The greater part of six counties in the Province of Ulster, viz. Donegal, Fermanagh, Cavan, Tyrone, Armagh, and Coleraine, after the rebellions of O’Neill and O’Donnell, were declared to be escheated to the Crown. James conceived a plan for securing the peace and welfare of Ulster by replacing the Irish rebels by Protestant settlers, together with those of the Irish who were willing to conform to the English rule and religion. He therefore invited “undertakers” who would accept of lands in Ulster on his conditions. These were, that they should not ask for large portions “in tending their private property only;” that there should be three classes of undertakers: (1) Those who would plant with English or Scotch tenants. (2) Servitors or military undertakers. (3) Native Irish admitted as freeholders. The first class were to pay to the Crown the great rent of £5:6:8 for every thousand acres. The second class, when they planted with English or Scotch tenants, were to pay the same; otherwise, the second class were to pay £8 for every thousand acres; and the third class were to pay £10:13:4 for every thousand acres. The third condition was, that all were required to provide strongholds and arms for defence, to let their lands on easy terms, to “avoid Irish exactions,” and to be resident; they were not to accept the “mere” Irish as tenants at all; they were required to create market towns, and to found at least one free school in every county for education in religion and learning. They were also privileged to import from Great Britain for three years, free of custom, everything requisite to put the plantation on a satisfactory footing. In 1609 Commissioners were appointed to survey the escheated lands and to divide them into convenient parcels for allocation. In the same year proposals were made in the King’s name to the City that the Corporation itself should undertake the restoration of the city of Derry and the town of Coleraine, and should plant the rest of the county with undertakers. The City was offered the Customs for twenty-one years at 6s. 8d. per annum, the fisheries of the Bann and the Foyle, free license to export wares grown on their own land, and the admiralty of Tyrconnel and Coleraine. The following were the inducements held out to the City:—