notes), and, subject to Sections 6.7 and 6.10, any existing Default or
Event of Default and its consequences or compliance with any provision of this
Indenture or the Notes may be waived with the consent of the Holders of at
least a majority in principal amount of the Notes then outstanding (including,
without limitation, consents obtained in connection with a purchase of, or
tender offer or exchange offer for, the Notes).

 

However,
without the consent of each holder of an outstanding Senior Note affected, no
amendment or waiver may:

 

(1)
reduce the amount of Senior Notes whose holders must consent to an amendment;

 

(2)
reduce the stated rate of or extend the stated time for payment of interest or
Additional Amounts on any Senior Note;

 

(3)
reduce the principal of or extend the Stated Maturity of any Senior Note;

 

(4)
reduce the premium payable upon the redemption of any Senior Note or change the
time at which any Senior Note may be redeemed;

 

(5)
make any Senior Note payable in money other than that stated in the Senior
Note;

 

(6)
impair the right of any holder to receive payment of principal of and interest
on such holder’s Senior Notes on or after the due dates therefor or to
institute suit for the enforcement of any such payment on or with respect to
such holder’s Senior Notes;

 

(7)
make any change in Section 4.15 that adversely affects the rights of any
Holder of such Senior Notes in any material respect or amends the terms of such
Senior Notes in a way that would result in a loss of an exemption from any of
the Taxes described thereunder or an exemption from any obligation to withhold
or deduct Taxes so described thereunder unless the Payor agrees to pay
Additional Amounts, if any, in respect thereof;

 

(8)
release any Note Guarantor from any of its obligations under any Additional
Note Guarantee or this Indenture, as applicable, except in accordance with the
terms of this Indenture; or

 

(9)
make any change in the amendment or waiver provisions which require each
holder’s consent described in this sentence.

 

Upon the
request of the Company, accompanied by a Board Resolution authorizing the
execution of any such amended or supplemental indenture, and upon the filing
with the Trustee of evidence reasonably satisfactory to the Trustee of the
consent of the Holders of Notes as

 

109

 

aforesaid, the Trustee shall
join with the Company, eircom and
any Note Guarantor in the execution of such amended or supplemental indenture
unless such amended or supplemental indenture adversely affects the Trustee’s
own rights, duties or immunities hereunder or otherwise, in which case the
Trustee may in its discretion, but shall not be obligated to, enter into such
amended or supplemental indenture.  It
shall not be necessary for the consent of the Holders of Notes under this
Section 9.2 to approve the particular form of any proposed amendment or
waiver, but it shall be sufficient if such consent approves the substance thereof.  A consent to any amendment or waiver under
this Indenture by any holder of Senior Notes given in connection with a tender
of such holder’s Senior Notes will not be rendered invalid by such tender.  After an amendment, supplement or waiver
under this Section becomes effective, the Company shall mail to the
Holders of Notes a notice briefly describing the amendment, supplement or
waiver.  In addition, for so long as the
Notes are listed on the Luxembourg Stock Exchange and/or the Irish Stock
Exchange and the rules of such stock exchanges so require, the Company will
publish notice of any amendment, supplement and waiver in Luxembourg in a daily
newspaper with general circulation in Luxembourg (which is expected to be the Luxemburger Wort) and Dublin (which is
expected to be the Irish Times).  In addition (if and so long as the Notes are
listed on the Irish Stock Exchange and the rules of such stock exchange shall
so require) copies of all notices transmitted to Holders shall be delivered to
the Companies Announcement Office of the Irish Stock Exchange.  Any failure of the Company to mail or give
or publish such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such amended or supplemental indenture or
waiver.

 

SECTION 9.3  
Compliance with TIA.  From the
date on which this Indenture is qualified under the TIA, every amendment,
waiver or supplement of this Indenture or the Notes shall comply with the TIA
as then in effect.

 

SECTION 9.4  
Revocation and Effect of Consents. 
(a)  Until an amendment, supplement or waiver becomes
effective, a consent to it by a Holder of a Note is a continuing consent by the
Holder of a Note and every subsequent Holder of a Note or portion of a Note
that evidences the same debt as the consenting Holder’s Note, even if notation
of the consent is not made on any Note. 
However, any such Holder of a Note or subsequent Holder of a Note may
revoke the consent as to its Note if the Trustee receives written notice of
revocation before the date on which the Trustee receives an Officer’s
Certificate certifying that the Holders of the requisite principal amount of
Notes have consented to the waiver, supplement or amendment.  An amendment, supplement or waiver becomes
effective in accordance with its terms and thereafter binds every Holder of a
Note.

 

(b)  The Company may fix a record date for determining which
Holders of the Notes must consent to such amendment, supplement or waiver.  If the Company fixes a record date, the
record date shall be fixed at (i) the later of 30 days prior to the first
solicitation of such consent or the date of the most recent list of Holders of
Notes furnished to the Trustee prior to such solicitation pursuant to
Section 2.5 or (ii) such other date as the Company shall designate.

 

SECTION 9.5  
Notation on or Exchange of Notes. 
The Trustee may (and shall if directed by a Company Order) place an
appropriate notation about an amendment, supplement or waiver on any Note
thereafter authenticated.  The Company
in exchange for all Notes may issue and the Trustee shall authenticate new
Notes that reflect the amendment, supplement or waiver.

 

110

 

Failure to make the appropriate
notation or issue a new Note shall not affect the validity and effect of such
amendment, supplement or waiver.

 

SECTION 9.6  
Trustee to Sign Amendments, etc. 
The Trustee shall execute any amendment, supplement or waiver authorized
pursuant to this Article IX; provided, however, that the Trustee may, but
shall not be obligated to, execute any such amendment, supplement or waiver
which adversely affects the Trustee’s own rights, duties or immunities under
this Indenture.  The Trustee shall be
entitled to receive indemnity reasonably satisfactory to it, and shall be fully
protected in relying upon, an Opinion of Counsel and an Officer’s Certificate
each stating that the execution of any amendment, supplement or waiver
authorized pursuant to this Article IX is authorized or permitted by this
Indenture and constitutes the legal, valid and binding obligations of the
Company enforceable in accordance with its terms.  Such Opinion of Counsel shall not be an expense of the Trustee.

 

ARTICLE X

 

SUBSIDIARY GUARANTEE

 

SECTION 10.1  
Senior Notes eircom Guarantee. 
Subject to Sections 11.5 and 12.19, eircom
hereby fully, unconditionally and irrevocably guarantees (the “Senior Notes eircom Guarantee”), as
primary obligor and not merely as surety, to each Holder of the Notes and the
Trustee the full and punctual payment when due, whether at maturity, by
acceleration, by redemption or otherwise, of the principal of, premium, if any,
interest, and Additional Amounts, if any, on the Notes and all other payment
obligations of the Company under this Indenture (all the foregoing being
hereinafter collectively called the “Subsidiary
Guarantee Obligations”).  eircom further agrees (to the extent
permitted by law) that the Subsidiary Guarantee Obligations may be extended or
renewed, in whole or in part, without notice or further assent from it, and
that it will remain bound under this Article X notwithstanding any
extension or renewal of any Subsidiary Guarantee Obligation.

 

eircom waives (to
the extent permitted by law) presentation to, demand of payment from and
protest to the Company of any of the Subsidiary Guarantee Obligations and also
waives (to the extent permitted by law) notice of protest for nonpayment.  eircom waives (to the extent permitted by
law) notice of any default under the Notes or the Subsidiary Guarantee Obligations.  The obligations of eircom hereunder shall not
(to the extent permitted by law) be affected by (a) the failure of any Holder
to assert any claim or demand or to enforce any right or remedy against the
Company or any other person under this Indenture, the Notes or any other
agreement or otherwise; (b) any extension or renewal of any thereof; (c) any
rescission, waiver, amendment or modification of any of the terms or provisions
of this Indenture, the Notes or any other agreement; (d) the release of any
security held by any Holder or the Trustee for the Subsidiary Guarantee
Obligations or any of them; or (e) any change in the ownership of the Company.

 

eircom further
agrees that the Subsidiary Guarantee herein constitutes a Guarantee of payment
when due (and not a Guarantee of collection) and waives (to the extent
permitted by law) any right to require that any resort be had by any Holder to
any security held for payment of the Subsidiary Guarantee Obligations.

 

111

 

The
obligations of eircom hereunder (to the extent permitted by law) shall,
subject to Sections 11.5 and 12.19, not be subject to any reduction,
limitation, impairment or termination for any reason (other than payment of the
Subsidiary Guarantee Obligations in full), including any claim of waiver,
release, surrender, alteration or compromise, and shall not be subject to any
defense of setoff, counterclaim, recoupment or termination whatsoever or by
reason of the invalidity, illegality or unenforceability of the Subsidiary
Guarantee Obligations or otherwise. 
Without limiting the generality of the foregoing, the obligations of eircom
herein (to the extent permitted by law) shall, subject to Sections 11.5 and
12.19, not be discharged or impaired or otherwise affected by the failure of
any Holder to assert any claim or demand or to enforce any remedy under this
Indenture, the Note or any other agreement, by any waiver or modification of
any thereof, by any default, failure or delay, willful or otherwise, in the
performance of the Subsidiary Guarantee Obligations, or by any other act or
thing or omission or delay to do any other act or thing which would otherwise
operate as a discharge of eircom as a matter of law or equity.

 

Subject to Section 11.5, eircom further agrees that
the Subsidiary Guarantee herein shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of
principal of or interest, or Additional Amounts, if any, on any of the
Subsidiary Guarantee Obligations is rescinded or must otherwise be restored by
any Holder upon the bankruptcy or reorganization of the Company or otherwise.

 

Subject to the
provisions of Section 10.2 hereof, in furtherance of the foregoing and not
in limitation of any other right which any Holder has at law or in equity
against eircom
by virtue hereof, upon the failure of the Company to pay any of the Subsidiary
Guarantee Obligations when and as the same shall become due, whether at
maturity, by acceleration, by redemption or otherwise, eircom hereby promises to
and will, upon receipt of written demand by the Trustee, forthwith pay, or
cause to be paid, in cash, to the Trustee for and on behalf of itself and the
Holders an amount equal to the unpaid amount of such Subsidiary Guarantee
Obligations then due and owing. 
Payments made under this guarantee shall be made to the Trustee on
behalf of the Holders.

 

eircom further
agrees that, as between it, on the one hand, and the Holders, on the other
hand, but subject always to Section 10.2 hereof, (x) the maturity of the
Subsidiary Guarantee Obligations guaranteed hereby may be accelerated as
provided in this Indenture for the purposes of the Subsidiary Guarantee herein,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Subsidiary Guarantee Obligations guaranteed
hereby and (y) in the event of any such declaration of acceleration of such
Subsidiary Guarantee Obligations, such Subsidiary Guarantee Obligations
(whether or not due and payable) shall forthwith become due and payable by eircom
for the purposes of this Subsidiary Guarantee.

 

eircom also agrees
to pay any and all reasonable costs and expenses (including reasonable
attorneys’ fees) incurred by the Trustee or the Holders in enforcing any rights
under this Section.

 

SECTION 10.2  
Limitation on Liability.  The
obligations of eircom hereunder will be limited to the maximum amount that
can be guaranteed under applicable laws, including without

 

112

 

limitation fraudulent
conveyance or fraudulent transfer restrictions under applicable insolvency
laws.

 

SECTION 10.3  
No Subrogation.  Notwithstanding
any payment or payments made by eircom hereunder, eircom shall not be entitled
to be subrogated to any of the rights of the Trustee or any Holder against the
Company or any collateral security or guarantee or right of offset held by the
Trustee or any Holder for the payment of the Subsidiary Guarantee Obligations,
nor shall eircom
seek or be entitled to seek any contribution or reimbursement from the Company
in respect of payments made by eircom hereunder, until all amounts owing
to the Trustee, the Agents (and their respective agents and counsel) and the
Holders by the Company on account of the Subsidiary Guarantee Obligations are
paid in full.  If any amount shall be
paid to eircom
on account of such subrogation rights at any time when all of the Subsidiary
Guarantee Obligations shall not have been paid in full, such amount shall be
held by eircom
in trust for the Trustee and the Holders, segregated from other funds of eircom,
and shall, forthwith upon receipt by eircom, be turned over to the Trustee in
the exact form received by eircom (duly indorsed by eircom
to the Trustee, if required), to be applied against the Subsidiary Guarantee
Obligations.

 

ARTICLE XI

 

ADDITIONAL NOTE GUARANTORS

 

SECTION 11.1  
Additional Note Guarantors.  The
Company may from time to time designate a Restricted Subsidiary as an
additional guarantor of the Senior Notes by causing it to enter into a
supplemental indenture substantially in the form annexed hereto as Exhibit G or
otherwise in form and substance reasonably satisfactory to the Trustee (each
such guarantee, an “Additional Note
Guarantee,” and each such guarantor, an “Additional Note Guarantor”).

 

SECTION 11.2  
Additional Note Guarantee. 
Subject to Sections 11.5 and 12.19, each Additional Note Guarantor
hereby fully, unconditionally and irrevocably guarantees, as primary obligor
and not merely as surety, to each Holder of the Notes and the Trustee the full
and punctual payment when due, whether at maturity, by acceleration, by
redemption or otherwise, of the principal of, premium, if any, interest, and
Additional Amounts, if any, on the Notes and all other payment obligations of
the Company under this Indenture (all the foregoing being hereinafter
collectively called the “Additional Note
Guarantee Obligations”). 
Each Additional Note Guarantor further agrees (to the extent permitted
by law) that the Additional Note Guarantee Obligations may be extended or
renewed, in whole or in part, without notice or further assent from it, and
that it will remain bound under this Article XI notwithstanding any
extension or renewal of any Additional Note Guarantee Obligation.

 

Each
Additional Note Guarantor (to the extent permitted by law) waives presentation
to, demand of payment from and protest to the Company of any of the Additional
Note Guarantee Obligations and also waives (to the extent permitted by law) notice
of protest for nonpayment.  Each
Additional Note Guarantor (to the extent permitted by law) waives notice of any
default under the Notes or the Additional Note Guarantee Obligations.  The obligations of each Additional Note
Guarantor hereunder shall not (to the extent permitted by law) be affected by
(a) the failure of any Holder to assert any claim or demand or to enforce any
right or remedy against the Company or any other person under this Indenture,
the Notes or any other agreement or

 

113

 

otherwise; (b) any extension or
renewal of any thereof; (c) any rescission, waiver, amendment or modification
of any of the terms or provisions of this Indenture, the Notes or any other
agreement; (d) the release of any security held by any Holder or the Trustee
for the Additional Note Guarantee Obligations or any of them; or (e) any change
in the ownership of the Company.

 

Each
Additional Note Guarantor further agrees that the Additional Note Guarantee
herein constitutes a Guarantee of payment when due (and not a Guarantee of
collection) and waives (to the extent permitted by law) any right to require
that any resort be had by any Holder to any security held for payment of the
Additional Note Guarantee Obligations.

 

The
obligations of each Additional Note Guarantor hereunder (to the extent
permitted by law) shall not be subject to any reduction, limitation, impairment
or termination for any reason (other than payment of the Additional Note
Guarantee Obligations in full), including any claim of waiver, release,
surrender, alteration or compromise, and shall not be subject to any defense of
setoff, counterclaim, recoupment or termination whatsoever or by reason of the
invalidity, illegality or unenforceability of the Additional Note Guarantee
Obligations or otherwise.  Without
limiting the generality of the foregoing, the obligations of Additional Note
Guarantor herein (to the extent permitted by law) shall, subject to Sections 11.5
and 12.19, not be discharged or impaired or otherwise affected by the failure
of any Holder to assert any claim or demand or to enforce any remedy under this
Indenture, the Note or any other agreement, by any waiver or modification of
any thereof, by any default, failure or delay, willful or otherwise, in the
performance of the Additional Note Guarantee Obligations, or by any other act
or thing or omission or delay to do any other act or thing which would
otherwise operate as a discharge of such Additional Note Guarantor as a matter
of law or equity.

 

Subject to
Section 11.5, each Additional Note Guarantor further agrees that the
Additional Note Guarantee herein shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of
principal of or interest, or Additional Amounts, if any, on any of the
Additional Note Guarantee Obligations is rescinded or must otherwise be
restored by any Holder upon the bankruptcy or reorganization of the Company or
otherwise.

 

Subject to the
provisions of Section 11.3 hereof, in furtherance of the foregoing and not
in limitation of any other right which any Holder has at law or in equity
against any Additional Note Guarantor by virtue hereof, upon the failure of the
Company to pay any of the Additional Note Guarantee Obligations when and as the
same shall become due, whether at maturity, by acceleration, by redemption or
otherwise, eircom hereby promises
to and will, upon receipt of written demand by the Trustee, forthwith pay, or
cause to be paid, in cash, to the Trustee for and on behalf of itself and the
Holders an amount equal to the unpaid amount of such Additional Note Guarantee
Obligations then due and owing. 
Payments made under this guarantee shall be made to the Trustee on
behalf of the Holders.

 

Each Additional
Note Guarantor further agrees that, as between it, on the one hand, and the
Holders, on the other hand, but subject always to Section 11.3 hereof, (x)
the maturity of the Additional Note Guarantee Obligations guaranteed hereby may
be accelerated as provided in this Indenture for the purposes of the Additional
Note Guarantee herein, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the Additional Note
Guarantee Obligations guaranteed hereby and (y) in the event of any such
declaration of

 

114

 

acceleration of such Additional
Note Guarantee Obligations, such Additional Note Guarantee Obligations (whether
or not due and payable) shall forthwith become due and payable by such
Additional Note Guarantor for the purposes of this Additional Note Guarantee.

 

Each
Additional Note Guarantor also agrees to pay any and all reasonable costs and
expenses (including reasonable attorneys’ fees) incurred by the Trustee or the
Holders in enforcing any rights under this Section.

 

SECTION 11.3  
Limitation on Liability.  The
obligations of each Additional Note Guarantor hereunder will be limited to the
maximum amount that can be guaranteed under applicable laws, including without
limitation fraudulent conveyance or fraudulent transfer restrictions under
applicable insolvency laws.

 

SECTION 11.4  
No Subrogation.  Notwithstanding
any payment or payments made by a Additional Note Guarantor hereunder, such
Additional Note Guarantor shall not be entitled to be subrogated to any of the
rights of the Trustee or any Holder against the Company or any collateral
security or guarantee or right of offset held by the Trustee or any Holder for
the payment of the Additional Note Guarantee Obligations, nor shall such
Additional Note Guarantor seek or be entitled to seek any contribution or
reimbursement from the Company in respect of payments made by such Additional
Note Guarantor hereunder, until all amounts owing to the Trustee and the Holders
by the Company on account of the Additional Note Guarantee Obligations are paid
in full.  If any amount shall be paid to
such Additional Note Guarantor on account of such subrogation rights at any
time when all of the Additional Note Guarantee Obligations shall not have been
paid in full, such amount shall be held by eircom
in trust for the Trustee and the Holders, segregated from other funds of such
Additional Note Guarantor, and shall, forthwith upon receipt by such Additional
Note Guarantor, be turned over to the Trustee in the exact form received by
such Additional Note Guarantor (duly indorsed by such Additional Note Guarantor
to the Trustee, if required), to be applied against the Additional Note
Guarantee Obligations.

 

SECTION 11.5  
Release.

 

An Additional
Note Guarantee will be automatically and unconditionally released (and
thereupon shall terminate and be discharged and be of no further force and
effect) upon the sale or disposition (including through merger or
consolidation) of the Capital Stock, or all or substantially all of the assets,
of the applicable Additional Note Guarantor or a Restricted Subsidiary of which
such Additional Note Guarantor is a Subsidiary, if:

 

(1)
such sale is made in compliance with this Indenture (including
Section 4.10 hereof); and

 

(2)
such Additional Note Guarantor is released from any Indebtedness under, and any
guarantees of, and all pledges and security, if any, granted to secure
Indebtedness under, the Senior Secured Credit Agreement (other than
Indebtedness that is not Indebtedness of the Company or any Restricted
Subsidiary after giving effect to such sale or disposition).

