<PAGE>

                            REGISTRATION AGREEMENT


          THIS REGISTRATION AGREEMENT (this "Agreement") is made as of November
22nd, 2000, by and among The Derby Cycle Corporation, a corporation organized
and existing under the laws of the State of Delaware (the "Company") and Quantum
Industrial Partners LDC, a Cayman Islands limited duration company ("Soros").

          The parties to this Agreement are parties to a Warrant Agreement,
dated November ____, 2000.   (the "Purchase Agreement").  In order to induce
Soros to enter into the Purchase Agreement, the Company has agreed to provide
the registration rights set forth in this Agreement.   Unless otherwise provided
in this Agreement, capitalized terms used herein shall have the meanings set
forth in paragraph 7 hereof.  Reference is made to that certain  Registration
Rights Agreement dated May 14, 1998 by and among Derby Finance S.a.r.l., a
corporation (societe a responsibilite limitee) organized and existing under the
laws of the Grand Duchy of Luxembourg ("DFS"), Perseus Cycle, L.L.C., a limited
liability company organized and existing under the laws of the State of Delaware
("Perseus") and DC Cycle, L.L.C., a limited liability company organized and
existing under the laws of the State of Delaware ("DCL").

          The parties hereto agree as follows:

          1.   Piggyback Registrations.

          (a)  Right to Piggyback. Whenever the Company proposes to register any
of its securities under the Securities Act and the registration form to be used
may be used for the registration of Registrable Securities (a "Piggyback
Registration"), the Company shall give prompt written notice to all holders of
Registrable Securities of its intention to effect such a registration and shall
include in such registration, subject to the provisions of paragraphs 1(c) and
1(d), all Registrable Securities with respect to which the Company has received
written requests for inclusion therein within 20 days after the receipt of the
Company's notice.

          (b)  Piggyback Expenses. The Registration Expenses of the holders of
Registrable Securities shall be paid by the Company in all Piggyback
Registrations.

          (c)  Priority on Primary Registrations. If a Piggyback Registration is
an underwritten primary registration on behalf of the Company, and the managing
underwriters advise the Company in writing that in their opinion the number of
securities requested to be included in such registration exceeds the number
which can be sold in such offering without adversely affecting the marketability
of the offering, the Company shall include in such registration (i) first, the
securities the Company proposes to sell, (ii) second, without limiting and after
giving effect to the DCL/Perseus Preference (as defined in Section 1(f) below),
the Registrable Securities requested to be included in such registration, pro
rata among the holders of such Registrable Securities on the basis of the number
of shares of Registrable Securities requested to be included in such
registration by each such holder, and (iii) third, other securities requested to
be included in such registration.
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          (d)  Priority on Secondary Registrations. If a Piggyback Registration
is an underwritten secondary registration on behalf of holders of the Company's
securities, and the managing underwriters advise the Company in writing that in
their opinion the number of securities requested to be included in such
registration exceeds the number which can be sold in such offering without
adversely affecting the marketability of the offering, the Company shall include
in such registration (i) first, the securities requested to be included therein
by the holders requesting such registration, (ii) second, without limiting and
after giving effect to the DCL/Perseus Preference (as defined in Section 1(f)
below), the Registrable Securities requested to be included in such
registration, pro rata among the holders of such Registrable Securities on the
basis of the number of shares of Registrable Securities requested to be included
in such registration by each such holder, and (iii) third, other securities
requested to be included in such registration.

          (e)  Other Registrations. If the Company has previously filed a
registration statement with respect to Registrable Securities pursuant to
paragraph 1, and if such previous registration has not been withdrawn or
abandoned, the Company shall not file or cause to be effected any other
registration of any of its equity securities or securities convertible or
exchangeable into or exercisable for its equity securities under the Securities
Act (except on Form S-8 or S-4 or any successor form), whether on its own behalf
or at the request of any holder or holders of such securities, until a period of
at least 90 days has elapsed from the effective date of such previous
registration.

