Document:

Exhibit 4.4

 

 

 

EIRCOM FUNDING

 

as the issuer,

 

VALENTIA
TELECOMMUNICATIONS, EIRCOM
LIMITED AND VALENTIA HOLDINGS LIMITED

 

as guarantors,

 

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 SUBORDINATED INDENTURE

 

Dated as of
August 7, 2003

 

 

8.25% Senior
Subordinated 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

  
	
   

  	
  SECTION 4.17

  	
  Limitation on Layering

  
	
   

  	
  SECTION 4.18

  	
  Investment Company Status

  
	
   

  	
   

  	
   

  
	
  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 eircom Funding

  
	
   

  	
  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 GUARANTEES

  
	
   

  	
  SECTION 10.1

  	
  Additional Note Guarantors

  
	
   

  	
  SECTION 10.2

  	
  Guarantees

  
	
   

  	
  SECTION 10.3

  	
  Limitation on Liability

  
	
   

  	
  SECTION 10.4

  	
  No Subrogation

  
	
   

  	
  SECTION 10.5

  	
  Release.

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI SUBORDINATION OF NOTE GUARANTEES AND HOLDINGS GUARANTEE

  
	
   

  	
  SECTION 11.1

  	
  Agreement To Subordinate

  
	
   

  	
  SECTION 11.2

  	
  Guarantee Not Due

  
	
   

  	
  SECTION 11.3

  	
  Liquidation, Dissolution, Bankruptcy

  
	
   

  	
  SECTION 11.4

  	
  When Distributions Must Be Paid Over

  
	
   

  	
  SECTION 11.5

  	
  Subrogation

  
	
   

  	
  SECTION 11.6

  	
  Liquidation, Dissolution, Bankruptcy in
  respect of Holdings

  
	
   

  	
  SECTION 11.7

  	
  When Distributions Must Be Paid Over in
  respect of Holdings

  
	
   

  	
  SECTION 11.8

  	
  Subrogation in respect of Subordinated
  Holdings Guarantee

  
	
   

  	
  SECTION 11.9

  	
  Acceleration of Payment of Securities

  
	
   

  	
  SECTION 11.10

  	
  Relative Rights

  
	
   

  	
  SECTION 11.11

  	
  Subordination May Not Be Impaired by eircom Funding, Note Guarantors or
  Holdings

  
	
   

  	
  SECTION 11.12

  	
  Rights of Trustee and Paying Agent

  
	
   

  	
  SECTION 11.13

  	
  Articles X and XI Not To Prevent
  Events of Default or Limit Right To Accelerate

  
	
   

  	
  SECTION 11.14

  	
  Trust Moneys Not Subordinated

  
	
   

  	
  SECTION 11.15

  	
  Trustee Entitled To Rely

  
	
   

  	
  SECTION 11.16

  	
  Trustee To Effectuate Subordination

  
				

 

iii

 

	
   

  	
  SECTION 11.17

  	
  Trustee Not Fiduciary for Holders of Note
  Guarantor Senior Indebtedness or Holdings Senior Indebtedness

  
	
   

  	
  SECTION 11.18

  	
  Reliance by Holders of Note Guarantor
  Senior Indebtedness or Holdings Senior Indebtedness on Subordination Provisions

  
	
   

  	
  SECTION 11.19

  	
  Trustee Knowledge

  
	
   

  	
   

  	
   

  
	
  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

  
	
   

  	
  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 Subordinated Indenture.

 

iv

 

SENIOR SUBORDINATED INDENTURE, dated as of August 7, 2003 (this “Indenture” or the “Senior Subordinated Indenture”), among (i)
eircom Funding, a public
unlimited 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 (together with its successors and assigns, “eircom Funding”), (ii) 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 (together with its
successors and assigns, the “Company”),
(iii) 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 (together with
its successors and assigns, “eircom”),
(iv) Valentia Holdings Limited, a company incorporated under the laws of
England as of the date hereof and having its registered office at 1 Mitchell
Lane, Bristol BS1 6BU, United Kingdom as of the date hereof (together with its
successors and assigns, “Holdings”),
(v) The Bank of New York, a New York banking corporation, as Trustee,
Registrar, Paying Agent and transfer agent, (vi) The Bank of New York
(Luxembourg) S.A. as  Paying Agent and
transfer agent, (vii) The Bank of New York, London as Principal Paying Agent
and transfer agent, (viii) AIB/BNY Fund Management (Ireland) Limited, as Paying
Agent and transfer agent, and (ix) such additional entities that from time to
time are designated as Additional Note Guarantors (as defined herein) and
deliver a supplemental indenture hereto.

 

eircom Funding 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, €285,000,000 in aggregate
principal amount of euro-denominated Notes and $250,000,000 in aggregate
principal amount of dollar-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

 

1

 

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.

 

“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 10.1.

 

“Additional Note Guarantor”
shall have the meaning assigned to it in Section 10.1.

 

“Additional Notes” means
any notes originally issued under the terms of this Indenture after the Issue
Date in addition to the Original Notes (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 Subordinated 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 Subordinated Euro Note at August 15, 2008
(such redemption

 

2

 

price (expressed in percentage of principal amount) being 108.25%, plus
(ii) all required interest payments due on such Senior Subordinated 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 Subordinated Euro Note; and, (y) with respect
to any Senior Subordinated Dollar Note on any redemption date, the excess of:
(1) the present value at such redemption date of (i) the redemption price of
such Senior Subordinated Dollar Note at August 15, 2008 (such redemption
price (expressed in percentage of principal amount) being 108.25%, plus (ii)
all required interest payments due on such Senior Subordinated 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 Subordinated 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);

 

3

 

(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;

 

(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

 

4

 

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 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 eircom
Funding, Holdings 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 Depositary 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.

 

5

 

“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.

 

“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.

 

6

 

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

 

“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.

 

7

 

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

 

“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 eircom
Funding by an Officer of eircom
Funding or a member of the Board of Directors of eircom Funding.

 

“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;

 

8

 

(2)                                  provision for
Consolidated Income Taxes;

 

(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.

 

9

 

“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 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.

 

10

 

“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
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;

 

11

 

(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;

 

(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,

 

12

 

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 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.

 

13

 

“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 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.

 

“Designated Senior Agents” means
(a) in relation to the Senior Secured Credit Agreement, Deutsche Bank AG London
(or any successor agent under the Senior Secured Credit Agreement), (b) in
relation to the Senior Notes, the Senior Trustee and (c) in relation to any
other Designated Senior Debt, any agent or representative which has been
designated as a “Designated Senior Agent” in any document or instrument
evidencing such Designated Senior Debt.

 

“Designated Senior Debt” means
all (a) Indebtedness arising under the Senior Secured Credit Agreement, (b)
Indebtedness in respect of the Senior Notes and (c) Note Guarantor Senior
Indebtedness having an aggregate principal amount outstanding or committed, as
at the date of designation, of no less than €30 million and which has been
designated by the Company and, for so long as any Indebtedness under the Senior
Secured Credit Agreement remains outstanding, Deutsche Bank AG London (or any
successor agent under such agreement) in writing as “Designated Senior Debt”
for the purposes of the Senior Subordinated Indenture, with details for notices
to the relevant Designated Senior Agents provided to the Senior Subordinated
Trustee at the time of such designation.

 

“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.

 

14

 

“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
Subordinated Notes or (b) on which there are no Senior Subordinated 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 the deposit and custody agreement dated the date hereof relating to the
Dollar Global Notes among eircom
Funding, 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.

 

“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 proceeds of the issue of the Senior Subordinated
Notes.

 

15

 

“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;

 

(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)                                  any Capital Stock.

 

“eircom Senior Subordinated Indebtedness”
means the Senior Subordinated eircom
Guarantee and any other Indebtedness of eircom
that specifically provides that such Indebtedness is to rank equally with the
Senior Subordinated Notes eircom
Guarantee in right of payment and is not subordinated by its terms in right of
payment to any Indebtedness or other obligation of eircom which is not eircom
Senior Indebtedness.

 

“eircom Subordinated Obligation”
means any Indebtedness of eircom
(whether outstanding on the Issue Date or thereafter Incurred) which is
expressly subordinate in right of

 

16

 

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 eircom
Funding, 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.

 

“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.

 

17

 

“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 eircom Funding, 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.

 

“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.

 

18

 

“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
Subordinated 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 Subordinated
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.

 

“Holdings Senior Indebtedness”
has the meaning assigned to it in Section 11.6.

 

“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.

 

“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);

 

19

 

(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.

 

“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 eircom Funding’s euro-denominated 8.25%
Senior Subordinated Notes due 2013 issued on the Issue Date and
dollar-denominated 8.25% Senior Subordinated 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).

 

20

 

“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, eircom 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 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.

 

21

 

“Investment Grade Status”
shall occur when the Senior Subordinated 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
Subordinated 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 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
Subordinated 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
Subordinated Notes;

 

22

 

(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 Subordinated 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 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.

 

23

 

“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 in New York 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 Subordinated Valentia Guarantee, (ii) the Senior
Subordinated eircom Guarantee and
(iii) any Additional Note Guarantee.

 

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

 

“Note Guarantor Senior Indebtedness”
means, with respect to a Note Guarantor, the following obligations, whether
outstanding on the date of this Indenture or thereafter issued, without
duplication:

 

(1) the Bank Indebtedness of such Note Guarantor, any Guarantee of the
Bank Indebtedness by such Note Guarantor and all other Guarantees by such Note
Guarantor 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 such Note Guarantor.

 

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

 

Notwithstanding anything to the contrary in the preceding paragraph,
Note Guarantor 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 such
Section 4.3);

 

24

 

(2) any obligations of such Note Guarantor to another Restricted
Subsidiary or the Company;

 

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

 

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

 

(6) any Capital Stock.

 

If any Note Guarantor Senior Indebtedness is disallowed, avoided or
subordinated pursuant to the provisions of any bankruptcy, insolvency,
fraudulent transfer, fraudulent conveyance, reorganization, moratorium,
liquidation or other similar laws of any jurisdiction, such Note Guarantor
Senior Indebtedness will nevertheless constitute Note Guarantor Senior
Indebtedness.

 

“Note Guarantor Senior Subordinated
Indebtedness” means, with respect to a Note Guarantor,
the Note Guarantee issued by such Note Guarantor and any other Indebtedness of
such Note Guarantor that specifically provides that such Indebtedness is to
rank equally with such Note Guarantee in right of payment and is not
subordinated by its terms in right of payment to any Indebtedness or other
obligation of such Note Guarantor which is not Note Guarantor Senior
Indebtedness.

 

“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
Subordinated 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, 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.

 

25

 

“Opinion of Counsel”
means a written opinion from legal counsel who is reasonably acceptable to the
Senior Subordinated 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 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 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 Subordinated
Notes” has the meaning assigned to it in Section 4.10.

 

26

 

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

 

“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;

 

(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

 

27

 

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 or the
Senior Subordinated 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 Senior
Indebtedness and/or Note Guarantor Senior Indebtedness;

 

(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

 

28

 

leases, or to secure utilities, licences, 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;

 

(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

 

29

 

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 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, these Notes, or any of the Note Guarantees or Guarantees in respect of
the Senior Notes;

 

(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

 

30

 

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;

 

(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.

 

31

 

“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 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.

 

32

 

“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.

 

“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 Subordinated 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 Subordinated Notes or any guarantee of the Senior Subordinated Notes,
such Refinancing Indebtedness is subordinated in right of payment to the Senior
Subordinated 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 Funding, 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

 

33

 

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

 

(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

 

34

 

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.

 

“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.

 

35

 

“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 that is or would
have been Senior Debt pursuant to the terms of the Senior Indenture (as such
Senior Indenture is in effect on the date hereof).

 

“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 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 Indenture”
means the Senior Indenture dated the Issue Date between the Company, eircom Limited, The Bank of New York as
Trustee, and the other parties thereto from time to time in respect of the
Senior Notes, as the same may be amended, supplemented, waived or otherwise
modified from time to time.

 

“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.

 

36

 

“Senior Notes” means
the Company’s 7.25% Senior Notes due 2013 issued pursuant to the Senior
Indenture.

 

“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).

 

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

 

“Senior Subordinated eircom Guarantee”
has the meaning assigned to it in Section 10.2.

 

“Senior Subordinated Indebtedness”
means the Senior Subordinated Valentia Guarantee and any other Indebtedness of
the Company that specifically provides that such Indebtedness is to rank
equally with the Senior Subordinated Notes Valentia Guarantee in right of
payment and is not subordinated by its terms in right of payment to any
Indebtedness or other obligation of the Company which is not Senior
Indebtedness.

 

“Senior Subordinated Notes”
means the Notes.

 

“Senior Subordinated Valentia Guarantee”
has the meaning assigned to it in Section 10.2.

 

“Senior Subordinated Obligations”
has the meaning assigned to it in Section 10.2.

 

“Senior Subordinated 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

 

37

 

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 Holdings Guarantee”
has the meaning assigned to it in Section 10.2

 

“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 Subordinated Notes pursuant to a written agreement.

 

“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 Subordinated 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 Subordinated 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
Subordinated 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 Subordinated 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

 

38

 

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.

 

“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

 

39

 

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
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;

 

40

 

(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 Indenture, the offer and issuance of
the Senior Notes and Senior Subordinated Notes, the provision of the Note
Guarantees and Subordinated Holdings Guarantee by the Note Guarantors and
Holdings, and the provision of Guarantees in respect of the Senior Notes;

 

(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).

 

41

 

“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 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 Global Notes”
means one or more Global Notes that do not and are not required to bear the
Private Placement Legend pursuant to the terms of this Indenture.

 

“Unrestricted Definitive Note”
means a Definitive 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 Subordinated Trustee by filing with the Senior
Subordinated 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.

 

42

 

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
(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;

 

43

 

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

 

“obligor” on the indenture securities means eircom Funding or any other obligor on the Notes (including
any Note Guarantor and Holdings).

 

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.

 

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 eircom Funding or any Note
Guarantors are subject, if any, or any other customary usage, or as may
consistently herewith be determined by an Officer of eircom Funding, 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 eircom

 

44

 

Funding).  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, eircom Funding, Holdings, 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 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.”

 

45

 

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 eircom
Funding 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.

 

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

 

If an Officer or member of the Board of Directors of eircom Funding 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 for original
issue on the Issue Date in an aggregate principal amount not to exceed
€285,000,000 (in respect of Euro Notes) and $250,000,000 (in respect of Dollar
Notes), (ii) Additional 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

 

46

 

authenticate Notes in substitution of Notes originally issued to
reflect any name change of eircom
Funding.

 

The Trustee may appoint an authenticating agent (“Authenticating Agent”) reasonably
acceptable to eircom Funding 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 eircom Funding and Affiliates of eircom Funding.

 

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

 

SECTION 2.3  
Registrar and Paying Agent.  eircom
Funding 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, eircom
Funding 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, eircom Funding 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.
eircom Funding 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.

 

eircom Funding 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, eircom Funding 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 Subordinated Notes are listed on the Irish Stock
Exchange and the rules of such exchange so require, eircom Funding 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.  eircom
Funding or any of its Subsidiaries may act as Paying Agent or Registrar in
respect of any series of Senior Subordinated Notes.

 

47

 

eircom Funding, 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.  eircom
Funding 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) S.A. 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.  eircom
Funding 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, eircom Funding shall maintain a
co-Registrar in Luxembourg and hereby initially appoints The Bank of New York
(Luxembourg) S.A. as a co-Registrar.

 

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, eircom Funding 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 eircom Funding to mail payments in accordance with the terms
of this Indenture.

 

SECTION 2.4  
Paying Agent To Hold Assets in
Trust.  eircom Funding 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 eircom Funding, Holdings or any Note
Guarantor in making any such payment.  eircom Funding 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 eircom Funding 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, eircom Funding shall furnish to the
Trustee before each Record Date and at such other times as the

 

48

 

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 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 eircom Funding (with authentication by the
Trustee upon receipt of a Company Order) for one or more Definitive Notes, if
(a) any Clearing Agency notifies eircom
Funding 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 eircom
Funding 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 eircom Funding 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, eircom
Funding 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

 

49

 

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.

 

(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 eircom
Funding shall execute, and the Trustee shall upon written instructions from eircom Funding 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.

 

50

 

(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 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

 

51

 

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 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 eircom Funding 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

 

52

 

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

 

(g)  Each Initial 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 EIRCOM FUNDING 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 EIRCOM
FUNDING OR ANY AFFILIATE OF EIRCOM
FUNDING 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 EIRCOM
FUNDING, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH

 

53

 

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 EIRCOM FUNDING. THE
TRUSTEE AND THE REGISTRAR 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 EIRCOM
FUNDING, 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 eircom Funding 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

 

54

 

(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.  eircom Funding 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 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, eircom Funding 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)  eircom
Funding 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, eircom
Funding, any Note Guarantor, Holdings, 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 eircom Funding, any Note Guarantor, Holdings, 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, eircom Funding 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

 

55

 

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 Global Note
that is a 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 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) such transfer is effected
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 provisions of the
relevant Deposit Agreement and 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 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 provisions of the
relevant Deposit Agreement and 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 given by the holder of such Book-Entry Interest
stating that the exchange or transfer of such interest (i) 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), (ii) is
effected pursuant to a registration statement entered into in relation to, and
in accordance with, an applicable Registration Rights Agreement, (iii) 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 (iv) is effected in circumstances where, in relation to such
Book-Entry Interests, the conditions for the removal of

 

56

 

the Private Placement Legend set forth in
Section 2.7(g) are satisfied, 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 eircom Funding 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 eircom Funding and the Trustee of a
written opinion of counsel (which opinion and counsel are satisfactory to eircom Funding and the Trustee) to the
effect that, and/or such other certifications or information as eircom Funding 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.

 

SECTION 2.8  
Replacement Notes.  If a mutilated Definitive Note is
surrendered to the Registrar, if a mutilated Global Note is surrendered to eircom Funding or if the Holder of a Note
provides evidence to the reasonable satisfaction of eircom Funding and the Trustee that such Note has been lost,
destroyed or wrongfully taken, eircom
Funding 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, eircom
Funding, any Note Guarantor and Holdings are met.  If required by the Trustee, the Registrar, or eircom Funding, such Holder must provide
an indemnity bond or other indemnity, sufficient in the judgment of eircom Funding, the Registrar and the
Trustee, to protect eircom
Funding, Holdings 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.  eircom
Funding 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, eircom Funding in its discretion may,
instead of issuing a replacement Note, pay such Note.  Every replacement Note is an additional obligation of eircom Funding 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.

 

57

 

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 eircom Funding 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 eircom
Funding 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 eircom Funding 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.

 

For purposes of
determining whether such Holders have so concurred, the Trustee may require an
Officer’s Certificate listing Notes owned by the Company, eircom Funding, 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, eircom Funding 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 eircom Funding considers appropriate for
temporary Definitive Notes.  Without
unreasonable delay, eircom
Funding 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.  eircom Funding 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

 

58

 

the Trustee, the Registrar or the Paying Agent, and no
one else, shall cancel and, at the written direction of eircom Funding, 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, eircom Funding may not issue new Notes to
replace Notes that it has paid or delivered to the Trustee for
cancellation.  If eircom Funding 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 eircom
Funding 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, eircom Funding 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 eircom Funding 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.  eircom Funding
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 eircom
Funding 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,
however, that in no event shall eircom
Funding 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, eircom Funding 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, eircom
Funding 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

 

59

 

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.  eircom
Funding 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.  eircom
Funding 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, eircom Funding
shall deposit with the Trustee or its designated Paying Agent (which shall be
the Principal Paying Agent unless otherwise notified to eircom Funding by the Trustee) in
immediately available funds money sufficient to make cash payments, if any, due
on such interest payment date or Maturity Date, as the case may be, on all
Notes then outstanding.  Such payments
shall be made by eircom Funding
in a timely manner which permits the Paying Agent to remit payment to the
Holders on such interest payment date or Maturity Date, as the case may be.

 

SECTION 2.16  
Certain Matters Relating to
Global Notes. 
(a)  Neither eircom
Funding 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 eircom
Funding, the Trustee and any agent of eircom
Funding or the Trustee as the absolute owner of such Global Note for all
purposes whatsoever.  Notwithstanding
the foregoing, nothing herein shall prevent eircom
Funding, the Trustee or any agent of eircom
Funding 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.

 

60

 

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 eircom
Funding 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).  eircom Funding
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 eircom Funding’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 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.  Unless
otherwise provided herein, in the event of partial redemption by lot the
particular Notes to be redeemed shall be selected, 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, eircom
Funding 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 Subordinated 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 eircom Funding’s
request made at least 30 days before the Redemption Date (or

 

61

 

such shorter period as the Trustee in its sole
discretion shall determine), the Trustee shall give the notice of redemption in
eircom Funding’s name and at eircom Funding’s expense; provided,
however, that eircom
Funding 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 eircom
Funding 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 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 eircom Funding.

 

62

 

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, eircom
Funding shall deposit with the Trustee or its designated Paying Agent (which
shall be the Principal Paying Agent unless otherwise notified to eircom Funding 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 eircom Funding any cash
so deposited which is not required for that purpose upon the written request of
eircom Funding.