 

115

 

An
Additional Note Guarantee of an Additional Note Guarantor may also be released
at the option of the Company if at the date of such release either (i) there is
no Indebtedness of such Additional Note Guarantor outstanding which was
Incurred after the Issue Date and which would not have been Incurred in
compliance with this Indenture if such Additional Note Guarantor had not been
designated as an Additional Note Guarantor, or (ii) there is no Indebtedness of
such Additional Note Guarantor outstanding which was Incurred after the Issue
Date and which could not have been Incurred in compliance with this Indenture
as at the date of such release if such Additional Note Guarantor were not
designated as an Additional Note Guarantor as at that date.

 

In
addition, an Additional Note Guarantee shall also be automatically released (1)
upon a Legal Defeasance or Covenant Defeasance, (2) upon a suspension of
covenants pursuant to Section 4.13, (3) upon the designation by the
Company of the Additional Note Guarantor as an Unrestricted Subsidiary in
compliance with the terms of this Indenture or (4) upon payment in full of the
aggregate principal amount of all Senior Notes then outstanding and all other
financial obligations under such Additional Note Guarantee then due and owing.

 

The
Senior Notes eircom Guarantee
will be automatically and unconditionally released (and thereupon shall
terminate and be of no further force and effect) upon a Legal Defeasance or
Covenant Defeasance.

 

Upon
any occurrence giving rise to a release of a Note Guarantee as specified above,
and following receipt by the Trustee of an Opinion of Counsel that all
conditions precedent to the release have been satisfied (as to which such
counsel may rely upon an Officer’s Certificate as to matters of fact), the
Senior Trustee shall execute any documents reasonably required in order to evidence
or effect such release, discharge and termination in respect of such Additional
Note Guarantee. Neither the Company nor any Note Guarantor shall be required to
make a notation on the Senior Notes to reflect any Additional Note Guarantee or
any release, termination or discharge of a Note Guarantee.

 

ARTICLE XII

 

MISCELLANEOUS

 

SECTION 12.1  
TIA Controls.  If any provision
of this Indenture limits, qualifies, or conflicts with the duties imposed by
operation of the TIA, the imposed duties shall control.  If any provision of this Indenture modifies
or excludes any provision of the TIA that can be so modified or excluded, the
latter provision shall be deemed to apply to this Indenture as so modified or
excluded, as the case may be.  If any
provision of the Indenture conflicts with any provision of the TIA that cannot
be so modified or excluded, such provision of the TIA shall apply.  eircom,
in addition to performing its obligations under the Subsidiary Guarantee, shall
perform such other obligations as may be imposed on it with respect to this
Indenture under the TIA.

 

SECTION 12.2  
Notices.  Any notices or other
communications required or permitted hereunder shall be in writing, and shall
be sufficiently given if made by hand delivery, by telecopier or first-class
mail, postage prepaid, addressed as follows:

 

116

 

if to the Company or any Note Guarantor:

 

Attention:  Chief Financial Officer

Valentia
Telecommunications

114 St Stephens
Green,

Dublin 1, Ireland

Facsimile:  +353 1 649 2000

 

if to the Trustee:

 

Attention:
Corporate Trust Administration

The Bank of New
York

One Canada Square

London E14 5AL

United Kingdom

Facsimile: +44 207
964 7298

 

with a copy to:

 

The Bank of New
York

101 Barclay
Street,

New York, NY 10286

 

if to the
Principal Paying Agent, the Luxembourg Paying Agent or the Irish Paying Agent:

 

Attention:  Corporate Trust Office

The Bank of New
York as Principal Paying Agent and Transfer Agent

One Canada Square

London E14 5AL

United Kingdom

Facsimile:  +44 207 964 7298

 

Each of the
Company and the Trustee by written notice to each other such Person may
designate additional or different addresses for notices to such Person.  Any notice or communication to the Company
shall be deemed to have been given or made as of the date so delivered if
personally delivered; when receipt is acknowledged, if telecopied; and
five (5) calendar days after mailing if sent by first class mail, postage
prepaid (except that a notice of change of address and a Notice to the Trustee
shall not be deemed to have been given until actually received by the
addressee).

 

All notices to
Holders of each series of Senior Notes will be validly given if mailed to them
at their respective addresses in the register of the Holder of such Senior
Notes, if any, maintained by the Registrar. In addition, so long as any of the
Senior Notes are listed on the Luxembourg Stock Exchange or the Irish Stock
Exchange and the rules of such Stock Exchange so require, notices with respect
to the Senior Notes listed on the Luxembourg Stock Exchange will be published
in a leading newspaper having general circulation in Luxembourg (which is

 

117

 

expected to be the Luxemburger Wort) and notices with respect
to the Senior Notes listed on the Irish Stock Exchange will be published in a
leading newspaper having general circulation in Dublin (which is expected to be
the Irish Times) or, if in the
opinion of the Senior Trustee such publication is not practicable, in an
English language newspaper having general circulation in Europe. In addition,
for so long as any Senior Notes are represented by Global Notes, all notices to
holders of the Senior Notes will be delivered to DTC, Euroclear and
Clearstream, each of which will give such notices to the holders of Book Entry
Interests.  Each such notice shall be
deemed to have been given on the date of such publication or, if published more
than once on different dates, on the first date on which publication is made;
provided that, if notices are mailed, such notice shall be deemed to have been
given on the later of such publication and the day it is so mailed. Any notice
or communication mailed to a Holder shall be mailed to such Person by
first-class mail or other equivalent means and shall be sufficiently given to
him or to her if so mailed within the time prescribed.  Failure to mail a notice or communication to
a Holder or any defect in it shall not affect its sufficiency with respect to
other Holders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it.  While the Senior Notes are listed on the
Irish Stock Exchange, copies of all notices given to the Holders shall be sent
to the Companies Announcement Office at the Irish Stock Exchange.

 

Where this
Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice.

 

In the event
that, by reason of the suspension of the regular mail service, or by reason of
any other cause, it shall be impractical to mail notice as required by any
provision of this Indenture, then such notification as shall be made with the
approval of the Trustee (such approval not to be unreasonably withheld or
delayed) shall constitute a sufficient notification for every purpose hereof.

 

SECTION 12.3  
Communications by Holders with Other Holders.  Holders may
communicate pursuant to Section 312(b) of the TIA with other Holders with
respect to their rights under this Indenture or the Notes.  The Company, the Trustee, the Registrar and
any other person shall have the protection of Section 312(c) of the TIA.

 

SECTION 12.4  
Certificate and Opinion as to Conditions Precedent.  Upon any request or application by the
Company to the Trustee or an Agent to take any action under this Indenture, the
Company shall furnish to the Trustee at the request of the Trustee:

 

(1)                                  an
Officer’s Certificate, in form and substance reasonably satisfactory to the
Trustee (which shall where appropriate include the statements set forth in
Section 12.5), stating that, in the opinion of the signer, all conditions
precedent and covenants, if any, provided for in this Indenture relating to the
proposed action have been satisfied or complied with; and

 

(2)                                  an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
or such Agent (which shall where appropriate include the statements set forth
in

 

118

 

Section 12.5) stating that, in the opinion of such counsel, all
such conditions precedent and covenants have been satisfied or complied with.

 

In any
case where several matters are required to be certified by, or covered by an
Opinion of Counsel of, any specified Person, it is not necessary that all such
matters be certified by, or covered by the Opinion of Counsel of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an Opinion of Counsel with respect to some
matters and one or more such Persons as to other matters, and any such Person
may certify or give an Opinion of Counsel as to such matters in one or several
documents.

 

Any certificate
of an Officer of the Company may be based, insofar as it relates to legal
matters, upon an Opinion of Counsel, unless such Officer knows, or in the
exercise of reasonable care should know, that such Opinion of Counsel with
respect to the matters upon which his certificate is based are erroneous. Any
Opinion of Counsel may be based, and may state that it is so based, insofar as
it relates to factual matters, upon a certificate of, or representations by, an
officer or officers of the Company stating that the information with respect to
such factual matters is in the possession of the Company, unless such counsel
knows, or in the exercise of reasonable care should know, that the certificate
or representations with respect to such matters are erroneous.

 

Where
any Person is required to make, give or execute two or more applications,
requests, consents, certificates, statements, opinions or other instruments
under this Indenture, they may, but need not, be consolidated and form one
instrument.

 

SECTION 12.5  
Statements Required in Certificate or Opinion.  Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

 

(1)                                  a
statement that the Person making such certificate or opinion has read such
condition or covenant;

 

(2)                                  a
brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion
are based;

 

(3)                                  a
statement that, in the opinion of such Person, such Person has made such
examination or investigation as is necessary to enable such Person to express
an informed opinion as to whether or not such covenant or condition has been
complied with; and

 

(4)                                  a
statement as to whether or not, in the opinion of each such Person, such
condition or covenant has been complied with.

 

SECTION 12.6  
Rules by Trustee, Paying Agent (Including Principal Paying Agent), Registrar.  The Trustee, Paying Agent (including the
Principal Paying Agent) or Registrar may make reasonable rules for its
functions, provided that such
rules do not conflict with the provisions of this Indenture.

 

119

 

SECTION 12.7  
Legal Holidays.  If a payment
date is not a Business Day, payment may be made on the next succeeding day that
is a Business Day, and no interest shall accrue for the intervening period.

 

SECTION 12.8  
Governing Law.  This Indenture and the Notes, and the rights and
duties of the  parties hereunder and
thereunder, shall be governed by, and construed in accordance with, the laws of
the State of New York.

 

SECTION 12.9  
Submission to Jurisdiction; Appointment of Agent for Service.  To the fullest extent permitted by
applicable law, each of the Company, eircom and any Additional Note Guarantor
irrevocably submits to the non-exclusive jurisdiction of and venue in any
federal or state court in the Borough of Manhattan in the City of New York,
County and State of New York, United States of America, in any suit or
proceeding based on or arising out of or under or in connection with this
Indenture or any of the transactions contemplated hereby, and irrevocably
agrees that all claims in respect of such suit or proceeding may be determined
in any such court.  Each of the Company,
eircom
and any Additional Note Guarantor, to the fullest extent permitted by
applicable law, irrevocably and fully waives the defense of an inconvenient
forum to the maintenance of such suit or proceeding and has irrevocably
designated and appointed CT Corporation System (the “Authorized Agent”), as its authorized agent upon whom
process may be served in any such suit or proceeding.  Each of the Company, eircom and any Additional Note Guarantor
represents that it has notified the Authorized Agent of such designation and
appointment and that the Authorized Agent has accepted the same in
writing.  Each of the Company, eircom
and any Additional Note Guarantor has irrevocably authorized and directed its
Authorized Agent to accept such service. 
Each of the Company, eircom and any Additional Note Guarantor
further agrees that service of process upon its Authorized Agent and written
notice of said service to the Company, eircom and any Additional Note Guarantor,
as the case may be, mailed by first class mail or delivered to its Authorized
Agent shall be deemed in every respect effective service of process upon the
Company, eircom
and any Additional Note Guarantor, as the case may be, in any such suit or
proceeding.  Nothing herein shall affect
the right of any person to serve process in any other manner permitted by
law.  Each of the Company, eircom
and any Additional Note Guarantor agrees, to the fullest extent permitted by
law, that a final action in any such suit or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
lawful manner.  Each of the Company, eircom
and any Additional Note Guarantor hereby irrevocably waives, to the extent
permitted by law, any immunity to jurisdiction to which it may otherwise be
entitled (including, without limitation, immunity to pre-judgment attachment,
post-judgment attachment and execution) in any legal suit, action or proceeding
against it arising out of or based on this Indenture, the Notes or the
transactions contemplated hereby.  The
provisions of this Section 12.9 are intended to be effective upon the
execution of this Indenture and the Notes without any further action by the
Company, eircom,
or any Additional Note Guarantor and, to the fullest extent permitted by law, the
introduction of a true copy of this Indenture into evidence shall be conclusive
and final evidence as to such matters.

 

SECTION 12.10  
Acts of Holders. 
(a)  Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing; and, except as herein

 

120

 

otherwise expressly provided,
such action shall become effective when such instrument or instruments are
delivered to the Trustee, and, where it is hereby expressly required, to the
Company.  Such instrument or instruments
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “act” of the Holders signing such instrument or
instruments.  Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 7.1) conclusive
in favor of the Trustee, the Company and any other obligor upon the Notes, if
made in the manner provided in this Section 12.10.

 

(b)  The fact and date of the execution by any Person of any
such instrument or writing may be proved by the affidavit of a witness of such
execution or by the certificate of any notary public or other officer
authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing acknowledged to him the execution
thereof.  Where such execution is by an
officer of a corporation or a member of a partnership or other entity, on
behalf of such corporation or partnership or other entity, such certificate or affidavit
shall also constitute sufficient proof of such Person’s authority of the person
executing the same, may also be provided in any other manner that the Trustee
deems sufficient.

 

(c)  Any request, demand, authorization, direction, notice,
consent, waiver or other action by the Holder of any Note shall bind the Holder
of every Note issued upon the transfer thereof or in exchange therefore or in
lieu thereof in respect of anything done or suffered to be done by the Trustee,
the Company or any other obligor upon the Notes in reliance thereon, whether or
not notation of such action is made upon such Note.

 

SECTION 12.11  
No Personal Liability of Directors, Officers and Others.  No director, officer, employee,
incorporator, member or stockholder of the Company or any Note Guarantor as
such, shall have any liability for any obligations of the Company, eircom
or any Note Guarantor under the Senior Notes, this Indenture, or any Note
Guarantee or for any claim based on, in respect of, or by reason of, such obligations
or their creation, and each holder by accepting a Senior Note waives and
releases all such liability, which waiver and release are part of the
consideration for issuance of the Senior Notes.

 

SECTION 12.12  
Currency Indemnity.  In the case
of (i) the Senior Euro Notes, the euro and (ii) the Senior Dollar Notes, the US
Dollar, is the sole currency of account and payment for all sums payable by the
Company or any Note Guarantor under or in connection with the Senior Euro Notes
and the Senior Dollar Notes, as the case may be, including damages. Any amount
received or recovered in a currency other than euro (in the case of the Senior
Euro Notes) or the US Dollar (in the case the Senior Dollar Notes), whether as
a result of, or the enforcement of, a judgment or order of a court of any
jurisdiction, in the winding-up or dissolution of the Company or any Note
Guarantor or otherwise by any Holder of a Senior Euro Note or a Senior Dollar
Note, as the case may be, or by the Senior Trustee, in respect of any sum
expressed to be due to it from the Company or any Note Guarantor will only
constitute a discharge to the Company or any Note Guarantor to the extent of
the euro amount or the US Dollar amount, as the case may be, which the
recipient is able to purchase with the amount so received or recovered in that
other currency on the date of that receipt or recovery (or, if it is not
practicable to make that purchase on that date, on the first date on which it
is practicable to do so).

 

121

 

If
that euro amount is less than the euro amount expressed to be due to the
recipient or the Senior Trustee under any Senior Euro Note, or if that US
Dollar amount is less than the US Dollar amount expressed to be due to the
recipient or the Senior Trustee under any Senior Dollar Note, the Company and
the relevant Note Guarantor will indemnify them against any loss sustained by
such recipient as a result. In any event, the Company and the relevant Note
Guarantor will indemnify the recipient against the cost of making any such
purchase. For the purposes of this currency indemnity provision, it will be
prima facie evidence of the matter stated therein for the Holder of a Senior
Note or the Senior Trustee to certify in a manner satisfactory to the Company
(indicating the sources of information used) the loss it incurred in making any
such purchase. These indemnities constitute a separate and independent
obligation from the Company’s and the Note Guarantors’ other obligations, will
give rise to a separate and independent cause of action, will apply
irrespective of any waiver granted by any Holder of a Senior Note or the Senior
Trustee (other than a waiver of the indemnities set out herein) and will
continue in full force and effect despite any other judgment, order, claim or
proof for a liquidated amount in respect of any sum due under any Senior Note
or to the Senior Trustee.

 

SECTION 12.13  
Currency Calculation.  Except as
otherwise expressly set forth herein, for purposes of determining compliance
with any euro-denominated restriction herein, the euro-equivalent amount for
purposes hereof that is denominated in a non-euro currency shall be calculated
based on the relevant currency exchange rate in effect on the date such
non-euro amount is incurred or made, as the case may be.

 

SECTION 12.14  
Information.  For so long as the
Notes are listed on the Luxembourg Stock Exchange or the Irish Stock Exchange,
and the rules of such stock exchanges so require, copies of this Indenture and
the Registration Rights Agreement will be made available in Luxembourg or
Dublin through the offices of the Paying Agent in such city.

 

SECTION 12.15  
Successors.  All agreements of
the Company, eircom and any Note
Guarantor in this Indenture and the Notes shall bind their respective
successors.  All agreements of the
Trustee in this Indenture shall bind its successor.

 

SECTION 12.16  
Counterpart Originals.  All
parties hereto may sign any number of copies of this Indenture.  Each signed copy or counterpart shall be an
original, but all of them together shall represent one and the same agreement.

 

SECTION 12.17  
Severability.  In case any one or
more of the provisions in this Indenture or in the Notes shall be held invalid,
illegal or unenforceable, in any respect for any reason, the validity, legality
and enforceability of any such provision in every other respect and of the
remaining provisions shall not in any way be affected or impaired thereby, it
being intended that all of the provisions hereof shall be enforceable to the
full extent permitted by law.

 

SECTION 12.18  
Table of Contents, Headings, etc. 
The Table of Contents and Headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be
considered a part of this Indenture and shall in no way modify or restrict any
of the terms or provisions hereof.

 

122

 

SECTION 12.19  
Prescription.  Claims against the
Company or any Note Guarantor for payment of principal, interest, and
Additional Amounts, if any, on the Notes will become void unless presentment
for payment is made (where so required herein) within, in the case of
principal, and Additional Amounts, if any, a period of ten years or, in the
case of interest, a period of five years, in each case from the applicable
original payment date therefor, unless such prescription is not permitted by
applicable law.

 

SECTION 12.20  
Benefits of Indenture.  Nothing
in this Indenture or in the Notes, expressed or implied, shall give to any
Person, other than the parties hereto their successors hereunder, any Agent and
the Holders, any benefit or any legal or equitable right, remedy or claim under
this Indenture.

 

SECTION 12.21  
Waiver of Jury Trial

 

EACH OF THE PARTIES HERETO IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

123

 

IN WITNESS
WHEREOF, the parties hereto have caused this Indenture to be duly executed, as
of the date first written above.

 

	
   

  	
  VALENTIA
  TELECOMMUNICATIONS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Given under
  the Common Seal of Valentia

  Telecommunications:-

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
						

 

124

 

	
   

  	
  eircom LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Given under
  the Common Seal of eircom

  Limited:-

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
						

 

125

 

	
   

  	
  THE BANK OF
  NEW YORK, as Trustee,

  Registrar, Transfer Agent and Paying Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

126

 

	
   

  	
  The BANK OF
  NEW YORK

  (LUXEMBOURG) S.A., as Paying Agent

  and Transfer Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

127

 

	
   

  	
  THE BANK OF
  NEW YORK, LONDON,

  as Principal Paying Agent and Transfer

  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

128

 

	
   

  	
  AIB/BNY FUND
  MANAGEMENT

  (IRELAND) LIMITED, as Paying and

  Transfer Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

129

 

EXHIBIT A

TO THE INDENTURE

 

[FORM OF FACE OF
INITIAL GLOBAL NOTE]

 

THIS BEARER NOTE IS A GLOBAL NOTE WITHIN THE MEANING
OF THE INDENTURE HEREINAFTER REFERRED TO AND IS INITIALLY ISSUED TO THE
BOOK-ENTRY DEPOSITARY OR ITS CUSTODIAN PURSUANT TO THE DEPOSIT AGREEMENT
REFERRED TO IN THE INDENTURE.  TRANSFERS
OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
A NOMINEE OR CUSTODIAN OF THE BOOK-ENTRY DEPOSITARY, TO THE BOOK-ENTRY
DEPOSITARY OR, IN EACH CASE, TO ANOTHER SUCCESSOR OF THE BOOK-ENTRY DEPOSITARY
OR A NOMINEE OR CUSTODIAN OF SUCH SUCCESSOR, AND ANY SUCH TRANSFERS SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH HEREIN
AND IN THE INDENTURE.

 

THIS NOTE OF VALENTIA TELECOMMUNICATIONS (THE
“COMPANY”) HAS NOT BEEN REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS
AMENDED (THE “US SECURITIES ACT”), OR OTHER SECURITIES LAWS OF ANY STATE OR
OTHER JURISDICTION.  NEITHER THIS NOTE
NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
SUCH REGISTRATION UNLESS THE TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE US SECURITIES ACT.