          (f)  DCL/Perseus Preference. Notwithstanding anything to the contrary
herein, (i) no DFS Registrable Securities shall be included in any Piggyback
Registration until Registrable Securities having an anticipated sale price to
the public in an aggregate of twenty million United States dollars ($20,000,000)
has been allocated to the Registrable Securities requested to be included by the
holders of DCL Registrable Securities and Perseus Registrable Securities (83% of
such amount shall be allocated to the holders of DCL Registrable Securities and
17% to holders of Perseus Registrable Securities) (the "DCL/Perseus Preference")
and (ii) once the DCL/Perseus Preference has been fulfilled, all holders of
Registrable Securities shall have the priority rights set forth in Sections 1(c)
and 1(d) above.

          2.   Holdback Agreements.

          (a)  Each holder of Registrable Securities shall not effect any public
sale or distribution (including sales pursuant to Rule 144) of equity securities
of the Company, or any securities convertible into or exchangeable or
exercisable for such securities, during the seven days prior to and the 180-day
period beginning on the effective date of any underwritten Piggyback
Registration in which Registrable Securities are included (except as part of
such underwritten registration), unless the underwriters managing the registered
public offering otherwise agree.

          (b)  The Company (i) shall not effect any public sale or distribution
of its equity securities, or any securities convertible into or exchangeable or
exercisable for such securities, during the seven days prior to and during the
180-day period beginning on the effective date of any underwritten Piggyback
Registration (except as part of such underwritten registration or pursuant to
registrations on Form S-8 or any successor form), unless the underwriters
managing the registered public offering otherwise agree, and (ii) shall use its
best efforts to cause each holder of its common stock or common equity, or any
securities convertible into or exchangeable or exercisable for

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common stock or common equity, purchased from the Company at any time after the
date of this Agreement (other than in a registered public offering) to agree not
to effect any public sale or distribution (including sales pursuant to Rule 144)
of any such securities during such period (except as part of such underwritten
registration, if otherwise permitted), unless the underwriters managing the
registered public offering otherwise agree.

          3.   Registration Procedures. Whenever the holders of Registrable
Securities have requested that any Registrable Securities be registered pursuant
to this Agreement, the Company shall use its best efforts to effect the
registration and the sale of such Registrable Securities in accordance with the
intended method of disposition thereof, and pursuant thereto the Company shall
as expeditiously as possible:

          (a)  prepare and file with the Securities and Exchange Commission a
registration statement with respect to such Registrable Securities and use its
best efforts to cause such registration statement to become effective (provided
that before filing a registration statement or prospectus or any amendments or
supplements thereto, the Company shall furnish to the legal counsel selected by
the holders of a majority of the Registrable Securities covered by such
registration statement copies of all such documents proposed to be filed);

          (b)  notify each holder of Registrable Securities of the effectiveness
of each registration statement filed hereunder and prepare and file with the
Securities and Exchange Commission such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be
necessary to keep such registration statement effective for a period of not less
than 180 days and comply with the provisions of the Securities Act with respect
to the disposition of all securities covered by such registration statement
during such period in accordance with the intended methods of disposition by the
sellers thereof set forth in such registration statement;

          (c)  furnish to each seller of Registrable Securities such number of
copies of such registration statement, each amendment and supplement thereto,
the prospectus included in such registration statement (including each
preliminary prospectus) and such other documents as such seller may reasonably
request in order to facilitate the disposition of the Registrable Securities
owned by such seller;

          (d)  use its best efforts to register or qualify such Registrable
Securities under such other securities or blue sky laws of such jurisdictions as
any seller reasonably requests and do any and all other acts and things which
may be reasonably necessary or advisable to enable such seller to consummate the
disposition in such jurisdictions of the Registrable Securities owned by such
seller (provided that the Company shall not be required to (i) qualify generally
to do business in any jurisdiction where it would not otherwise be required to
qualify but for this subparagraph, (ii) subject itself to taxation in any such
jurisdiction or (iii) consent to general service of process in any such
jurisdiction);