 

If eircom Funding complies with the preceding
paragraph, then, unless eircom
Funding 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 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 eircom Funding 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 eircom Funding or the Trustee so requires, the endorsement
by, or a written instrument of transfer in form satisfactory to eircom Funding and the Trustee duly
executed by, the Holder thereof or his attorney duly authorized in writing), eircom Funding 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

 

63

 

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)  eircom
Funding 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 required by Section 2.15, on that date money deposited
by eircom Funding 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)  eircom
Funding 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.  eircom Funding 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 eircom
Funding in respect of the Notes and this Indenture may be served.  eircom
Funding 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 eircom
Funding 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. 
eircom Funding 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, eircom Funding will
appoint The Bank of New York (Luxembourg) S.A., 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 

 

64

 

 

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 in compliance with
Section 4.6, (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 Subordinated 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 Restricted Subsidiary (other than any
Indebtedness incurred by the Company or any Restricted Subsidiary, as the case
may be, 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
(other than any Indebtedness incurred in violation of this Section 4.3) or
Note Guarantor Senior Indebtedness;

 

(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,

 

65

 

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 (other than the eircom Funding Intercompany Loan or any
Guarantee thereof) is expressly subordinated to the prior payment in full of
all obligations with respect to the Senior Subordinated Notes;

 

(4) Indebtedness
represented by: (a) the Senior Subordinated Notes (other than any Additional
Notes) and any exchange notes issued in exchange for any Senior Subordinated
Notes; (b) Note Guarantees; (c) the Senior Notes issued on the Issue Date and
any exchange notes issued in exchange therefor; (d) any Guarantee of the Senior
Notes; (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;

 

(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 

 

66

 

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;

 

(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,

 

67

 

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 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

 

68

 

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(a) 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, 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 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

 

69

 

(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 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,

 

70

 

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 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,

 

71

 

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 Subordinated Notes tendered pursuant to the offer to repurchase all
the Senior Subordinated 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, 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

 

72

 

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;

 

(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

 

73

 

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, 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

 

74

 

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 Subordinated 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 Subordinated 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, 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:

 

75

 

(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 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 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 Subordinated 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);

 

76

 

(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;

 

(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

 

77

 

any
such agreement or instrument taken as a whole are not materially less favorable
to the Holders of the Senior Subordinated 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 Subordinated 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 (or to cause eircom Funding to) make principal or
interest payments on the Senior Subordinated 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 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, Note
Guarantor Senior Indebtedness or Indebtedness of a Restricted Subsidiary that
is not a Note Guarantor (other than eircom
Funding) (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

 

78

 

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 Subordinated Notes and,
to the extent the Company elects, to all holders of other outstanding
Indebtedness that is pari passu
in right of payment with the Senior Subordinated Notes requiring the Company to
make an offer to purchase such Indebtedness with the proceeds from any Asset
Disposition (“Pari Passu Senior Subordinated
Notes”), to purchase the maximum principal amount of Senior
Subordinated Notes and any such Pari Passu Senior Subordinated 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 Subordinated Notes and Pari Passu Senior Subordinated
Notes plus accrued and unpaid interest and 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 Subordinated Notes, as
applicable, in each case in integral multiples of €1,000 in the case of Senior
Subordinated Euro Notes or $1,000 in the case of Senior Subordinated Dollar
Notes.

 

(c)  To the extent that the aggregate amount of Senior
Subordinated Notes and Pari Passu Senior Subordinated 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 Subordinated Notes
surrendered in any Asset Disposition Offer by holders thereof and other Pari
Passu Senior Subordinated Notes surrendered by holders or lenders,
collectively, exceeds the amount of Excess Proceeds, the Excess Proceeds shall
be allocated among the Senior Subordinated Notes and Pari Passu Senior
Subordinated Notes to be purchased on a pro
rata basis on the basis of the aggregate principal amount of

 

79

 

tendered Senior Subordinated
Notes and Pari Passu Senior Subordinated 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
Subordinated Notes pursuant to this Section 4.10 will be apportioned
between the Senior Subordinated Dollar Notes and the Senior Subordinated Euro
Notes in proportion to the respective aggregate principal amounts of Senior Subordinated
Dollar Notes and Senior Subordinated Euro Notes validly tendered and not
withdrawn, based upon the Euro Equivalent of such principal amount of Senior
Subordinated 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 Subordinated Notes is
denominated in a currency other than the currency in which the relevant Senior
Subordinated Notes are denominated, the amount thereof payable in respect of
such Senior Subordinated Notes shall not exceed the net amount of funds in the
currency in which such Senior Subordinated 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 Subordinated 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 Subordinated Notes and, to
the extent it elects, Pari Passu Senior Subordinated 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 Subordinated Notes and, to the extent it elects, Pari Passu Senior
Subordinated Notes validly tendered in response to the Asset Disposition Offer.

 

(f)  In the case of certificated Senior Subordinated 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 Subordinated Note is
registered at the close of business on such record date, and no additional interest
will be payable to holders who tender Senior Subordinated Notes pursuant to the
Asset Disposition Offer. In the case of global bearer Senior Subordinated
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 Subordinated Notes and, to the
extent it elects, Pari Passu Senior Subordinated Notes or portions of Senior
Subordinated Notes and, to the extent it elects, Pari Passu Senior Subordinated
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 Subordinated Notes and
Pari Passu Senior Subordinated Notes so validly tendered and not properly
withdrawn, in each case in integral

 

80

 

multiples of €1,000 or $1,000,
as the case may be. The Company will deliver to the Senior Subordinated Trustee
an Officer’s Certificate stating that such Senior Subordinated 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 Subordinated Notes an amount equal to the
purchase price of the Senior Subordinated 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
Subordinated Note, and the Senior Subordinated 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 Subordinated Note to
such holder, in a principal amount equal to any unpurchased portion of the
Senior Subordinated Note surrendered; provided
that each such new Senior Subordinated Note will be in a principal amount of
€1,000 in the case of Senior Subordinated Euro Notes or $1,000 in the case of
Senior Subordinated Dollar Notes, or an integral multiple of €1,000 or $1,000,
as the case may be. Any Senior Subordinated 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

 

(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).

 

81

 

(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
Subordinated 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:

 

(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,

 

82

 

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 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;

 

83

 

(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 Subordinated
Notes are outstanding, the Company will provide to the Senior Subordinated
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;

 

(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

 

84

 

(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 Subordinated 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 Subordinated
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 Subordinated 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 Subordinated Notes, upon their request,
the information required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act.

 

(e)  For so long as the Senior Subordinated 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,

 

85

 

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 Subordinated Notes achieve Investment Grade Status, then
Sections 4.3, 4.4, 4.9, 4.10, 4.11, 4.14, 4.17, 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 Subordinated Notes at a purchase
price in cash equal to 101% of the principal amount of the Senior Subordinated
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 Subordinated 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 Subordinated
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 Subordinated 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
Subordinated Trustee (and, if the Senior Subordinated 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 Subordinated Notes at a purchase
price in cash equal to 101% of the principal amount of such Senior Subordinated
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”);

 

(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 Subordinated 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.

 

86

 

(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 Subordinated 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 Subordinated Notes so tendered; and

 

(3) deliver or cause to
be delivered to the Senior Subordinated Trustee the Senior Subordinated Notes
so accepted together with an Officer’s Certificate stating the aggregate
principal amount of the Senior Subordinated Notes or portions of Senior
Subordinated Notes being purchased by the Company.

 

(d)  The Paying Agent will promptly mail to each holder of
Senior Subordinated Notes so tendered the Change of Control Payment for such
Senior Subordinated Notes, and the Senior Subordinated Trustee will promptly
authenticate and mail (or cause to be transferred by book entry) to each holder
a new Senior Subordinated Note equal in principal amount to any unpurchased
portion of the Senior Subordinated Notes surrendered, if any; provided that each such new Senior
Subordinated 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 Subordinated 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 Subordinated 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 Subordinated 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 that
the Company repurchase or redeem the Senior Subordinated 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

 

87

 

of Control Offer made by the
Company and purchases all Senior Subordinated 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
Subordinated 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 eircom Funding,
the Company, any Note Guarantor, Holdings or a successor of any of the
foregoing (each a “Payor”) on the
Senior Subordinated 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 the United
Kingdom 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 Subordinated Notes, any Note Guarantee
or the Holdings 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 Senior Subordinated 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 Subordinated Notes or the Senior Subordinated 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 Subordinated
Notes 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

 

88

 

Taxing
Jurisdiction) other than by the mere ownership or holding of such Senior
Subordinated 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 Subordinated 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 Subordinated 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
Subordinated 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 Subordinated 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 Subordinated Notes or under
any Note Guarantee or the Subordinated Holdings 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;

 

89

 

(7) any Taxes imposed in
connection with a Senior Subordinated 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 Subordinated 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
Subordinated Note been the Holder of the Senior Subordinated 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 Subordinated 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 Subordinated Notes then outstanding
and (y) the amount of such withholding Taxes paid per €1,000 principal amount
of the Senior Subordinated Euro Notes or per $1,000 principal amount of the
Senior Subordinated 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 Subordinated Notes, any Note Guarantee or
the Subordinated Holdings Guarantee, at least 30 days prior to the date of such
payment the Payor will deliver to the Senior Subordinated 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 Subordinated Trustee to pay such Additional Amounts to
holders of Senior Subordinated Notes on the payment date (unless such obligation
to pay Additional Amounts arises less than 45 days prior to the repayment 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 Subordinated
Notes, any Note Guarantee or the Holdings Guarantee there are mentioned, in any
context:

 

(1) the payment of
principal,

 

(2) purchase prices in
connection with a purchase of Senior Subordinated Notes,

 

(3) interest, or

 

(4) any other amount
payable on or with respect to any of the Senior Subordinated Notes, any Note
Guarantee or the Subordinated Holdings Guarantee, such reference shall be
deemed to include payment of Additional Amounts as described under this Section

 

90

 

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 Subordinated Notes or any other document or instrument referred to
therein (other than a transfer of the Senior Subordinated 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 eircom
Funding, 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).

 

SECTION 4.17  
Limitation on Layering

 

The Company will not
Incur any Indebtedness if such Indebtedness is expressly subordinate in right
of payment to any Senior Indebtedness unless such Indebtedness is pari passu in right of payment with or is
subordinate in right of payment to the Company’s Note Guarantee of the Senior
Subordinated Notes. No Note Guarantor will Incur any Indebtedness if such
Indebtedness is expressly subordinate in right of payment to such Note
Guarantor’s Note Guarantor Senior Indebtedness unless such Indebtedness is pari passu in right of payment with or is
subordinate in right of payment to the Note Guarantee of such Note Guarantor.
Unsecured Indebtedness is not deemed to be subordinate or junior to secured
Indebtedness merely because it is unsecured, and Indebtedness that is not
Guaranteed by a particular Person is not deemed to be subordinate or junior to
Indebtedness that is so Guaranteed merely because it is not so Guaranteed.

 

SECTION 4.18  
Investment Company Status

 

For so long as the Notes
are outstanding, eircom Funding shall not become, and the Company shall cause
eircom
Funding not to become, an investment company as defined under the U.S.
Investment Company Act of 1940, as amended and the rules and regulations
thereunder (the “Investment Company Act”), that would be required to register
as such under the Investment Company Act. 
For purposes of establishing the compliance of the Company and eircom
Funding with this Section 4.18, the exceptions under Section 3(c)(1)
or 3(c)(7) of the Investment Company Act will be disregarded.

 

91

 

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 Subordinated Trustee, in form reasonably satisfactory to the Senior
Subordinated Trustee, all the obligations of the Company under the Senior
Subordinated 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;

 

(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 Subordinated Debt of the Successor Company and its Restricted
Subsidiaries following such transaction is greater than the Senior Subordinated
Debt of the Company and its Restricted Subsidiaries immediately prior thereto,
€1.00 of additional Senior Subordinated Debt) pursuant to Section 4.3(a)
or (b) neither the Consolidated Leverage Ratio nor the Consolidated Senior
Subordinated 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 Subordinated eircom Guarantee shall apply to eircom Funding’s obligations in respect of
this Indenture and the Senior Subordinated Notes; and

 

(5) the Company shall
have delivered to the Senior Subordinated 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

 

92

 

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 Note Guarantee of
eircom Funding’s obligation to
pay the principal of and interest on the Senior Subordinated 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).

 

(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 Subordinated Trustee, all the obligations of eircom under the Senior Subordinated 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 Subordinated 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

 

93

 

this Indenture, provided that
in giving an Opinion of Counsel, counsel may rely on an Officer’s Certificate
as to compliance with Section 5.1(e)(2) and 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 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 Subordinated 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 Subordinated 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

 

94

 

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 Subordinated Trustee
or the holders of 25% in principal amount of the outstanding Senior
Subordinated Notes with any of its obligations under Section 4.3, 4.4,
4.6, 4.8, 4.9, 4.10, 4.11, 4.17 or 5.1 (in each case, other than a failure to
purchase Senior Subordinated 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 Subordinated Trustee
or the holders of 25% in principal amount of the outstanding Senior
Subordinated 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”);

 

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 eircom Funding, the Company or any of the Company’s
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 eircom Funding,
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) eircom Funding, the
Company or any

 

95

 

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 eircom Funding, 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 eircom Funding or 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, or the Subordinated Holdings
Guarantee ceases to be in full force and effect or is declared null and void in
a judicial proceeding or any Note Guarantor or Holdings denies or disaffirms in
writing its obligations under this Indenture, its Note Guarantee or the
Subordinated Holdings Guarantee (as applicable), and in the case of an
Additional Note Guarantee or the Subordinated Holdings 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 Subordinated Trustee or the holders of 25% in
principal amount of the outstanding Senior Subordinated 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 Subordinated Trustee by notice in writing to the Company or the
holders of at least 25% in principal amount of the outstanding Senior
Subordinated Notes under this Indenture by notice in writing to the Company and
the Senior Subordinated Trustee, may, and the Senior Subordinated 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 Subordinated Notes under this Indenture to be due

 

96

 

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 Subordinated 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 Subordinated 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 eircom Funding, 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
Subordinated 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 Subordinated Notes that became due solely because of the
acceleration of the Senior Subordinated 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 Subordinated Notes will become and be immediately due and payable
without any declaration or other act on the part of the Senior Subordinated
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 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.

 

97

 

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. eircom Funding 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.

 

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;

 

98

 

(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 eircom Funding 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 eircom Funding,
Holdings, the Company or their respective creditors or its property or other
obligor on the Notes, their respective creditors and 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 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

 

99

 

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 eircom
Funding 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 eircom
Funding, 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, eircom Funding, 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.

 

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:

 

100

 

(1)                                  The
Trustee and the Agents will 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.

 

(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,
agent or other persons employed to act hereunder.

 

SECTION 7.2  
Rights of Trustee.  Subject to Section 7.1:

 

101

 

(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 eircom Funding or the Company mentioned
herein shall be sufficiently evidenced by an Officer’s Certificate or Company
Order (or in respect of the Company, a similar instrument of the Company)  and any resolution of the Board of Directors
of the Company or eircom Funding,
as the case may be, may be sufficiently evidenced by a Board Resolution in
respect of such entity.

 

(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.

 

(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.

 

102

 

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 eircom Funding’s use of the proceeds from
the Notes or any money paid to eircom
Funding or upon eircom Funding’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 eircom Funding, 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 eircom Funding and
filed with the SEC and each securities exchange, if any, on which the Notes are
listed.

 

eircom Funding 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.

 

SECTION 7.7  
Compensation and Indemnity.  eircom
Funding shall pay to the Trustee and Agents from time to time such reasonable
compensation as eircom Funding
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.  eircom Funding
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.

 

103

 

eircom
Funding 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.

 

eircom Funding 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 eircom
Funding 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 eircom Funding shall not relieve eircom Funding of its obligations hereunder.  eircom
Funding 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 eircom Funding’s
expense.  The Trustee or such Agent may
have separate counsel from eircom
Funding in the defense of any claim against them and eircom Funding shall pay the reasonable fees and expenses of
such counsel.  eircom Funding need not pay for any
settlement made without its written consent, which consent shall not be unreasonably
withheld.

 

To secure eircom
Funding’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.  eircom Funding’s obligations under this
Section 7.7 and any claim arising hereunder shall survive the termination
or discharge of this Indenture, the resignation or removal of any Trustee or
Agent, the discharge of the Company’s and eircom
Funding’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 eircom
Funding in writing.  The Holders of a
majority in principal amount of the outstanding Notes may remove the Trustee or
Agent by so notifying eircom
Funding and the Trustee or such Agent, as the case may be, in writing and may
appoint a successor trustee or agent with eircom
Funding’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

 

104

 

upon the successor Trustee’s or
Agent’s acceptance of appointment, as the case may be, as provided in this
section.  eircom Funding 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, eircom Funding 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 eircom Funding’s consent, appoint a
successor Trustee or Agent, as the case may be, to replace the successor
Trustee or Agent appointed by eircom
Funding.

 

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 eircom Funding.  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), eircom
Funding or any Holder who has been a bona
fide Holder for not less than 6 months may petition any court of
competent jurisdiction, at the expense of eircom
Funding, 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, eircom
Funding’s and the Company’s respective 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

 

105

 

and eircom Funding, as the case may be, 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 eircom Funding 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.

 

SECTION 7.12  
Preferential Collection of
Claims Against eircom Funding.  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

 

106

 

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, eircom Funding 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 eircom Funding, the
Note Guarantors and Holdings 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
respective 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 eircom Funding and the Company but not the other Note
Guarantors or Holdings, 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)                                  eircom Funding’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 eircom Funding’s obligations in connection
therewith set forth in Article VII hereof; and

 

(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 the Subordinated Holdings
Guarantee 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.

 

107

 

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, 4.17, 4.18 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, the Senior Subordinated eircom Guarantee, any Additional Note
Guarantee and, at the Company’s option, the Subordinated Holdings 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,
each of eircom Funding and 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, 4.17, 4.18 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 (or must cause eircom
Funding to) 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 Subordinated Euro Notes) or in dollars or US Government Obligations or a
combination thereof (in the case of the Senior Subordinated Dollar Notes) as
will be sufficient for the payment of principal, premium, if any, and interest
and Additional Amounts, if any, on the Senior Subordinated 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)                                  the
Company must (or must cause eircom
Funding to) deliver to the Senior Subordinated Trustee (x) an Opinion of
Counsel in the United States to the effect that holders of the relevant Senior
Subordinated Notes will not recognize income, gain or loss for United States
federal income tax purposes as a result of such deposit and defeasance and 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, eircom
Funding and eircom to the effect
that the

 

108

 

Holders of the outstanding Senior Subordinated 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 (or must cause eircom
Funding to) deliver to the Trustee an Officer’s Certificate stating that the
deposit was not made by the Company or eircom
Funding with the intent of preferring the Holders of such Notes over the other
creditors of the Company or eircom
Funding with the intent of defeating, hindering, delaying or defrauding
creditors of the Company or eircom
Funding or others; and

 

(4)                                  the
Company must (or must cause eircom
Funding to) 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 Subordinated Notes previously authenticated
and delivered (other than certain lost, stolen or destroyed Notes, and certain
Senior Subordinated Notes for which provision for payment was previously made
and thereafter the funds have been released to the Company or eircom Funding) have been delivered to the
Senior Subordinated Trustee for cancellation or (B) all Senior Subordinated
Notes not previously delivered to the Senior Subordinated 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 Subordinated Trustee for the giving of notice of redemption by the
Senior Subordinated Trustee in the name, and at the expense, of the Company or eircom Funding; (2) the Company or eircom Funding has deposited or caused to
be deposited with the Senior Subordinated 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
Subordinated Notes not previously delivered to the Senior Subordinated Trustee
for cancellation, for principal, premium, if any, and interest to the date of
deposit (in the case of Senior Subordinated Notes that have become due and
payable), or to the Stated Maturity or Redemption Date, as the case may be; (3)
the Company or eircom Funding has
paid or caused to be paid all other sums payable under this Indenture by the
Company, eircom Funding, any Note
Guarantor or Holdings; and (4) the Company or eircom
Funding has delivered to the Senior Subordinated 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).

 

109

 

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 eircom Funding 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 eircom Funding
upon Company Order or if then held by eircom
Funding 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 eircom Funding 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, eircom Funding’s and the Company’s
respective 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 eircom
Funding 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, eircom Funding 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.

 

110

 

ARTICLE IX

 

AMENDMENTS, SUPPLEMENTS AND WAIVERS

 

SECTION 9.1  
Without Consent of Holders of Notes.  Notwithstanding Section 9.2 hereof, eircom Funding, the Company, any Note
Guarantor, Holdings 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 or other obligor under
this Indenture;

 

(3) provide for uncertificated Senior Subordinated
Notes in addition to or in place of certificated Senior Subordinated Notes (provided that the uncertificated Senior
Subordinated Notes are issued in registered form for purposes of
Section 163(f) of the Code, or in a manner such that the uncertificated
Senior Subordinated 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;

 

(8) provide for any Restricted Subsidiary to become an
Additional Note Guarantor in accordance with the provisions of
Section 10.1, to add Guarantees with respect to the Senior Subordinated
Notes, to secure the Senior Subordinated Notes, or to confirm and evidence the
release, termination or discharge of any Guarantee or Lien with respect to or
securing the Senior Subordinated Notes when such release, termination or
discharge is provided for under this Indenture; or

 

(9) to provide that any
Indebtedness that becomes or will become an obligation of a Successor Company
or a Note Guarantor pursuant to a transaction governed by Section 5.1
(that is not a Subordinated Obligation) is Senior Subordinated Indebtedness or
Note Guarantor Senior Subordinated Indebtedness for the purposes of the Senior
Subordinated Indenture.