 

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF
(WITHOUT PREJUDICE TO THE BEARER NATURE HEREOF)  (1) REPRESENTS THAT (A) IT IS A “QUALIFIED
INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE US SECURITIES ACT) OR
(B) IT IS NOT A US PERSON AND IS ACQUIRING THIS NOTE IN AN “OFFSHORE
TRANSACTION” PURSUANT TO RULE 904 OF REGULATION S UNDER THE US SECURITIES ACT,
(2) AGREES THAT IT WILL NOT, PRIOR TO (X) THE DATE WHICH IS TWO YEARS
(OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) UNDER THE US
SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER) AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF (OR OF ANY PREDECESSOR OF THIS NOTE) OR THE LAST DAY
ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS NOTE
(OR ANY PREDECESSOR OF THIS NOTE) AND (Y) SUCH LATER DATE, IF ANY, AS
MAY BE REQUIRED BY APPLICABLE LAW (THE “RESALE RESTRICTION TERMINATION
DATE”), OFFER, SELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE
COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED
EFFECTIVE UNDER THE US SECURITIES ACT, (C) FOR SO LONG AS THIS NOTE IS
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE US SECURITIES ACT, TO A
PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED
IN RULE 144A UNDER THE US SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF A

 

A-1

 

QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A UNDER THE US SECURITIES ACT,
(D) PURSUANT TO OFFERS AND SALES TO NON-US PERSONS THAT OCCUR OUTSIDE THE
UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE US SECURITIES ACT OR
(E) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE US SECURITIES ACT, AND (3) AGREES THAT IT WILL GIVE TO
EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE
EFFECT OF THIS LEGEND; PROVIDED THAT THE COMPANY AND THE TRUSTEE SHALL HAVE THE
RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE
(D) PRIOR TO THE END OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN
THE MEANING OF REGULATION S UNDER THE US SECURITIES ACT OR PURSUANT TO CLAUSE
(E) PRIOR TO THE RESALE RESTRICTION TERMINATION DATE TO REQUIRE THAT AN
OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO THE
COMPANY AND THE TRUSTEE IS COMPLETED AND DELIVERED BY THE TRANSFEROR. THIS
LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,”
“UNITED STATES” AND “US PERSON” HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S
UNDER THE US SECURITIES ACT.

 

A-2

 

VALENTIA TELECOMMUNICATIONS

 

[Euro denominated][Dollar
denominated](1)

 

7.25% Senior
Note due 2013

 

[Common
Code No.:
            ](1)

 

[ISIN
No.:             ](1)

 

[CUSIP
No.:
            ](1)

 

No.        

 

VALENTIA TELECOMMUNICATIONS, an unlimited public
company incorporated under the laws of Ireland and having its registered office
at 25/28 North Wall Quay, Dublin 1, Ireland (the “Company”, which term includes
any successor corporation), for value received promises to pay to the bearer
hereof upon surrender hereof the principal sum indicated on Schedule A
hereof, on August 15, 2013.

 

Interest Payment Dates:  February 15 and August 15, commencing •.

 

Reference is made to the further provisions of this
Note contained herein, which will for all purposes have the same effect as if
set forth at this place.

 

(1) Insert as applicable. 

 

A-3

 

IN WITNESS
WHEREOF, the Company has caused this Note to be signed manually or by facsimile
by its duly authorized officer.

 

	
   

  	
  VALENTIA
  TELECOMMUNICATIONS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
  This is one of the Notes referred to

  in the within-mentioned Indenture:

  
	
   

  	
   

  
	
  THE BANK OF NEW YORK, as Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
						

 

A-4

 

[FORM
OF REVERSE]

 

VALENTIA TELECOMMUNICATIONS

 

7.25% Senior
Note due 2013

 

1.                  Interest.  VALENTIA TELECOMMUNICATIONS, an unlimited
public company incorporated under the laws of Ireland and having its registered
office at 25/28 North Wall Quay, Dublin 1, Ireland (the “Company”), promises to
pay interest on the principal amount of this Note at the rate and in the manner
specified below.  Interest on the Notes
will accrue at 7.25% per annum on the principal amount then outstanding, and be
payable semi-annually in arrears on each February 15 and August 15,
or if any such day is not a Business Day, on the next succeeding Business Day,
commencing •,
to the Holder hereof.  Notwithstanding
any exchange of this Note for a Definitive Note during the period starting on a
Record Date relating to such Definitive Note and ending on the immediately
succeeding interest payment date, the interest due on such interest payment
date shall be payable to the Holders of the Global Note on such Record
Date.  Interest on the Notes will accrue
from the most recent date to which interest has been paid or, if no interest has
been paid, from •.  Interest will
be computed on the basis of a 360-day year of twelve 30-day months.

 

The Company shall pay interest on overdue principal
and on overdue installments of interest (without regard to any applicable grace
periods), and on any overdue Additional Amounts, from time to time on demand at
the rate borne by the Notes.  Any
interest paid on this Note shall be increased to the extent necessary to pay
Additional Amounts as set forth herein.

 

2.                  Additional
Interest.  Pursuant to a
Registration Rights Agreement between the Company and the Initial Purchasers on
behalf of Holders of the Initial Notes, the Company has agreed to use its
commercially reasonable efforts to consummate an exchange offer pursuant to
which the Holder of this Note shall have the right to exchange this Note for
the Company’s 7.25% Senior Notes due 2013, which have then been registered
under the Securities Act, in like principal amount and having substantially
identical terms in all material respects as the Initial Notes, or in certain
circumstances to file and cause to become effective a registration statement
for the sale of the Initial Notes.  The
Holders shall be entitled to receive payment of additional interest in the
event such exchange offer is not consummated and in certain other events,
subject, in each case, to certain conditions, all pursuant to and in accordance
with the terms of such Registration Rights Agreement.  Additional interest which may be payable pursuant to such
Registration Rights Agreement shall be payable in the same manner as set forth
herein with respect to the stated interest. 
The provisions of such Registration Rights Agreement relating to such
additional interest are incorporated herein by reference and made a part hereof
as if set forth herein in full.  The
Company shall provide written notice to the Trustee of the accrual and amount
of additional interest, if any, not less than ten (10) Business Days prior to
each interest

 

A-5

 

payment date.  Absent such notice, the Trustee shall be
conclusively entitled to presume that no additional interest has accrued and is
owing.(2)

 

(2) If this is an Additional
Note, remove or revise in accordance with the terms of any applicable
Registration Rights Agreement. 

 

3.                  Additional
Amounts.  All payments made by the
Company, any Note Guarantor or a successor of any of the foregoing (each a
“Payor”) on this Note will be made without withholding or deduction for, or on
account of, any present or future taxes, duties, assessments or governmental charges
of whatever nature (“Taxes”) unless the withholding or deduction of such Taxes
is then required by law. If any deduction or withholding for, or on account of,
any Taxes imposed or levied by or on behalf of:

 

(1) Ireland or any
political subdivision or governmental authority thereof or therein having power
to tax;

 

(2) any jurisdiction from
or through which payment on the Senior Notes, the Senior Notes eircom Guarantee or any Additional Note
Guarantee is made, or any political subdivision or governmental authority
thereof or therein having the power to tax; or

 

(3) any other
jurisdiction in which the Payor is organized or otherwise considered to be a
resident for tax purposes, or any political subdivision or governmental
authority thereof or therein having the power to tax (each of the above, a
“Relevant Taxing Jurisdiction”),

 

will at any time be required from any payments made
with respect to this Note, including payments of principal, redemption price,
interest or premium, if any, the Payor will pay (together with such payments)
such additional amounts (the “Additional Amounts”) as may be necessary in order
that the net amounts received in respect of such payments by the Holder of this
Note or the Senior Trustee, as the case may be, after such withholding or
deduction (including any such deduction or withholding from such Additional
Amounts), equal the amounts which would have been received in respect of such
payments on this Note in the absence of such withholding or deduction; provided, however, that no such Additional
Amounts will be payable with respect to:

 

(1) any Taxes that would
not have been so imposed but for the existence of any present or former
connection between the relevant holder (or between a fiduciary, settlor,
beneficiary, member or shareholder of, or possessor of power over the relevant
holder, if the relevant holder is an estate, nominee, trust or corporation) and
the Relevant Taxing Jurisdiction (including being a citizen or resident or
national of, or carrying on a business or maintaining a permanent establishment
in, or being physically present in, the Relevant Taxing Jurisdiction) other
than by the mere ownership or holding of such Senior Note or the receipt of
payments in respect thereof;

 

(2) any Taxes that would
not have been so imposed if (i) the holder had made a declaration of
non-residence or any other claim or filing for exemption to which it is

 

A-6

 

entitled (provided that (x) such declaration of
non-residence or other claim or filing for exemption is required by the
applicable law of the Relevant Taxing Jurisdiction as a precondition to
exemption from the requirement to deduct or withhold all or a part of any such
Taxes and (y) at least 30 days prior to the first payment date with respect to
which such declaration of non-residence or other claim or filing for exemption
is required under the applicable law of the Relevant Taxing Jurisdiction, the
holder at that time has been notified (in accordance with the procedures set forth
in this Note under the caption “Selection and Notice of Redemption”) by the
Payor or any other person through whom payment may be made that a declaration
of non-residence or other claim or filing for exemption is required to be
made), or (ii) in the case of Taxes imposed by or on behalf of Ireland or any
political subdivision or governmental authority thereof or therein having the
power to tax (each of the foregoing an “Irish Taxing Jurisdiction”), the holder
of this Note had provided such other evidence as is reasonably necessary to
enable the Payor or any other person through whom payment may be made to
determine the residence of the holder (provided
that (x) such determination of residence is necessary under the
applicable laws of the Irish Taxing Jurisdiction to determine the application
of the exemption from the requirement to deduct or withhold all or a part of
any such Taxes and (y) at least 30 days prior to the first payment date with
respect to which such determination is required under the applicable law of the
Irish Taxing Jurisdiction, the relevant holder at that time has been notified
(in accordance with the procedures set forth in this Note under the caption
“Selection and Notice of Redemption”) by the Payor or any other person through
whom payment may be made that such evidence must be provided);

 

(3) any Senior Note
presented for payment (where presentation is required) more than 30 days after
the relevant payment is first made available for payment to the Holder (except
to the extent that the Holder would have been entitled to Additional Amounts
had the Senior Note been presented during such 30 day period);

 

(4) any Taxes that are
payable otherwise than by withholding from a payment of the principal of,
premium, if any or interest, if any, on this Note or under any Note Guarantee;

 

(5) any estate,
inheritance, gift, sale, transfer, personal property or similar tax, assessment
or other governmental charge;

 

(6) any Taxes imposed on
a payment to an individual and required to be made pursuant to the European
Union Directive (the “Directive”) on the taxation of savings implemented by the
ECOFIN Council meeting of June 3, 2003 or any law implementing or
complying with, or introduced in order to conform to, such Directive;

 

(7) any Taxes imposed in connection
with this Note presented for payment by or on behalf of a Holder or beneficial
owner who would have been able to avoid such Tax by presenting the relevant
Senior Note to, or otherwise accepting payment from, another paying agent in a
member state of the European Union; or

 

(8) any combination of
the above.

 

A-7

 

Such Additional Amounts will also not be payable
where, had the beneficial owner of this Note been the Holder of this Note, it
would not have been entitled to payment of Additional Amounts by reason of any
of clauses (1) to (8) inclusive above.

 

4.                  Method of
Payment.  The Company shall pay
interest on this Note to the bearer hereof. 
The Holder must surrender this Note to a Paying Agent to collect
principal payments.  The Company shall
pay all amounts owing hereunder in [euro][US Dollars].  Immediately available funds for the payment of the principal of
(and premium, if any), interest, and Additional Amounts, if any, on this Note
due on any interest payment date, Maturity Date, Redemption Date or other
repurchase date will be made available to the Paying Agent to permit the Paying
Agent to pay such funds to the Holders on such respective dates.

 

5.                  Paying Agent
and Registrar.  Initially, The Bank
of New York will act as Paying Agent and Registrar and The Bank of New York
London will act as Principal Paying Agent. 
In addition, AIB/BNY Fund Management (Ireland) Limited will act as Irish
Paying Agent and The Bank of New York (Luxembourg) S.A. will act as Luxembourg
Paying Agent.  In the event that a
Paying Agent or transfer agent is replaced, the Company will provide notice
thereof as set forth in the Indenture. 
The Company may change any Registrar without notice to the Holders.  The Company or any of its Subsidiaries may,
subject to certain exceptions, act in any such capacity.

 

6.                  Indenture.  The Company issued the Notes under an
indenture, dated as of August 7, 2003 (the “Indenture”), among the
Company, eircom, The Bank of New
York (the “Trustee”), The Bank of New York (Luxembourg) S.A., as Paying Agent
and transfer agent, AIB/BNY Fund Management (Ireland) Limited as Irish Paying
Agent and transfer agent and The Bank of New York, London, as Principal Paying
Agent and transfer agent.  This Note is
one of a duly authorized issue of Notes (as defined in the Indenture) of the
Company designated as its euro-denominated 7.25% Senior Notes due 2013 or its
dollar-denominated 7.25% Senior Notes due 2013 (the “Notes”).  The Notes include the Initial Notes,
Additional Notes, if any, and the Exchange Notes (each as defined in the
Indenture) issued in exchange for the Initial Notes and, as applicable,
Additional Notes pursuant to the Indenture. 
The terms of the Notes include those stated in the Indenture and those
made part of the Indenture by reference to the Trust Indenture Act of 1939 (15
US Code Sections 77aaa-77bbbb) (the “TIA”), as in effect on the date of the
Indenture until such time as the Indenture is qualified under the TIA, and
thereafter as in effect on the date on which the Indenture is qualified under
the TIA.  Notwithstanding anything to
the contrary herein, the Notes are subject to all such terms, and Holders of
Notes are referred to the Indenture and the TIA for a statement of them.  The Notes are general obligations of the
Company.  The Notes are not limited in
aggregate principal amount and Additional Notes (as defined in the Indenture)
may be issued from time to time under the Indenture, in each case subject to
the terms of the Indenture; provided that
the aggregate principal amount of Initial Notes that will be issued on the
Issue Date will not exceed €550,000,000. 
Each Holder, by accepting a Note, agrees to be bound by all of the terms
and provisions of the Indenture, as the same may be amended from time to
time.  Terms capitalized but not
otherwise defined herein shall have the meaning assigned them in the Indenture.

 

7.                  Guarantees.  eircom has
guaranteed pursuant to the terms of the Indenture the full and punctual payment
of the principal of, premium, if any, interest, and Additional Amounts,

 

A-8

 

if any, on the
Notes and all other payment obligations of the Company under the Indenture when
and as the same shall be due and payable, whether at maturity, by acceleration
or otherwise, according to the terms of the Indenture.  In addition, the Company may from time to
time designate Additional Note Guarantors to provide Additional Note Guarantees
in favor of the Senior Notes.  The
guarantee from eircom and each such Additional Note Guarantee are subject
to release in the circumstances described in the Indenture.

 

8.                  Optional
Redemption.  The Notes will be
redeemable, at the Company’s option, in whole or in part, on and after
August 15, 2008, upon not less than 30 nor more than 60 days’ prior
notice at the redemption prices (expressed as a percentage of principal amount)
set forth below, plus accrued and unpaid interest, if any, and Additional
Amounts, if any (each, a “Redemption Price”), to the date fixed by the Company
for redemption (a “Redemption Date”) (subject to the right of Holders of record
of Definitive Notes on the relevant Record Date to receive interest, and
Additional Amounts, if any, due on the relevant interest payment date), if redeemed
during the twelve-month period beginning on August 15 of each of the years
indicated below:

 

	
  Year

  	
   

  	
  If a Dollar Note

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  103.625

  	
  %

  
	
  2009

  	
   

  	
  102.417

  	
  %

  
	
  2010

  	
   

  	
  101.208

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.00

  	
  %

  

 

In the event that the Company effects an optional
redemption of the Notes, the Company will inform the Luxembourg Stock Exchange
and the Irish Stock Exchange of such optional redemption and confirm the
aggregate principal amount of the Notes that will remain outstanding following
such redemption.

 

In addition, at any time prior to August 15,
2006, the Company may on any one or more occasions redeem up to 35% of the
aggregate principal amount of the Notes issued under the Indenture with funds
in an aggregate amount (the “Redemption Amount”) not exceeding the aggregate
net cash proceeds of one or more Equity Offerings at a redemption price of
107.25% of the principal amount thereof plus accrued and unpaid interest, if
any, and Additional Amounts, if any (each, a “Redemption Price”), to the date
fixed by the Company for redemption (a “Redemption Date”) (subject to the right
of Holders of record of Definitive Notes on the relevant Record Date to receive
interest, and Additional Amounts, if any, due on the relevant interest payment
date); provided that (i) at least
65% of the aggregate principal amount of the Notes of the series being redeemed
remain outstanding after the occurrence of any and each such redemption
(excluding Notes held by the Company and its Subsidiaries) and (ii) the
redemption must occur within 180 days of the date of the closing of such
offering or the making of such capital contribution.  Any redemption notice given in respect of the redemption referred
to in this paragraph may be given prior to completion of the related Equity
Offering, and any such redemption or notice may, at the Company’s discretion,
be subject to the satisfaction of one or more conditions precedent, including
but not limited to the completion of the related Equity Offering.

 

A-9

 

Further, at any time prior to August 15, 2008,
the Company may redeem all or, from time to time, a part of the Senior Notes of
any series upon not less than 30 nor more than 60 days’ notice at a redemption
price equal to 100% of the principal amount thereof plus the Applicable Premium
and accrued and unpaid interest and Additional Amounts, if any, to the date of
redemption (subject, in the case of certificated Senior Notes, to the rights of
holders of record on the relevant record date to receive interest due on the
relevant interest payment date). Any such redemption and notice may, at the
Company’s discretion, be subject to the satisfaction of one or more conditions
precedent.

 

9.                  Special Tax
Redemption.  The Company may redeem
any series of Senior Notes in whole as to such series, but not in part, at any
time upon giving not less than 30 nor more than 60 days’ notice to the Holders
of the relevant series of Senior Notes (which notice will be irrevocable) at a
redemption price equal to 100% of the principal amount thereof, together with
accrued and unpaid interest, if any, to the date fixed for redemption (a “Tax
Redemption Date”) (subject to the right of holders of record on the relevant
record date to receive interest due on the relevant interest payment date),
Additional Amounts, if any, then due and which will become due on the Tax
Redemption Date as a result of the redemption or otherwise, if any, if the
Company determines that, as a result of: (1) any change in, or amendment to,
the law or treaties (or any regulations or rulings promulgated thereunder) of a
Relevant Taxing Jurisdiction (as defined below) affecting taxation; or (2) any
change in position regarding the application, administration or interpretation
of such laws, treaties, regulations or rulings (including a holding, judgment
or order by a court of competent jurisdiction) (each of the foregoing in
clauses (1) and (2), a “Change in Tax Law”), the Company, with respect to the
Senior Notes, or a Note Guarantor, with respect to a Note Guarantee, as the
case may be, is, or on the next interest payment date in respect of the
relevant series of Senior Notes would be, required to pay any Additional
Amounts, and such obligation cannot be avoided by taking reasonable measures
available to it. In the case of the Company or eircom,
the Change in Tax Law must become effective on or after July 30,
2003.  In the case of an Additional Note
Guarantor, a Successor Company or a successor of any Note Guarantor, the Change
in Tax Law must become effective after the date that such entity first makes
payment on the Senior Notes. Notice of redemption for taxation reasons will be
published in accordance with the procedures described under paragraph 10
hereof.  Notwithstanding the foregoing,
no such notice of redemption will be given (a) earlier than 90 days prior to
the earliest date on which the Payor (as defined above) would be obliged to
make such payment of Additional Amounts and (b) unless at the time such notice
is given, such obligation to pay such Additional Amounts remains in effect.
Prior to the publication or mailing of any notice of redemption of any series
of Senior Notes pursuant to the foregoing, the Company will deliver to the
Senior Trustee (a) an Officer’s Certificate stating that the Company is
entitled to effect such redemption and setting forth a statement of facts
showing that the conditions precedent to its right so to redeem have been
satisfied and (b) an opinion of an independent tax counsel of recognized
standing to the effect that the circumstances referred to above exist.