          (e)  notify each seller of such Registrable Securities, at any time
when a prospectus relating thereto is required to be delivered under the
Securities Act, of the happening of any event as a result of which the
prospectus included in such registration statement contains an untrue statement
of a material fact or omits any fact necessary to make the statements therein
not

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misleading, and, at the request of any such seller, the Company shall prepare a
supplement or amendment to such prospectus so that, as thereafter delivered to
the purchasers of such Registrable Securities, such prospectus shall not contain
an untrue statement of a material fact or omit to state any fact necessary to
make the statements therein not misleading;

          (f)  cause all such Registrable Securities to be listed on each
securities exchange on which similar securities issued by the Company are then
listed and, if not so listed, to be listed on the NASDAQ National Market or
other automated quotation system;

          (g)  provide a transfer agent and registrar for all such Registrable
Securities not later than the effective date of such registration statement;

          (h)  enter into such customary agreements (including underwriting
agreements in customary form) and take all such other actions as the holders of
a majority of the Registrable Securities being sold or the underwriters, if any,
reasonably request in order to expedite or facilitate the disposition of such
Registrable Securities (including effecting a stock split or a combination of
shares);

          (i)  make available for inspection by any seller of Registrable
Securities, any underwriter participating in any disposition pursuant to such
registration statement and any attorney, accountant or other agent retained by
any such seller or underwriter, all financial and other records, pertinent
corporate documents and properties of the Company, and cause the Company's
officers, directors, employees and independent accountants to supply all
information reasonably requested by any such seller, underwriter, attorney,
accountant or agent in connection with such registration statement; and

          (j)  otherwise use its best efforts to comply with all applicable
rules and regulations of the Securities and Exchange Commission, and make
available to its security holders, as soon as reasonably practicable, an
earnings statement covering the period of at least twelve months beginning with
the first day of the Company's first full calendar quarter after the effective
date of the registration statement, which earnings statement shall satisfy the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.

          4.   Registration Expenses.

          (a)  All expenses incident to the Company's performance of or
compliance with this Agreement, including without limitation all registration
and filing fees, fees and expenses of compliance with securities or blue sky
laws, printing expenses, messenger and delivery expenses, fees and disbursements
of custodians, and fees and disbursements of legal counsel for the Company and
all independent certified public accountants, underwriters (excluding discounts
and commissions) and other Persons retained by the Company (all such expenses
being herein called "Registration Expenses"), shall be borne as provided in this
Agreement, except that the Company shall, in any event, pay its internal
expenses (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expense of
any annual audit or quarterly review, the expense of any liability insurance and
the expenses and fees for listing the securities to be registered on each
securities exchange on which similar securities issued by the Company are then
listed or on the NASDAQ National Market or other automated quotation system.

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<PAGE>

          (b)  In connection with each Piggyback Registration, the Company shall
reimburse the holders of Registrable Securities included in such registration
for the reasonable fees and disbursements of one legal counsel chosen by the
holders of a majority of the Registrable Securities included in such
registration and for the reasonable fees and disbursements of each additional
legal counsel retained by any holder of Registrable Securities for the purpose
of rendering a legal opinion on behalf of such holder in connection with any
underwritten Piggyback Registration.

          (c)  To the extent Registration Expenses are not required to be paid
by the Company, each holder of securities included in any registration hereunder
shall pay or bear all discounts, commissions and Registration Expenses allocable
to the registration of such holder's securities so included, and any
Registration Expenses not so allocable shall be borne by all sellers of
securities included in such registration in proportion to the aggregate selling
price of the securities to be so registered.