 

However, no amendment may be made to the provisions of Article XI
or Section 10.5(a)(1) or 10.5(b)(2) of this Indenture that materially and
adversely affects the rights of any holder of the Senior Notes or any other
Designated Senior Debt (in either case, then outstanding) unless the trustee in
respect of the Senior Notes (acting on the instructions of a majority in

 

111

 

principal amount of the holders of such Senior Notes), the requisite
holders of such Designated Senior Debt or the relevant Designated Senior Agent,
as the case may be, consent to such change.

 

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 eircom Funding, the Company, any Note
Guarantor and Holdings 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 Subordinated 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 Subordinated Notes are
listed on such exchanges and the rules of such exchanges so require, a
supplement to the Offering Memorandum setting forth reasonable details in
connection with any such amendments, supplements or waivers.

 

SECTION 9.2  
With Consent of Holders of Notes.  eircom
Funding, the Company, any Note Guarantor, Holdings 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 Subordinated Note affected, no
amendment or waiver may:

 

(1) reduce the amount of
Senior Subordinated 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 Subordinated Note;

 

(3) reduce the principal
of or extend the Stated Maturity of any Senior Subordinated Note;

 

(4) reduce the premium
payable upon the redemption of any Senior Subordinated Note or change the time
at which any Senior Subordinated Note may be redeemed;

 

(5) make any Senior
Subordinated Note payable in money other than that stated in the Senior
Subordinated Note;

 

112

 

(6) impair the right of
any holder to receive payment of principal of and interest on such holder’s
Senior Subordinated 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 Subordinated Notes;

 

(7) make any change in
Section 4.15 that adversely affects the rights of any Holder of such
Senior Subordinated Notes in any material respect or amends the terms of such
Senior Subordinated 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 eircom
Funding, 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 aforesaid, the Trustee shall join with eircom Funding, the Company, any Note Guarantor and Holdings
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 Subordinated Notes given in connection with
a tender of such holder’s Senior Subordinated 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.

 

113

 

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)  eircom Funding may fix a record date for
determining which Holders of the Notes must consent to such amendment,
supplement or waiver.  If eircom Funding 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 eircom
Funding 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. 
eircom Funding in exchange
for all Notes may issue and the Trustee shall authenticate new Notes that
reflect the amendment, supplement or waiver. 
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

GUARANTEES

 

SECTION 10.1  
Additional Note Guarantors.  The Company may from time to time designate
a Restricted Subsidiary as an additional guarantor of the Senior Subordinated
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”).

 

114

 

SECTION 10.2  
Guarantees. 
Subject to this Article X, Article XI and Section 12.19,
each of the Company, eircom,
Holdings and 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 eircom
Funding under this Indenture (all of the foregoing being hereinafter
collectively called the “Senior Subordinated
Obligations”).  Each of the
Company, eircom, Holdings and
each Additional Note Guarantor  further
agrees (to the extent permitted by law) that the Senior Subordinated
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 Senior Subordinated Obligation.

 

The guarantee of the Company given hereby is referred
to herein as the “Senior Subordinated Valentia
Guarantee,” the guarantee of eircom
given hereby is referred to herein as the “Senior
Subordinated eircom Guarantee” (which, together with the Senior
Subordinated Valentia Guarantee and each Additional Note Guarantee, are
referred to herein as the “Note Guarantees”).  The guarantee of Holdings given hereby is
referred to herein as the “Subordinated
Holdings Guarantee.”

 

Each of the Company, eircom,
Holdings and any Additional Note Guarantor waives (to the extent
permitted by law) presentation to, demand of payment from and protest to eircom Funding of any of the Senior
Subordinated Obligations and also waives (to the extent permitted by law)
notice of protest for nonpayment.  Each
of the Company, eircom, Holdings and any Additional Note
Guarantor waives (to the extent permitted by law) notice of any default
under the Notes or the Senior Subordinated Obligations.  The obligations of each of the Company, eircom,
Holdings and any 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 eircom Funding 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 Senior Subordinated Obligations or any of them; or (e) any
change in the ownership of eircom
Funding.

 

Each of the Company, eircom, Holdings and any Additional Note
Guarantor further agrees that each Note Guarantee herein (or in the case
of Holdings, the Subordinated Holdings 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 Senior Subordinated Obligations.

 

The obligations of each of the
Company, eircom, Holdings and any
Additional Note Guarantor hereunder (to the extent permitted by law)
shall, subject to this Article X, Article XI and Section 12.19,
not be subject to any reduction, limitation, impairment or termination for any
reason (other than payment of the Senior Subordinated 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,

 

115

 

illegality or unenforceability of the Senior Subordinated Obligations
or otherwise.  Without limiting the
generality of the foregoing, the obligations of each of the Company, eircom,
Holdings and any Additional Note Guarantor herein (to the extent
permitted by law) shall, subject to this Article X, Article XI and
Section 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 Senior Subordinated 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 any of the Company, eircom,
Holdings or any Additional Note Guarantor as a matter of law or equity.

 

Subject to Section 10.5, each
of the Company, eircom, Holdings and any Additional Note
Guarantor further agrees that each Note Guarantee herein (or, in the
case of Holdings, the Subordinated Holdings 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 Senior Subordinated Obligations is rescinded or must otherwise be
restored by any Holder upon the bankruptcy or reorganization of eircom Funding or otherwise.

 

Subject to the provisions of Section 10.3 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 of the
Company, eircom, Holdings and any
Additional Note Guarantor by virtue hereof, upon the failure of eircom Funding to pay any of the Senior
Subordinated Obligations when and as the same shall become due, whether at
maturity, by acceleration, by redemption or otherwise, each of the Company, eircom,
Holdings and any Additional Note Guarantor 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 Senior Subordinated Obligations then
due and owing.  Payments made under this
guarantee shall be made to the Trustee on behalf of the Holders.

 

The Company further agrees
that, as between it, on the one hand, and the Holders, on the other hand, but
subject always to Section 11.2 hereof, (x) the maturity of the Senior
Subordinated Obligations guaranteed hereby may be accelerated as provided in
this Indenture for the purposes of the Note Guarantees herein (or, in the case
of Holdings, the Subordinated Holdings Guarantee herein), notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect
of the Senior Subordinated Obligations guaranteed hereby and (y) in the event
of any such declaration of acceleration of such Senior Subordinated
Obligations, such Senior Subordinated Obligations (whether or not due and
payable) shall forthwith become due and payable by each of the Company, eircom,
Holdings and any Additional Note Guarantor for the purposes of this
Senior Subordinated Guarantee (or, in the case of Holdings, this Subordinated
Holdings Guarantee).

 

Each of the Company, eircom, Holdings and any 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.

 

116

 

SECTION 10.3  
Limitation on Liability.  The obligations of each Note Guarantor and
Holdings 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 10.4  
No Subrogation.  Notwithstanding any payment or payments made by a Note Guarantor
or Holdings hereunder, none of such Note Guarantor or Holdings shall 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 Senior Subordinated
Obligations nor shall any of such Note Guarantor or Holdings seek or be
entitled to seek any contribution or reimbursement from eircom Funding in respect of payments made
by such Note Guarantor or Holdings, as the case may be, hereunder, until all
amounts owing to the Trustee and the Holders by eircom Funding on account of the Senior Subordinated
Obligations are paid in full.  If any
amount shall be paid to such Note Guarantor or Holdings on account of such
subrogation rights at any time when all of the Senior Subordinated Obligations
shall not have been paid in full, such amount shall be held by such Note
Guarantor or Holdings, as the case may be, in trust for the Trustee and the
Holders, segregated from other funds of such Note Guarantor or Holdings, as the
case may be, and shall, forthwith upon receipt by such Note Guarantor or
Holdings, be turned over to the Trustee in the exact form received by such Note
Guarantor or Holdings (duly indorsed by such Note Guarantor or Holdings, as the
case may be, to the Trustee, if required), to be applied against the Senior
Subordinated Obligations.

 

SECTION 10.5  
Release.

 

(a)  The Senior Subordinated eircom
Guarantee will be automatically and unconditionally released (and thereupon
shall terminate and be discharged and be of no further force and effect):

 

(1)  in connection with the sale of the Capital Stock of eircom, (i) upon a sale pursuant to an
enforcement of security over the Capital Stock of such entity or (ii) upon
request of the security agent under the Senior Secured Credit Agreement
following an event of default which is continuing under such Senior Secured
Credit Agreement;

 

(2)  upon Legal Defeasance or Covenant Defeasance;

 

(3)  upon a falling-away of covenants pursuant to
Section 4.13;

 

(4)  upon the designation of eircom
as an Unrestricted Subsidiary in compliance with the terms of this Indenture;
or

 

(5)  upon payment in full of the aggregate principal amount
of all Senior Subordinated Notes then outstanding and all other financial
obligations under the Senior Subordinated eircom
Guarantee then due and owing.

 

Upon any occurrence giving rise to a release of the
Senior Subordinated eircom
Guarantee as specified above, the Senior Subordinated Trustee shall execute any
documents reasonably required in order to evidence or effect such release,
discharge and termination in respect of such Senior Subordinated eircom Guarantee.  None of Holdings, eircom Funding, the

 

117

 

Company or any Note Guarantor shall be required to
make a notation on the Senior Subordinated Notes to reflect any such release,
termination or discharge of the Senior Subordinated eircom Guarantee.

 

(b)  Any Additional Note Guarantee will be automatically and
unconditionally released (and thereupon shall terminate and be discharged and
be of no further force and effect) in connection with the sale or disposition
(including through merger or consolidation) of the Capital Stock, or all or
substantially all of the assets, of eircom
or the relevant Note Guarantor (as applicable) or a Restricted Subsidiary of
which eircom or such Additional
Note Guarantor is a Subsidiary, if:

 

(1) such sale is made in compliance
with this Indenture (including Section 4.10 hereof); or

 

(2) such sale is made
pursuant to an enforcement of security over such Capital Stock or assets, or
upon request of the security agent under the Senior Secured Credit Agreement
following an event of default, which is continuing, under such Senior Secured
Credit Agreement.

 

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 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 Subordinated Notes then outstanding and all other financial
obligations under such Additional Note Guarantee then due and owing.

 

Each Note Guarantee
(other than the Senior Subordinated Valentia 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 Subordinated Trustee
shall execute any documents reasonably required in order to evidence or effect
such release, discharge and termination in respect of such Note Guarantee. None
of Holdings,  eircom Funding, the Company nor any Note Guarantor shall be
required to make a notation on the Senior Subordinated Notes to reflect any
Note Guarantee or any release, termination or discharge of a Note Guarantee.

 

118

 

ARTICLE XI

SUBORDINATION OF NOTE GUARANTEES AND HOLDINGS GUARANTEE

 

SECTION 11.1  
Agreement To Subordinate.  Each of the Company, eircom and any Additional Note Guarantor
agrees, and the Trustee and each Holder by accepting or acquiring or becoming
entitled to claim under or pursuant to a Note agrees, that the Indebtedness
evidenced by, and all other obligations in respect of, each Note Guarantee is
subordinated in right of payment, to the extent and in the manner provided in
this Article XI, to the prior irrevocable payment in full in cash of all
Note Guarantor Senior Indebtedness and that the subordination is for the
benefit of and enforceable by the holders of such Note Guarantor Senior
Indebtedness.  Each Note Guarantee shall
in all respects rank pari passu
with all other Note Guarantor Senior Subordinated Indebtedness and only
Indebtedness of a Note Guarantor that is Note Guarantor Senior Indebtedness will
rank senior to the applicable Note Guarantee in accordance with the provisions
set forth herein.  All provisions of
this Article XI shall be subject to Section 11.12.

 

SECTION 11.2   Guarantee Not Due

 

Notwithstanding that a failure by eircom
Funding to make any payment on the Notes when due may constitute an Event of
Default under this Indenture and may enable the Trustee and the Holders of the
Notes to accelerate the maturity of the Notes, prior to the repayment of all
obligations in respect of Note Guarantor Senior Indebtedness, the obligations
of each Note Guarantor under its Note Guarantee are not due (and no demand may
be made on any Note Guarantor) until the earliest of:

 

(a)                                  (i)
an order is made for the winding-up, dissolution, examination, or administration
of such Note Guarantor; or (ii) a liquidator, trustee in bankruptcy,
judicial custodian, compulsory manager, receiver, administrative receiver,
examiner, administrator or similar officer is appointed to the Note Guarantor;

 

(b)                                 each
of the following shall have occurred:

 

(i)                                     a
default in payment of any amounts due under this Indenture or the Notes (but
only if, in the case of any amount not constituting principal or interest, such
amounts exceed €500,000) has occurred;

 

(ii)                                  a
Holder of Notes or the Trustee has notified the Designated Senior Agents in
writing of such default;

 

(iii)                               a
period of not less than 179 days has passed from the date of receipt by
the Designated Senior Agents of that notice; and

 

(iv)                              at
the end of such 179-day period, the default is continuing and has not been
waived;

 

119

 

(c)                                  any
Indebtedness outstanding under the Senior Secured Credit Agreement has been
declared prematurely to be due and payable or payable on demand (and demand has
been made) by reason of the occurrence of an event of default, as defined in
the Senior Secured Credit Agreement; or

 

(d)                                 enforcement
action has been taken by or on behalf of the lenders under the security
documents granted pursuant to, or securing Indebtedness outstanding under, the
Senior Secured Credit Agreement pursuant to which any assets of the Company or
any Restricted Subsidiary thereof (including Capital Stock of eircom) are disposed of or sold.

 

So long as any amounts
are outstanding under the Senior Secured Credit Agreement (including in
relation to any Hedging Obligations thereunder) or in respect of Hedging
Obligations which are secured ratably with the Senior Secured Credit Agreement,
in each case to the extent such amounts constitute Note Guarantor Senior
Indebtedness, prior to the occurrence of any of the foregoing events described
in clauses (a) through (d), above, the Note Guarantor shall not pay the
principal of, premium (if any) or interest on or other payment obligations in
respect of the applicable Note Guarantee or make any deposit pursuant to
Article VIII hereof (if such deposit would not be permitted by the Senior
Secured Credit Agreement) or repurchase or redeem or otherwise retire for value
the applicable Senior Subordinated Guarantee (collectively, “pay the
Guarantee”).  After the occurrence of
any of the foregoing events described in clauses (a) through (d), above, the
Note Guarantor may pay the Guarantee.

 

Until the obligations of
any Note Guarantor under the applicable Note Guarantee are due pursuant to the
occurrence of the events described above, the Senior Subordinated Trustee may
not make a demand under or bring any enforcement action on such Note Guarantee,
including but not limited to the commencement or support of insolvency
proceedings with respect to the relevant Note Guarantor, until such time.

 

SECTION 11.3  
Liquidation, Dissolution,
Bankruptcy

 

Upon any payment or
distribution (including by exercise of any right of receipt, set-off,
combination of accounts or other discharge) to creditors of any Note Guarantor,
in a liquidation, dissolution, winding-up, bankruptcy, administration,
reorganization, examination, receivership, administrative receivership or
similar proceeding relating to such Note Guarantor or its property, or in an
assignment for the benefit of creditors of such Note Guarantor or in any
marshalling of such Note Guarantor’s assets:

 

(1) holders of all Note
Guarantor Senior Indebtedness of such Note Guarantor, including without
limitation holders of Bank Indebtedness and Hedging Obligations of such Note
Guarantor, will be entitled to receive irrevocable payment in full in cash of
all obligations due (and that become due thereafter) in respect of all Note
Guarantor Senior Indebtedness (including interest accruing after the
commencement of any liquidation, dissolution, winding-up, bankruptcy,
administration, reorganization, receivership, administrative receivership or similar
proceeding) before the Senior Subordinated Trustee or Holders of Senior
Subordinated Notes will be entitled to receive any payment with respect to the
relevant Note Guarantee (except that Holders may receive and retain payments
made from any defeasance trust referred to in the

 

120

 

section entitled “—Defeasance” if such trust was
established prior to the proceedings described above and not in breach of the
Senior Secured Credit Agreement or the terms of any other Note Guarantor Senior
Indebtedness); and

 

(2) until all Note
Guarantor Senior Indebtedness of such Note Guarantor has been irrevocably paid
in full in cash, any payment or distribution to which the Senior Subordinated
Trustee or holders of Senior Subordinated Notes would be entitled but for the
subordination provisions of this Article XI shall be made first to the
lenders under the Senior Secured Credit Agreement (including in relation to any
Hedging Obligations thereunder) and to holders of Hedging Obligations which are
secured ratably with the Senior Secured Credit Agreement if any Indebtedness is
then outstanding thereunder and then to holders of such other Note Guarantor
Senior Indebtedness as their respective interests may appear.

 

SECTION 11.4  
When Distributions Must Be Paid
Over.  In the event that the
Senior Subordinated Trustee or any Holder of Senior Subordinated Notes receives
or recovers any payment or distribution on or with respect to a Note Guarantee
(other than payments made from any defeasance trust referred to in the
section entitled “—Defeasance” if such trust was established prior to the
proceedings described above and not in breach of the Senior Secured Credit
Agreement or the terms of any other Note Guarantor Senior Indebtedness) at a
time when such payment is prohibited by the provisions of this Article XI,
such payment will be held by the Senior Subordinated Trustee or such Holder, in
trust for the benefit of, and will be paid forthwith over and delivered, upon
written request, first to the lenders under the Senior Secured Credit Agreement
(including in relation to any Hedging Obligations thereunder) and to holders of
Hedging Obligations which are secured ratably with the Senior Secured Credit
Agreement and second to the holders of other Note Guarantor Senior Indebtedness
as their interests may appear for application to the payment of all obligations
with respect to such Indebtedness remaining unpaid to the extent necessary to
pay such obligations in full in cash in accordance with their terms, after
giving effect to any concurrent payment or distribution to or for such lenders
or other holders. In the event that any such payment is received by the Senior
Subordinated Trustee or such a Holder, the Senior Subordinated Trustee or such
Holder shall, if it has knowledge that such payment was received at a time when
it was so prohibited, give notice to the agent for the lenders under the Senior
Secured Credit Agreement (if any Indebtedness is then outstanding under the
Senior Secured Credit Agreement) and the Senior Trustee (if any Indebtedness is
then outstanding under the Senior Indenture) and to all other Designated Senior
Agents.

 

SECTION 11.5  
Subrogation. 
After all Note Guarantor Senior Indebtedness is paid in full and until the
Notes are paid in full, Holders of Notes shall be subrogated to the rights of
holders of Note Guarantor Senior Indebtedness to receive distributions
applicable to Note Guarantor Senior Indebtedness.  A distribution made under this Article XI to holders of Note
Guarantor Senior Indebtedness which otherwise would have been made to Holder of
Notes is not, as between the Company and the Holders, a payment by eircom Funding of Note Guarantor Senior
Indebtedness.

 

SECTION 11.6  
Liquidation, Dissolution, Bankruptcy
in respect of Holdings

 

Upon any payment or
distribution (including by exercise of any right of receipt, set-off,
combination of accounts or other discharge) to creditors of Holdings, in a
liquidation,

 

121

 

dissolution, winding-up, bankruptcy, administration,
reorganization, examination, receivership, administrative receivership or
similar proceeding relating to Holdings or its property, or in an assignment
for the benefit of creditors of Holdings or in any marshalling of Holdings’
assets:

 

(1) holders of all
Indebtedness of Holdings, other than any such Indebtedness that expressly
provides by its terms that it will be pari
passu in right of payment with the Subordinated Holdings Guarantee
(all Indebtedness of Holdings other than for which such express provision is
made, “Holdings Senior Indebtedness”)
will be entitled to receive irrevocable payment in full in cash of all
obligations due (and that become due thereafter) in respect of all Holdings
Senior Indebtedness (including interest accruing after the commencement of any
liquidation, dissolution, winding-up, bankruptcy, administration,
reorganization, receivership, administrative receivership or similar
proceeding) before the Senior Subordinated Trustee or Holders of Senior
Subordinated Notes will be entitled to receive any payment with respect to the
Subordinated Holdings Guarantee (except that Holders may receive and retain
payments made from any defeasance trust referred to in the section entitled
“—Defeasance” if such trust was established prior to the proceedings described
above and not in breach of the Senior Secured Credit Agreement or the terms of
any Holdings Senior Indebtedness); and

 

(2) until all Holdings
Senior Indebtedness of Holdings has been irrevocably paid in full in cash, any
payment or distribution to which the Senior Subordinated Trustee or holders of
Senior Subordinated Notes would be entitled but for the subordination
provisions of this Article XI shall be made first to the holders of
Holdings Senior Indebtedness as their respective interests may appear.

 

SECTION 11.7  
When Distributions Must Be Paid
Over in respect of Holdings 
In the event that the Senior Subordinated Trustee or any Holder of
Senior Subordinated Notes receives or recovers any payment or distribution from
Holdings on or with respect to the Subordinated Holdings Guarantee (other than
payments made from any defeasance trust referred to in the
section entitled “—Defeasance”) at a time when such payment is prohibited
by the provisions of this Article XI, such payment will be held by the
Senior Subordinated Trustee or such Holder, in trust for the benefit of, and
will be paid forthwith over and delivered, upon written request to the holders
of Holdings Senior Indebtedness as their interests may appear for application
to the payment of all obligations with respect to such Indebtedness remaining
unpaid to the extent necessary to pay such obligations in full in cash in
accordance with their terms, after giving effect to any concurrent payment or
distribution to or for such lenders or other holders.