 

10.            Selection and
Notice of Redemption.

 

If less than all of any series of Senior Notes is to
be redeemed at any time, the Senior Trustee will select Senior Notes for
redemption in compliance with the requirements of the principal securities
exchange, if any, on which that series of Senior Notes is listed, and/or in

 

A-10

 

compliance with
the requirements of Euroclear, Clearstream or DTC, as applicable, or if that
series of Senior Notes is not so listed or such exchange prescribes no method
of selection and the Senior Notes are not held through Euroclear, Clearstream
or DTC, as applicable, or Euroclear, Clearstream or DTC, as applicable,
prescribes no method of selection, on a pro
rata basis, by lot or by such other method as the Senior Trustee in
its sole discretion deems fair and appropriate (and in such manner as complies
with applicable legal and exchange requirements); provided, however, that no
Note of €1,000 (in the case of Senior Euro Notes) or $1,000 (in the case of
Senior Dollar Notes) in aggregate principal amount or less shall be redeemed in
part.

 

If and for so long as the Senior Notes are listed on
the Luxembourg Stock Exchange and the rules of such exchange so require, the Company
shall publish notice of redemption in Luxembourg in a daily newspaper with
general circulation in Luxembourg (which is expected to be the Luxemburger Wort).  If and for so long as the Senior Notes are
listed on the Irish Stock Exchange and the rules of such exchange so require,
notice of such redemption shall be sent to the Companies Announcements Office
of such exchange.

 

If any Global Note is to be redeemed in part only, the
notice of redemption that relates to that Senior Note shall state the portion
of the principal amount thereof to be redeemed.  In the case of a Global Note, an appropriate notation will be
made on such Senior Note to decrease the principal amount thereof to an amount
equal to the unredeemed portion thereof. Notes called for redemption become due
on the date fixed for redemption. On and after the redemption date, interest
ceases to accrue on Notes or portions of them called for redemption.

 

Except
as set forth in the Indenture, from and after any Redemption Date, if monies
for the redemption of the Notes called for redemption shall have been deposited
with the Paying Agent for redemption on such Redemption Date, then, unless the
Company fails to make payment of such Redemption Price, the Notes called for
redemption will cease to bear interest, and Additional Amounts, if any, and the
only right of the Holders of such Notes will be to receive payment of the
Redemption Price.

 

11.            Denominations; Form.  The Global Notes are in bearer global form,
without coupons, in denominations of [€][$]1,000 and integral multiples of [€][$]1,000.

 

12.            Persons Deemed
Owners.  The bearer of this Note
shall be treated as the owner of it for all purposes, subject to the terms of
the Indenture.

 

13.            Unclaimed Funds.  If funds for the payment of principal,
interest, premium, or Additional Amounts remain unclaimed for two years, the
Trustee and the Paying Agents will repay the funds to the Company at its
written request.  After that, all
liability of the Trustee and such Paying Agents with respect to such funds
shall cease.

 

14.            Legal Defeasance
and Covenant Defeasance.  The
Company and the Note Guarantors may be discharged from their respective
obligations under the Indenture and the Notes except for certain provisions
thereof, and may be discharged from their respective obligations to comply with
certain covenants contained in the Indenture, in each case upon satisfaction of
certain conditions specified in the Indenture.

 

A-11

 

15.            Amendment;
Supplement; Waiver.  Subject to
certain exceptions specified in the Indenture, the Indenture (including any
supplemental indenture) or the Notes may be amended or supplemented with the
written consent of the Holders of at least a majority in principal amount of
the Notes then outstanding, and any existing Default or Event of Default or
compliance with any provision of the Indenture or the Notes may be waived with
the consent of the Holders of a majority in principal amount of the Notes then
outstanding.

 

16.            Restrictive Covenants.  The Indenture imposes certain covenants
that, among other things, limit the ability of the Company and its Restricted
Subsidiaries to incur additional Indebtedness, pay dividends or make other
distributions or investments, repurchase its Capital Stock or make certain
other Restricted Payments, enter into certain consolidations or mergers or
enter into certain transactions with Affiliates and consummate certain mergers
and consolidations or sales of all or substantially all assets.  The limitations are subject to a number of
important qualifications and exceptions.

 

17.            Successors.  When a successor assumes all the obligations
of its predecessor under the Notes and the Indenture in accordance with the
terms of the Indenture, the predecessor will be released from those
obligations.

 

18.            Defaults and
Remedies.  Subject to certain
restrictions, if an Event of Default (other than an Event of Default specified
in clause (7) of Section 6.1 of the Indenture) occurs and is continuing,
the Trustee or the Holders of at least 25% in principal amount of the then
outstanding Notes may declare all the Notes to be due and payable immediately
in the manner and with the effect provided in the Indenture.  Holders of Notes may not enforce the
Indenture or the Notes except as provided in the Indenture.  The Trustee is not obligated to enforce the
Indenture or the Notes unless it has received indemnity satisfactory to
it.  The Indenture permits, subject to
certain limitations therein provided, Holders of a majority in aggregate
principal amount of the Notes then outstanding to direct the Trustee in its
exercise of any trust or power.  The
Trustee may withhold from Holders of Notes notice of any continuing Default or
Event of Default (except a Default in payment of principal, premium, interest,
and Additional Amounts, if any, including an accelerated payment) if it
determines that withholding notice is in their interest.

 

19.            Trustee Dealings
with Company.  The Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Notes and may otherwise deal with the Company, its Subsidiaries or
their respective Affiliates as if it were not the Trustee or an Agent.

 

20.            No Recourse Against
Others.  No director, officer,
employee, incorporator, member or stockholder of the Company, or any Note
Guarantor, as such, shall have any liability for any obligations of the
Company, or any Note Guarantor under the Notes, this Indenture or any Note
Guarantee herein or for any claim based on, in respect of, or by reason of,
such obligations or their creation. Each Holder of Notes by accepting a Note
waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes.

 

21.            Authentication.  This Note shall not be valid until the
Trustee or authenticating agent signs the certificate of authentication on this
Note.

 

A-12

 

22.            Abbreviations and
Defined Terms.  Customary
abbreviations may be used in the name of a Holder of a Note or an assignee,
such as:  TEN COM (= tenants in common),
TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).  Unless
otherwise defined herein, terms defined in the Indenture are used herein as
defined therein.

 

23.            CUSIP, ISIN and
Common Code Numbers.  The Company
may cause CUSIP, ISIN and Common Code numbers to be printed on the Notes
immediately prior to the qualification of the Indenture under the TIA as a
convenience to the Holders of the Notes. 
No representation is made as to the accuracy of such numbers as printed
on the Notes and reliance may be placed only on the other identification
numbers printed hereon.

 

24.            Governing Law.  The
Indenture and the Notes, and the rights and duties of the  parties hereunder and thereunder, shall be
governed by, and construed in accordance with, the laws of the State of New
York.

 

A-13

 

SCHEDULE A

 

SCHEDULE OF PRINCIPAL AMOUNT

 

The initial principal amount at maturity of this Note
shall be [€][$]                .  The following decreases/increases in the
principal amount at maturity of this Note have been made:

 

	
  Date of

  Decrease/

  Increase

  	
   

  	
  Decrease
  in

  Principal

  Amount at

  Maturity

  	
   

  	
  Increase
  in

  Principal 

  Amount at

  Maturity

  	
   

  	
  Total
  Principal

  Amount at

  Maturity

  Following such

  Decrease/

  Increase

  	
   

  	
  Notation

  Made by

  or on

  Behalf of

  Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-14

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Note purchased by
the Company pursuant to Section 4.10 or Section 4.14 of the
Indenture, check the appropriate box:

 

Section 4.10 [      ]
Section 4.14 [       ]

 

If you want to elect to have only part of this Note
purchased by the Company pursuant to Section 4.10 or Section 4.14 of
the Indenture, state the amount: [€][$]

 

	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
				

 

	
  Your
  Signature:

  	
   

  
	
  (Sign
  exactly as your name appears on the other side of this Note)

  
	
   

  

 

	
  Signature Guarantee:

  	
   

  

Participant in a recognized
Signature Guarantee Medallion Program (or other signature guarantor program
reasonably acceptable to the Trustee)

 

A-15

 

EXHIBIT B

TO THE INDENTURE

 

[FORM OF FACE OF INITIAL DEFINITIVE NOTE]

 

THIS NOTE IS A DEFINITIVE NOTE WITHIN THE MEANING OF
THE INDENTURE HEREINAFTER REFERRED TO.

 

THIS NOTE OF VALENTIA TELECOMMUNICATIONS (THE
“COMPANY”) HAS NOT BEEN REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS
AMENDED (THE “US SECURITIES ACT”), OR OTHER SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION.  NEITHER THIS NOTE NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
SUCH REGISTRATION UNLESS THE TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE US SECURITIES ACT.

 

THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF
(1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS
DEFINED IN RULE 144A UNDER THE US SECURITIES ACT) OR (B) IT IS NOT A US
PERSON AND IS ACQUIRING THIS NOTE IN AN “OFFSHORE TRANSACTION” PURSUANT TO RULE
904 OF REGULATION S UNDER THE US SECURITIES ACT, (2) AGREES THAT IT WILL
NOT, PRIOR TO (X) THE DATE WHICH IS TWO YEARS (OR SUCH SHORTER PERIOD OF
TIME AS PERMITTED BY RULE 144(k) UNDER THE US SECURITIES ACT OR ANY SUCCESSOR
PROVISION THEREUNDER) AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR OF
ANY PREDECESSOR OF THIS NOTE) OR THE LAST DAY ON WHICH THE COMPANY OR ANY
AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS
NOTE) AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY
APPLICABLE LAW (THE “RESALE RESTRICTION TERMINATION DATE”), OFFER, SELL OR
OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE COMPANY, (B) PURSUANT
TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE US
SECURITIES ACT, (C) FOR SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE US SECURITIES ACT, TO A PERSON IT REASONABLY
BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE
US SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A UNDER THE US SECURITIES ACT,
(D) PURSUANT TO OFFERS AND SALES TO NON-US PERSONS THAT OCCUR OUTSIDE THE
UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE US SECURITIES ACT OR
(E) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE US SECURITIES ACT, AND (3) AGREES THAT IT WILL GIVE TO
EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE
EFFECT OF THIS LEGEND; PROVIDED THAT THE COMPANY AND THE TRUSTEE SHALL HAVE THE
RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE
(D) PRIOR TO THE END OF THE

 

B-1

 

40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN THE MEANING OF REGULATION
S UNDER THE US SECURITIES ACT OR PURSUANT TO CLAUSE (E) PRIOR TO THE
RESALE RESTRICTION TERMINATION DATE TO REQUIRE THAT AN OPINION OF COUNSEL,
CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO THE COMPANY AND THE
TRUSTEE IS COMPLETED AND DELIVERED BY THE TRANSFEROR. THIS LEGEND WILL BE
REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION
DATE. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “US
PERSON” HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE US SECURITIES
ACT.

 

B-2

 

VALENTIA TELECOMMUNICATIONS

 

7.25% Senior
Note due 2013

 

 

	
   

  	
   

  	
  [Common
  Code No.:              ](1)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [ISIN No.:
                  ](1)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [CUSIP No.:              ](1)

  
	
   

  
	
   

  
	
  No.         

  	
  [€][$]                  

  
				

 

VALENTIA TELECOMMUNICATIONS, an unlimited public
company incorporated under the laws of Ireland and having its registered office
at 25/28 North Wall Quay, Dublin 1, Ireland 
(the “Company”, which term includes any successor corporation), for
value received promises to pay                             
or registered assigns upon surrender hereof the principal sum hereof, on
August 15, 2013.

 

Interest Payment Dates:  February 15 and August 15, commencing •.

 

Record Dates: 
January 31 and July 31

 

Reference is made to the further provisions of this
Note contained herein, which will for all purposes have the same effect as if
set forth at this place.

 

 

(1) Insert as applicable.

 

B-3

 

IN WITNESS
WHEREOF, the Company has caused this Note to be signed manually or by facsimile
by its duly authorized officer.

 

	
   

  	
   

  	
   

  	
  VALENTIA
  TELECOMMUNICATIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  This is one
  of the Notes referred to

  in the within-mentioned Indenture:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE BANK OF
  NEW YORK, as Trustee

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  
						

 

B-4

 

[FORM OF REVERSE]

 

VALENTIA TELECOMMUNICATIONS

 

7.25% Senior
Note due 2013

 

1.               Interest.   VALENTIA TELECOMMUNICATIONS, an unlimited
public company incorporated under the laws of Ireland and having its registered
office at 25/28 North Wall Quay, Dublin 1, Ireland (the “Company”), promises to
pay interest on the principal amount of this Note at the rate and in the manner
specified below.  Interest on the Notes
will accrue at 7.25% per annum on the principal amount then outstanding, and be
payable semi-annually in arrears on each February 15 and August 15,
or if any such day is not a Business Day, on the next succeeding Business Day,
commencing •, to Holders of record of the Notes at the close of business on the
immediately preceding • and •, whether or not a Business Day.  Interest on the Notes will accrue from the
most recent date to which interest has been paid or, if no interest has been
paid, from •.  Interest will be computed
on the basis of a 360-day year of twelve 30-day months.

 

The Company shall pay interest on overdue principal
and on overdue installments of interest (without regard to any applicable grace
periods), and on any overdue Additional Amounts, from time to time on demand at
the rate borne by the Notes.  Any
interest paid on this Note shall be increased to the extent necessary to pay
Additional Amounts as set forth herein.

 

2.               Additional
Interest.  Pursuant to a
Registration Rights Agreement between the Company and the Initial Purchasers on
behalf of Holders of the Initial Notes, the Company has agreed to use its
commercially reasonable efforts to consummate an exchange offer pursuant to
which the Holder of this Note shall have the right to exchange this Note for
the Company’s 7.25% Senior Notes due 2013, which have then been registered
under the Securities Act, in like principal amount and having substantially
identical terms in all material respects as the Initial Notes or, in certain
circumstances, to file and cause to become effective a registration statement
for the sale of the Initial Notes.  The
Holders shall be entitled to receive payment of additional interest in the
event such exchange offer is not consummated and in certain other events,
subject, in each case, to certain conditions, all pursuant to and in accordance
with the terms of such Registration Rights Agreement.  Additional interest which may be payable pursuant to such
Registration Rights Agreement shall be payable in the same manner as set forth
herein with respect to the stated interest. 
The provisions of such Registration Rights Agreement relating to such
additional interest are incorporated herein by reference and made a part hereof
as if set forth herein in full.  The
Company shall provide written notice to the Trustee of the accrual and amount
of additional interest, if any, not less than ten (10) Business Days prior to
each interest

 

B-5

 

payment date.  Absent such notice, the Trustee shall be
conclusively entitled to presume that no additional interest has accrued and is
owing.(2)

 

(2) If this is an Additional Note, remove or revise in accordance with
the terms of any applicable Registration Rights Agreement.

 

3.               Additional
Amounts.  All payments made by the
Company, any Note Guarantor or a successor of any of the foregoing (each a
“Payor”) on this Note will be made without withholding or deduction for, or on
account of, any present or future taxes, duties, assessments or governmental
charges of whatever nature (“Taxes”) unless the withholding or deduction of
such Taxes is then required by law. If any deduction or withholding for, or on
account of, any Taxes imposed or levied by or on behalf of:

 

(1) Ireland or any
political subdivision or governmental authority thereof or therein having power
to tax;

 

(2) any jurisdiction from
or through which payment on the Senior Notes, the Senior Notes eircom Guarantee or any Additional Note
Guarantee is made, or any political subdivision or governmental authority
thereof or therein having the power to tax; or

 

(3) any other
jurisdiction in which the Payor is organized or otherwise considered to be a
resident for tax purposes, or any political subdivision or governmental
authority thereof or therein having the power to tax (each of the above, a
“Relevant Taxing Jurisdiction”),

 

will at any time be required from any payments made
with respect to this Note, including payments of principal, redemption price,
interest or premium, if any, the Payor will pay (together with such payments)
such additional amounts (the “Additional Amounts”) as may be necessary in order
that the net amounts received in respect of such payments by the Holder of this
Note or the Senior Trustee, as the case may be, after such withholding or
deduction (including any such deduction or withholding from such Additional
Amounts), equal the amounts which would have been received in respect of such
payments on this Note in the absence of such withholding or deduction; provided, however, that no such Additional
Amounts will be payable with respect to:

 

(1) any Taxes that would
not have been so imposed but for the existence of any present or former
connection between the relevant holder (or between a fiduciary, settlor,
beneficiary, member or shareholder of, or possessor of power over the relevant
holder, if the relevant holder is an estate, nominee, trust or corporation) and
the Relevant Taxing Jurisdiction (including being a citizen or resident or
national of, or carrying on a business or maintaining a permanent establishment
in, or being physically present in, the Relevant Taxing Jurisdiction) other
than by the mere ownership or holding of such Senior Note or the receipt of
payments in respect thereof;

 

(2) any Taxes that would
not have been so imposed if (i) the holder had made a declaration of
non-residence or any other claim or filing for exemption to which it is

 

B-6

 

entitled (provided that (x) such declaration of
non-residence or other claim or filing for exemption is required by the
applicable law of the Relevant Taxing Jurisdiction as a precondition to
exemption from the requirement to deduct or withhold all or a part of any such
Taxes and (y) at least 30 days prior to the first payment date with respect to
which such declaration of non-residence or other claim or filing for exemption
is required under the applicable law of the Relevant Taxing Jurisdiction, the
holder at that time has been notified (in accordance with the procedures set
forth in this Note under the caption “Selection and Notice of Redemption”) by
the Payor or any other person through whom payment may be made that a
declaration of non-residence or other claim or filing for exemption is required
to be made), or (ii) in the case of Taxes imposed by or on behalf of Ireland or
any political subdivision or governmental authority thereof or therein having
the power to tax (each of the foregoing an “Irish Taxing Jurisdiction”), the
holder of this Note had provided such other evidence as is reasonably necessary
to enable the Payor or any other person through whom payment may be made to
determine the residence of the holder (provided
that (x) such determination of residence is necessary under the
applicable laws of the Irish Taxing Jurisdiction to determine the application
of the exemption from the requirement to deduct or withhold all or a part of
any such Taxes and (y) at least 30 days prior to the first payment date with
respect to which such determination is required under the applicable law of the
Irish Taxing Jurisdiction, the relevant holder at that time has been notified
(in accordance with the procedures set forth in this Note under the caption
“Selection and Notice of Redemption”) by the Payor or any other person through
whom payment may be made that such evidence must be provided);

 

(3) any Senior Note
presented for payment (where presentation is required) more than 30 days after
the relevant payment is first made available for payment to the Holder (except
to the extent that the Holder would have been entitled to Additional Amounts
had the Senior Note been presented during such 30 day period);

 

(4) any Taxes that are
payable otherwise than by withholding from a payment of the principal of,
premium, if any or interest, if any, on the Senior Notes or under any Note
Guarantee;

 

(5) any estate,
inheritance, gift, sale, transfer, personal property or similar tax, assessment
or other governmental charge;

 

(6) any Taxes imposed on
a payment to an individual and required to be made pursuant to the European
Union Directive (the “Directive”) on the taxation of savings implemented by the
ECOFIN Council meeting of June 3, 2003 or any law implementing or
complying with, or introduced in order to conform to, such Directive;

 

(7) any Taxes imposed in
connection with this Note presented for payment by or on behalf of a Holder or
beneficial owner who would have been able to avoid such Tax by presenting the
relevant Senior Note to, or otherwise accepting payment from, another paying
agent in a member state of the European Union; or

 

(8) any combination of
the above.

 

B-7

 

Such Additional Amounts will also not be payable
where, had the beneficial owner of the Senior Note been the Holder of this Note,
it would not have been entitled to payment of Additional Amounts by reason of
any of clauses (1) to (8) inclusive above.