          5.   Indemnification.

          (a)  The Company agrees to indemnify, to the extent permitted by law,
each holder of Registrable Securities, its officers and directors and each
Person who controls such holder (within the meaning of the Securities Act)
against all losses, claims, damages, liabilities and expenses caused by any
untrue or alleged untrue statement of material fact contained in any
registration statement, prospectus or preliminary prospectus or any amendment
thereof or supplement thereto or any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein
not misleading, except insofar as the same are caused by or contained in any
information furnished in writing to the Company by such holder expressly for use
therein or by such holder's failure to deliver a copy of the registration
statement or prospectus or any amendments or supplements thereto after the
Company has furnished such holder with a sufficient number of copies of the
same.  In connection with an underwritten offering, the Company shall indemnify
such underwriters, their officers and directors and each Person who controls
such underwriters (within the meaning of the Securities Act) to the same extent
as provided above with respect to the indemnification of the holders of
Registrable Securities.

          (b)  In connection with any registration statement in which a holder
of Registrable Securities is participating, each such holder shall furnish to
the Company in writing such information and affidavits as the Company reasonably
requests for use in connection with any such registration statement or
prospectus and, to the extent permitted by law, shall indemnify the Company, its
directors and officers and each Person who controls the Company (within the
meaning of the Securities Act) against any losses, claims, damages, liabilities
and expenses resulting from any untrue or alleged untrue statement of material
fact contained in the registration statement, prospectus or preliminary
prospectus or any amendment thereof or supplement thereto or any omission or
alleged omission of a material fact required to be stated therein or necessary
to make the statements therein not misleading, but only to the extent that such
untrue statement or omission is contained in any information or affidavit so
furnished in writing by such holder; provided that the obligation to indemnify
shall be individual, not joint and several, for each holder and shall be limited
to the net amount of proceeds received by such holder from the sale of
Registrable Securities pursuant to such registration statement.

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          (c)  Any Person entitled to indemnification hereunder shall (i) give
prompt written notice to the indemnifying party of any claim with respect to
which it seeks indemnification (provided that the failure to give prompt notice
shall not impair any Person's right to indemnification hereunder to the extent
such failure has not prejudiced the indemnifying party) and (ii) unless in such
indemnified party's reasonable judgment a conflict of interest between such
indemnified and indemnifying parties may exist with respect to such claim,
permit such indemnifying party to assume the defense of such claim with legal
counsel reasonably satisfactory to the indemnified party.  If such defense is
assumed, the indemnifying party shall not be subject to any liability for any
settlement made by the indemnified party without its consent (but such consent
shall not be unreasonably withheld).  An indemnifying party who is not entitled
to, or elects not to, assume the defense of a claim shall not be obligated to
pay the fees and expenses of more than one legal counsel for all parties
indemnified by such indemnifying party with respect to such claim, unless in the
reasonable judgment of any indemnified party a conflict of interest may exist
between such indemnified party and any other of such indemnified parties with
respect to such claim.

          (d)  The indemnification provided for under this Agreement shall
remain in full force and effect regardless of any investigation made by or on
behalf of the indemnified party or any officer, director or controlling Person
of such indemnified party and shall survive the transfer of securities. The
Company also agrees to make such provisions, as are reasonably requested by any
indemnified party, for contribution to such party in the event the Company's
indemnification is unavailable for any reason.

          6.   Participation in Underwritten Registrations.  No Person may
participate in any registration hereunder which is underwritten unless such
Person (i) agrees to sell such Person's securities on the basis provided in any
underwriting arrangements approved by the Person or Persons entitled hereunder
to approve such arrangements and (ii) completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents
required under the terms of such underwriting arrangements.

          7.   Definitions.

          "DFS Registrable Securities" means (i) any shares of common stock or
common equity (other than Class B Common Stock) of the Company owned by DFS or
any of its permitted transferee (as set forth in paragraph 7 of the
Shareholders' Agreement) and (ii) any shares of common stock or common equity
(other than Class B Common Stock) of the Company issued or issuable with respect
to the securities referred to in clause (i) by way of a stock dividend or stock
split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization.

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<PAGE>

          "DCL Registrable Securities" means (i) any shares of common stock or
common equity (other than Class B Common Stock) of the Company owned by DCL or
any of its permitted transferees (as set forth in paragraph 7 of the
Shareholders' Agreement) and (ii) any shares of common stock or common equity
(other than Class B Common Stock) of the Company issued or issuable with respect
to the securities referred to in clause (i) by way of a stock dividend or stock
split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization.