 

SECTION 11.8  
Subrogation in respect of
Subordinated Holdings Guarantee.  After all Holdings Senior Indebtedness is paid in full and until
the Notes are paid in full, Holders of Notes shall be subrogated to the rights
of holders of Holdings Senior Indebtedness to receive distributions applicable
to Holdings Senior Indebtedness.  A
distribution made under this Article XI to holders of Holdings Senior
Indebtedness which otherwise would have been made to Holders of Notes is not,
as between eircom Funding and the
Holders, a payment by eircom
Funding of Holdings Senior Indebtedness.

 

SECTION 11.9  
Acceleration of Payment of
Securities.  If payment of the
Notes is accelerated because of an Event of Default, the Note Guarantors and
the Trustee shall promptly notify the Designated Senior Agents of the
acceleration; provided, however,
that the Note

 

122

 

Guarantors and the Trustee
shall be obligated to notify such Designated Senior Agents only if such
Designated Senior Agents have delivered or caused to be delivered to the Note
Guarantors and the Trustee an address for service of such a notice (and the
Note Guarantors and the Trustee shall only be obligated to deliver the notice
to the address so specified).

 

SECTION 11.10  
Relative Rights.  This Article XI defines the relative rights of Holders of
Notes and holders of Note Guarantor Senior Indebtedness and Holdings Senior
Indebtedness.  Nothing in this Indenture
(save as set out in Section 10.3 hereof) shall:

 

(1)                                  impair,
as between any Note Guarantor or Holdings and Holders of Notes, the obligation
of any such Note Guarantor and Holdings which is absolute and unconditional,
subject to the terms hereof, to guarantee the payment of principal of,
interest, and Additional Amounts, if any, on the Notes in accordance with their
terms; or

 

(2)                                  prevent
the Trustee or any Holder from exercising its available remedies upon a Default
or Event of Default against eircom
Funding in respect of the Notes.

 

SECTION 11.11  
Subordination May Not Be
Impaired by eircom
Funding, Note Guarantors or Holdings. 
No right of any holder of Note Guarantor Senior Indebtedness or Holdings
Senior Indebtedness to enforce the subordination of the Indebtedness evidenced
by the Note Guarantees and the Subordinated Holdings Guarantee shall be
impaired by any act or failure to act by eircom
Funding, any Note Guarantor or Holdings or by the failure of any of them to
comply with this Indenture.

 

SECTION 11.12  
Rights of Trustee and Paying Agent.  The Trustee or Paying Agent may continue to
make payments on the Notes and shall not be charged with knowledge of the
existence of facts that would prohibit the making of any such payments unless,
not less than two Business Days prior to the date of such payment, a
Responsible Officer of the Trustee receives notice in writing satisfactory to
it that payments may not be made under Article X and this Article XI.  Any Note Guarantor, Holdings, the Registrar
or co-registrar, the Paying Agent, a Designated Senior Agent or a
Representative or a holder of Holdings Senior Indebtedness may give the notice.

 

The Trustee in its individual or any other capacity may hold Note
Guarantor Senior Indebtedness and Holdings Senior Indebtedness with the same
rights it would have if it were not Trustee. 
The Registrar and co-registrar and the Paying Agent may do the same with
like rights.  The Trustee shall be
entitled to all the rights set forth in this Article XI with respect to
any Note Guarantor Senior Indebtedness and Holdings Senior Indebtedness which
may at any time be held by it, to the same extent as any other holder of Note
Guarantor Senior Indebtedness and Holdings Senior Indebtedness; and nothing in
Article VII shall deprive the Trustee of any of its rights as such
holder.  Nothing in this Article XI
shall apply to claims of, or payments to, the Trustee under or pursuant to
Section 7.7.

 

SECTION 11.13  
Articles X and XI Not To
Prevent Events of Default or Limit Right To Accelerate.  The failure to make a payment in respect of
the Notes and any Note Guarantee or the Subordinated Holdings Guarantee by
reason of any provision in Article X and this Article XI shall not be
construed as preventing the occurrence of a Default or Event of Default.  Nothing in

 

123

 

Article X hereof or this
Article XI shall have any effect on the right of the Holders of Notes or
the Trustee to accelerate the maturity of the Notes.

 

SECTION 11.14  
Trust Moneys Not Subordinated.  Notwithstanding anything contained herein to
the contrary, payments from money held in trust under Article VIII by the
Trustee for the payment of principal of and interest on the Notes, any Note
Guarantee and the Subordinated Holdings Guarantee shall not be subordinated to
the prior payment of any Note Guarantor Senior Indebtedness and Holdings Senior
Indebtedness or subject to the restrictions set forth in Article X hereof
and this Article XI, and none of the Holders shall be obligated to pay
over any such amount to any holder of Note Guarantor Senior Indebtedness or
Holdings Senior Indebtedness, or any other creditor of any Note Guarantor or
Holdings; provided that such
trust was not established in breach of the Senior Secured Credit Agreement.

 

SECTION 11.15  
Trustee Entitled To Rely.  Upon any payment or distribution pursuant to
this Article XI, the Trustee and the Holders shall be entitled to rely (i)
upon any order or decree of a court of competent jurisdiction in which any
proceedings of the nature referred to in Section 11.3 or Section 11.6
are pending, (ii) upon a certificate of the liquidating trustee or agent or
other Person making such payment or distribution to the Trustee or to the Holders
or (iii) upon the Designated Senior Agents and representatives for the holders
of Holdings Senior Indebtedness for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the holders of
Holdings Senior Indebtedness and other Indebtedness of the Note Guarantors and
of Holdings, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto, to Article X
hereof or to this Article XI.  In
the event that the Trustee determines, in good faith, that evidence is required
with respect to the right of any Person as a holder of Note Guarantor Senior
Indebtedness or Holdings Senior Indebtedness to participate in any payment or
distribution pursuant to Article X or this Article XI, the Trustee
may request such Person to furnish evidence to the reasonable satisfaction of
the Trustee as to the amount of Note Guarantor Senior Indebtedness or Holdings
Senior Indebtedness held by such Person, the extent to which such Person is
entitled to participate in such payment or distribution and other facts
pertinent to the rights of such Person under Article X or this
Article XI, and, if such evidence is not furnished, the Trustee may defer
any payment to such Person pending judicial determination as to the right of
such Person to receive such payment. 
The provisions of Sections 7.1 and 7.2 shall be applicable to all
actions or omissions of actions by the Trustee pursuant to Article X
hereof and this Article XI.

 

SECTION 11.16  
Trustee To Effectuate
Subordination.  Each Holder by
accepting a Note authorizes and directs the Trustee on its behalf to take such
action as may be necessary or appropriate to acknowledge or effectuate the
subordination between the Holder and the holders of Note Guarantor Senior
Indebtedness and Holdings Senior Indebtedness as provided in Article X and
this Article XI.

 

SECTION 11.17  
Trustee Not Fiduciary for
Holders of Note Guarantor Senior Indebtedness or Holdings Senior
Indebtedness.  The Trustee shall not
be deemed to owe any fiduciary duty to the holders of Note Guarantor Senior
Indebtedness or Holdings Senior Indebtedness and shall not be liable to any
such holders if, acting in good faith, it shall mistakenly pay over or
distribute to Holders or any Note Guarantor or Holdings or any other

 

124

 

Person, money or assets to
which any holders of Note Guarantor Senior Indebtedness or Holdings Senior
Indebtedness shall be entitled by virtue of this Article XI or otherwise.

 

SECTION 11.18  
Reliance by Holders of Note
Guarantor Senior Indebtedness or Holdings Senior Indebtedness on
Subordination Provisions.  Each
Holder by accepting a Note acknowledges and agrees that the provisions of this
Article XI and of Sections 10.5(a)(1) and 10.5(b)(2) are, and are intended
to be, an inducement and a consideration to each holder of any Note Guarantor
Senior Indebtedness or Holdings Senior Indebtedness, whether such Note
Guarantor Senior Indebtedness or Holdings Senior Indebtedness was created or
acquired before or after the issuance of the Notes, to acquire and continue to
hold, or to continue to hold, such Note Guarantor Senior Indebtedness or
Holdings Senior Indebtedness and such holder of Note Guarantor Senior
Indebtedness or Holdings Senior Indebtedness shall be deemed conclusively to
have relied on such provisions in acquiring and continuing to hold, or in
continuing to hold, such Note Guarantor Senior Indebtedness or Holdings Senior
Indebtedness.

 

SECTION 11.19  
Trustee Knowledge  

 

The Trustee shall not be
deemed to have knowledge of the making of a prohibited payment under this
Article, except to the extent it is actually known by the Trustee.

 

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.  Each Note Guarantor and
Holdings, in addition to performing its obligations under its Note Guarantee or
the Subordinated Holdings Guarantee, as the case may be, 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:

 

if to eircom Funding, the Company, any Note
Guarantor or Holdings:

 

Attention:  Chief Financial Officer

Valentia Telecommunications

114 St Stephens Green West,

Dublin 2, Ireland

 

125

 

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:

 

Attention:
Corporate Trust Administration

The Bank of New York

101 Barclay Street, Floor
21W

New
York, NY 10286

Facsimile:
+1 212 815 5802

 

if to
the Principal Paying Agent, the Luxembourg Paying Agent or the Irish Paying
Agent:

 

Attention:  Corporate Trust Office

The
Bank of New York

One
Canada Square

London
E14 5AL

United
Kingdom

Facsimile:  +44 207 964 7298

 

Each of eircom Funding, the Company, any Note
Guarantor and Holdings 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 eircom Funding, the Company, any Note
Guarantor and Holdings and the Trustee 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 Subordinated Notes will be validly given if
mailed to them at their respective addresses in the register of the Holder of
such Senior Subordinated Notes, if any, maintained by the Registrar. In
addition, so long as any of the Senior Subordinated 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 Subordinated
Notes listed on the Luxembourg Stock Exchange will be published in a leading newspaper
having general circulation in Luxembourg (which is expected to be the Luxemburger Wort) and notices with respect
to the Senior Subordinated 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 Subordinated Trustee such publication is
not

 

126

 

practicable, in an English
language newspaper having general circulation in Europe. In addition, for so
long as any Senior Subordinated Notes are represented by Global Notes, all
notices to holders of the Senior Subordinated 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 Subordinated 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.  eircom Funding, 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 or eircom 
Funding to the Trustee or an Agent to take any action under this
Indenture, the Company or eircom
Funding, as the case may be, 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 Section 12.5) stating that, in the opinion of such counsel, all such
conditions precedent and covenants have been satisfied or complied with.

 

127

 

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 or eircom
Funding 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 or eircom Funding,
as the case may be,  stating that the
information with respect to such factual matters is in the possession of the
Company or eircom Funding, as the
case may be, 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.

 

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.

 

128

 

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 eircom Funding, the Company, any Note
Guarantor and Holdings 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 eircom Funding, the Company, any Note
Guarantor and Holdings, 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 eircom Funding, the Company, any Note
Guarantor and Holdings 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 eircom Funding, the Company, any Note
Guarantor and Holdings has irrevocably authorized and directed its Authorized
Agent to accept such service.  Each of eircom Funding, the Company, any Note
Guarantor and Holdings further agrees that service of process upon its
Authorized Agent and written notice of said service to eircom Funding, the Company, any Note
Guarantor and Holdings, 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 eircom
Funding, the Company, any Note Guarantor and Holdings, 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 eircom Funding, the Company, any Note
Guarantor and Holdings 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 eircom Funding, the Company, any Note
Guarantor and Holdings 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 eircom Funding, the Company, any Note
Guarantor and Holdings 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 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 eircom Funding or the Company.  Such instrument or instruments (and the
action embodied therein and

 

129

 

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, eircom
Funding, 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 eircom Funding, the Company, Holdings or
any Note Guarantor as such, shall have any liability for any obligations of or eircom Funding, the Company, Holdings or
any Note Guarantor under the Senior Subordinated Notes, this Indenture, the
Subordinated Holdings Guarantee 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 Subordinated Note waives and releases all
such liability, which waiver and release are part of the consideration for
issuance of the Senior Subordinated Notes.

 

SECTION 12.12  
Currency Indemnity.  In the case of (i) the Senior Subordinated
Euro Notes, the euro and (ii) the Senior Subordinated Dollar Notes, the US
Dollar, is the sole currency of account and payment for all sums payable by eircom Funding, Holdings or any Note
Guarantor under or in connection with the Senior Subordinated Euro Notes and
the Senior Subordinated 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 Subordinated Euro Notes) or the US Dollar (in the case the Senior
Subordinated 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 eircom Funding,
Holdings or any Note Guarantor or otherwise by any Holder of a Senior
Subordinated Euro Note or a Senior Subordinated Dollar Note, as the case may
be, or by the Senior Subordinated Trustee, in respect of any sum expressed to
be due to it from eircom Funding,
Holdings or any Note Guarantor will only constitute a discharge to eircom Funding, Holdings 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).

 

130

 

If that euro amount is
less than the euro amount expressed to be due to the recipient or the Senior
Subordinated Trustee under any Senior Subordinated 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 Subordinated Trustee under any Senior Subordinated
Dollar Note, eircom Funding,
Holdings and any Note Guarantor will indemnify them against any loss sustained
by such recipient as a result. In any event, eircom
Funding, Holdings and any 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 Subordinated Note or the Senior Subordinated
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 eircom Funding’s, Holdings’ and any Note
Guarantor’s 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 Subordinated Note or the Senior Subordinated 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 Subordinated Note or to the
Senior Subordinated 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 eircom
Funding, Holdings 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.

 

131

 

SECTION 12.19  
Prescription.  Claims against eircom
Funding, Holdings 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.

 

132

 

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, as of the date first written above.

 

	
   

  	
  EIRCOM FUNDING

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Given under
  the Common Seal of eircom

  Funding:-

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

133

 

	
   

  	
  VALENTIA
  TELECOMMUNICATIONS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Given under
  the Common Seal of Valentia

  Telecommunications:-

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

134

 

	
   

  	
  eircom LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Given under
  the Common Seal of eircom

  Limited:-

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

135

 

	
   

  	
  VALENTIA
  HOLDINGS LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

136

 

	
   

  	
  THE BANK OF
  NEW YORK, as Trustee,

  Registrar, Transfer Agent and Paying Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

137

 

	
   

  	
  The BANK OF
  NEW YORK

  (LUXEMBOURG) S.A., as Paying Agent

  and Transfer Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

138

 

	
   

  	
  THE BANK OF
  NEW YORK, LONDON,

  as Principal Paying Agent and Transfer

  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

139

 

	
   

  	
  AIB/BNY FUND
  MANAGEMENT

  (IRELAND) LIMITED, as Paying and

  Transfer Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

140

 

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 EIRCOM FUNDING 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 EIRCOM FUNDING OR ANY
AFFILIATE OF EIRCOM FUNDING 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 EIRCOM
FUNDING, (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

 

A-1

 

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 EIRCOM FUNDING 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 EIRCOM
FUNDING 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

 

EIRCOM FUNDING

 

8.25% Senior Subordinated Note due 2013

 

[Common
Code No.:
             ](1)

 

[ISIN
No.:
             ](1)

 

[CUSIP
No.:
             ](1)

 

No.        

 

EIRCOM
FUNDING, an unlimited public company incorporated under the laws of Ireland and
having its registered office at 114 St Stephen’s Green West, Dublin 2, Ireland
(“eircom Funding,” 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, eircom Funding has caused this Note to be
signed manually or by facsimile by its duly authorized officer.

 

 

	
   

  	
  EIRCOM FUNDING

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  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]

 

EIRCOM FUNDING

 

8.25% Senior Subordinated Note due 2013

 

1.              Interest.  EIRCOM
FUNDING, an unlimited public company incorporated under the laws of Ireland and
having its registered office at 114 St Stephen’s Green West, Dublin 2, Ireland
(“eircom Funding”), 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 8.25% 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.

 

eircom
Funding 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, eircom Funding and the Initial Purchasers on behalf of Holders
of the Initial Notes, the Company and eircom
Funding have agreed to use their 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 eircom
Funding’s 8.25% Senior Subordinated 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.  eircom
Funding 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 payment

 

A-5

 

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 eircom Funding, the Company, Holdings or
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 the United
Kingdom 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 Subordinated Notes, any Note Guarantee
or the Subordinated Holdings 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 Subordinated 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 Subordinated Note or the
receipt of payments in respect thereof;

 

A-6

 

(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
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
Subordinated 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 Subordinated 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, any Note Guarantee or the
Subordinated Holdings 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 Subordinated Note to, or otherwise accepting payment from,
another paying agent in a member state of the European Union; or

 

A-7

 

(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.

 

4.              Method
of Payment.  eircom Funding shall pay interest on this
Note to the bearer hereof.  The Holder
must surrender this Note to a Paying Agent to collect principal payments.  eircom
Funding 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, eircom Funding will provide notice thereof as set forth in
the Indenture.  eircom Funding may change any Registrar
without notice to the Holders.  eircom Funding or any of its Subsidiaries
may, subject to certain exceptions, act in any such capacity.

 

6.              Indenture.  eircom
Funding issued the Notes under an indenture, dated as of August 7, 2003
(the “Indenture”), among eircom
Funding, the Company, eircom,
Holdings, 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 eircom
Funding designated as its euro-denominated 8.25% Senior Subordinated Notes due
2013 or its dollar-denominated 8.25% Senior Subordinated 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 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 eircom Funding.  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
€285,000,000 (in the case of Euro Notes) and $250,000,000 (in the case of
Dollar Notes).  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.

 

A-8

 

7.              Guarantees.  Each of Valentia Telecommunications, eircom and Holdings 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 eircom
Funding 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, eircom Funding may from time to time
designate Additional Note Guarantors to provide Additional Note Guarantees in
favor of the Senior Subordinated Notes. 
The guarantee given by eircom
and any Additional Note Guarantor is subject to release in the circumstances
described in the Indenture.

 

8.              Optional
Redemption.  The Notes will be
redeemable, at eircom Funding’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 eircom
Funding 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

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  104.125

  	
  %

  
	
  2009

  	
   

  	
  102.750

  	
  %

  
	
  2010

  	
   

  	
  101.375

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.00

  	
  %

  

 

In the event that eircom Funding effects an optional
redemption of the Notes, eircom
Funding will inform the Luxembourg Stock Exchange and 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, eircom
Funding 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
aggregate amount (the “Redemption Amount”) not exceeding the aggregate net cash
proceeds of one or more Equity Offerings at a redemption price of 108.25% of
the principal amount thereof (if a Euro Note) or 108.25% of the principal
amount thereof (if a Dollar Note), plus in each case accrued and unpaid
interest, if any, and Additional Amounts, if any (each, a “Redemption Price”),
to the date fixed by eircom
Funding 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

 

A-9

 

redemption or notice may,
at eircom Funding’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, eircom
Funding may redeem all or, from time to time, a part of the Senior Subordinated
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
Subordinated 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 eircom
Funding’s discretion, be subject to the satisfaction of one or more conditions
precedent.

 

9.              Special
Tax Redemption.  eircom Funding may redeem any series of
Senior Subordinated 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 Subordinated 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 eircom Funding 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”), eircom
Funding, with respect to the Senior Subordinated Notes, any Note Guarantor, with
respect to any Note Guarantee, or Holdings, with respect to the Subordinated
Holdings Guarantee, as the case may be, is, or on the next interest payment
date in respect of the relevant series of Senior Subordinated 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 eircom Funding, the Company, Holdings or eircom, the Change in Tax Law must become
effective on or after July 30, 2003. In the case of any Additional Note
Guarantor, or a successor of any Person specified in the previous sentence, the
Change in Tax Law must become effective after the date that such entity first
makes payment on the Senior Subordinated 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 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 Subordinated Notes pursuant to the foregoing, eircom Funding will deliver to the Senior
Subordinated Trustee (a) an Officer’s Certificate stating that eircom Funding 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.

 

A-10

 

10.        Selection
and Notice of Redemption.

 

If less than all
of any series of Senior Subordinated Notes is to be redeemed at any time, the
Senior Subordinated Trustee will select Senior Subordinated Notes for
redemption in compliance with the requirements of the principal securities
exchange, if any, on which that series of Senior Subordinated Notes is listed,
and/or in compliance with the requirements of Euroclear, Clearstream or DTC, as
applicable, or if that series of Senior Subordinated Notes is not so listed or
such exchange prescribes no method of selection and the Senior Subordinated
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 Subordinated 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 Subordinated Euro Notes)
or $1,000 (in the case of Senior Subordinated Dollar Notes) in aggregate
principal amount or less shall be redeemed in part.

 

If and for so long
as the Senior Subordinated Notes are listed on the Luxembourg Stock Exchange
and the rules of such exchange so require, eircom
Funding 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
Subordinated 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 Subordinated 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 Subordinated
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 Senior Subordinated 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 eircom Funding 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

 

A-11

 

repay the funds to eircom
Funding 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. 
eircom Funding, Holdings
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, 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 eircom Funding, the Company, its
Subsidiaries or their respective Affiliates as if it were not the Trustee or an
Agent.