 

4.               Method of
Payment.  The Company shall pay
interest on this Note (except defaulted interest) to the Persons who are the
registered Holders at the close of business on the Record Date immediately
preceding the interest payment date for such interest.  Holders must surrender Notes to a Paying
Agent to collect principal payments. 
The Company shall pay all amounts owing hereunder in [euro]
[US
Dollars].  If (i) a Holder of at least [€][$]10.0 million
in aggregate principal amount of Notes has given wire transfer instructions to
the Company and the Paying Agent in writing, (ii) the Paying Agent has received
such written wire transfer instruction at least 15 days prior to the date of the
relevant payment and (iii) for so long as the Notes are listed on the
Luxembourg Stock Exchange, such holder has also provided such notice to the
paying agent in Luxembourg, then the Company will pay all interest, premium,
and Additional Amounts, if any, on that Holder’s Notes in accordance with those
instructions by wire transfer of same day funds to the Paying Agent who in turn
will wire such funds to the Holder hereof or to such other Person as the Holder
hereof may in writing to the Paying Agent direct.  In all other cases, the Company may elect to make payments of
interest, premium, and Additional Amounts, if any, on a Holder’s Notes by check
mailed to the Holders at their addresses set forth in the register of
Holders.  Payments on Notes will be made
through the office or agency of the Paying Agent and Registrar for the Notes
unless the Company elects to make interest payments by check as previously
described.  If payments are made through
the Paying Agent, immediately available funds for the payment of the principal
of (and premium, if any), interest, and Additional Amounts, if any, on this
Note due on any interest payment date, Maturity Date, Redemption Date or other
repurchase date will be made available to the Paying Agent to permit the Paying
Agent to pay such funds to the Holders on such respective dates.

 

5.               Paying Agent and
Registrar.  Initially, The Bank of
New York will act as Paying Agent and Registrar and The Bank of New York London
will act as Principal Paying Agent.  In
addition, AIB/BNY Fund Management (Ireland) Limited will act as Irish Paying
Agent and The Bank of New York (Luxembourg) S.A. will act as Luxembourg Paying
Agent.  In the event that a Paying Agent
or transfer agent is replaced, the Company will provide notice thereof as set forth
in the Indenture.  The Company may
change any Registrar without notice to the Holders.  The Company or any of its Subsidiaries may, subject to certain
exceptions, act in any such capacity.

 

6.               Indenture.  The Company issued the Notes under an
indenture, dated as of August 7, 2003 (the “Indenture”), among the
Company, eircom, The Bank of New
York (the “Trustee”), The Bank of New York (Luxembourg) S.A., as Paying Agent
and transfer agent, AIB/BNY Fund Management (Ireland) Limited as Irish Paying
Agent and transfer agent, and The Bank of New York, London, as Principal Paying
Agent and transfer agent.  This Note is
one of a duly authorized issue of Notes (as defined in the Indenture) of the
Company designated as its euro-denominated 7.25% Senior Notes due 2013 or its
dollar-denominated 7.25% Senior Notes due 2013 (the “Notes”).  The Notes include the Initial Notes and
Additional Notes, if any, and the Exchange Notes (each as defined in the
Indenture) issued in exchange for the Initial Notes and, as applicable,
Additional Notes pursuant to the Indenture. 
The terms of the Notes include those stated in the Indenture and those
made part of the Indenture by reference to the

 

B-8

 

Trust Indenture
Act of 1939 (15 US Code Sections 77aaa-77bbbb) (the “TIA”), as in effect on the
date of the Indenture until such time as the Indenture is qualified under the
TIA, and thereafter as in effect on the date on which the Indenture is
qualified under the TIA. 
Notwithstanding anything to the contrary herein, the Notes are subject
to all such terms, and Holders of Notes are referred to the Indenture and the
TIA for a statement of them.  The Notes
are general obligations of the Company. 
The Notes are not limited in aggregate principal amount and Additional
Notes (as defined in the Indenture) may be issued from time to time under the
Indenture, in each case subject to the terms of the Indenture; provided that the aggregate principal
amount of Initial Notes that will be issued on the Issue Date will not exceed
€550,000,000.  Each Holder, by accepting
a Note, agrees to be bound by all of the terms and provisions of the Indenture,
as the same may be amended from time to time. 
Terms capitalized but not otherwise defined herein shall have the meaning
assigned them in the Indenture.

 

7.               Guarantees.  eircom has
guaranteed pursuant to the terms of the Indenture the full and punctual payment
of the principal of, premium, if any, interest, and Additional Amounts, if any,
on the Notes and all other payment obligations of the Company under the
Indenture when and as the same shall be due and payable, whether at maturity,
by acceleration or otherwise, according to the terms of the Indenture.  In addition, the Company may from time to
time designate Additional Note Guarantors to provide Additional Note Guarantees
in favor of the Senior Notes.  The
guarantee from eircom and each such Additional Note Guarantee are subject
to release in the circumstances described in the Indenture.

 

8.               Optional
Redemption.  The Notes will be
redeemable, at the Company’s option, in whole or in part, on and after
August 15, 2008, upon not less than 30 nor more than 60 days’ prior
notice at the redemption prices (expressed as a percentage of principal amount)
set forth below, plus accrued and unpaid interest, if any, and Additional
Amounts, if any (each, a “Redemption Price”), to the date fixed by the Company
for redemption (a “Redemption Date”) (subject to the right of Holders of record
of Definitive Notes on the relevant Record Date to receive interest, and
Additional Amounts, if any, due on the relevant interest payment date), if
redeemed during the twelve-month period beginning on August 15 of each of
the years indicated below:

 

	
  Year

  	
   

  	
  If a Dollar Note

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  103.625

  	
  %

  
	
  2009

  	
   

  	
  102.417

  	
  %

  
	
  2010

  	
   

  	
  101.208

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.00

  	
  %

  

 

In the event that the Company effects an optional
redemption of the Notes, the Company will inform the Luxembourg Stock Exchange
and the Irish Stock Exchange of such optional redemption and confirm the
aggregate principal amount of the Notes that will remain outstanding following
such redemption.

 

In addition, at any time prior to August 15,
2006, the Company may on any one or more occasions redeem up to 35% of the
aggregate principal amount of the Notes issued under the Indenture with funds
in an aggregate amount (the “Redemption Amount”) not exceeding the

 

B-9

 

aggregate net cash proceeds of one or more Equity Offerings at a
redemption price of 107.25% of the principal amount thereof plus accrued and
unpaid interest, if any, and Additional Amounts, if any (each, a “Redemption
Price”), to the date fixed by the Company for redemption (a “Redemption Date”)
(subject to the right of Holders of record of Definitive Notes on the relevant
Record Date to receive interest, and Additional Amounts, if any, due on the
relevant interest payment date); provided
that (i) at least 65% of the aggregate principal amount of the Notes of the
series being redeemed remain outstanding after the occurrence of any and each
such redemption (excluding Notes held by the Company and its Subsidiaries) and
(ii) the redemption must occur within 180 days of the date of the closing
of such offering or the making of such capital contribution.  Any redemption notice given in respect of
the redemption referred to in this paragraph may be given prior to completion
of the related Equity Offering, and any such redemption or notice may, at the
Company’s discretion, be subject to the satisfaction of one or more conditions
precedent, including but not limited to the completion of the related Equity
Offering.

 

Further, at any time prior to August 15, 2008,
the Company may redeem all or, from time to time, a part of the Senior Notes of
any series upon not less than 30 nor more than 60 days’ notice at a redemption
price equal to 100% of the principal amount thereof plus the Applicable Premium
and accrued and unpaid interest and Additional Amounts, if any, to the date of
redemption (subject, in the case of the Definitive Notes, to the rights of
holders of record on the relevant record date to receive interest due on the
relevant interest payment date). Any such redemption and notice may, at the
Company’s discretion, be subject to the satisfaction of one or more conditions
precedent.

 

9.               Special Tax
Redemption.  The Company may redeem
any series of Senior Notes in whole as to such series, but not in part, at any
time upon giving not less than 30 nor more than 60 days’ notice to the Holders
of the relevant series of Senior Notes (which notice will be irrevocable) at a
redemption price equal to 100% of the principal amount thereof, together with
accrued and unpaid interest, if any, to the date fixed for redemption (a “Tax
Redemption Date”) (subject to the right of holders of record on the relevant
record date to receive interest due on the relevant interest payment date),
Additional Amounts, if any, then due and which will become due on the Tax
Redemption Date as a result of the redemption or otherwise, if any, if the
Company determines that, as a result of: (1) any change in, or amendment to,
the law or treaties (or any regulations or rulings promulgated thereunder) of a
Relevant Taxing Jurisdiction (as defined above) affecting taxation; or (2) any
change in position regarding the application, administration or interpretation
of such laws, treaties, regulations or rulings (including a holding, judgment
or order by a court of competent jurisdiction) (each of the foregoing in
clauses (1) and (2), a “Change in Tax Law”), the Company, with respect to the
Senior Notes, or a Note Guarantor, with respect to a Note Guarantee, as the
case may be, is, or on the next interest payment date in respect of the
relevant series of Senior Notes would be, required to pay any Additional
Amounts, and such obligation cannot be avoided by taking reasonable measures
available to it. In the case of the Company or eircom,
the Change in Tax Law must become effective on or after July 30,
2003.  In the case of an Additional Note
Guarantor, a Successor Company or a successor of any Note Guarantor, the Change
in Tax Law must become effective after the date that such entity first makes
payment on the Senior Notes. Notice of redemption for taxation reasons will be
published in accordance with the procedures described under paragraph 10
hereof.  Notwithstanding the foregoing,
no such notice of redemption will be given (a) earlier

 

B-10

 

than 90 days prior
to the earliest date on which the Payor (as defined below) would be obliged to
make such payment of Additional Amounts and (b) unless at the time such notice
is given, such obligation to pay such Additional Amounts remains in effect.
Prior to the publication or mailing of any notice of redemption of any series
of Senior Notes pursuant to the foregoing, the Company will deliver to the
Senior Trustee (a) an Officer’s Certificate stating that the Company is
entitled to effect such redemption and setting forth a statement of facts
showing that the conditions precedent to its right so to redeem have been
satisfied and (b) an opinion of an independent tax counsel of recognized
standing to the effect that the circumstances referred to above exist.

 

10.         Selection and Notice
of Redemption.  If less than all of
any series of Senior Notes is to be redeemed at any time, the Senior Trustee
will select Senior Notes for redemption in compliance with the requirements of
the principal securities exchange, if any, on which that series of Senior Notes
is listed, and/or in compliance with the requirements of Euroclear, Clearstream
or DTC, as applicable, or if that series of Senior Notes is not so listed or
such exchange prescribes no method of selection and the Senior Notes are not
held through Euroclear, Clearstream or DTC, as applicable, or Euroclear,
Clearstream or DTC, as applicable, prescribes no method of selection, on a pro rata basis, by lot or by such other
method as the Senior Trustee in its sole discretion deems fair and appropriate
(and in such manner as complies with applicable legal and exchange
requirements); provided, however, that no Note of €1,000 (in the case of Senior
Euro Notes) or $1,000 (in the case of Senior Dollar Notes) in aggregate
principal amount or less shall be redeemed in part.

 

If and for so long as the Senior Notes are listed on
the Luxembourg Stock Exchange and the rules of such exchange so require, the
Company shall publish notice of redemption in Luxembourg in a daily newspaper
with general circulation in Luxembourg (which is expected to be the Luxemburger Wort) and in addition to such
publication, not less than 30 nor more than 60 days prior to the redemption
date, mail such notice to Holders by first-class mail, postage prepaid, at
their respective addresses as they appear on the registration books of the
Registrar.  Any such notice shall be
deemed sufficiently given if mailed in the manner provided for in the
Indenture  If and for so long as the
Senior Notes are listed on the Irish Stock Exchange and the rules of such
exchange so require, notice of such redemption shall be sent to the Companies
Announcements Office of such exchange.

 

If any Senior Note is to be redeemed in part only, the
notice of redemption that relates to that Senior Note shall state the portion
of the principal amount thereof to be redeemed. In the case of a certificated
Senior Note, a new Senior Note in principal amount equal to the unredeemed
portion of the original Senior Note will be issued in the name of the Holder
thereof upon cancellation of the original Senior Note. In the case of a global bearer
Senior Note, an appropriate notation will be made on such Senior Note to
decrease the principal amount thereof to an amount equal to the unredeemed
portion thereof. Senior Notes called for redemption become due on the date
fixed for redemption. On and after the redemption date, interest ceases to
accrue on Senior Notes or portions of them called for redemption.

 

Except
as set forth in the Indenture, from and after any Redemption Date, if monies
for the redemption of the Notes called for redemption shall have been deposited
with the Paying Agent for redemption on such Redemption Date, then, unless the
Company fails to make

 

B-11

 

payment
of such Redemption Price, the Notes called for redemption will cease to bear
interest, and Additional Amounts, if any, and the only right of the Holders of
such Notes will be to receive payment of the Redemption Price.

 

11.         Denominations; Form.  The Definitive Notes are in registered form,
without coupons, in denominations of [€][$] 1,000 and integral multiples of [€][$]
1,000.

 

12.         Persons Deemed Owners.  The registered Holder (as reflected on the
records of the Registrar) of this Note shall be treated as the owner of it for
all purposes, subject to the terms of the Indenture.

 

13.         Unclaimed Funds.  If funds for the payment of principal,
interest, premium, or Additional Amounts remain unclaimed for two years, the
Trustee and the Paying Agents will repay the funds to the Company at its
written request.  After that, all
liability of the Trustee and such Paying Agents with respect to such funds
shall cease.

 

14.         Legal Defeasance and
Covenant Defeasance.  The Company
and the Note Guarantors may be discharged from their respective obligations
under the Indenture and the Notes except for certain provisions thereof, and
may be discharged from their respective obligations to comply with certain
covenants contained in the Indenture, in each case upon satisfaction of certain
conditions specified in the Indenture.

 

15.         Amendment; Supplement;
Waiver.  Subject to certain
exceptions specified in the Indenture, the Indenture (including any
supplemental indenture) or the Notes may be amended or supplemented with the
written consent of the Holders of at least a majority in principal amount of
the Notes then outstanding, and any existing Default or Event of Default or
compliance with any provision of the Indenture or the Notes may be waived with
the consent of the Holders of a majority in principal amount of the Notes then
outstanding.

 

16.         Restrictive Covenants.  The Indenture imposes certain covenants
that, among other things, limit the ability of the Company and its Restricted
Subsidiaries to incur additional Indebtedness, pay dividends or make other
distributions or investments, repurchase its Capital Stock or make certain
other Restricted Payments, enter into certain consolidations or mergers or
enter into certain transactions with Affiliates and consummate certain mergers
and consolidations or sales of all or substantially all assets.  The limitations are subject to a number of
important qualifications and exceptions.

 

17.         Successors.  When a successor assumes all the obligations
of its predecessor under the Notes and the Indenture in accordance with the
terms of the Indenture, the predecessor will be released from those
obligations.

 

18.         Defaults and Remedies.  Subject to certain restrictions, if an Event
of Default (other than an Event of Default specified in clause (7) of
Section 6.1 of the Indenture) occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Notes may
declare all the Notes to be due and payable immediately in the manner and with
the effect provided in the Indenture. 
Holders of Notes may not enforce the Indenture or the Notes except as
provided in the Indenture.  The Trustee
is not obligated to enforce the Indenture or the Notes unless it has received
indemnity satisfactory to it.  The
Indenture permits,

 

B-12

 

subject to certain
limitations therein provided, Holders of a majority in aggregate principal
amount of the Notes then outstanding to direct the Trustee in its exercise of
any trust or power.  The Trustee may
withhold from Holders of Notes notice of any continuing Default or Event of
Default (except a Default in payment of principal, premium, interest, and
Additional Amounts, if any, including an accelerated payment) if it determines
that withholding notice is in their interest.

 

19.         Trustee Dealings with
Company.  The Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of and may otherwise deal with the Company, its Subsidiaries or their
respective Affiliates as if it were not the Trustee.

 

20.         No Recourse Against
Others.  No director, officer,
employee, incorporator, member or stockholder of the Company, or any Note
Guarantor, as such, shall have any liability for any obligations of the
Company, or any Note Guarantor under the Notes, this Indenture or any Note
Guarantee herein or for any claim based on, in respect of, or by reason of,
such obligations or their creation. Each Holder of Notes by accepting a Note
waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes.

 

21.         Authentication.  This Note shall not be valid until the
Trustee or authenticating agent signs the certificate of authentication on this
Note.

 

22.         Abbreviations and
Defined Terms.  Customary
abbreviations may be used in the name of a Holder of a Note or an assignee,
such as:  TEN COM (= tenants in common),
TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).  Unless otherwise
defined herein, terms defined in the Indenture are used herein as defined
therein.

 

23.         CUSIP, ISIN and Common
Code Numbers.  The Company may cause
CUSIP, ISIN and Common Code numbers to be printed on the Notes immediately
prior to the qualification of the Indenture under the TIA as a convenience to
the Holders of the Notes.  No
representation is made as to the accuracy of such numbers as printed on the
Notes and reliance may be placed only on the other identification numbers
printed hereon.

 

24.         Governing Law.  The
Indenture and the Notes, and the rights and duties of the  parties hereunder and thereunder, shall be
governed by, and construed in accordance with, the laws of the State of New
York.

 

B-13

 

ASSIGNMENT FORM

 

To assign this Note fill in the form below:

 

I or we assign and transfer this Note to

 

 

(Print or type
assignee’s name, address and zip code)

 

(Insert
assignee’s social security or tax I.D. No., if any, or other appropriate
identifying information)

 

 

and irrevocably
appoint                          agent
to transfer this Note on the books of the Company.  The agent may substitute another to act for him.

 

	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
						

Sign exactly as your name
appears on the other side of this Note.

 

B-14

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Note purchased by
the Company pursuant to Section 4.10 or Section 4.14 of the
Indenture, check the appropriate box:

 

Section 4.10 [        ]
Section 4.14 [        ]

 

If you want to elect to have only part of this Note
purchased by the Company pursuant to Section 4.10 or Section 4.14 of
the Indenture, state the amount: [€][$]

 

	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
				

 

	
  Your
  Signature:

  	
   

  
	
  (Sign exactly
  as your name appears on the other side of this Note)

  
	
   

  

 

	
  Signature Guarantee:

  	
   

  

Participant in a recognized
Signature Guarantee Medallion Program (or other signature guarantor program
reasonably acceptable to the Trustee)

 

 

B-15

 

EXHIBIT C

TO THE INDENTURE

 

[FORM OF FACE OF UNRESTRICTED GLOBAL NOTE]

 

THIS BEARER NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS INITIALLY ISSUED TO THE BOOK-ENTRY DEPOSITARY OR
ITS CUSTODIAN PURSUANT TO THE DEPOSIT AGREEMENT REFERRED TO IN THE
INDENTURE.  TRANSFERS OF THIS GLOBAL
NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART TO A NOMINEE OR
CUSTODIAN OF THE BOOK-ENTRY DEPOSITARY, TO THE BOOK-ENTRY DEPOSITARY OR, IN
EACH CASE, TO ANOTHER SUCCESSOR OF THE BOOK-ENTRY DEPOSITARY OR A NOMINEE OR
CUSTODIAN OF SUCH SUCCESSOR, AND ANY SUCH TRANSFERS SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH HEREIN AND IN THE
INDENTURE.

 

C-1

 

VALENTIA TELECOMMUNICATIONS

 

7.25% Senior
Note due 2013

 

	
   

  	
   

  	
  [Common Code No.:
                  ](1)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [ISIN No.:
                  ](1)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [CUSIP No.:                ](1)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  No.        

  	
   

  	
   

  

 

VALENTIA TELECOMMUNICATIONS, an unlimited public
company incorporated under the laws of Ireland and having its registered office
at 25/28 North Wall Quay, Dublin 1, Ireland (the “Company”, which term includes
any successor corporation), for value received promises to pay to the bearer
hereof upon surrender hereof the principal sum indicated on Schedule A
hereof, on August 15, 2013.

 

Interest Payment Dates:  February 15 and August 15, commencing •.

 

Reference is made to the further provisions of this
Note contained herein, which will for all purposes have the same effect as if
set forth at this place.

 

 

(1)                                  Insert
as applicable

 

C-2

 

IN
WITNESS WHEREOF, the Company has caused this Note to be signed manually or by
facsimile by its duly authorized officer.