 

A-12

 

20.        No
Recourse Against Others.  No
director, officer, employee, incorporator, member or stockholder of eircom Funding, the Company, Holdings or
any Note Guarantor, as such, shall have any liability for any obligations of eircom Funding, the Company, Holdings or
any Note Guarantor under the Notes, this Indenture, the Subordinated Holdings
Guarantee 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.  eircom Funding 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 EIRCOM FUNDING 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 EIRCOM FUNDING OR ANY
AFFILIATE OF EIRCOM FUNDING 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 EIRCOM
FUNDING, (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 EIRCOM
FUNDING AND THE TRUSTEE SHALL HAVE THE RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSE (D) PRIOR TO THE END

 

B-1

 

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 EIRCOM
FUNDING 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

 

EIRCOM FUNDING

 

8.25% Senior Subordinated Note due 2013

 

[Common
Code No.:
            ](1)

 

[ISIN
No.:
            ](1)

 

[CUSIP
No.:            ](1)

 

No.                                                   [€][$]                     

 

EIRCOM
FUNDING, an unlimited public company incorporated under the laws of Ireland and
having its registered office at 114 St Stephen’s Green West, Dublin 2,
Ireland  (“eircom Funding,” 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, eircom Funding has caused this Note to be
signed manually or by facsimile by its duly authorized officer.

 

	
   

  	
  EIRCOM FUNDING

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  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]

 

 

EIRCOM FUNDING

 

8.25% Senior Subordinated Note due 2013

 

 

1.              Interest.   EIRCOM
FUNDING, an unlimited public company incorporated under the laws of Ireland and
having its registered office at 114 St Stephen’s Green West, Dublin 2, Ireland
(the “eircom Funding”), 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 8.25% 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 • .  Interest will be computed on the basis of a
360-day year of twelve 30-day months.

 

eircom
Funding 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, eircom Funding and the Initial Purchasers on behalf of
Holders of the Initial Notes, the Company and eircom
Funding have agreed to use their 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 eircom
Funding’s 8.25% Senior Subordinated 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 the Registration Rights Agreement.  Additional interest which may be payable pursuant to the
Registration Rights Agreement shall be payable in the same manner as set forth
herein with respect to the stated interest. 
The provisions of the 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.  eircom Funding 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 payment date.  Absent

 

B-5

 

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 eircom Funding, the Company, Holdings or
any Note Guarantor or a successor of any of the foregoing (each a “Payor”) on
the Senior Subordinated 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 the United
Kingdom 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 Subordinated Notes, any Note Guarantee
or the Subordinated Holdings 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 Subordinated 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 Subordinated Note or the
receipt of payments in respect thereof;

 

B-6

 

(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
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
Subordinated 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 Subordinated 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 Subordinated Notes, any Note
Guarantee or the Subordinated Holdings 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 Subordinated Note to, or otherwise accepting payment from,
another paying agent in a member state of the European Union; or

 

B-7

 

(8) any combination of
the above.

 

Such Additional
Amounts will also not be payable where, had the beneficial owner of the Senior
Subordinated 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.  eircom Funding shall pay interest on the
Notes (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.  eircom
Funding 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 or eircom Funding 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 eircom Funding
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, eircom Funding 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 eircom
Funding 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, Additional Amounts, and 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, eircom Funding will provide notice thereof as set forth in
the Indenture.  eircom Funding may change any Registrar
without notice to the Holders.  eircom Funding or any of its Subsidiaries
may, subject to certain exceptions, act in any such capacity.

 

6.              Indenture.  eircom
Funding issued the Notes under an indenture, dated as of August 7, 2003
(the “Indenture”), among eircom
Funding, the Company, eircom,
Holdings, 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 eircom
Funding designated as its euro-denominated 8.25% Senior Subordinated Notes due
2013 or its dollar-denominated 8.25% Senior Subordinated Notes due 2013 (the
“Notes”).  The Notes include the Initial
Notes and Additional Notes, if any, and the Exchange Notes (each as defined

 

B-8

 

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 eircom
Funding.  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 €285,000,000 (in the case of Euro Notes) and
$250,000,000 (in the case of Dollar Notes). 
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.              Ranking
and Guarantees.  Each of Valentia
Telecommunications, eircom and
Holdings 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 eircom Funding 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, eircom Funding may from time to time designate Additional
Note Guarantors to provide Additional Note Guarantees in favor of the Senior
Subordinated Notes.  The guarantee given
by eircom and any Additional Note
Guarantees are subject to release in the circumstances described in the
Indenture.

 

8.              Optional
Redemption.  The Notes will be
redeemable, at eircom Funding’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 eircom
Funding 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

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  104.125

  	
  %

  
	
  2009

  	
   

  	
  102.750

  	
  %

  
	
  2010

  	
   

  	
  101.375

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.00

  	
  %

  

 

In the event that eircom Funding effects an optional
redemption of the Notes, eircom
Funding will inform the Luxembourg Stock Exchange and Irish Stock Exchange of
such optional redemption and confirm the aggregate principal amount of the
Notes that will remain outstanding following such redemption.

 

B-9

 

In addition, at any time
prior to August 15, 2006, eircom
Funding 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 108.25% of
the principal amount thereof (if a Euro Note) or 108.25% of the principal
amount thereof (if a Dollar Note), plus in each case accrued and unpaid
interest, if any, and Additional Amounts, if any (each, a “Redemption Price”),
to the date fixed by eircom
Funding 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 eircom
Funding’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, eircom
Funding may redeem all or, from time to time, a part of the Senior Subordinated
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
Subordinated 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 eircom
Funding’s discretion, be subject to the satisfaction of one or more conditions
precedent.

 

9.              Special
Tax Redemption.  eircom Funding may redeem any series of
Senior Subordinated 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 Subordinated 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 eircom
Funding 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”), eircom
Funding, with respect to the Senior Subordinated Notes, any Note Guarantor,
with respect to any Note Guarantee, or Holdings, with respect to the
Subordinated Holdings Guarantee, as the case may be, is, or on the next
interest payment date in respect of the relevant series of Senior Subordinated
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
eircom Funding,

 

B-10

 

the Company, Holdings or eircom, the Change in Tax Law must become
effective on or after July 30, 2003. In the case of any Additional Note
Guarantor, or a successor of any Person specified in the previous sentence, the
Change in Tax Law must become effective after the date that such entity first
makes payment on the Senior Subordinated 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 Subordinated Notes pursuant to the foregoing, eircom Funding will deliver to the Senior
Subordinated Trustee (a) an Officer’s Certificate stating that eircom Funding 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 Subordinated Notes is to be redeemed at any time, the
Senior Subordinated Trustee will select Senior Subordinated Notes for
redemption in compliance with the requirements of the principal securities exchange,
if any, on which that series of Senior Subordinated Notes is listed, and/or in
compliance with the requirements of Euroclear, Clearstream or DTC, as
applicable, or if that series of Senior Subordinated Notes is not so listed or
such exchange prescribes no method of selection and the Senior Subordinated
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 Subordinated 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 Subordinated Euro Notes)
or $1,000 (in the case of Senior Subordinated Dollar Notes) in aggregate
principal amount or less shall be redeemed in part.

 

If and for so long
as the Senior Subordinated Notes are listed on the Luxembourg Stock Exchange
and the rules of such exchange so require, eircom
Funding 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 the case of
certificated Senior Subordinated Notes, 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
Subordinated 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
Subordinated Note is to be redeemed in part only, the notice of redemption that
relates to that Senior Subordinated Note shall state the portion of the
principal amount thereof to be redeemed. In the case of a certificated Senior
Subordinated Note, a new Senior

 

B-11

 

Subordinated Note in principal amount equal to the
unredeemed portion of the original Senior Subordinated Note will be issued in
the name of the Holder thereof upon cancellation of the original Senior
Subordinated Note. In the case of a global bearer Senior Subordinated Note, an
appropriate notation will be made on such Senior Subordinated Note to decrease
the principal amount thereof to an amount equal to the unredeemed portion
thereof. Senior Subordinated Notes called for redemption become due on the date
fixed for redemption. On and after the redemption date, interest ceases to
accrue on Senior Subordinated 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 eircom Funding 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 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) 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 eircom Funding 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. 
eircom Funding, Holdings
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

 

B-12

 

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 eircom Funding, 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 eircom Funding, the Company, Holdings or
any Note Guarantor, as such, shall have any liability for any obligations of eircom Funding, the Company, Holdings or
any Note Guarantor under the Notes, this Indenture, the Subordinated Holdings
Guarantee 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.  eircom Funding 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

 

B-13

 

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-14

 

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 eircom
Funding.

 

 

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-15

 

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-16

 

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.

 

EIRCOM FUNDING

 

8.25% Senior
Subordinated Note due 2013

 

[Common
Code No.:
                ](1)

 

[ISIN
No.:
                ](1)

 

[CUSIP
No.:                ](1)

 

 

No.        

 

EIRCOM
FUNDING, an unlimited public company incorporated under the laws of Ireland and
having its registered office at 114 St Stephen’s Green West, Dublin 2, Ireland
(“eircom Funding,” 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 • .

 

(1)          Insert as applicable.

 

C-1

 

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.

 

C-2

 

 

IN WITNESS WHEREOF, eircom Funding has caused this Note to be
signed manually or by facsimile by its duly authorized officer.

 

 

	
   

  	
  EIRCOM FUNDING

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  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]

 

EIRCOM FUNDING

 

8.25% Senior
Subordinated Note due 2013

 

1.  Interest.  EIRCOM
FUNDING, an unlimited public company incorporated under the laws of Ireland and
having its registered office at 114 St Stephen’s Green West, Dublin 2, Ireland
(“eircom Funding”), 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 8.25% 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.

 

eircom
Funding 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 eircom Funding, the Company, Holdings or
any Note Guarantor or a successor of any of the foregoing (each a “Payor”) on
the Senior Subordinated 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 the United
Kingdom 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 Subordinated Notes, any Note Guarantee
or the Subordinated Holdings 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 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 Holder of  this
Note or the Senior Subordinated 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 Subordinated 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
Subordinated 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

 

C-5

 

Additional
Amounts had the Senior Subordinated 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 Subordinated Notes, any Note
Guarantee or the Subordinated Holdings 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 Subordinated 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
Subordinated 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.  eircom Funding shall pay interest on this
Note to the bearer hereof.  The Holder
must surrender this Note to a Paying Agent to collect principal payments.  eircom
Funding 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, eircom Funding will provide notice thereof as set forth in
the Indenture.  eircom Funding may change any Registrar
without notice to the Holders.  eircom Funding or any of its Subsidiaries
may, subject to certain exceptions, act in any such capacity.

 

5.  Indenture.  eircom
Funding issued the Notes under an indenture, dated as of August 7, 2003
(the “Indenture”), among eircom
Funding, the Company, eircom,
Holdings, 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

 

C-6

 

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 eircom
Funding designated as its euro-denominated 8.25% Senior Subordinated Notes due
2013 or its dollar-denominated 8.25% Senior Subordinated 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 eircom
Funding.  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 €285,000,000 (in the case
of Euro Notes) and $250,000,000 (in the case of Dollar Notes).  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.  Each of Valentia Telecommunications, eircom and Holdings 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 eircom
Funding 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, eircom Funding may from time to time
designate Additional Note Guarantors to provide Additional Note Guarantees in
favor of the Senior Subordinated Notes. 
The guarantee given by eircom
and any Additional Note Guarantees are subject to release in the circumstances
described in the Indenture.

 

7.  Optional
Redemption.  The Notes will be
redeemable, at eircom Funding’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 eircom
Funding 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

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  104.125

  	
  %

  
	
  2009

  	
   

  	
  102.750

  	
  %

  
	
  2010

  	
   

  	
  101.375

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.00

  	
  %

  

 

C-7

 

In the event that eircom Funding effects an optional
redemption of the Notes, eircom
Funding will inform the Luxembourg Stock Exchange and 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, eircom
Funding 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 108.25% of
the principal amount thereof (if a Euro Note) or 108.25% of the principal
amount thereof (if a Dollar Note), plus in each case accrued and unpaid
interest, if any, and Additional Amounts, if any (each, a “Redemption Price”),
to the date fixed by eircom
Funding 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 eircom
Funding’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, eircom
Funding may redeem all or, from time to time, a part of the Senior Subordinated
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
Subordinated 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 eircom
Funding’s discretion, be subject to the satisfaction of one or more conditions
precedent.

 

8.  Special
Tax Redemption.  eircom Funding may redeem any series of
Senior Subordinated 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 Subordinated 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 eircom
Funding 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,

 

C-8

 

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”), eircom Funding, with respect to the Senior Subordinated
Notes, any Note Guarantor, with respect to any Note Guarantee, or Holdings,
with respect to the Subordinated Holdings Guarantee, as the case may be, is, or
on the next interest payment date in respect of the relevant series of Senior
Subordinated 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 eircom Funding, the
Company, Holdings or eircom, the
Change in Tax Law must become effective on or after July 30, 2003. In the
case of any Additional Note Guarantor, or a successor of any Person specified
in the previous sentence, the Change in Tax Law must become effective after the
date that such entity first makes payment on the Senior Subordinated 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 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 Subordinated Notes pursuant to
the foregoing, eircom Funding
will deliver to the Senior Subordinated Trustee (a) an Officer’s Certificate
stating that eircom Funding 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 Subordinated Notes is to be redeemed at any time, the
Senior Subordinated Trustee will select Senior Subordinated Notes for
redemption in compliance with the requirements of the principal securities
exchange, if any, on which that series of Senior Subordinated Notes is listed,
and/or in compliance with the requirements of Euroclear, Clearstream or DTC, as
applicable, or if that series of Senior Subordinated Notes is not so listed or
such exchange prescribes no method of selection and the Senior Subordinated
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 Subordinated 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 Subordinated Euro Notes)
or $1,000 (in the case of Senior Subordinated Dollar Notes) in aggregate
principal amount or less shall be redeemed in part.

 

If and for so long
as the Senior Subordinated Notes are listed on the Luxembourg Stock Exchange
and the rules of such exchange so require, eircom
Funding 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
Subordinated 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.

 

C-9

 

If any Global Note
is to be redeemed in part only, the notice of redemption that relates to that
Senior Subordinated 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 Subordinated 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 eircom Funding 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 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 eircom Funding 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. 
eircom Funding, Holdings
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.

 

C-10

 

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 Notes and may otherwise deal with eircom Funding, 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 eircom Funding, the Company, Holdings or
any Note Guarantor, as such, shall have any liability for any obligations of eircom Funding, the Company, Holdings or
any Note Guarantor under the Notes, this Indenture, the Subordinated Holdings
Guarantee 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.  eircom Funding 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.

 

C-11

 

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-12

 

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-13

 

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-14

 

EXHIBIT D

TO THE INDENTURE

 

[FORM OF FACE OF EXCHANGE DEFINITIVE NOTE]

 

 

THIS NOTE IS A
DEFINITIVE NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO.

 

 

EIRCOM FUNDING

 

8.25% Senior
Subordinated Note due 2013

 

[Common
Code No.:                ](1)

 

[ISIN
No.:
                ](1)

 

[CUSIP
No.:                ](1)

 

	
  No.

  	
   

  	
   

  	
   

  	
  [€][$]               

  

 

EIRCOM
FUNDING, an unlimited public company incorporated under the laws of Ireland and
having its registered office at 114 St Stephen’s Green West, Dublin 2, Ireland
(“eircom Funding,” 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, eircom Funding has caused this Note to be
signed manually or by facsimile by its duly authorized officer.

 

	
   

  	
  EIRCOM FUNDING

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  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]

 

EIRCOM FUNDING

 

 8.25% Senior Subordinated Note due 2013

 

1.  Interest.  EIRCOM
FUNDING, an unlimited public company incorporated under the laws of Ireland and
having its registered office at 114 St Stephen’s Green West, Dublin 2, Ireland
(“eircom Funding”), 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 8.25% 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 •
..  Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

 

eircom
Funding 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 eircom Funding, the Company, Holdings or
any Note Guarantor or a successor of any of the foregoing (each a “Payor”) on
the Senior Subordinated 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 the United
Kingdom 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 Subordinated Notes, any Note Guarantee
or the Subordinated Holdings 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 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 Holder of this Note or

 

D-3

 

the Senior Subordinated
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 Subordinated 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
Subordinated 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 Subordinated Note been presented during such
30 day period);

 

D-4

 

(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 Subordinated Notes, any Note
Guarantee or the Subordinated Holdings 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 Subordinated 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
Subordinated 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.  eircom Funding shall pay interest on the
Notes (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.  eircom
Funding 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 or eircom Funding 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 eircom Funding
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, eircom Funding 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 eircom
Funding 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.

 

D-5

 

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, eircom Funding will provide notice thereof as set forth in
the Indenture.  eircom Funding may change any Registrar
without notice to the Holders.  eircom Funding or any of its Subsidiaries
may, subject to certain exceptions, act in any such capacity.

 

5.  Indenture.  eircom
Funding issued the Notes under an indenture, dated as of August 7, 2003
(the “Indenture”), among eircom
Funding, the Company, eircom,
Holdings, 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 eircom Funding designated as its euro-denominated 8.25%
Senior Subordinated Notes due 2013 or its dollar-denominated 8.25% Senior
Subordinated 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 eircom Funding.  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 €285,000,000 (in the case of Euro Notes) and $250,000,000 (in the
case of Dollar Notes).  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.  Each of Valentia Telecommunications, eircom and Holdings 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 eircom
Funding 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, eircom Funding may from time to time
designate Additional Note Guarantors to provide Additional Note Guarantees in
favor of the Senior Subordinated Notes. 
The guarantee given by 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 eircom Funding’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

 

D-6

 

“Redemption Price”), to the date fixed by eircom Funding 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

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  104.125

  	
  %

  
	
  2009

  	
   

  	
  102.750

  	
  %

  
	
  2010

  	
   

  	
  101.375

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.00

  	
  %

  

 

In the event that eircom Funding effects an optional
redemption of the Notes, eircom
Funding will inform the Luxembourg Stock Exchange and 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, eircom
Funding 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 108.25% of
the principal amount thereof (if a Euro Note) or 108.25% of the principal
amount thereof (if a Dollar Note), plus in each case accrued and unpaid
interest, if any, and Additional Amounts, if any (each, a “Redemption Price”),
to the date fixed by eircom
Funding 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 eircom
Funding’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, eircom
Funding may redeem all or, from time to time, a part of the Senior Subordinated
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
Subordinated 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 eircom
Funding’s discretion, be subject to the satisfaction of one or more conditions
precedent.

 

D-7

 

8.  Special
Tax Redemption.  eircom Funding may redeem any series of
Senior Subordinated 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 Subordinated 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 eircom Funding
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”), eircom
Funding, with respect to the Senior Subordinated Notes, any Note Guarantor,
with respect to any Note Guarantee, or Holdings, with respect to the
Subordinated Holdings Guarantee, as the case may be, is, or on the next
interest payment date in respect of the relevant series of Senior Subordinated
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
eircom Funding, the Company, Holdings
or eircom, the Change in Tax Law
must become effective on or after July 30, 2003. In the case of any
Additional Note Guarantor, or a successor of any Person specified in the
previous sentence, the Change in Tax Law must become effective after the date
that such entity first makes payment on the Senior Subordinated 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 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 Subordinated Notes pursuant to the
foregoing, eircom Funding will
deliver to the Senior Subordinated Trustee (a) an Officer’s Certificate stating
that eircom Funding 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
Subordinated Notes is to be redeemed at any time, the Senior Subordinated
Trustee will select Senior Subordinated Notes for redemption in compliance with
the requirements of the principal securities exchange, if any, on which that
series of Senior Subordinated Notes is listed, and/or in compliance with the
requirements of Euroclear, Clearstream or DTC, as applicable, or if that series
of Senior Subordinated Notes is not so listed or such exchange prescribes no
method of selection and the Senior Subordinated 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 Subordinated 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

 

D-8

 

Senior Subordinated Euro Notes) or $1,000 (in the case
of Senior Subordinated Dollar Notes) in aggregate principal amount or less
shall be redeemed in part.

 

If and for so long
as the Senior Subordinated Notes are listed on the Luxembourg Stock Exchange
and the rules of such exchange so require, eircom
Funding 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 Subordinated 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
Subordinated Note is to be redeemed in part only, the notice of redemption that
relates to that Senior Subordinated Note shall state the portion of the
principal amount thereof to be redeemed. In the case of a certificated Senior
Subordinated Note, a new Senior Subordinated Note in principal amount equal to
the unredeemed portion of the original Senior Subordinated Note will be issued
in the name of the Holder thereof upon cancellation of the original Senior
Subordinated Note. In the case of a global bearer Senior Subordinated Note, an
appropriate notation will be made on such Senior Subordinated Note to decrease
the principal amount thereof to an amount equal to the unredeemed portion
thereof. Senior Subordinated Notes called for redemption become due on the date
fixed for redemption. On and after the redemption date, interest ceases to
accrue on Senior Subordinated 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 eircom Funding 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 (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 eircom Funding 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. 
eircom Funding and the
Note Guarantors may be discharged from their respective obligations under the
Indenture and the

 

D-9

 

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 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 Notes and may otherwise deal with eircom Funding, 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 eircom Funding, the Company, Holdings or
any Note Guarantor, as such, shall have any liability for any obligations of eircom Funding, the Company, Holdings or
any Note Guarantor under the Notes, this Indenture, the Subordinated Holdings
Guarantee or any Note Guarantee herein or for any claim based on, in respect
of, or by reason of, such obligations or their

 

D-10

 

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.  eircom Funding 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.

 

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 eircom
Funding.  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:                              8.25%
Senior Subordinated Notes due 2013 (the “Notes”) of eircom Funding

 

 

Reference is hereby made
to the Indenture dated as of August 7, 2003 (the “Indenture”) among eircom Funding, Valentia
Telecommunications, eircom
Limited, Valentia Holdings 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 eircom Funding, Valentia
Telecommunications, eircom,
Valentia Holdings Limited, any 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:                              8.25%
Senior Subordinated Notes due 2013 (the “Notes”) of eircom Funding

 

 

Reference is hereby made
to the Indenture dated as of August 7, 2003 (the “Indenture”) among eircom Funding, Valentia
Telecommunications, Valentia Holdings Limited, 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 eircom Funding, Valentia
Telecommunications, Valentia Holdings Limited, eircom,
any 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”), eircom Funding, Valentia
Telecommunications (the “Company”), eircom
Limited (“eircom”), Valentia
Holdings Limited (“Holdings”), 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, Holdings, 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 €285,000,000 million of 8.25% Senior Subordinated Notes due
2013 and $250,000,000 million of 8.25% Senior Subordinated Notes due 2013 of eircom Funding as well as Additional Notes
and Exchange Notes;

 

WHEREAS, Section 10.1 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, eircom Funding, the Company, eircom, Holdings, any other Additional
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:

 

G-1

 

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, Articles X and XI and Section 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 eircom Funding’s
other payment obligations under 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 eircom Funding as provided in the
Indenture for notices to the Company.

 

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.

 

G-2

 

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.

 

G-3

 

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:

  
	 
	
   

  	
   

  
	 
	
   

  	
   

  
	 
	
   

  	
  EIRCOM FUNDING

  
	 
	
   

  	
   

  
	 
	
   

  	
   

  
	 
	
   

  	
  Given under
  the Common Seal of Valentia

  Telecommunications:-

  
	 
	
   

  	
   

  
	 
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	 
	
   

  	
   

  	 

	 
	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	 
	
   

  	
   

  	
   

  	 

	 
	
   

  	
   

  	
   

  	 

	 
	
   

  	
  VALENTIA TELECOMMUNICATIONS

  	 

	 
	
   

  	
   

  	 

	 
	
   

  	
   

  	 

	 
	
   

  	
  Given under
  the Common Seal of Valentia

  Telecommunications:-

  	 

							

 

G-4

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EIRCOM LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Given under
  the Common Seal of Valentia

  Telecommunications:-

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

G-5

 

	
   

  	
  VALENTIA
  HOLDINGS LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Other
  Additional Note Guarantors]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Other
  Parties to the Indenture]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

G-6Exhibit
4.5

 

VALENTIA
TELECOMMUNICATIONS

 

As Issuer

 

 

THE BANK OF
NEW YORK

 

As Book-entry
Depositary

 

 

THE BANK OF
NEW YORK

 

As Senior Note
Custodian

 

and

 

THE OWNERS OF
BOOK-ENTRY INTERESTS

 

in

 

7.25% Senior
Notes Due 2013

of Valentia Telecommunications

 

 

EURO SENIOR
DEPOSIT AND CUSTODY AGREEMENT

 

Dated as of August 7, 2003

 

 

 

EURO SENIOR
DEPOSIT AND CUSTODY AGREEMENT

 

THIS EURO SENIOR DEPOSIT AND CUSTODY
AGREEMENT (the “Agreement”) is made as of this 7th day of August,
2003 by and among Valentia Telecommunications, an unlimited public company
incorporated under the laws of the Republic of Ireland, which is a party hereto
for the limited purposes referred to herein, The Bank of New York, as the
“Book-entry Depositary” (as defined below), The Bank of New York, as the
“Senior Note Custodian” (as defined below), and owners from time to time of
Book-entry Interests.

 

ARTICLE
ONE

 

DEFINITIONS AND
OTHER GENERAL PROVISIONS

 

SECTION 1.01  Definitions.

 

The following terms, as used herein, have the
following meanings:

 

“Additional Amounts” shall have the meaning
ascribed to it in the Indenture.

 

“Affiliate” shall have the meaning ascribed
to it in the Indenture.

 

“Applicable Procedures” means, with respect
to any transfer or transactions involving a Global Note or beneficial interests
therein, the rules and procedures for any Depositary for such Senior Note, to
the extent applicable to such transfer or transaction and as in effect at the
time of such transfer or transaction.

 

“Board Resolution” shall have the meaning
ascribed to it in the Indenture.

 

“Book-entry Depositary” means the party named
as such in this Agreement or its nominee or the custodian for either until a
successor shall have become such pursuant to Section 3.08 hereof, and
thereafter “Book-entry Depositary” shall mean its successor or its nominee or
the custodian for either.

 

“Book-entry Interests” means beneficial
interests in any Certificated Depositary Interests issued pursuant to this
Agreement, which are eligible for trading through the book-entry system of a
Depositary.  References to Book-entry
Interests in a Global Note should be understood to mean Book-entry Interests in
the Certificated Depositary Interest issued with respect to such Global Note.

 

“Business Day” shall have the meaning ascribed
to it in the Indenture.

 

“Certificated Depositary Interest” means a
certificate (in substantially the form of Annex A hereto) representing an
interest in a Global Note held by the Book-entry Depositary that (i) shall
at all times prior to an issuance of Definitive Notes, if any, in respect of
such Global Note represent the right to receive 100% of the principal, premium
(if any), interest, and Additional Amounts (if any) in respect of the
underlying Global Note and the right to require the Book-entry Depositary to
procure the issuance of one or more Definitive Notes representing up

 

1

 

to 100% of the principal amount represented
by such Global Note upon the satisfaction of the conditions set forth in the
Indenture for such issuance and (ii) is issued by the Book-entry
Depositary to a Depositary or its nominee.

 

“Clearstream” means Clearstream Banking, société
anonyme.

 

“Common Depositary” means The Bank of New
York or its nominee or their respective successors, as common depositary for
Euroclear and Clearstream, 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.

 

“Company Order” shall have the meaning
ascribed to it in the Indenture.

 

“Corporate Trust Office” means the offices of
the Book-entry Depositary in London, England, at which any particular time its
corporate trust business shall be principally administered, which at the date
hereof is located at One Canada Square, London E14 5AL. 
The Corporate Trust Office will at all times be outside the Republic of
Ireland.

 

“Definitive Notes” means Senior Notes in
definitive registered form substantially in the form set forth in the
Indenture.

 

“Depositaries” means, Euroclear and
Clearstream or, as appropriate, the Common Depositary or their respective
nominees, and, as appropriate, any successor of any of these as the owner of
the Certificated Depositary Interests and indicated as such in the records of
the Book-entry Depositary.

 

“Euro Regulation S Global Notes” shall have
the meaning ascribed to them in the Indenture.

 

“Euro Rule 144A Global Notes” shall have the
meaning ascribed to them in the Indenture.

 

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

 

“Event of Default” shall have the meaning
ascribed to it in the Indenture.

 

“Exchange Offer” shall have the meaning
ascribed to it in the Indenture.

 

“Global Notes” means one or more Euro
Regulation S Global Notes, Euro Rule 144A Global Notes or Unrestricted Global
Notes.

 

“Holder” shall have the meaning ascribed to
it in the Indenture.

 

“Indenture” means the indenture dated August
7, 2003 among the Issuer, the Subsidiary Guarantor, The Bank of New York, as
trustee, registrar and paying agent, The Bank of New York (Luxembourg) SA, as
Luxembourg paying agent and transfer agent, The Bank of

 

2

 

New York, London, as principal paying agent
and transfer agent, AIB/BNY Fund Management (Ireland) Limited, as Irish paying
agent and transfer agent, relating to €550,000,000 aggregate principal amount
of 7.25% Senior Notes due 2013 of the Issuer as originally executed or as it
may from time to time be supplemented or amended by one or more supplemental
indentures thereto entered into pursuant to the applicable provisions thereof,
including for all purposes the provisions of the TIA that are deemed to be a
part of and govern such instrument.

 

“Issue Date” shall have the meaning ascribed
to it in the Indenture.

 

“Issuer” means Valentia Telecommunications,
an unlimited public company incorporated under the laws of the Republic of
Ireland, until a successor replaces it pursuant to the applicable provisions of
the Indenture and, thereafter, means such successor.

 

“Officer’s Certificate” shall have the
meaning ascribed to it in the Indenture.

 

“Opinion of Counsel” means a written opinion
from legal counsel, who may be counsel to the Issuer and who shall otherwise be
reasonably satisfactory to the Book-entry Depositary.

 

“Participants” shall have the meaning
ascribed to them in Section 2.02.

 

“Person” shall have the meaning ascribed to
it in the Indenture.

 

“Private Placement Legend” shall have the
meaning ascribed to it in the Indenture.

 

“Redemption Date” shall have the meaning ascribed
to it in the Indenture.

 

“Responsible Officer” shall have the meaning
ascribed to it in the Indenture.

 

“Restricted Period” shall have the meaning
ascribed to it in the Indenture.

 

“Securities Act” means the United States
Securities Act of 1933, as amended.

 

“Senior Note Custodian” means The Bank of New
York at its Corporate Trust Offices,
in its capacity as custodian of the Global Notes, and its successors.

 

“Senior Notes” shall mean the
euro-denominated 7.25 % Senior Notes due 2013 of Valentia issued pursuant to
the Indenture.

 

“Subsidiary Guarantor” means eircom Limited, a limited liability
company incorporated under the laws of the Republic of Ireland and any
successor thereto under the Indenture.

 

“TIA” shall have the meaning ascribed to it
in the Indenture.

 

“Trustee” means the Person acting as trustee
under the Indenture until a successor trustee shall have become such pursuant
to the applicable provisions of the Indenture, and thereafter “Trustee” shall
mean such successor trustee.

 

3

 

“Unrestricted Global Notes” means one or more
Global Notes that do not and are not required to bear the Private Placement
Legend.

 

SECTION
1.02  Rules of
Construction.

 

Unless the context otherwise requires:  (1) a term has the meaning assigned to
it; (2) any capitalized term not otherwise defined herein shall have the
meaning ascribed to it in the Indenture; (3)  “or” is not exclusive;
(4)  “including” means including without limitation; (5) words in the
singular include the plural and words in the plural include the singular; and
(6) the words “herein,” “hereof” and “hereunder” and other words of
similar import refer to this Agreement as a whole and not to any particular
Article, Section or other subdivision.

 

ARTICLE
TWO

 

BOOK- ENTRY
INTERESTS

 

SECTION
2.01  Deposit of the Global Note.

 

The Senior Note Custodian hereby (in the case
of Global Notes issued on the Issue Date) accepts or (in the case of any Global
Notes that are issued after the Issue Date) agrees to accept custody of the
Global Notes for and on behalf of the Book-entry Depositary and shall act as
custodian thereof for and on behalf of the Book-entry Depositary in accordance
with the terms of this Agreement.  The
Senior Note Custodian shall hold such Global Notes at its Corporate Trust
Office in London, England or at such other place or places outside the Republic
of Ireland as the Book-entry Depositary may determine with the prior written
consent of the Issuer, and the Book-entry Depositary shall issue a Certificated
Depositary Interest with respect to each Global Note in accordance with the
Applicable Procedures.  For the
avoidance of doubt, the Book-entry Depositary shall not act out of or through
any branch in the Republic of Ireland in connection with any of the functions
contemplated by this Agreement.  The
Certificated Depositary Interests shall be issuable only to the Depositaries.

 

SECTION
2.02  Book-entry System.

 

(a)   Upon
acceptance by the Depositaries of the Certificated Depositary Interests representing
interests in the Global Notes for entry into their book-entry settlement system
in accordance with the Applicable Procedures, Book-entry Interests will be
issued by the Depositaries and traded through the book-entry systems of the
Depositaries, and ownership of such Book-entry Interests shall be shown in, and
the transfer of such ownership shall be effected only through, records
maintained by (i) the Depositaries or (ii) institutions that have
accounts with the Depositaries (“Participants”).  Book-entry Interests shall be transferable only as units
representing authorized denominations of the Senior Notes and in the manner
contemplated by the Indenture.

 

(b)   Except
as provided in Section 2.05, no owner of Book-entry Interests shall be entitled
to receive a Definitive Note on account of such ownership or in exchange for
beneficial interests in Global Notes and such owner’s interest therein shall be
shown only in accordance with the Applicable Procedures.

 

4

 

SECTION
2.03  Procedures in the Event of
an Exchange Offer.

 

(a)   Upon
receipt by the Book-entry Depositary or the Senior Note Custodian as holder of
the Global Notes on behalf of the Book-entry Depositary of notice of either the
commencement of an Exchange Offer or the implementation of arrangements
permitting the resale by holders of Senior Notes pursuant to the registration
provisions of the Securities Act, the Book-entry Depositary or the Senior Note
Custodian will forward to the Depositaries materials relating to such Exchange
Offer or other arrangements with any additional instructions applicable to
owners of Book-entry Interests.

 

(b)   In
the case of an Exchange Offer, upon notice by the Depositaries of the principal
amount of Book-entry Interests in the Euro Regulation S Global Note and/or the
Euro Rule 144A Global Note (as applicable) tendered in response to the Exchange
Offer, the Book-entry Depositary or the Senior Note Custodian shall
(i) deliver to the Trustee that portion of each Global Note with respect
to which Book-entry Interests have been tendered and received in accordance
with the relevant Applicable Procedures in exchange therefor (to the extent
such portions of such Global Note are accepted pursuant to the Exchange Offer)
and shall receive from the Trustee a new Unrestricted Global Note in like
principal amount as the Book-entry Interests tendered in respect of such Global
Notes, which such new Unrestricted Global Note shall be substantially in the
form of the Global Note set out in Exhibit C of the Indenture, (ii) issue
to the applicable Depositaries a new Certificated Depositary Interest
representing an interest in the new Unrestricted Global Note, (iii) record
any changes in the principal amount of the Certificated Depositary Interests
representing interests in each of the Euro Regulation S Global Note, the Euro
Rule 144A Global Note and the Unrestricted Global Note and (iv) notify the
Depositaries of any such changes. 
Book-entry Interests in each Unrestricted Global Note may be assigned a
Common Code and ISIN number which number or numbers shall be different from
those assigned to Book-entry Interests in the Euro Rule 144A Global Notes or
the Euro Regulation S Global Notes.

 

(c)   In
the case of the implementation of arrangements permitting resale by holders of
Senior Notes pursuant to the registration provisions of the Securities Act, the
Book-entry Depositary and the Senior Note Custodian shall (i) cooperate with
the Trustee in the removal of the Private Placement Legend from the relevant
Senior Note where permitted by the Indenture or (ii) in the event that an
Unrestricted Global Note is issued in respect of the Senior Notes, cooperate
with the Trustee in making any required changes to the principal amounts of
Global Notes in accordance with Section 2.08 hereof to the extent that the
holders of Book-entry Interests related to the Euro Regulation S Global Note or
the Euro Rule 144A Global Note are permitted to transfer or exchange such
Book-entry Interests for Book-entry Interests in such Unrestricted Global Note
pursuant to the Indenture.

 

SECTION
2.04  Record of Transfer of the
Certificated Depositary Interests.

 

(a)   The
Issuer hereby appoints the Book-entry Depositary as its agent for the sole
purpose of maintaining at its Corporate Trust Office records in which it shall
(i) record the Depositaries as the initial owners of the Certificated
Depositary Interests, (ii) record the transfer of any Certificated
Depositary Interests and (iii) record the increases and decreases in the
principal amount represented by Certificated Depositary Interests.  The Certificated Depositary

 

5

 

Interests shall not be transferred (i) except as a whole and only to a
Depositary, (ii) unless such transfer is noted in the records of the Book-entry
Depositary and (iii) unless such transfer is confirmed by the applicable
Depositary and ownership of the Certificated Depositary Interests are
transferred to and registered in the name of a Depositary, authorized by the
transferor Depositary and approved by the Issuer.  The Book-entry Depositary shall not recognize any transfer or
exchange of ownership of the Certificated Depositary Interests that does not
comply with the provisions of this Section 2.04.  The Book-entry Depositary shall treat the Person in whose name a
Certificated Depositary Interest is recorded in its records as the owner
thereof for all purposes whatsoever and shall not be bound or affected by any
notice to the contrary, other than an order of a court having jurisdiction over
the Book-entry Depositary.

 

(b)   The
foregoing paragraph (a) of this Section 2.04 shall not (i) impose an
obligation on the Book-entry Depositary or the Senior Note Custodian to record
the interests in or transfers of Book-entry Interests held by Participants in a
Depositary or Persons that may hold Book-entry Interests through Participants
in a Depositary or (ii) restrict transfers of such Book-entry Interests
held by Participants in a Depositary or such Persons.

 

SECTION
2.05  Transfer of the Global Notes.

 

The Senior Note Custodian shall hold each
Global Note in custody for and on behalf of the  Book-entry Depositary. 
Neither the Senior Note Custodian nor the Book-entry Depositary shall
transfer or lend any Global Note or any interest therein except (i) as provided
by Section 2.7 of the Indenture or Section 2.03 of this Agreement, (ii) the
exchange or replacement of a Global Note pursuant to and in accordance with the
terms of Section 2.8 of the Indenture, (iii) delivery of any Global Note to the
Trustee for cancellation pursuant to and in accordance with the terms of
Section 2.12 of the Indenture and (iv) transfers of Global Notes as a
whole (A) by the Book-entry Depositary to a nominee or custodian of the Book-entry
Depositary or (B) by a nominee or custodian of the Book-entry Depositary to the
Book-entry Depositary or, in the case of each (A) and (B), to another successor
of the Book-entry Depositary or a nominee or custodian of such successor,
located outside the Republic of Ireland, who becomes such a successor in
accordance with the provisions of Sections 3.06 and 3.07 hereof and who is
acceptable to the Issuer. 
Notwithstanding the foregoing, the Senior Note Custodian and the Book-entry
Depositary shall not under any circumstances surrender or deliver any Global
Note to a Depositary.  If (a) a
Depositary notifies the Issuer at any time that it is unwilling or unable to
continue as depositary for Certificated 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 Issuer 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 the Issuer within
90 days, (c) a Depositary requests the issuance of Definitive Notes
following an Event of Default under the Indenture, (d) at any time if the
Issuer in its sole discretion determines and notifies the Trustee that it
elects to cause the issuance of Definitive Notes (in whole (but not in part))
or (e) an Event of Default occurs and is continuing and the Issuer is required
pursuant to the terms of the Indenture to exchange all or part of a Global Note
for one or more Definitive Notes, then the Book-entry Depositary shall promptly
notify the Senior Note Custodian and the Trustee and request the Trustee to
issue Definitive Notes in such names and denominations as the Holder shall
specify in accordance with Section 2.6 of the Indenture.  In such event the Book-entry Depositary will
promptly surrender, or cause the Senior Note Custodian to surrender, the Global

 

6

 

Notes held by it to the Trustee in connection
with such exchange and that such Global Notes will be cancelled upon issuance
of such Definitive Notes.   In no event
will Definitive Notes be issued in bearer form.

 

Delivery of Definitive Notes pursuant to this
Section 2.05 shall be made free of any fees of the Book-entry Depositary to a Depositary
or the beneficial owner thereof.

 

SECTION 2.06  Cancellation.

 

If any Global Note is surrendered, in whole
or in part, for payment or for redemption or purchase by the Issuer of Senior
Notes evidenced thereby or for exchange for Definitive Notes to any Person
other than the Trustee, then such Global Note shall, subject to the provisions
of this Article II, become void and be delivered to the Trustee for
cancellation, in whole or in part, in accordance with the terms of the
Indenture.

 

SECTION
2.07  Payments in Respect of the
Certificated Depositary Interests and Global Notes.

 

(a)   Whenever
the Book-entry Depositary shall receive from the Trustee (or other paying agent
appointed under the Indenture) any payment on any Global Note, the amount so received
shall be distributed promptly to the Depositary entitled thereto on the
corresponding payment date for such Global Note.  So long as Euroclear or Clearstream is the Depositary, such
payments shall be made in accordance with the Applicable Procedures.

 

(b)   The
Book-entry Depositary shall forward to the Issuer or its agents such
information from its records as the Issuer may reasonably request to enable the
Issuer or its agents or the Subsidiary Guarantor or its agents to file
necessary reports with governmental agencies or as required by the terms of the
Notes or the Indenture, and the Book-entry Depositary, the Issuer, the
Subsidiary Guarantor or their agents may (but shall not be required to) file
any such reports necessary to obtain benefits under any applicable tax treaties
for the Depositaries or beneficial owners of Book-entry Interests.

 

(c)   None
of the Issuer, the Subsidiary Guarantor, the Trustee, the Book-entry
Depositary, the Senior Note Custodian or any agent of the Issuer, the Subsidiary
Guarantor, the Trustee or the Book-entry Depositary shall have any
responsibility or liability for any aspect of the records relating to payments
made by a Depositary (or its direct or indirect Participants) on account of
Book-entry Interests or for maintaining, supervising or reviewing any records
relating to such Book-entry Interests.

 

(d)   Notwithstanding
any other provision of this Agreement, the Book-entry Depositary shall be
required to pay to any Depositary only amounts (including Additional Amounts)
received by the Book-entry Depositary under a Global Note in which such
Depositary holds an interest.

 

SECTION
2.08  Change in Principal Amount
of Global Notes.

 

(a)   Upon
transfer or exchange of a beneficial interest in one Global Note for a beneficial
interest in another Global Note as provided in and in accordance with the terms
of Section 2.7 of the Indenture or upon the issuance of Definitive Notes in
accordance with the

 

7

 

terms of Section 2.6 of the Indenture, the Book-entry Depositary shall
adjust accordingly the principal amounts of the Certificated Depositary
Interests and shall confirm such adjustments with the applicable
Depositary.  The Book-entry Depositary
shall present the Global Notes to the Trustee or its agent to reduce or
increase the principal amount thereof in accordance with the terms of Section
2.7 of the Indenture.