 

	
   

  	
   

  	
   

  	
  VALENTIA
  TELECOMMUNICATIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  This is one
  of the Notes referred to

  in the within-mentioned Indenture:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE BANK OF
  NEW YORK, as Trustee

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  
						

 

C-3

 

[Form of REVERSE]

 

VALENTIA TELECOMMUNICATIONS

 

7.25% Senior
Note due 2013

 

1.               Interest.  VALENTIA TELECOMMUNICATIONS, an unlimited
public company incorporated under the laws of Ireland and having its registered
office at 25/28 North Wall Quay, Dublin 1, Ireland (the “Company”), promises to
pay interest on the principal amount of this Note at the rate and in the manner
specified below.  Interest on the Notes
will accrue at 7.25% per annum on the principal amount then outstanding, and be
payable semi-annually in arrears on each February 15 and August 15,
or if any such day is not a Business Day, on the next succeeding Business Day,
commencing •, to the Holder hereof. 
Notwithstanding any exchange of this Note for a Definitive Note during
the period starting on a Record Date relating to such Definitive Note and
ending on the immediately succeeding interest payment date, the interest due on
such interest payment date shall be payable to the Holders of the Global Note
on such Record Date.  Interest on the
Notes will accrue from the most recent date to which interest has been paid or,
if no interest has been paid, from •. 
Interest will be computed on the basis of a 360-day year of twelve
30-day months.

 

The Company shall pay interest on overdue principal
and on overdue installments of interest (without regard to any applicable grace
periods), and on any overdue Additional Amounts, from time to time on demand at
the rate borne by the Notes.  Any
interest paid on this Note shall be increased to the extent necessary to pay
Additional Amounts as set forth herein.

 

2.               Additional
Amounts.  All payments made by the
Company, any Note Guarantor or a successor of any of the foregoing (each a
“Payor”) on this Note will be made without withholding or deduction for, or on
account of, any present or future taxes, duties, assessments or governmental
charges of whatever nature (“Taxes”) unless the withholding or deduction of
such Taxes is then required by law. If any deduction or withholding for, or on
account of, any Taxes imposed or levied by or on behalf of:

 

(1) Ireland or any
political subdivision or governmental authority thereof or therein having power
to tax;

 

(2) any jurisdiction from
or through which payment on the Senior Notes, the Senior Notes eircom Guarantee or any Additional Note
Guarantee is made, or any political subdivision or governmental authority
thereof or therein having the power to tax; or

 

(3) any other jurisdiction
in which the Payor is organized or otherwise considered to be a resident for
tax purposes, or any political subdivision or governmental authority thereof or
therein having the power to tax (each of the above, a “Relevant Taxing
Jurisdiction”),

 

C-4

 

will at any time be required from any payments made
with respect to this Note, including payments of principal, redemption price,
interest or premium, if any, the Payor will pay (together with such payments) such
additional amounts (the “Additional Amounts”) as may be necessary in order that
the net amounts received in respect of such payments by the Holder of this Note
or the Senior Trustee, as the case may be, after such withholding or deduction
(including any such deduction or withholding from such Additional Amounts),
equal the amounts which would have been received in respect of such payments on
this Note in the absence of such withholding or deduction; provided, however, that no such Additional
Amounts will be payable with respect to:

 

(1) any Taxes that would
not have been so imposed but for the existence of any present or former
connection between the relevant holder (or between a fiduciary, settlor,
beneficiary, member or shareholder of, or possessor of power over the relevant
holder, if the relevant holder is an estate, nominee, trust or corporation) and
the Relevant Taxing Jurisdiction (including being a citizen or resident or
national of, or carrying on a business or maintaining a permanent establishment
in, or being physically present in, the Relevant Taxing Jurisdiction) other
than by the mere ownership or holding of such Senior Note or the receipt of
payments in respect thereof;

 

(2) any Taxes that would
not have been so imposed if (i) the holder of this Note had made a declaration
of non-residence or any other claim or filing for exemption to which it is
entitled (provided that (x) such
declaration of non-residence or other claim or filing for exemption is required
by the applicable law of the Relevant Taxing Jurisdiction as a precondition to
exemption from the requirement to deduct or withhold all or a part of any such
Taxes and (y) at least 30 days prior to the first payment date with respect to
which such declaration of non-residence or other claim or filing for exemption
is required under the applicable law of the Relevant Taxing Jurisdiction, the
relevant holder at that time has been notified (in accordance with the
procedures set forth in this Note under the caption “Selection and Notice of
Redemption”) by the Payor or any other person through whom payment may be made
that a declaration of non-residence or other claim or filing for exemption is
required to be made), or (ii) in the case of Taxes imposed by or on behalf of
Ireland or any political subdivision or governmental authority thereof or
therein having the power to tax (each of the foregoing an “Irish Taxing
Jurisdiction”), the holder of this Note had provided such other evidence as is
reasonably necessary to enable the Payor or any other person through whom
payment may be made to determine the residence of the holder (provided that (x) such determination of
residence is necessary under the applicable laws of the Irish Taxing
Jurisdiction to determine the application of the exemption from the requirement
to deduct or withhold all or a part of any such Taxes and (y) at least 30 days
prior to the first payment date with respect to which such determination is
required under the applicable law of the Irish Taxing Jurisdiction, the
relevant holder at that time has been notified (in accordance with the
procedures set forth in this Note under the caption “Selection and Notice of
Redemption”) by the Payor or any other person through whom payment may be made
that such evidence must be provided);

 

(3) any Senior Note
presented for payment (where presentation is required) more than 30 days after
the relevant payment is first made available for payment to the Holder (except
to the extent that the Holder would have been entitled to Additional Amounts
had the Senior Note been presented during such 30 day period);

 

C-5

 

(4) any Taxes that are
payable otherwise than by withholding from a payment of the principal of,
premium, if any or interest, if any, on the Senior Notes or under any Note
Guarantee;

 

(5) any estate,
inheritance, gift, sale, transfer, personal property or similar tax, assessment
or other governmental charge;

 

(6) any Taxes imposed on
a payment to an individual and required to be made pursuant to the European
Union Directive (the “Directive”) on the taxation of savings implemented by the
ECOFIN Council meeting of June 3, 2003 or any law implementing or
complying with, or introduced in order to conform to, such Directive;

 

(7) any Taxes imposed in
connection with this Note presented for payment by or on behalf of a Holder or
beneficial owner who would have been able to avoid such Tax by presenting the
relevant Senior Note to, or otherwise accepting payment from, another paying
agent in a member state of the European Union; or

 

(8) any combination of
the above.

 

Such Additional Amounts will also not be payable
where, had the beneficial owner of this Note been the Holder of this Note, it
would not have been entitled to payment of Additional Amounts by reason of any
of clauses (1) to (8) inclusive above.

 

3.               Method of
Payment.  The Company shall pay
interest on this Note to the bearer hereof. 
Holders must surrender Notes to a Paying Agent to collect principal
payments.  The Company shall pay all
amounts owing hereunder in [euro][US Dollars].  Immediately available funds for the payment of the principal of
(and premium, if any), interest, and Additional Amounts, if any, on this Note
due on any interest payment date, Maturity Date, Redemption Date or other repurchase
date will be made available to the Paying Agent to permit the Paying Agent to
pay such funds to the Holders on such respective dates.

 

4.               Paying Agent and
Registrar.  Initially, The Bank of
New York will act as Paying Agent and Registrar and The Bank of New York London
will act as Principal Paying Agent.  In
addition, AIB/BNY Fund Management (Ireland) Limited will act as Irish Paying
Agent and The Bank of New York (Luxembourg) S.A. will act as Luxembourg Paying
Agent.  In the event that a Paying Agent
or transfer agent is replaced, the Company will provide notice thereof as set
forth in the Indenture.  The Company may
change any Registrar without notice to the Holders.  The Company or any of its Subsidiaries may, subject to certain
exceptions, act in any such capacity.

 

5.               Indenture.  The Company issued the Notes under an
indenture, dated as of August 7, 2003 (the “Indenture”), among the
Company, eircom, The Bank of New
York (the “Trustee”), The Bank of New York (Luxembourg) S.A., as Paying Agent
and transfer agent, AIB/BNY Fund Management (Ireland) Limited as Irish Paying
Agent and transfer agent, and The Bank of New York, London, as Principal Paying
Agent and transfer agent.  This Note is
one of a duly authorized issue of Exchange Notes (as defined in the Indenture)
of the Company designated as its euro-denominated 7.25% Senior Notes due 2013
or its dollar-denominated 7.25% Senior Notes due 2013.  The terms of the Notes include those stated
in the Indenture and

 

C-6

 

those made part of
the Indenture by reference to the Trust Indenture Act of 1939 (15 US Code
Sections 77aaa-77bbbb) (the “TIA”), as in effect on the date of the Indenture
until such time as the Indenture is qualified under the TIA, and thereafter as
in effect on the date on which the Indenture is qualified under the TIA.  Notwithstanding anything to the contrary
herein, the Notes are subject to all such terms, and Holders of Notes are
referred to the Indenture and the TIA for a statement of them.  The Notes are general obligations of the
Company.  The Notes are not limited in
aggregate principal amount and Additional Notes (as defined in the Indenture)
may be issued from time to time under the Indenture, in each case subject to
the terms of the Indenture; provided that
the aggregate principal amount of Initial Notes (as defined in the Indenture)
that will be issued on the Issue Date will not exceed €550,000,000.  Each Holder, by accepting a Note, agrees to
be bound by all of the terms and provisions of the Indenture, as the same may
be amended from time to time.  Terms
capitalized but not otherwise defined herein shall have the meaning assigned
them in the Indenture.

 

6.               Guarantees.    eircom has
guaranteed pursuant to the terms of the Indenture the full and punctual payment
of the principal of, premium, if any, interest, and Additional Amounts, if any,
on the Notes and all other payment obligations of the Company under the
Indenture when and as the same shall be due and payable, whether at maturity,
by acceleration or otherwise, according to the terms of the Indenture.  In addition, the Company may from time to
time designated Additional Note Guarantors to provide Additional Note
Guarantees in favor of the Senior Notes. 
The guarantee from eircom and each such Additional Note
Guarantee are subject to release in the circumstances described in the
Indenture.

 

7.               Optional
Redemption.  The Notes will be
redeemable, at the Company’s option, in whole or in part, on and after
August 15, 2008, upon not less than 30 nor more than 60 days’ prior
notice at the redemption prices (expressed as a percentage of principal amount)
set forth below, plus accrued and unpaid interest, if any, and Additional
Amounts, if any (each, a “Redemption Price”), to the date fixed by the Company
for redemption (a “Redemption Date”) (subject to the right of Holders of record
of Definitive Notes on the relevant Record Date to receive interest, and
Additional Amounts, if any, due on the relevant interest payment date), if
redeemed during the twelve-month period beginning on August 15 of each of
the years indicated below:

 

	
  Year

  	
   

  	
  If a Dollar Note

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  103.625

  	
  %

  
	
  2009

  	
   

  	
  102.417

  	
  %

  
	
  2010

  	
   

  	
  101.208

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.00

  	
  %

  

 

In the event that the Company effects an optional
redemption of the Notes, the Company will inform the Luxembourg Stock Exchange
and the Irish Stock Exchange of such optional redemption and confirm the
aggregate principal amount of the Notes that will remain outstanding following
such redemption.

 

In addition, at any time prior to August 15,
2006, the Company may on any one or more occasions redeem up to 35% of the
aggregate principal amount of the Notes issued under

 

C-7

 

the Indenture with funds in an aggregate amount (the “Redemption
Amount”) not exceeding the aggregate net cash proceeds of one or more Equity
Offerings at a redemption price of 107.25% of the principal amount thereof plus
accrued and unpaid interest, if any, and Additional Amounts, if any (each, a
“Redemption Price”), to the date fixed by the Company for redemption (a
“Redemption Date”) (subject to the right of Holders of record of Definitive
Notes on the relevant Record Date to receive interest, and Additional Amounts,
if any, due on the relevant interest payment date); provided that (i) at least 65% of the aggregate principal
amount of the Notes of the series being redeemed remain outstanding after the
occurrence of any and each such redemption (excluding Notes held by the Company
and its Subsidiaries) and (ii) the redemption must occur within 180 days
of the date of the closing of such offering or the making of such capital
contribution.  Any redemption notice
given in respect of the redemption referred to in this paragraph may be given
prior to completion of the related Equity Offering, and any such redemption or
notice may, at the Company’s discretion, be subject to the satisfaction of one
or more conditions precedent, including but not limited to the completion of
the related Equity Offering.

 

Further, at any time prior to August 15, 2008,
the Company may redeem all or, from time to time, a part of the Senior Notes of
any series upon not less than 30 nor more than 60 days’ notice at a redemption
price equal to 100% of the principal amount thereof plus the Applicable Premium
and accrued and unpaid interest and Additional Amounts, if any, to the date of
redemption (subject, in the case of certificated Senior Notes, to the rights of
holders of record on the relevant record date to receive interest due on the
relevant interest payment date). Any such redemption and notice may, at the
Company’s discretion, be subject to the satisfaction of one or more conditions
precedent.

 

8.               Special Tax
Redemption.  The Company may redeem
any series of Senior Notes in whole as to such series, but not in part, at any
time upon giving not less than 30 nor more than 60 days’ notice to the Holders
of the relevant series of Senior Notes (which notice will be irrevocable) at a
redemption price equal to 100% of the principal amount thereof, together with
accrued and unpaid interest, if any, to the date fixed for redemption (a “Tax
Redemption Date”) (subject to the right of holders of record on the relevant
record date to receive interest due on the relevant interest payment date),
Additional Amounts, if any, then due and which will become due on the Tax
Redemption Date as a result of the redemption or otherwise, if any, if the
Company determines that, as a result of: (1) any change in, or amendment to,
the law or treaties (or any regulations or rulings promulgated thereunder) of a
Relevant Taxing Jurisdiction (as defined above) affecting taxation; or (2) any
change in position regarding the application, administration or interpretation
of such laws, treaties, regulations or rulings (including a holding, judgment
or order by a court of competent jurisdiction) (each of the foregoing in
clauses (1) and (2), a “Change in Tax Law”), the Company, with respect to the
Senior Notes, or a Note Guarantor, with respect to a Note Guarantee, as the
case may be, is, or on the next interest payment date in respect of the
relevant series of Senior Notes would be, required to pay any Additional
Amounts, and such obligation cannot be avoided by taking reasonable measures
available to it. In the case of the Company or eircom,
the Change in Tax Law must become effective on or after July 30,
2003.  In the case of an Additional Note
Guarantor, a Successor Company or a successor of any Note Guarantor, the Change
in Tax Law must become effective after the date that such entity first makes
payment on the Senior Notes. Notice of redemption for taxation reasons will be
published in accordance with the procedures described under paragraph

 

C-8

 

10 hereof.  Notwithstanding the foregoing, no such
notice of redemption will be given (a) earlier than 90 days prior to the
earliest date on which the Payor (as defined below) would be obliged to make
such payment of Additional Amounts and (b) unless at the time such notice is
given, such obligation to pay such Additional Amounts remains in effect. Prior
to the publication or mailing of any notice of redemption of any series of
Senior Notes pursuant to the foregoing, the Company will deliver to the Senior
Trustee (a) an Officer’s Certificate stating that the Company is entitled to
effect such redemption and setting forth a statement of facts showing that the
conditions precedent to its right so to redeem have been satisfied and (b) an
opinion of an independent tax counsel of recognized standing to the effect that
the circumstances referred to above exist.

 

9.               Selection and
Notice of Redemption.

 

If less than all of any series of Senior Notes is to
be redeemed at any time, the Senior Trustee will select Senior Notes for
redemption in compliance with the requirements of the principal securities
exchange, if any, on which that series of Senior Notes is listed, and/or in
compliance with the requirements of Euroclear, Clearstream or DTC, as
applicable, or if that series of Senior Notes is not so listed or such exchange
prescribes no method of selection and the Senior Notes are not held through
Euroclear, Clearstream or DTC, as applicable, or Euroclear, Clearstream or DTC,
as applicable, prescribes no method of selection, on a pro rata basis, by lot or by such other
method as the Senior Trustee in its sole discretion deems fair and appropriate
(and in such manner as complies with applicable legal and exchange
requirements); provided, however, that no Note of €1,000 (in the case of Senior
Euro Notes) or $1,000 (in the case of Senior Dollar Notes) in aggregate
principal amount or less shall be redeemed in part.

 

If and for so long as the Senior Notes are listed on
the Luxembourg Stock Exchange and the rules of such exchange so require, the
Company shall publish notice of redemption in Luxembourg in a daily newspaper
with general circulation in Luxembourg (which is expected to be the Luxemburger Wort).  If and for so long as the Senior Notes are
listed on the Irish Stock Exchange and the rules of such exchange so require,
notice of such redemption shall be sent to the Companies Announcements Office
of such exchange.

 

If any Global Note is to be redeemed in part only, the
notice of redemption that relates to that Senior Note shall state the portion
of the principal amount thereof to be redeemed.  In the case of a Global Note, an appropriate notation will be made
on such Global Note to decrease the principal amount thereof to an amount equal
to the unredeemed portion thereof. Global Notes called for redemption become
due on the date fixed for redemption. On and after the redemption date,
interest ceases to accrue on Senior Notes or portions of them called for
redemption.

 

Except
as set forth in the Indenture, from and after any Redemption Date, if monies
for the redemption of the Notes called for redemption shall have been deposited
with the Paying Agent for redemption on such Redemption Date, then, unless the
Company fails to make payment of such Redemption Price, the Notes called for
redemption will cease to bear interest, and Additional Amounts, if any, and the
only right of the Holders of such Notes will be to receive payment of the
Redemption Price.

 

C-9

 

10.         Denominations; Form.  The Global Notes are in bearer global form,
without coupons, in denominations of [€][$] 1,000 and integral multiples of [€][$]
1,000.

 

11.         Persons Deemed Owners.  The bearer of this Note shall be treated as
the owner of it for all purposes, subject to the terms of the Indenture.

 

12.         Unclaimed Funds.  If funds for the payment of principal,
interest, premium, or Additional Amounts remain unclaimed for two years, the
Trustee and the Paying Agents will repay the funds to the Company at its
written request.  After that, all
liability of the Trustee and such Paying Agents with respect to such funds
shall cease.

 

13.         Legal Defeasance and
Covenant Defeasance.  The Company
and the Note Guarantors may be discharged from their respective obligations
under the Indenture and the Notes except for certain provisions thereof, and
may be discharged from their respective obligations to comply with certain
covenants contained in the Indenture, in each case upon satisfaction of certain
conditions specified in the Indenture.

 

14.         Amendment; Supplement;
Waiver.  Subject to certain
exceptions specified in the Indenture, the Indenture (including any
supplemental indentures) or the Notes may be amended or supplemented with the
written consent of the Holders of at least a majority in principal amount of
the Notes then outstanding, and any existing Default or Event of Default or
compliance with any provision of the Indenture or the Notes may be waived with
the consent of the Holders of a majority in principal amount of the Notes then
outstanding.

 

15.         Restrictive Covenants.  The Indenture imposes certain covenants
that, among other things, limit the ability of the Company and its Restricted
Subsidiaries to incur additional Indebtedness, pay dividends or make other
distributions or investments, repurchase its Capital Stock or make certain
other Restricted Payments, enter into certain consolidations or mergers or
enter into certain transactions with Affiliates and consummate certain mergers
and consolidations or sales of all or substantially all assets.  The limitations are subject to a number of
important qualifications and exceptions.

 

16.         Successors.  When a successor assumes all the obligations
of its predecessor under the Notes and the Indenture in accordance with the
terms of the Indenture, the predecessor will be released from those
obligations.

 

17.         Defaults and Remedies.  Subject to certain restrictions, if an Event
of Default (other than an Event of Default specified in clause (7) of
Section 6.1 of the Indenture) occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Notes may
declare all the Notes to be due and payable immediately in the manner and with
the effect provided in the Indenture. 
Holders of Notes may not enforce the Indenture or the Notes except as
provided in the Indenture.  The Trustee
is not obligated to enforce the Indenture or the Notes unless it has received
indemnity satisfactory to it.  The
Indenture permits, subject to certain limitations therein provided, Holders of
a majority in aggregate principal amount of the Notes then outstanding to
direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from Holders of
Notes notice of any continuing Default or Event of

 

C-10

 

Default (except a
Default in payment of principal, premium, interest, and Additional Amounts, if
any, including an accelerated payment) if it determines that withholding notice
is in their interest.

 

18.         Trustee Dealings with
Company.  The Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Notes and may otherwise deal with the Company, its Subsidiaries or
their respective Affiliates as if it were not the Trustee or an Agent.

 

19.         No Recourse Against
Others.  No director, officer,
employee, incorporator, member or stockholder of the Company or any Note
Guarantor, as such, shall have any liability for any obligations of the Company
or any Note Guarantor under the Notes, this Indenture or any Note Guarantee
herein or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder of Notes by accepting a Note waives
and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes.