 

(b)   In
the event that the Issuer exercises any right of redemption in respect of any
Senior Notes constituting all or any part of a Global Note or purchases any
Senior Notes constituting all or any part of a Global Note pursuant to an offer
to purchase Senior Notes pursuant to the Indenture, the Book-entry Depositary
shall promptly cause the Senior Note Custodian to request the Trustee to adjust
its records and request the Trustee to endorse the applicable Schedule to such
Global Note, in each case to reflect the reduction in the principal amount of
such Global Note as a result of such redemption or purchase.  In addition, the Book-entry Depositary shall
cause the Senior Note Custodian to notify the applicable Depositary of the
principal amount redeemed or purchased and of a corresponding reduction of the
same principal amount of the applicable Certificated Depositary Interest.  The Book-entry Depositary shall pay all such
amounts received by it in connection with such redemption to such Depositary.

 

(c)   Whenever
the principal amount at maturity of a Global Note is changed by the Trustee,
the Book-entry Depositary shall cause the Senior Note Custodian to notify the
applicable Depositary in each case of the corresponding change in the principal
amount of the related Certificated Depositary Interest.

 

SECTION
2.09  Notices of Redemption and
Offers to Purchase Senior Notes.

 

(a) (i)                    Upon receipt
by the Book-entry Depositary as Holder of the Global Note of a redemption
notice in respect of the Senior Notes pursuant to the Indenture, the Book-entry
depositary will forward such notice of redemption to the applicable Depositary
with any additional instructions applicable to owners of Book-entry Interests.

 

(ii)                                  On
the Redemption Date, the Book-entry Depositary will cause the Senior Note
Custodian to surrender the applicable Global Note in accordance with the
instructions set forth in the notice of redemption.

 

(iii)                               Upon
receipt of any payment in respect of such redemption, the Book-entry Depositary
shall pay any amounts received to the applicable Depositary, indicate the
principal amount of the Global Note reduced by the Trustee in connection with
the notice of redemption and notify such Depositary of a corresponding
reduction in the principal amount of the applicable Certificated Depositary
Interest.

 

(b)  (i)     Upon
receipt by the Book-entry Depositary as Holder of the Global Note of an offer
to purchase the Senior Notes pursuant to the Indenture, the Book-entry
Depositary will forward such offer to purchase to the applicable Depositary
with any additional instructions applicable to owners of Book-entry Interests.

 

(ii)                                  Upon
notice by the applicable Depositary of the principal amount of Book-entry
Interests tendered for purchase in response to such offer to purchase, the
Book-entry Depositary will cause the Senior Note Custodian to surrender the
applicable

 

8

 

Global Note in
accordance with the instructions set forth in the offer to purchase, indicating
the portion of the principal amount of the Global Note that is being tendered
for purchase pursuant to the offer to purchase.

 

(iii)                               Upon
receipt of any payment resulting from the offer to purchase, the Book-entry
Depositary shall pay any amounts received to the applicable Depositary,
indicate the principal amount of the Global Note reduced by the Trustee in
connection with the offer to purchase and notify such Depositary of a
corresponding reduction in the principal amount of the applicable Certificated
Depositary Interest.

 

SECTION
2.10  Transfers and Transfer
Restrictions.

 

(a)   Transfers
and exchanges of Book-entry Interests of the kinds specified in Section 2.7 of
the Indenture shall be made only in accordance with such Section 2.7 and the
Applicable Procedures.

 

(b)   The
parties hereto acknowledge that pursuant to arrangements with the Depositaries,
during the Restricted Period, any trades in Book-entry Interests in a Euro
Regulation S Global Note shall only occur in or through accounts maintained at
Euroclear and Clearstream.

 

(c)   Each
owner of Book-entry Interests in the Euro Rule 144A Global Note understands
that such Book-entry Interests have not been registered under the Securities
Act and may not be offered, resold, pledged or otherwise transferred by such
owner except (a)(i) to a person who such owner reasonably believes is a
qualified institutional buyer acquiring for its own account or the account of a
qualified institutional buyer in a transaction meeting the requirements of Rule
144A, (ii) in an offshore transaction meeting the requirements of Rule 903
or Rule 904 of Regulation S, (iii) pursuant to an effective registration
statement under the Securities Act or (iv) pursuant to any other available
exemption from registration under the Securities Act, and (b) in accordance
with all applicable securities laws of the states of the United States and
other jurisdictions.  A Book-entry
Interest in a Euro Rule 144A Global Note may be transferred to a person who
takes delivery in the form of a Book-entry interest in a Euro Regulation S
Global Note, whether before or after the expiration of the Restricted Period,
only upon receipt by the Book-entry Depositary of a written certification from
the transferor (in the form provided in Exhibit E to the Indenture) that the
transfer is being made in accordance with Regulation S or Rule 144 of the
Securities Act.

 

(d)   Each owner of Book-entry Interests
in the Euro Regulation S Global Note understands that such Book-entry Interests
have not been registered under the Securities Act and may not be offered,
resold, pledged or otherwise transferred by such owner except (a)(i) to a
person who such owner reasonably believes is a qualified institutional buyer
acquiring for its own account or the account of a qualified institutional buyer
acquiring for its own account in a transaction meeting the requirements of Rule
144A, (ii) in an offshore transaction meeting the requirements of Rule 903 or
Rule 904 of Regulation S, (iii) pursuant to an effective registration statement
under the Securities Act or (iv) pursuant to any other available exemption from
registration under the Securities Act, and (b) in accordance with all
applicable securities laws of the states of the United States and other
jurisdictions; provided, however,
that prior to the

 

9

 

expiration of the Restricted Period, the beneficial owner of a
Book-entry Interest in a Euro Regulation S Global Note may not make any offer
or sale of a Book-entry Interest in a Euro Regulation S Global Note to a U.S.
person or for the account or benefit of a U.S. person within the meaning of
Rule 902 under the U.S. Securities Act, except
that a Book-entry Interest in a Euro Regulation S Global Note may be
transferred to a person who takes delivery in the form of a Book-entry Interest
in the Euro Rule 144A Global Note only upon receipt by the Book-entry
Depositary of written certification from the transferor (in the form provided
in Exhibit F to the Indenture) that the transfer is being made to a person whom
the transferor reasonably believes is purchasing for its own account or for an
account or accounts as to which it exercises sole investment discretion and
that such person and such account or accounts is a qualified institutional
buyer within the meaning of Rule 144A under the Securities Act, in a
transaction meeting the requirements of Rule 144A and in accordance with all
applicable securities laws of any state of the United States and any other
jurisdiction; and further provided, that until the expiration of the
Restricted Period, Book-entry Interests in a Euro Regulation S Global Note may
only be held through a Depositary.

 

SECTION 2.11  Record Date.

 

Whenever any payment is to be made in respect
of the Global Notes, whenever the Book-entry Depositary or the Senior Note
Custodian shall receive notice of any action in respect thereof to be taken by
the Depositaries or holders of Book-entry Interests (such notice to be given
only through the Depositaries), or whenever the Issuer otherwise deems it
appropriate in respect of any other matter, the Issuer shall fix a record date
for the determination of the aggregate principal amount of Global Notes
represented by Certificated Depositary Interests or of the holder who shall be
entitled to receive payment in respect of Certificated Depositary Interests or
to take any such action or to act in respect of any such matter, which record
date shall at all times be such record date, if any, set for the Global Notes
in accordance with the terms of the Indenture. 
Subject to the provisions of this Agreement, only the Depositaries in
whose names the Certificated Depositary Interests are recorded on the records
of the Book-entry Depositary at the close of business on such record date shall
be entitled to receive any such payment, to give instructions as to such action
or to act in respect of any such matter.

 

SECTION
2.12  Action in Respect of the
Certificated Depositary Interests or the Global Notes.

 

As soon as practicable, but not later than 2
days after receipt by the Book-entry Depositary or the Senior Note Custodian of
notice of any solicitation of consents or request for a waiver or other action
by the Depositaries or owners of Book-entry Interests or by the Book-entry
Depositary under this Agreement, the Book-entry Depositary shall mail to the
Depositaries a notice containing (a) such information as is contained in
the notice received, (b) a statement that the Depositary that held the
Certificated Depositary Interests as of the close of business on a specified
record date (established in accordance with Section 2.11 hereof) will be
entitled, subject to the provisions of or governing the Certificated Depositary
Interests or Global Notes, as the case may be, to instruct the Book-entry
Depositary as to the consent, waiver or other action, if any, pertaining to the
Certificated Depositary Interests or Global Notes, as the case may be, and
(c) a statement as to the manner in which such instructions may be
given.  Upon the written request of the
Depositaries received on or before a date established by the Issuer for such
purpose, the Book-entry Depositary shall, or if applicable, shall cause the
Senior Note Custodian

 

10

 

to, endeavor insofar as practicable and
permitted under the provisions governing the Certificated Depositary Interests
or Global Notes, as the case may be, to take such action regarding the
requested consent, waiver or other action in respect of such Certificated
Depositary Interest or Global Note, as the case may be, in accordance with any
instructions set forth in such request. 
The Book-entry Depositary and the Senior Note Custodian shall not
themselves exercise any discretion in the granting of consents or waivers or
the taking of any other action in respect of the Certificated Depositary
Interests, the Book-entry Interests or Global Notes.

 

SECTION
2.13  Changes Affecting the Global
Notes.

 

Upon any reclassification of the Global Notes
or upon any merger or consolidation or sale of substantially all the assets
affecting Valentia Telecommunications or to which Valentia Telecommunications
is a party, any securities that shall be received by the Book-entry Depositary
or the Senior Note Custodian in exchange for or in respect of a Global Note
shall be treated as a new Global Note or as part of the Global Note under this
Agreement and any corresponding Certificated Depositary Interest shall
thenceforth represent such Global Note, including such new securities so
received.

 

SECTION 2.14  Reports.

 

The Book-entry Depositary and the Senior Note
Custodian will as soon as practicable (and in no event later than 2 days from
receipt) send to the Depositaries a copy of any notices, reports and other
communications received relating to the Issuer, the Global Notes or the
Book-entry Interests.

 

SECTION
2.15  Additional Amounts.

 

At least 10 days prior to the first date on
which payment of principal, premium, if any, or interest on the Senior Notes is
to be made, and at least 10 days prior to any subsequent date on which payment
of principal, premium, if any, or interest on the Senior Notes is to be made if
there has been any change with respect to the matters set forth in the
Officer’s Certificate described in this Section 2.15, the Issuer will
furnish the Book-entry Depositary with an Officer’s Certificate specifying
whether such payment of principal, premium, if any, or interest on the Senior
Notes and under the guarantee of the Senior Notes shall be made without
withholding or deduction for, or on account of, any Taxes and the amount, if
any, required to be withheld on such payments and the amount, if any, of
Additional Amounts payable, net of amounts to which the Depositaries or owner
of Book-entry Interests is not entitled. 
The Book-entry Depositary shall have no responsibility for determining
whether a Depositary or any owner of a Book-entry Interest is entitled to the
payment of Additional Amounts, but shall be entitled to rely conclusively for
this purpose on the Officer’s Certificate or on certifications from any
Depositary.  The Issuer shall, prior to
the date on which the Book-entry Depositary is required to make such payment,
pay to the Book-entry Depositary amounts equal to any Additional Amounts
payable on such date by the Book-entry Depositary under this Agreement.  Notwithstanding anything to the contrary
provided above, the Book-entry Depositary shall pay or cause to be paid Additional
Amounts only out of funds that shall be received by it for such purpose.

 

11

 

ARTICLE
THREE

 

THE BOOK-ENTRY
DEPOSITARY AND THE SENIOR NOTE CUSTODIAN

 

SECTION
3.01  Certain Duties and
Responsibilities.

 

(a)   The
Book-entry Depositary and the Senior Note Custodian undertake to perform such
duties and only such duties as are specifically set forth in this
Agreement.  The Book-entry Depositary
may perform or execute any of its duties or powers hereunder either directly
or, with the reasonable approval of the Issuer, through its agents and shall
not be responsible for any willful misconduct or negligence of any agent
appointed with due care and approved hereunder.

 

(b)   The
Book-entry Depositary and the Senior Note Custodian shall not incur any
liability to any Depositary with respect to any Certificated Depositary
Interest or any owner of Book-entry Interests or any other Person hereunder or
in connection herewith if, by reason of any circumstances beyond the control of
the Book-entry Depositary or Senior Note Custodian, including acts of God, war
and government action, including any laws, ordinances, regulations or the like
which restrict or prohibit the Book-entry Depositary or Senior Note Custodian from
doing or performing any act or thing that the terms of this Agreement provide
shall be done or performed.

 

(c)   Neither
the Book-entry Depositary nor the Senior Note Custodian shall be liable for any
action or omission to act taken or omitted to be taken under this Agreement,
unless the same constitutes its own negligence, willful misconduct or bad
faith, and in no event shall either be liable to anyone for special, indirect
or consequential damages, or lost profits, arising in connection with this Agreement.  The Book-entry  Depositary and the Senior Note Custodian may conclusively
rely upon, and shall be protected in acting in reliance upon, any written
notice, request, direction, certificate, opinion or other document believed by
them in good faith to be genuine and to have been signed or presented by the
proper party or parties.

 

(d)   The
Book-entry Depositary and the Senior Note Custodian in such capacities assume
no obligation nor shall they be subject to any liability under this Agreement
to any Depositary or any owner of Book-entry Interests or any other Person
(including, without limitation, liability with respect to the validity or worth
of the Senior Notes), other than that they agree to use their good faith and
reasonable care in the performance of such duties as are specifically set forth
in this Agreement.

 

(e)   The
Book-entry Depositary and the Senior Note Custodian in such capacities  make no representation or warranty and shall
at no time have any responsibility for, or liability or obligation in respect
of, the legality, validity, binding effect, adequacy or enforceability of the
Notes, the performance and observance by the Issuer of its obligations under
the Senior Notes or the recoverability of any sum of interest and principal due
or to become due from the Issuer in respect of the Senior Notes.

 

12

 

(f)   The
Book-entry Depositary and the Senior Note Custodian shall at no time have any
responsibility for, or obligation or liability in respect of, the financial
condition, creditworthiness, affairs, status or nature of the Issuer.

 

(g)   The
Book-entry Depositary and the Senior Note Custodian in such capacities  shall not be under any obligation to appear
in, prosecute or defend any action, suit or other proceeding in respect of any
Senior Note or in respect of the Book-entry Interests, or take any other action
or omit to take any action under this Agreement, which in their reasonable
opinion may involve them in expense or liability, unless reasonable security or
indemnity against the cost, expenses and liabilities which may be incurred by
them in connection therewith is furnished.

 

(h)   The
Book-entry Depositary and the Senior Note Custodian shall not be liable for any
acts or omissions made by a successor depositary or successor Senior Note
custodian in connection with a matter arising wholly after the removal or
resignation of the Book-entry Depositary or Senior Note Custodian, provided
that the Book-entry Depositary or Senior Note Custodian, exercised its good
faith and reasonable care while it acted as Book-entry Depositary or Senior
Note Custodian, as the case may be.

 

(i)   The
Book-entry Depositary and the Senior Note Custodian may own and deal in any
class of securities of the Issuer and its affiliates and in interests in the
Book-entry Interests.  The Book-entry
Depositary and the Senior Note Custodian may enter into other dealings with the
Issuer or any of its Affiliates of any nature whatsoever.

 

(j)   Each
of the Book-entry Depositary and the Senior Note Custodian may act upon any
tender, statement, request, document, certificate, agreement or other
instrument whatsoever not only as to its due execution and validity and
effectiveness of its provisions, but also as to the truth and accuracy of any
information contained therein, which they in good faith believe to be genuine
or to have been signed or presented by the proper person or persons.

 

(k)   Each
of the Book-entry Depositary and the Senior Note Custodian may conclusively
rely on and shall be protected in acting upon written or oral instructions from
any authorized officer of the Issuer.

 

(l)   Each
of the Book-entry Depositary and the Senior Note Custodian 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.

 

SECTION
3.02  Not Responsible for Issuance
of Senior Notes.

 

The Book-entry Depositary and the Senior Note
Custodian do not make representations as to the validity or sufficiency of any
offering materials.  The Book-entry
Depositary and the Senior Note Custodian shall not be accountable for the use
or application by the Issuer of the proceeds with respect to the Senior Notes.

 

13

 

SECTION
3.03  Money Held in Trust.

 

Money held by the Book-entry Depositary or
the Senior Note Custodian in trust hereunder shall be segregated from other
funds held by the Book-entry Depositary or the Senior Note Custodian as
required by applicable laws or regulations. 
The Book-entry Depositary and the Senior Note Custodian shall not be
under any obligation to invest or pay interest on any money received by it
hereunder, except as otherwise agreed with the applicable Depositary (or in the
absence of such an agreement, with the Issuer).

 

SECTION
3.04  Compensation and
Reimbursement.

 

(a)   The
Issuer agrees:

 

(i)                                     to
pay to the Book-entry Depositary and the Senior Note Custodian from time to
time such compensation as agreed between the Issuer and them in writing for all
services tendered by the Book-entry Depositary or the Senior Note Custodian, as
the case may be, hereunder;

 

(ii)                                  to
reimburse the Book-entry Depositary and the Senior Note Custodian and any
predecessor Book-entry Depositary or predecessor Senior Note Custodian upon
their request for all reasonable expenses, disbursements and advances incurred
or made by the Book-entry Depositary or by the Senior Note Custodian in
accordance with any provision of this Agreement (including the reasonable
compensation and the expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as may be attributable to its
willful misconduct, negligence or bad faith; and

 

(iii)                               to
indemnify the Book-entry Depositary and its agents and the Senior Note
Custodian and any predecessor Book-entry Depositary or predecessor Senior Note
Custodian for, and to hold them harmless against, any loss, liability or
expense incurred without negligence, willful misconduct, or bad faith on their
part, arising out of or in connection with the administration of this Agreement
and its duties hereunder, including the reasonable costs and expenses of
defending themselves against or investigating any claim of liability made
against them in connection with the exercise or performance of any of their
powers or duties hereunder.

 

(b)   The
obligations of the Issuer under this Section 3.04 to compensate and indemnify
the Book-entry Depositary and the Senior Note Custodian and any predecessor
Book-entry Depositary or predecessor Senior Note Custodian and to pay or
reimburse the Book-entry Depositary and the Senior Note Custodian and any
predecessor Book-entry Depositary or predecessor Senior Note Custodian for
expenses, disbursements and advances shall survive the payment of the Global
Notes, resignation or removal of the Book-entry Depositary or the Senior Note
Custodian and satisfaction, discharge or other termination of this Agreement.

 

(c)   The
Book-entry Depositary and the Senior Note Custodian shall not be responsible
for (1) taxes and other governmental charges or (2) such registration
fees as may from time to time be in effect for the registration of transfers of
interests in the Certificated Depositary Interests.

 

14

 

SECTION
3.05  Global Depositaries
Required; Eligibility.

 

At all times when there is a Book-entry
Depositary and a Senior Note Custodian hereunder, each of them shall be a
corporation organized and doing business under the laws of a jurisdiction other
than the Republic of Ireland having, together with its parent, a combined
capital and surplus of at least $50,000,000, subject to supervision or
examination by the relevant governmental or regulatory authority, and willing
to act on reasonable terms.  Such
corporation will have its principal place of business in London, England if
there be such a corporation in such location willing to act upon reasonable and
customary terms and conditions.  If such
corporation, or its parent, publishes reports of condition at least annually,
pursuant to law or to the requirements of the aforesaid supervising or
examining authority, then for the purposes of this Section 3.05, the combined
capital and surplus of such corporation 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
Book-entry Depositary or the Senior Note Custodian shall cease to be eligible
in accordance with the provisions of this Section 3.05, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

 

SECTION
3.06  Resignation and Removal; Appointment
of Successor.

 

(a)   No
resignation or removal of the Book-entry Depositary or the Senior Note
Custodian and no appointment of a successor Book-entry Depositary or a
successor Senior Note Custodian pursuant to this Article Three shall become effective
until (i) the acceptance of appointment by the successor Book-entry
Depositary or the successor Senior Note Custodian, as the case may be, in
accordance with the applicable requirements of Section 3.07 hereof or
(ii) the issuance of Definitive Notes in accordance with Sections 2.05 and
2.08 hereof.

 

(b)   The
Book-entry Depositary or the Senior Note Custodian may resign with respect to
the Global Notes by giving written notice thereof to the Issuer and the
Depositaries and the Trustee, in accordance with Section 4.01 and Section 4.02
hereof, 60 days prior to the effective date of such resignation.  If the instrument of acceptance by a
successor Book-entry Depositary required by Section 3.08 hereof shall not have
been delivered to the Book-entry Depositary within 30 days after the giving of
such notice of resignation, the resigning Book-entry Depositary or the
resigning Senior Note Custodian may petition any court of competent
jurisdiction for the appointment of a successor Book-entry Depositary or a successor
Senior Note Custodian, as applicable. 
If, at the end of 90 days after the delivery of such notice, no
successor depositary has been appointed and has accepted such appointment, the
Book-entry Depositary may terminate this Agreement.

 

(c)   The
Book-entry Depositary or the Senior Note Custodian may be removed at any time
upon 90 days’ notice by the filing with it and the Trustee of an instrument in
writing signed on behalf of the Issuer and specifying such removal and the date
when it is intended to become effective.

 

15

 

(d)   If
at any time:

 

(1)                                  the
Book-entry Depositary or the Senior Note Custodian shall cease to be eligible
under Section 3.05 hereof, and shall fail to resign after written request
therefor by the Issuer or by any Depositary; or

 

(2)                                  the
Book-entry Depositary or the Senior Note Custodian shall become incapable of
acting with respect to the Certificated Depositary Interests or shall be
adjudged a bankrupt or insolvent, or a receiver or liquidator of the Book-entry
Depositary or the Senior Note Custodian or of their respective property shall
be appointed or any public officer shall take charge or control of the
Book-entry Depositary or the Senior Note Custodian or of their respective property
or affairs for the purpose of rehabilitation, conservation or liquidation,

 

then, in any
such case (unless no Global Notes remain outstanding), (i) the Issuer, by Board
Resolution, may immediately remove the Book-entry Depositary or the Senior Note
Custodian and appoint a successor Book-entry Depositary or a successor Senior
Note Custodian or (ii) any Depositary, the Book-entry Depositary or the Senior
Note Custodian may, on behalf of itself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Book-entry
Depositary or the Senior Note Custodian and the appointment of a successor
Book-entry Depositary or a successor Senior Note Custodian unless the
Definitive Notes have been issued in accordance with the Indenture.  Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, remove the Book-entry Depositary
or the Senior Note Custodian and appoint a successor Book-entry Depositary or a
successor Senior Note Custodian.

 

(e)   If
the Book-entry Depositary or the Senior Note Custodian shall resign, be removed
or become incapable of acting, or if a vacancy shall occur in the office of the
Book-entry Depositary or the Senior Note Custodian for any cause, the Issuer,
by Board Resolution, shall promptly appoint a successor Book-entry Depositary
or a successor Senior Note Custodian (other than the Issuer) for the Book-entry
Depositary or the Senior Note Custodian and shall comply with the applicable
requirements of Section 3.07 hereof.  If
no successor Book-entry Depositary or successor Senior Note Custodian with
respect to the Global Notes shall have been so appointed by the Issuer and
accepted appointment in the manner required by Section 3.07, the Issuer, any
Despositary or any owner of Book-entry Interests in a Global Note may, on
behalf of itself and all others similarly situated, petition any court of
competent jurisdiction for the appointment of a successor Book-entry Depositary
or a successor Senior Note Custodian unless Definitive Notes have been issued
in exchange for the entirety of all Global Notes in accordance with the
Indenture.

 

(f)   The
Issuer shall give, or shall cause such successor Book-entry Depositary or
successor Senior Note Custodian to give, notice of each resignation and each
removal of a Book-entry Depositary or a Senior Note Custodian and each
appointment of a successor Book-entry Depositary or a successor Senior Note
Custodian to the applicable Depositary in accordance with Section 4.02 hereof.  Each notice shall include the name of the
successor Book-entry Depositary or the successor Senior Note Custodian, as the
case may be, and the address of its Corporate Trust Office.

 

16

 

SECTION
3.07  Acceptance of Appointment by
Successor.

 

(a)   In
case of the appointment hereunder of a successor Book-entry Depositary or a
successor Senior Note Custodian, every such successor Book-entry Depositary or
successor Senior Note Custodian so appointed shall execute, acknowledge and
deliver to the Issuer and to the retiring Book-entry Depositary or the retiring
Senior Note Custodian, as applicable, an instrument accepting such appointment,
and thereupon the resignation or removal of the retiring Book-entry Depositary
or the retiring Senior Note Custodian shall become effective and such successor
Book-entry Depositary or such successor Senior Note Custodian, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, agencies and duties of the retiring Book-entry Depositary or the
retiring Senior Note Custodian, with like effect as if originally named as the
Book-entry Depositary hereunder or the Senior Note Custodian hereunder, as
applicable but, on the request of the Issuer or a successor Book-entry
Depositary or a successor Senior Note Custodian, the retiring Book-entry
Depositary or the retiring Senior Note Custodian shall, upon payment of all
amounts due and payable to it pursuant to Section 3.04 hereof, execute and
deliver an instrument transferring to the successor Book-entry Depositary or
the successor Senior Note Custodian, as the case may be, all the rights and
powers of the retiring Book-entry Depositary or the Senior Note Custodian and
shall duly assign, transfer and deliver to the successor Book-entry Depositary
or the successor Senior Note Custodian all property and money held by the
retiring Book-entry Depositary hereunder or the retiring Senior Note Custodian
hereunder and shall deliver the Global Notes to the successor.

 

(b)   Upon
the commercially reasonable request of any such successor Book-entry Depositary
or the successor Senior Note Custodian, the Issuer shall execute such
instruments as are reasonably necessary (as determined in good faith by the
Issuer) for more fully and certainly vesting in and confirming to the successor
Book-entry Depositary or the successor Senior Note Custodian, as the case may
be, all such rights, powers and agencies referred to in paragraph (a) of this
Section 3.07.

 

(c)   No
successor Book-entry Depositary or successor Senior Note Custodian shall accept
its appointment unless at the time of such acceptance such successor Book-entry
Depositary or successor Senior Note Custodian shall be eligible under Section
3.05.

 

(d)   Upon
acceptance of appointment by any successor Book-entry Depositary or successor
Senior Note Custodian as provided in this Section 3.07, the Issuer shall give
notice thereof to the Depositaries in accordance with Section 4.02 hereof.  If the acceptance of appointment is
substantially contemporaneous with the resignation of the Book-entry Depositary
or the Senior Note Custodian, then the notice called for by the preceding
sentence may be combined with the notice called for the Section 3.06
hereof.  If the Issuer fails to give
such notice within 15 days after acceptance of appointment by a successor
Book-entry Depositary or a successor Senior Note Custodian, the successor
Book-entry Depositary or the successor Senior Note Custodian shall promptly
cause such notice to be given at the expense of the Issuer.

 

SECTION
3.08  Merger, Conversion,
Consolidation or Succession to Business.

 

Any corporation into which the Book-entry
Depositary or the Senior Note Custodian may be merged or converted or with
which it may be consolidated, or any corporation

 

17

 

resulting from any merger, conversion or
consolidation to which the Book-entry Depositary or the Senior Note Custodian
shall be a party, or any corporation succeeding to all or substantially all the
agency business of the Book-entry Depositary or the Senior Note Custodian,
shall be the successor of the Book-entry Depositary hereunder or the Custodian
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, provided that such corporation shall be
otherwise eligible under Section 3.05.

 

ARTICLE
FOUR

 

MISCELLANEOUS
PROVISIONS

 

SECTION
4.01  Notices to Book-entry
Depositary, Senior Note Custodian or Issuer.

 

Any request, demand, authorization, direction,
notice, consent, waiver or other document provided or permitted by this
Agreement to be made upon, given or furnished to, or filed with,

 

(a)   the
Book-entry Depositary by the Trustee, the Issuer or the Subsidiary Guarantor
shall be sufficient for every purpose hereunder (unless otherwise herein
expressly provided) if made, given, furnished or filed in writing and delivered
(which may be by facsimile), couriered or mailed and received, first-class
postage prepaid, to the Book-entry Depositary at its Corporate Trust Office,
Attention: Corporate Trust Office, One Canada Square, London E14 5AL,
Attention: Corporate Trust (facsimile: +44-207-964-6399), or at any other
address previously furnished in writing by the Book-entry Depositary to the
Trustee and the Issuer;

 

(b)   the
Issuer or the Subsidiary Guarantor, by the Book-entry Depositary or Senior Note
Custodian shall be sufficient for every purpose hereunder (unless otherwise
herein expressly provided) if made, given, furnished or filed in writing and
delivered (which may be by facsimile), couriered or mailed and received,
first-class postage prepaid to Valentia Telecommunications, c/o 114 St.
Stephen’s Green West, Dublin 2, Republic of Ireland, Attention: Chief Financial
Officer (facsimile: +353 1 679 7468) with a copy (such copy not constituting
notice) to, Debovoise & Plimpton, Tower 42, International Finance Center,
London EC2N 1HQ, Attention: James C. Scoville (facsimile:  +44 (20) 7588 4180)) or at any other address
previously furnished in writing to such Book-entry Depositary or the Senior
Note Custodian by the Issuer; or

 

(c)   the
Senior Note Custodian by the Book-entry Depositary at its Corporate Trust
Office,  Attention:
Corporate Trust, One Canada Square, London E14 5AL

 

except that a notice of change of address and
any other notice to the Book-Entry Depositary or Senior Note Custodian shall
not be deemed to have been given until actually received by the addressee.

 

18

 

SECTION
4.02  Notice to Depositary and
Owners; Waiver.

 

(a)   Where
this Agreement provides for notice to a Depositary or owners of Book-entry
Interests of any event, such notice shall be sufficiently given (unless
otherwise herein expressly provided), if in writing and sent by facsimile
transmission or personally delivered, couriered or mailed, first-class postage
prepaid, to the Depositary at the address notified to the Book-entry
Depositary, in each case not later than the latest date, and not earlier that
the earliest date, prescribed for the giving of such notice.

 

(b)   Where
this Agreement 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.  Waivers of notice by the Depositary shall be
filed with the Book-entry Depositary, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such waiver.

 

(c)   So
long as the Senior Notes are listed on the Luxembourg Stock Exchange and the
rules of that stock exchange so require, notices shall be also published in a
daily newspaper with general circulation in Luxembourg (which is expected to be
the Luxemburger Wort) and 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.  If and for so long
as the Senior Notes are listed on the Irish Stock Exchange and the rules of such
exchange so require, notices shall also comply with the applicable publication
requirements of such exchange.

 

(d)   In
case by reason of the suspension of regular mail service or by reason of any
other cause it shall be impracticable to give such notice by mail, then such
notification as shall be made with the approval of the Book-entry Depositary
shall constitute a sufficient notification for every purpose hereunder.

 

SECTION
4.03  Effect of Headings.

 

The Article and Section headings herein are
for convenience only and shall not affect the construction hereof.

 

SECTION
4.04  Successors and Assigns.

 

All covenants and agreements of the Issuer in
this Agreement shall bind the Issuer’s successors and assigns, whether so
expressed or not unless otherwise provided.

 

SECTION
4.05  Separability Clause.

 

In case any provision in this Agreement shall
be deemed invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions hereof and thereof shall not in any
way be affected or impaired thereby.

 

19

 

SECTION
4.06  Benefits of Agreement.

 

Nothing in this Agreement, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder, any benefits or any legal or equitable right, remedy or
claim under this Agreement.  The owners
from time to time of the Book-entry Interests shall be parties to this
Agreement and, by their acceptance of delivery of the Book-entry Interests,
shall be deemed to agree to and to be bound by all of the terms and conditions
hereof and of the Indenture and the Senior Notes.

 

SECTION
4.07  Governing Law.

 

This Agreement shall be governed by, and
construed in accordance with, the laws of the state of New York.

 

SECTION 4.08  Jurisdiction.

 

By the execution and delivery of this
Agreement, the Issuer (i) acknowledges that it has, by separate written
instrument, irrevocably designated and appointed CT Corporation as its
authorized agent upon which process may be served in any suit or proceeding by
either Book-entry Depositary or the Senior Note Custodian arising out of this
Agreement that may be instituted in any federal or state court in the Borough
of Manhattan, the City of New York, and acknowledges that CT Corporation has
accepted such designation, (ii) submits to the jurisdiction of any such court
in any such suit or proceeding, and waives any objection which it may now or
hereafter have to the laying of venue of any such proceeding or any claim of
inconvenient forum and (iii) agrees that service of process upon CT Corporation
and written notice of said service to it (couriered, mailed or delivered to its
Secretary at its principal office) shall be deemed in every respect effective
service of process upon it in any such suit or proceeding.  The Issuer further agrees to take any and
all action, including the execution and filing of any and all such documents
and instruments, as may be necessary to continue such appointment of CT Corporation
in full force and effect so long as (i) this Agreement shall be in full force
and effect and (ii) any Global Note shall be outstanding.

 

To the extent that the Issuer has or
hereafter may acquire any immunity from jurisdiction of any court or from any
legal process (whether through service of notice, attachment prior to judgment,
attachment in aid of execution or otherwise) with respect to itself or its
property, the Issuer hereby irrevocably waives such immunity in respect of its
respective obligations under this Agreement to the fullest extent permitted by
law.

 

SECTION 4.09  Counterparts.

 

This Agreement may be executed in any number
of counterparts by the parties hereto on separate counterparts, each of which,
when so executed and delivered, shall be deemed an original, but all such counterparts
shall together constitute one and the same instrument.

 

20

 

SECTION
4.10  Inspection of Agreement.

 

A copy of this Agreement shall be available
at all reasonable times during normal business hours at the Corporate Trust
Office of the Book-entry Depositary for inspection upon reasonable prior
written notice by any owner of Book-entry Interests.

 

SECTION
4.11  Satisfaction and Discharge.

 

This Agreement, upon the delivery to the
Book-entry Depositary of a Company Order, shall cease to be of further effect,
and the Book-entry Depositary and the Senior Note Custodian, at the expense of
the Issuer, shall execute proper instruments acknowledging satisfaction and
discharge of this Agreement, when (i) (x) the Indenture has been satisfied and
discharged pursuant to the provisions thereof, or (y) Definitive Notes have
been issued and the Global Notes have been cancelled in accordance with the
provisions of Sections 2.05 or 2.06 hereof and the Indenture, (ii) the Issuer
has paid or caused to be paid all sums payable hereunder by the Issuer and
(iii) the Issuer has delivered to the Book-entry Depositary an Officer’s
Certificate and an Opinion of Counsel (which Opinion of Counsel may rely, as to
matters of fact, on an Officer’s Certificate), stating that the preceding
clauses (i) and (ii) have been satisfied.

 

SECTION 4.12  Amendments.

 

The Issuer, with the consent of the
Book-entry Depositary and the Senior Note Custodian (such consent to be given
by signature in accordance with Section 4.13) may amend this Agreement without
the consent of any Depositary or the owners of Book-entry Interests:

 

(a)   to
cure any ambiguity, omissions, defect or inconsistency;

 

(b)   to
add to the covenants and agreements of the Book-entry Depositary or the Senior
Note Custodian or the Issuer;

 

(c)   to
effectuate the assignment of the rights and duties of the Book-entry Depositary
or the Senior Note Custodian to a qualified successor, as provided herein;

 

(d)   to
comply with any applicable requirements of the United States Securities and
Exchange Commission and the TIA or any other laws relating to securities;

 

(e)                                  to
reflect a change in Applicable Procedures or the customary practices of any
Depositary, provided that any such change in Applicable Procedures or customary
practices of any Depositary is not adverse to the owners of Book-entry
Interests; or

 

(f)   to
modify, alter, amend or supplement this Agreement in any other manner that is
not adverse to any Depositary or the owners of Book-entry Interests.

 

Except as set forth in this Section 4.12, no
amendment that adversely affects any Depositary or the owners of Book-entry
Interests may be made to this Agreement or the Book-entry Interests without the
consent of the applicable Depositary or the owners of Book-entry Interests.

 

21

 

SECTION
4.13  Book-entry Depositary and
the Senior Note Custodian To Sign Amendments.

 

The Book-entry Depositary and the Senior Note
Custodian shall sign any amendment authorized pursuant to Section 4.12 hereof
if the amendment does not adversely affect the rights, duties, liabilities or
immunities of the Book-entry Depositary and the Senior Note Custodian.  If such amendment does, the Book-entry
Depositary and the Senior Note Custodian may, but need not, sign it.  In signing any amendment, the Book-entry
Depositary and the Senior Note Custodian shall be entitled to receive indemnity
reasonably satisfactory to it and to receive, and shall be fully protected in
reasonably relying upon, an Officer’s Certificate (which need only cover the
matters set forth in clause (a) and (d) below) and an Opinion of Counsel (which
need only cover the matters set forth in clause (a), (b) and (c) and which may
rely on an Officer’s Certificate as to matters of fact) stating that:

 

(a)   such
amendment is authorized or permitted by this Agreement;

 

(b)   the Issuer
has all necessary corporate power and authority to execute and deliver the
amendment and that the execution, delivery and performance of such amendment
has been duly authorized by all necessary corporate action;

 

(c)   such
amendment has been duly and validly executed and delivered by the Issuer, and
this Agreement together with such amendment constitutes a legal, valid and
binding obligation of the Issuer enforceable against the Issuer in accordance
with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting the enforcement of creditors’
rights generally and general equitable principles; and

 

(d)   such
amendment does not adversely affect any Depositary or the owners of Book-entry
Interests.

 

SECTION 4.14  Effect of the Agreement.                               Nothing in this
Agreement shall affect the legal rights of any Holder of any Global Note or the
obligations of the Issuer, the Subsidiary Guarantor or the Trustee to such
Holder.

 

SECTION 4.15  No Recourse.                                      No director,
officer, employee, incorporator, member or stockholder of the Issuer or the
Subsidiary Guarantor as such, shall have any liability for any obligations of
the Issuer or the Subsidiary Guarantor under the Certificated Depositary
Interests, the Global Notes or this Agreement or for any claim based on, in
respect of, or by reason of, such obligations or their creation, and each
holder of or owner of a beneficial interest in a Certificated Depositary
Interest or Global Note by accepting such interest waives and releases all such
liability, which waiver and release are part of the consideration for issuance
of the Global Notes and Certificated Depositary Interests.

 

22

 

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

 

	
   

  	
  VALENTIA TELECOMMUNICATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK

  	
   

  
	
   

  	
  as Book-entry Depositary

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK

  	
   

  
	
   

  	
  as Senior Note Custodian

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

23

 

ANNEX A – Form
of Certificated

Depositary
Interest

 

Certificated
Depositary Interest

 

[(Regulation
S)](1) [(Rule 144A)](2)

 

in respect of

 

7.25% Senior
Notes due 2013

 

THIS
CERTIFICATED DEPOSITARY INTEREST HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND MAY NOT BE OFFERED, SOLD, OR
DELIVERED OTHER THAN IN COMPLIANCE WITH THE SENIOR NOTES DEPOSIT AND CUSTODY
AGREEMENT REFERRED TO BELOW.

 

Unless
presented to The Bank of New York, as Book-entry Depositary, or its custodian,
for registration of transfer, exchange or payment, and any security is issued
as authorized by the holder, any transfer, exchange, pledge or payment under
this Certificated Depositary Interest will be wrongful.

 

The holder of
this Certificated Depositary Interest is subject to, and entitled to the
benefit of, (A) the indenture dated as of August 7, 2003, among Valentia
Telecommunications, an unlimited public company incorporated under the laws of
the Republic of Ireland and having its registered office at 25/28 North Wall
Quay, Dublin 1, Republic of Ireland (the “Issuer”), eircom Limited, a limited liability company incorporated
under the laws of the Republic of Ireland (the “Subsidiary Guarantor”), The
Bank of New York, as Trustee, Transfer Agent, Registrar and Principal Paying
Agent, The Bank of New York (Luxembourg) SA as Luxembourg Transfer Agent and
Paying Agent and others, and (B) the euro senior deposit and custody agreement
dated as of August 7, 2003, (the “Deposit and Custody Agreement”) among the
Issuer, the Book-entry Depositary, the Senior Note Custodian (as defined
therein) and owners from time to time of Book-entry Interests (as defined
therein).

 

The Book-entry
Depositary hereby certifies that The Bank of New York Depository (Nominees)
Limited, as nominee of the Common Depositary for Euroclear and Clearstream is
recorded in the records of the Book-entry Depositary as the owner of a
Certificated Depositary Interest (as defined in the Deposit and Custody
Agreement) representing initially €·
in aggregate principal

 

 

(1)                                  Insert
for Certificated Depositary Interest issued in respect of a Euro Rule 144A
Global Note.

 

(2)                                  Insert
for Certificated Depositary Interest issued in respect of a Euro Regulation S
Global Note.

 

A-1

 

amount of
7.25% Senior Notes due 2013 of the Issuer, or such greater or lesser amount as
shall be shown by the most recent entry in the schedule hereto.

 

This
Certificated Depositary Interest shall be transferable only in accordance with
the Deposit and Custody Agreement.

 

Unless
presented by a Depositary to the Book-entry Depositary for registration of
transfer, exchange or payment, and unless any Certificated Depositary Interest
issued is registered to the Depositary (or as otherwise authorized by the
Depositary), any transfer, exchange, pledge or payment of this Certificated
Depositary Interest shall be wrongful. 
The Book-entry Depositary shall not recognize any transfer, exchange,
pledge or payment of this Certificated Depositary Interest that does not comply
with these requirements.

 

A-2

 

IN
WITNESS whereof the Book-entry Depositary has caused
this Certificated Depositary Interest to be duly executed.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Duly Authorized Signatory

  
	
   

  	
  Title:

  

 

A-3

 

SCHEDULE OF
PRINCIPAL AMOUNT

 

The initial
principal amount at maturity of this Certificated Depositary Interest shall be
€           .  The following decreases/increases in the
principal amount of this Certificated Depositary Interest have been made.

 

	
  Date of

  Decrease/Increase

  	
   

  	
  Decrease in

  Principal Amount

  	
   

  	
  Increase in

  Principal Amount

  	
   

  	
  Total Principal

  Amount Following

  such

  Decrease/Increase

  	
   

  	
  Notation Made by

  or on Behalf of

  Book-entry

  Depositary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-4

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