 

20.         Authentication.  This Note shall not be valid until the
Trustee or authenticating agent signs the certificate of authentication on this
Note.

 

21.         Abbreviations and
Defined Terms.  Customary
abbreviations may be used in the name of a Holder of a Note or an assignee,
such as:  TEN COM (= tenants in common),
TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).  Unless
otherwise defined herein, terms defined in the Indenture are used herein as
defined therein.

 

22.         CUSIP, ISIN and Common
Code Numbers.  The Company may cause
CUSIP, ISIN and Common Code numbers to be printed on the Notes immediately
prior to the qualification of the Indenture under the TIA as a convenience to
the Holders of the Notes.  No
representation is made as to the accuracy of such numbers as printed on the
Notes and reliance may be placed only on the other identification numbers
printed hereon.

 

23.         Governing Law.  The
Indenture and the Notes, and the rights and duties of the  parties hereunder and thereunder, shall be
governed by, and construed in accordance with, the laws of the State of New
York.

 

C-11

 

SCHEDULE A

 

SCHEDULE OF PRINCIPAL AMOUNT

 

The initial principal amount at maturity of this Note
shall be [€][$]                   .  The following decreases/increases in the
principal amount at maturity of this Note have been made:

 

 

	
  Date of

  Decrease/

  Increase

  	
   

  	
  Decrease
  in

  Principal

  Amount at

  Maturity

  	
   

  	
  Increase
  in

  Principal

  Amount at

  Maturity

  	
   

  	
  Total
  Principal

  Amount at

  Maturity

  Following such

  Decrease/

  Increase

  	
   

  	
  Notation

  Made by

  or on

  Behalf of

  Trustee

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

C-12

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Note purchased by
the Company pursuant to Section 4.10 or Section 4.14 of the
Indenture, check the appropriate box:

 

Section 4.10 [        ]
Section 4.14 [        ]

 

If you want to elect to have only part of this Note
purchased by the Company pursuant to Section 4.10 or Section 4.14 of
the Indenture, state the amount: [€][$]

 

	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
				

 

	
  Your
  Signature:

  	
   

  	
   

  
	
  (Sign
  exactly as your name appears on the other side of this Note)

  	
   

  
	
   

  	
   

  

 

	
  Signature Guarantee:

  	
   

  	
   

  

Participant in a recognized
Signature Guarantee Medallion Program (or other signature guarantor program
reasonably acceptable to the Trustee)

 

C-13

 

EXHIBIT D

TO THE INDENTURE

 

[FORM OF FACE OF UNRESTRICTED DEFINITIVE NOTE]

 

THIS NOTE IS A DEFINITIVE
NOTE WITHIN THE MEANING OF THE INDENTURE

HEREINAFTER REFERRED TO.

 

 

VALENTIA TELECOMMUNICATIONS

 

7.25% Senior
Note due 2013

 

	
   

  	
   

  	
  [Common Code No.:
                   ](1)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [ISIN No.:
                   ](1)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [CUSIP No.:                 ](1)

  
	
   

  
	
   

  
	
  No.
            

  	
  [€][$]                  

  
				

 

VALENTIA TELECOMMUNICATIONS, an unlimited public
company incorporated under the laws of Ireland and having its registered office
at 25/28 North Wall Quay, Dublin 1, Ireland (the “Company”, which term includes
any successor corporation), for value received promises to pay                            
or registered assigns upon surrender hereof the principal sum hereof, on
August 15, 2013.

 

Interest Payment Dates: February 15 and
August 15, commencing •.

 

Record Dates: January 31 and July 31

 

Reference is made to the further provisions of this
Note contained herein, which will for all purposes have the same effect as if
set forth at this place.

 

 

(1) Insert as applicable.

 

D-1

 

IN
WITNESS WHEREOF, the Company has caused this Note to be signed manually or by
facsimile by its duly authorized officer.

 

	
   

  	
   

  	
   

  	
  VALENTIA
  TELECOMMUNICATIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  This is one
  of the Notes referred to

  in the within-mentioned Indenture:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE BANK OF
  NEW YORK, as Trustee

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  
						

 

D-2

 

[Form
of REVERSE]

 

VALENTIA TELECOMMUNICATIONS

 

7.25% Senior
Note due 2013

 

1.               Interest.  VALENTIA TELECOMMUNICATIONS, an unlimited
public company incorporated under the laws of Ireland and having its registered
office at 25/28 North Wall Quay, Dublin 1, Ireland (the “Company”), promises to
pay interest on the principal amount of this Note at the rate and in the manner
specified below.  Interest on the Notes
will accrue at 7.25% per annum on the principal amount then outstanding, and be
payable semi-annually in arrears on each February 15 and August 15,
or if any such day is not a Business Day, on the next succeeding Business Day,
commencing •, to Holders of record of the Notes at the close of business on the
immediately preceding January 31 and July 31, whether or not a Business
Day.  Interest on the Notes will accrue
from the most recent date to which interest has been paid or, if no interest
has been paid, from •, 2003.  Interest
will be computed on the basis of a 360-day year of twelve 30-day months.

 

The Company shall pay interest on overdue principal
and on overdue installments of interest (without regard to any applicable grace
periods), and on any overdue Additional Amounts, from time to time on demand at
the rate borne by the Notes.  Any
interest paid on this Note shall be increased to the extent necessary to pay
Additional Amounts as set forth herein.

 

2.               Additional
Amounts.  All payments made by the
Company, any Note Guarantor or a successor of any of the foregoing (each a
“Payor”) on this Note will be made without withholding or deduction for, or on
account of, any present or future taxes, duties, assessments or governmental
charges of whatever nature (“Taxes”) unless the withholding or deduction of
such Taxes is then required by law. If any deduction or withholding for, or on
account of, any Taxes imposed or levied by or on behalf of:

 

(1) Ireland or any
political subdivision or governmental authority thereof or therein having power
to tax;

 

(2) any jurisdiction from
or through which payment on the Senior Notes, the Senior Notes eircom Guarantee or any Additional Note
Guarantee is made, or any political subdivision or governmental authority
thereof or therein having the power to tax; or

 

(3) any other
jurisdiction in which the Payor is organized or otherwise considered to be a
resident for tax purposes, or any political subdivision or governmental
authority thereof or therein having the power to tax (each of the above, a
“Relevant Taxing Jurisdiction”),

 

will at any time be required from any payments made
with respect to this Note, including payments of principal, redemption price,
interest or premium, if any, the Payor will pay (together with such payments)
such additional amounts (the “Additional Amounts”) as may be necessary in order
that the net amounts received in respect of such payments by the Holder of this
Note or

 

D-3

 

the Senior Trustee, as the case may be, after such
withholding or deduction (including any such deduction or withholding from such
Additional Amounts), equal the amounts which would have been received in
respect of such payments on this Note in the absence of such withholding or
deduction; provided, however, that
no such Additional Amounts will be payable with respect to:

 

(1) any Taxes that would
not have been so imposed but for the existence of any present or former
connection between the relevant holder (or between a fiduciary, settlor,
beneficiary, member or shareholder of, or possessor of power over the relevant
holder, if the relevant holder is an estate, nominee, trust or corporation) and
the Relevant Taxing Jurisdiction (including being a citizen or resident or
national of, or carrying on a business or maintaining a permanent establishment
in, or being physically present in, the Relevant Taxing Jurisdiction) other
than by the mere ownership or holding of such Senior Note or the receipt of
payments in respect thereof;

 

(2) any Taxes that would
not have been so imposed if (i) the holder of this Note had made a declaration
of non-residence or any other claim or filing for exemption to which it is
entitled (provided that (x) such
declaration of non-residence or other claim or filing for exemption is required
by the applicable law of the Relevant Taxing Jurisdiction as a precondition to
exemption from the requirement to deduct or withhold all or a part of any such
Taxes and (y) at least 30 days prior to the first payment date with respect to
which such declaration of non-residence or other claim or filing for exemption
is required under the applicable law of the Relevant Taxing Jurisdiction, the
holder at that time has been notified (in accordance with the procedures set
forth in this Note under the caption “Selection and Notice of Redemption”) by
the Payor or any other person through whom payment may be made that a
declaration of non-residence or other claim or filing for exemption is required
to be made), or (ii) in the case of Taxes imposed by or on behalf of Ireland or
any political subdivision or governmental authority thereof or therein having
the power to tax (each of the foregoing an “Irish Taxing Jurisdiction”), the
holder of this Note had provided such other evidence as is reasonably necessary
to enable the Payor or any other person through whom payment may be made to
determine the residence of the holder (provided
that (x) such determination of residence is necessary under the
applicable laws of the Irish Taxing Jurisdiction to determine the application
of the exemption from the requirement to deduct or withhold all or a part of
any such Taxes and (y) at least 30 days prior to the first payment date with
respect to which such determination is required under the applicable law of the
Irish Taxing Jurisdiction, the relevant holder at that time has been notified
(in accordance with the procedures set forth in this Note under the caption
“Selection and Notice of Redemption”) by the Payor or any other person through
whom payment may be made that such evidence must be provided);

 

(3) any Senior Note
presented for payment (where presentation is required) more than 30 days after
the relevant payment is first made available for payment to the Holder (except
to the extent that the Holder would have been entitled to Additional Amounts
had the Senior Note been presented during such 30 day period);

 

(4) any Taxes that are
payable otherwise than by withholding from a payment of the principal of,
premium, if any or interest, if any, on the Senior Notes or under any Note
Guarantee;

 

D-4

 

(5) any estate,
inheritance, gift, sale, transfer, personal property or similar tax, assessment
or other governmental charge;

 

(6) any Taxes imposed on
a payment to an individual and required to be made pursuant to the European
Union Directive (the “Directive”) on the taxation of savings implemented by the
ECOFIN Council meeting of June 3, 2003 or any law implementing or
complying with, or introduced in order to conform to, such Directive;

 

(7) any Taxes imposed in
connection with this Note presented for payment by or on behalf of a Holder or
beneficial owner who would have been able to avoid such Tax by presenting the
relevant Senior Note to, or otherwise accepting payment from, another paying
agent in a member state of the European Union; or

 

(8) any combination of
the above.

 

Such Additional Amounts will also not be payable
where, had the beneficial owner of the Senior Note been the Holder of this
Note, it would not have been entitled to payment of Additional Amounts by
reason of any of clauses (1) to (8) inclusive above.

 

3.               Method of Payment.  The Company shall pay interest on this Note
(except defaulted interest) to the Persons who are the registered Holders at
the close of business on the Record Date immediately preceding the interest
payment date for such interest.  Holders
must surrender Notes to a Paying Agent to collect principal payments.  The Company shall pay all amounts owing
hereunder in [euro]  [US Dollars].  If (i) a Holder of at least [€][$]10.0 million in aggregate principal
amount of Notes has given wire transfer instructions to the Company and the
Paying Agent in writing, (ii) the Paying Agent has received such written wire
transfer instruction at least 15 days prior to the date of the relevant payment
and (iii) for so long as the Notes are listed on the Luxembourg Stock Exchange,
such holder has also provided such notice to the paying agent in Luxembourg,
then the Company will pay all interest, premium, and Additional Amounts, if any,
on that Holder’s Notes in accordance with those instructions by wire transfer
of same day funds to the Paying Agent who in turn will wire such funds to the
Holder hereof or to such other Person as the Holder hereof may in writing to
the Paying Agent direct.  In all other
cases, the Company may elect to make payments of interest, premium, and
Additional Amounts, if any, on a Holder’s Notes by check mailed to the Holders
at their addresses set forth in the register of Holders.  Payments on Notes will be made through the
office or agency of the Paying Agent and Registrar for the Notes unless the
Company elects to make interest payments by check as previously described.  If payments are made through the Paying
Agent, immediately available funds for the payment of the principal of (and
premium, if any), interest, and Additional Amounts, if any, on this Note due on
any interest payment date, Maturity Date, Redemption Date or other repurchase
date will be made available to the Paying Agent to permit the Paying Agent to
pay such funds to the Holders on such respective dates.

 

4.               Paying Agent and
Registrar.  Initially, The Bank of
New York will act as Paying Agent and Registrar and The Bank of New York London
will act as Principal Paying Agent.  In
addition, AIB/BNY Fund Management (Ireland) Limited will act as Irish Paying
Agent and The Bank of New York (Luxembourg) S.A. will act as Luxembourg Paying
Agent.  In the event that a Paying Agent
or transfer agent is replaced, the Company will provide notice

 

D-5

 

thereof as set
forth in the Indenture.  The Company may
change any Registrar without notice to the Holders.  The Company or any of its Subsidiaries may, subject to certain
exceptions, act in any such capacity.

 

5.               Indenture.  The Company issued the Notes under an
indenture, dated as of August 7, 2003 (the “Indenture”), among the
Company, eircom, The Bank of New
York (the “Trustee”), The Bank of New York (Luxembourg) S.A., as Paying Agent
and transfer agent, AIB/BNY Fund Management (Ireland) Limited as Irish Paying
Agent and transfer agent, and The Bank of New York, London, as Principal Paying
Agent and transfer agent.  This Note is
one of a duly authorized issue of Exchange Notes (as defined in the Indenture)
of the Company designated as its euro-denominated 7.25% Senior Notes due 2013
or its dollar-denominated 7.25% Senior Notes due 2013.  The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 US Code Sections 77aaa-77bbbb) (the “TIA”), as in
effect on the date of the Indenture until such time as the Indenture is
qualified under the TIA, and thereafter as in effect on the date on which the
Indenture is qualified under the TIA. 
Notwithstanding anything to the contrary herein, the Notes are subject
to all such terms, and Holders of Notes are referred to the Indenture and the
TIA for a statement of them.  The Notes
are general obligations of the Company. 
The Notes are not limited in aggregate principal amount and Additional
Notes (as defined in the Indenture) may be issued from time to time under the
Indenture, in each case subject to the terms of the Indenture; provided that the aggregate principal
amount of Initial Notes (as defined in the Indenture) that will be issued on
the Issue Date will not exceed €550,000,000. 
Each Holder, by accepting a Note, agrees to be bound by all of the terms
and provisions of the Indenture, as the same may be amended from time to
time.  Terms capitalized but not
otherwise defined herein shall have the meaning assigned them in the Indenture.

 

6.               Guarantees.    eircom has
guaranteed pursuant to the terms of the Indenture the full and punctual payment
of the principal of, premium, if any, interest, and Additional Amounts, if any,
on the Notes and all other payment obligations of the Company under the
Indenture when and as the same shall be due and payable, whether at maturity,
by acceleration or otherwise, according to the terms of the Indenture.  In addition, the Company may from time to
time designated Additional Note Guarantors to provide Additional Note
Guarantees in favor of the Senior Notes. 
The guarantee from eircom and each such Additional Note
Guarantee are subject to release in the circumstances described in the
Indenture.

 

7.               Optional
Redemption.  The Notes will be
redeemable, at the Company’s option, in whole or in part, on and after
August 15, 2008, upon not less than 30 nor more than 60 days’ prior
notice at the redemption prices (expressed as a percentage of principal amount)
set forth below, plus accrued and unpaid interest, if any, and Additional
Amounts, if any (each, a “Redemption Price”), to the date fixed by the Company
for redemption (a “Redemption Date”) (subject to the right of Holders of record
of Definitive Notes on the relevant Record Date to receive interest, and
Additional Amounts, if any, due on the relevant interest payment date), if
redeemed during the twelve-month period beginning on August 15 of each of
the years indicated below:

 

D-6

 

	
  Year

  	
   

  	
  If a Dollar Note

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  103.625

  	
  %

  
	
  2009

  	
   

  	
  102.417

  	
  %

  
	
  2010

  	
   

  	
  101.408

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.00

  	
  %

  

 

In the event that the Company effects an optional
redemption of the Notes, the Company will inform the Luxembourg Stock Exchange
and the Irish Stock Exchange of such optional redemption and confirm the
aggregate principal amount of the Notes that will remain outstanding following
such redemption.

 

In addition, at any time prior to August 15,
2006, the Company may on any one or more occasions redeem up to 35% of the
aggregate principal amount of the Notes issued under the Indenture with funds
in an aggregate amount (the “Redemption Amount”) not exceeding the aggregate
net cash proceeds of one or more Equity Offerings at a redemption price of
107.25% of the principal amount thereof plus accrued and unpaid interest, if
any, and Additional Amounts, if any (each, a “Redemption Price”), to the date
fixed by the Company for redemption (a “Redemption Date”) (subject to the right
of Holders of record of Definitive Notes on the relevant Record Date to receive
interest, and Additional Amounts, if any, due on the relevant interest payment
date); provided that (i) at least
65% of the aggregate principal amount of the Notes of the series being redeemed
remain outstanding after the occurrence of any and each such redemption
(excluding Notes held by the Company and its Subsidiaries) and (ii) the
redemption must occur within 180 days of the date of the closing of such
offering or the making of such capital contribution.  Any redemption notice given in respect of the redemption referred
to in this paragraph may be given prior to completion of the related Equity Offering,
and any such redemption or notice may, at the Company’s discretion, be subject
to the satisfaction of one or more conditions precedent, including but not
limited to the completion of the related Equity Offering.

 

Further, at any time prior to August 15, 2008,
the Company may redeem all or, from time to time, a part of the Senior Notes of
any series upon not less than 30 nor more than 60 days’ notice at a redemption
price equal to 100% of the principal amount thereof plus the Applicable Premium
and accrued and unpaid interest and Additional Amounts, if any, to the date of
redemption (subject, in the case of the Definition Notes, to the rights of
holders of record on the relevant record date to receive interest due on the
relevant interest payment date). Any such redemption and notice may, at the
Company’s discretion, be subject to the satisfaction of one or more conditions
precedent.

 

8.               Special Tax
Redemption.  The Company may redeem
any series of Senior Notes in whole as to such series, but not in part, at any
time upon giving not less than 30 nor more than 60 days’ notice to the Holders
of the relevant series of Senior Notes (which notice will be irrevocable) at a
redemption price equal to 100% of the principal amount thereof, together with
accrued and unpaid interest, if any, to the date fixed for redemption (a “Tax
Redemption Date”) (subject to the right of holders of record on the relevant
record date to receive interest due on the relevant interest payment date),
Additional Amounts, if any, then due and which will become due on the Tax Redemption
Date as a result of the redemption or otherwise, if any, if the

 

D-7

 

Company determines
that, as a result of: (1) any change in, or amendment to, the law or treaties
(or any regulations or rulings promulgated thereunder) of a Relevant Taxing
Jurisdiction (as defined below) affecting taxation; or (2) any change in
position regarding the application, administration or interpretation of such
laws, treaties, regulations or rulings (including a holding, judgment or order
by a court of competent jurisdiction) (each of the foregoing in clauses (1) and
(2), a “Change in Tax Law”), the Company, with respect to the Senior Notes, or
a Note Guarantor, with respect to a Note Guarantee, as the case may be, is, or on
the next interest payment date in respect of the relevant series of Senior
Notes would be, required to pay any Additional Amounts, and such obligation
cannot be avoided by taking reasonable measures available to it. In the case of
the Company or eircom, the Change
in Tax Law must become effective on or after July 30, 2003.  In the case of an Additional Note Guarantor,
a Successor Company or a successor of any Note Guarantor, the Change in Tax Law
must become effective after the date that such entity first makes payment on
the Senior Notes. Notice of redemption for taxation reasons will be published
in accordance with the procedures described under paragraph 10 hereof.  Notwithstanding the foregoing, no such
notice of redemption will be given (a) earlier than 90 days prior to the
earliest date on which the Payor (as defined above) would be obliged to make
such payment of Additional Amounts and (b) unless at the time such notice is
given, such obligation to pay such Additional Amounts remains in effect. Prior
to the publication or mailing of any notice of redemption of any series of
Senior Notes pursuant to the foregoing, the Company will deliver to the Senior
Trustee (a) an Officer’s Certificate stating that the Company is entitled to
effect such redemption and setting forth a statement of facts showing that the
conditions precedent to its right so to redeem have been satisfied and (b) an
opinion of an independent tax counsel of recognized standing to the effect that
the circumstances referred to above exist.

 

9.               Selection and
Notice of Redemption.  If less than
all of any series of Senior Notes is to be redeemed at any time, the Senior
Trustee will select Senior Notes for redemption in compliance with the
requirements of the principal securities exchange, if any, on which that series
of Senior Notes is listed, and/or in compliance with the requirements of
Euroclear, Clearstream or DTC, as applicable, or if that series of Senior Notes
is not so listed or such exchange prescribes no method of selection and the Senior
Notes are not held through Euroclear, Clearstream or DTC, as applicable, or
Euroclear, Clearstream or DTC, as applicable, prescribes no method of
selection, on a pro rata basis,
by lot or by such other method as the Senior Trustee in its sole discretion
deems fair and appropriate (and in such manner as complies with applicable
legal and exchange requirements); provided, however, that no Note of €1,000 (in
the case of Senior Euro Notes) or $1,000 (in the case of Senior Dollar Notes)
in aggregate principal amount or less shall be redeemed in part.

 

If and for so long as the Senior Notes are listed on
the Luxembourg Stock Exchange and the rules of such exchange so require, the
Company shall publish notice of redemption in Luxembourg in a daily newspaper with
general circulation in Luxembourg (which is expected to be the Luxemburger Wort) and in addition to such
publication, not less than 30 nor more than 60 days prior to the redemption
date, mail such notice to Holders by first-class mail, postage prepaid, at
their respective addresses as they appear on the registration books of the
Registrar.  Any such notice shall be
deemed sufficiently given if mailed in the manner provided for in the
Indenture.  If and for so long as the
Senior Notes are listed on the Irish Stock Exchange and the

 

D-8

 

rules of such
exchange so require, notice of such redemption shall be sent to the Companies
Announcements Office of such exchange.

 

If any Senior Note is to be redeemed in part only, the
notice of redemption that relates to that Senior Note shall state the portion
of the principal amount thereof to be redeemed. In the case of a certificated
Senior Note, a new Senior Note in principal amount equal to the unredeemed
portion of the original Senior Note will be issued in the name of the Holder
thereof upon cancellation of the original Senior Note. In the case of a global
bearer Senior Note, an appropriate notation will be made on such Senior Note to
decrease the principal amount thereof to an amount equal to the unredeemed
portion thereof. Senior Notes called for redemption become due on the date
fixed for redemption. On and after the redemption date, interest ceases to
accrue on Senior Notes or portions of them called for redemption.

 

Except
as set forth in the Indenture, from and after any Redemption Date, if monies
for the redemption of the Notes called for redemption shall have been deposited
with the Paying Agent for redemption on such Redemption Date, then, unless the
Company fails to make payment of such Redemption Price, the Notes called for
redemption will cease to bear interest, and Additional Amounts, if any, and the
only right of the Holders of such Notes will be to receive payment of the
Redemption Price.

 

10.         Denominations; Form.  The Definitive Notes are in registered form,
without coupons, in denominations of [€][$] 1,000 and integral multiples of [€][$]
1,000.

 

11.         Persons Deemed Owners.  The registered Holder of this Note (as
reflected on the records of the Registrar) shall be treated as the owner of it
for all purposes, subject to the terms of the Indenture.

 

12.         Unclaimed Funds.  If funds for the payment of principal,
interest, premium, or Additional Amounts remain unclaimed for two years, the
Trustee and the Paying Agents will repay the funds to the Company at its
written request.  After that, all
liability of the Trustee and such Paying Agents with respect to such funds
shall cease.

 

13.         Legal Defeasance and
Covenant Defeasance.  The Company
and the Note Guarantors may be discharged from their respective obligations
under the Indenture and the Notes except for certain provisions thereof, and
may be discharged from their respective obligations to comply with certain
covenants contained in the Indenture, in each case upon satisfaction of certain
conditions specified in the Indenture.

 

14.         Amendment; Supplement;
Waiver.  Subject to certain
exceptions specified in the Indenture, the Indenture (including any
supplemental indenture) or the Notes may be amended or supplemented with the
written consent of the Holders of at least a majority in principal amount of
the Notes then outstanding, and any existing Default or Event of Default or
compliance with any provision of the Indenture or the Notes may be waived with
the consent of the Holders of a majority in principal amount of the Notes then
outstanding.

 

15.         Restrictive Covenants.  The Indenture imposes certain covenants
that, among other things, limit the ability of the Company and its Restricted
Subsidiaries to incur additional Indebtedness, pay dividends or make other
distributions or investments, repurchase its Capital

 

D-9

 

Stock or make
certain other Restricted Payments, enter into certain consolidations or mergers
or enter into certain transactions with Affiliates and consummate certain
mergers and consolidations or sales of all or substantially all assets.  The limitations are subject to a number of
important qualifications and exceptions.

 

16.         Successors.  When a successor assumes all the obligations
of its predecessor under the Notes and the Indenture in accordance with the
terms of the Indenture, the predecessor will be released from those
obligations.

 

17.         Defaults and Remedies.  Subject to certain restrictions, if an Event
of Default (other than an Event of Default specified in clause (7) of
Section 6.1 of the Indenture) occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Notes may
declare all the Notes to be due and payable immediately in the manner and with
the effect provided in the Indenture. 
Holders of Notes may not enforce the Indenture or the Notes except as
provided in the Indenture.  The Trustee
is not obligated to enforce the Indenture or the Notes unless it has received
indemnity satisfactory to it.  The
Indenture permits, subject to certain limitations therein provided, Holders of
a majority in aggregate principal amount of the Notes then outstanding to
direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from Holders of
Notes notice of any continuing Default or Event of Default (except a Default in
payment of principal, premium, interest, and Additional Amounts, if any,
including an accelerated payment) if it determines that withholding notice is
in their interest.

 

18.         Trustee Dealings with
Company.  The Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of and may otherwise deal with the Company, its Subsidiaries or their
respective Affiliates as if it were not the Trustee.

 

19.         No Recourse Against
Others.  No director, officer,
employee, incorporator, member or stockholder of the Company or any Note
Guarantor, as such, shall have any liability for any obligations of the Company
or any Note Guarantor under the Notes, this Indenture or any Note Guarantee
herein or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder of Notes by accepting a Note waives
and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes.

 

20.         Authentication.  This Note shall not be valid until the
Trustee or authenticating agent signs the certificate of authentication on this
Note.

 

21.         Abbreviations and
Defined Terms.  Customary
abbreviations may be used in the name of a Holder of a Note or an assignee,
such as:  TEN COM (= tenants in common),
TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).  Unless
otherwise defined herein, terms defined in the Indenture are used herein as
defined therein.

 

22.         CUSIP, ISIN and Common
Code Numbers.  The Company may cause
CUSIP, ISIN and Common Code numbers to be printed on the Notes immediately
prior to the qualification of the Indenture under the TIA as a convenience to
the Holders of the Notes.  No

 

D-10

 

representation is
made as to the accuracy of such numbers as printed on the Notes and reliance
may be placed only on the other identification numbers printed hereon.

 

23.         Governing Law.  The
Indenture and the Notes, and the rights and duties of the  parties hereunder and thereunder, shall be
governed by, and construed in accordance with, the laws of the State of New
York.

 

D-11

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

I or we assign and transfer this Note to

 

 

(Print or type
assignee’s name, address and zip code)

 

(Insert
assignee’s social security or tax I.D. No., if any, or other appropriate
identifying information)

 

and irrevocably
appoint                          agent
to transfer this Note on the books of the Company.  The agent may substitute another to act for him.

 

	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  
	
   

  	
   

  
						

Sign exactly as your name
appears on the other side of this Note.

 

D-12

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Note purchased by
the Company pursuant to Section 4.10 or Section 4.14 of the
Indenture, check the appropriate box:

 

Section 4.10 [        ]
Section 4.14 [        ]

 

If you want to elect to have only part of this Note
purchased by the Company pursuant to Section 4.10 or Section 4.14 of
the Indenture, state the amount: [€][$]

 

	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
				

 

	
  Your
  Signature:

  	
   

  	
   

  
	
  (Sign
  exactly as your name appears on the other side of this Note)

  	
   

  
	
   

  	
   

  

 

	
  Signature Guarantee:

  	
   

  	
   

  

Participant in a recognized
Signature Guarantee Medallion Program (or other signature guarantor program
reasonably acceptable to the Trustee)

 

D-13

 

EXHIBIT E

TO THE INDENTURE

 

 

FORM
OF TRANSFER CERTIFICATE FOR TRANSFER FROM 

RULE 144A GLOBAL NOTE TO REGULATION S GLOBAL NOTE  

(Transfers pursuant to Section 2.7(b) of the Indenture)

 

 

The Bank of New York, as Book-Entry Depositary

Attention: 
Corporate Trust Office

[Address]

 

 

RE:                              7.25%
Senior Notes due 2013 (the “Notes”) of Valentia Telecommunications

 

 

Reference is hereby made to the Indenture dated as of
August 7, 2003 (the “Indenture”) among Valentia Telecommunications, eircom Limited, The Bank of New York, The
Bank of New York London, The Bank of New York (Luxembourg), AIB/BNY Fund
Management (Ireland) Limited and the other entities party thereto from time to
time as Additional Note Guarantors. 
Capitalized terms used but not defined herein shall have the meanings
given them in the Indenture.  Terms used
in this certificate and not otherwise defined in the Indenture have the
meanings set forth in Regulation S under the Securities Act.

 

This letter relates to [€][$]                  
(being any integral multiple of [€][$] 1,000) principal amount of Notes which
are evidenced by Rule 144A Global Notes [(CUSIP No. •; ISIN No.•; Common Code
No.  •)] and held by you, a
Depositary Interest in which is held by [the Common Depositary]  [DTC], who in turn is holding an
interest in such Depositary Interest on behalf of the undersigned (the
“Transferor”).  The Transferor hereby
requests that on [INSERT DATE] such beneficial interest in the Rule 144A
Global Note be transferred or exchanged for an interest in the Regulation S
Global Note [(CUSIP No. •; ISIN No. •; Common Code No. •)]
in the form of an equal aggregate principal amount of Notes.  If this is a partial transfer, a minimum
amount of [€][$]
1,000 and any integral multiple of [€][$] 1,000 in excess thereof of the Rule 144A
Global Note will remain outstanding.

 

In connection with such request and in respect of such
Notes, the Transferor does hereby certify that such transfer has been effected
in accordance with the transfer restrictions set forth in the Indenture and the
Notes and pursuant to and in accordance with Rule 903 or 904 of
Regulation S under the Securities Act, and accordingly the Transferor
further certifies that:

 

(A)                              (1)  the offer of the Notes was not made to a
person in the United States;

 

E-1

 

(2)  either (a) at the time the buy order was
originated, the transferee was outside the United States or we and any person
acting on our behalf reasonably believed that the transferee was outside the
United States or (b)  the transaction
was executed in, on or through the facilities of a designated offshore
securities market and neither the Transferor nor any person acting on our behalf
knows that the transaction was prearranged with a buyer in the United States,

 

(3)  no directed selling efforts have been made
in contravention of the requirements of Rule 903(b) or 904(b) of
Regulation S, as applicable; and

 

(4)  the transaction is not part of a plan or
scheme to evade the registration requirements of the Securities Act.

 

OR

 

(B)                                such
transfer is being made in accordance with Rule 144 under the Securities Act.

 

E-2

 

This certificate and the statements contained herein
are made for your benefit and the benefit of the Company, eircom, and Additional Note Guarantor and
the Initial Purchasers.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name of
  Transferor]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  Telephone
  No.:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Please print
  name and address (including zip code number)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
								

 

 

E-3

 

EXHIBIT F

TO THE INDENTURE

 

FORM OF
TRANSFER CERTIFICATE FOR TRANSFER FROM

REGULATION S GLOBAL NOTE TO RULE 144A GLOBAL NOTE

(Transfers pursuant to Section 2.7(c) of the Indenture)

 

 

The Bank of New York, as Book-Entry Depositary

Attention: 
Corporate Trust Office

[Address]

 

RE:                              7.25%
Senior Notes due 2013 (the “Notes”) of Valentia Telecommunications

 

Reference is hereby made to the Indenture dated as of
August 7, 2003 (the “Indenture”) among Valentia Telecommunications, eircom Limited, The Bank of New York, The
Bank of New York London, The Bank of New York (Luxembourg), AIB/BNY Fund
Management (Ireland) Limited and the other entities party thereto from time to
time as Additional Note Guarantors. 
Capitalized terms used but not defined herein shall have the meanings
given them in the Indenture.  Terms used
in this certificate and not otherwise defined in the Indenture have the meanings
set forth in Regulation S under the Securities Act.

 

This letter relates to [€][$]                  
(being any integral multiple of [€][$] 1,000) principal amount of Notes which
are evidenced by Regulation S Global Notes [(CUSIP No.: •; ISIN No.•; Common Code No.
•)]
and held by you, a Depositary Interest in which is held by [the Common Depositary]
[DTC],
who in turn is holding an interest in such Depositary Interest on behalf of the
undersigned (the “Transferor”).  The
Transferor hereby requests that on [INSERT DATE] such beneficial interest in
the Regulation S Global Note be transferred or exchanged for an interest in the
Rule 144A Global Note (CUSIP No.: •; ISIN No. •; Common Code No. •)  in the form of an equal aggregate principal
amount of Notes.  If this is a partial
transfer, a minimum amount of [€][$] 1,000 and any integral multiple of [€][$]
1,000 in excess thereof of the Regulation S Global Note will remain
outstanding.

 

In connection with such request, and in respect of
such Notes, the Transferor does hereby certify that such Notes are being
transferred in accordance with Rule 144A under the Securities Act to a
transferee that the Transfer or reasonably believes is purchasing the Notes for
its own account or an account with respect to which the transferee exercises
sole investment discretion and the transferee and any such account is a
“qualified institutional buyer” within the meaning of Rule 144A, in each case
in a transaction meeting the requirements of Rule 144A and in accordance with any
applicable securities laws of any state of the United States or any other
jurisdiction.

 

F-1

 

This certificate and the statements contained herein
are made for your benefit and the benefit of the Company, eircom, and Additional Note Guarantor and
the Initial Purchasers.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name of
  Transferor]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  Telephone
  No.:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Please print
  name and address (including zip code number)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
								

 

 

F-2

 

EXHIBIT G

TO THE INDENTURE

 

FORM OF SUPPLEMENTAL INDENTURE

 

This Supplemental Indenture, dated as of [                ]
(this “Supplemental Indenture” or “Additional Note Guarantee”), among [name
of Additional Note Guarantor] (the “Additional Note Guarantor”),
Valentia Telecommunications (the “Company”), eircom
Limited (“eircom”), each other
then existing Additional Note Guarantor under the Indenture referred to below,
The Bank of New York, as Trustee under the Indenture referred to below, and the
other parties thereto.

 

W I T N E S S
E T H:

 

WHEREAS, the Company, eircom, the Trustee and the other parties
thereto have heretofore executed and delivered an Indenture, dated as of
August 7, 2003 (as amended, supplemented, waived or otherwise modified,
the “Indenture”), providing for the issuance of an initial aggregate principal
amount of €550,000,000 million of 7.25% Senior Notes due 2013 of the Company as
well as Additional Notes and Exchange Notes;

 

WHEREAS, Section 11.1 of the Indenture
provides that, subject to certain conditions and exceptions, the Company may
designate Restricted Subsidiaries to become Additional Note Guarantors (as
defined in the Indenture) by the execution and delivery of a supplemental
indenture providing for a guarantee of such Restricted Subsidiary;

 

WHEREAS, pursuant to Section 9.1 of the
Indenture, the Company, eircom,
any existing Note Guarantors and the Trustee are authorized to execute and
deliver this Supplemental Indenture to amend the Indenture, without the consent
of any Holder, to add guarantees with respect to the Notes;

 

WHEREAS, the Additional Note Guarantor is a
Restricted Subsidiary of the Company;

 

WHEREAS, each party hereto has duly
authorized the execution and delivery of this Supplemental Indenture and has
done all things necessary to make this Supplemental Indenture a valid agreement
in accordance with its terms;

 

NOW, THEREFORE, in consideration of the
foregoing and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the Additional Note Guarantor, the Company, eircom, any other Note Guarantors, the
Trustee and the other parties to the Indenture mutually covenant and agree for
the equal and ratable benefit of the Holders of the Notes as follows:

 

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ARTICLE I

 

Definitions

 

SECTION 1.1.  Defined Terms.  As used in this Supplemental Indenture,
terms defined in the Indenture or in the preamble or recital hereto are used
herein as therein defined, except that the term “Holders” in this
Supplemental Indenture shall refer to the term “Holders” as defined in the
Indenture and the Trustee acting on behalf or for the benefit of such
holders.  The words “herein,” “hereof”
and “hereby” and other words of similar import used in this Supplemental Indenture
refer to this Supplemental Indenture as a whole and not to any particular
section hereof.

 

ARTICLE II

 

Agreement to be Bound; Guarantee

 

SECTION 2.1.  Agreement to be Bound.  The Additional Note Guarantor hereby becomes
a party to the Indenture as an Additional Note Guarantor and as such will have
all of the rights and be subject to all of the obligations and agreements of an
Additional Note Guarantor under the Indenture. 
The Additional Note Guarantor agrees to be bound by all of the
provisions of the Indenture applicable to an Additional Note Guarantor and to
perform all of the obligations and agreements of an Additional Note Guarantor
under the Indenture.

 

SECTION 2.2.  Guarantee.  Subject to the terms of the Indenture (including, without
limitation, Sections 11.5 and 12.19 thereof) the Additional Note Guarantor
hereby fully, unconditionally and irrevocably guarantees, as primary obligor
and not merely as surety, jointly and severally with each other Note Guarantor,
to each Holder of the Notes and the Trustee, the full and punctual payment when
due, whether at maturity, by acceleration, by redemption or otherwise, of
principal, premium, if any, interest and Additional Amounts, if any, on the
Notes, and any of the Company’s other payment obligations under the Indenture,
pursuant to Article XI of the Indenture.

 

ARTICLE III

 

Miscellaneous

 

SECTION 3.1.  Notices.  All notices and other communications to the Additional Note
Guarantor shall be given as provided in the Indenture to the Additional Note
Guarantor, at its address set forth below, with a copy to the Company as
provided in the Indenture for notices to eircom
Funding.

 

SECTION 3.2.  Parties.  Nothing expressed or mentioned herein is intended or shall be
construed to give any Person, firm or corporation, other than the Holders and
the Trustee, any legal or equitable right, remedy or claim under or in respect
of this Supplemental Indenture or the Indenture or any provision herein or
therein contained.

 

SECTION 3.3.  Governing Law.  This
Supplemental Indenture shall be governed by the laws of the State of New York.

 

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SECTION 3.4.  Severability Clause.  In case any provision in this Supplemental
Indenture shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby and such provision shall be ineffective only to the extent
of such invalidity, illegality or unenforceability.

 

SECTION 3.5.  Ratification of Indenture; Supplemental
Indentures Part of Indenture. 
Except as expressly amended hereby, the Indenture is in all respects
ratified and confirmed and all the terms, conditions and provisions thereof
shall remain in full force and effect. 
This Supplemental Indenture shall form a part of the Indenture for all
purposes, and every Holder of Notes heretofore or hereafter authenticated and
delivered shall be bound hereby.  The
Trustee makes no representation or warranty as to the validity or sufficiency
of this Supplemental Indenture.

 

SECTION 3.6  Counterparts.  The parties hereto may sign one or more
copies of this Supplemental Indenture in counterparts, all of which together
shall constitute one and the same agreement.

 

SECTION 3.7.  Headings.  The headings of the Articles and the sections in this
Supplemental Indenture are for convenience of reference only and shall not be
deemed to alter or affect the meaning or interpretation of any provisions
hereof.

 

SECTION 3.8.  Successors.  All covenants and agreements in this Supplemental Indenture by
the parties hereto shall bind their successors and assigns, whether so
expressed or not.

 

SECTION 3.9. Effect of
Headings.  The Article and
Section headings herein are for the convenience of reference only and
shall not affect the construction hereof.

 

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IN WITNESS WHEREOF, the parties hereto have
caused this Supplemental Indenture to be duly executed as of the date first
above written.

 

	
   

  	
  [ADDITIONAL NOTE
  GUARANTOR],

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  as an
  Additional Note Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  The Bank of
  New York, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VALENTIA
  TELECOMMUNICATIONS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Given under
  the Common Seal of Valentia

  Telecommunications:-

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EIRCOM LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Given under
  the Common Seal of eircom

  Limited:-

  

 

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  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Other Additional
  Note Guarantors]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Other parties to
  Indenture]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

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