          "Perseus Registrable Securities' means (i) any shares of common stock
or common equity (other than Class B Common Stock) of the Company owned by
Perseus or any of its permitted transferee (as set forth in paragraph 7 of the
Shareholders' Agreement) and (ii) any shares of common stock or common equity
(other than Class B Common Stock) of the Company issued or issuable with respect
to the securities referred to in clause (i) by way of a stock dividend or stock
split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization.

          "Registrable Securities" means DFS Registrable Securities, Perseus
Registrable Securities,  DCL Registrable Securities and Soros Registrable
Securities.  As to any particular Registrable Securities, such securities shall
cease to be Registrable Securities when they have been distributed to the public
pursuant to a offering registered under the Securities Act or sold to the public
through a broker, dealer or market maker in compliance with Rule 144 under the
Securities Act (or any similar rule then in force).  For purposes of this
Agreement, a Person shall be deemed to be a holder of Registrable Securities
whenever such Person has the right to acquire such Registrable Securities (upon
conversion or exercise in connection with a transfer of securities or otherwise,
but disregarding any restrictions or limitations upon the exercise of such
right), whether or not such conversion or exercise has actually been effected.

          "Securities Act" means the Securities Act of 1933, as amended, or any
similar federal law then in force.

          "Securities and Exchange Commission" includes any governmental body or
agency succeeding to the functions thereof.

          "Shareholders' Agreement" means the Second Amended and Restated
Shareholders' Agreement, dated as of the date hereof, by and between DCL,
Perseus, DFS, Soros and the Company

     "Soros Registrable Securities" means (i) any shares of common stock or
common equity (other than Class B Common Stock) of the Company owned by Soros or
any of its permitted transferee (as set forth in paragraph 7 of the
Shareholders' Agreement) and (ii) any shares of common stock or common equity
(other than Class B Common Stock) of the Company issued or issuable with respect
to the securities referred to in clause (i) by way of a stock dividend or stock
split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization.

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          Unless otherwise stated, other capitalized terms contained herein have
the meanings set forth in the Shareholders' Agreement.

          8.   Miscellaneous.

          (a)  No Inconsistent Agreements. The Company shall not hereafter enter
into any agreement with respect to its securities which is inconsistent with or
violates the rights granted to the holders of Registrable Securities in this
Agreement.

          (b)  Adjustments Affecting Registrable Securities.  The Company shall
not take any action, or permit any change to occur, with respect to its
securities which would materially and adversely affect the ability of the
holders of Registrable Securities to include such Registrable Securities in a
registration undertaken pursuant to this Agreement or which would materially and
adversely affect the marketability of such Registrable Securities in any such
registration (including, without limitation, effecting a stock split or a
combination of shares).

          (c)  Remedies.  Any Person having rights under any provision of this
Agreement shall be entitled to enforce such rights specifically to recover
damages caused by reason of any breach of any provision of this Agreement and to
exercise all other rights granted by law.  The parties hereto agree and
acknowledge that money damages may not be an adequate remedy for any breach of
the provisions of this Agreement and that any party may in its sole discretion
apply to any court of law or equity of competent jurisdiction (without posting
any bond or other security) for specific performance and for other injunctive
relief in order to enforce or prevent violation of the provisions of this
Agreement.

          (d)  Amendments and Waivers.  Except as otherwise provided herein, the
provisions of this Agreement may be amended or waived only upon the prior
written consent of the Company and Soros.

          (e)  Successors and Assigns.  All covenants and agreements in this
Agreement by or on behalf of any of the parties hereto shall bind and inure to
the benefit of the respective successors and assigns of the parties hereto
whether so expressed or not.  In addition, whether or not any express assignment
has been made, the provisions of this Agreement which are for the benefit of
purchasers or holders of Registrable Securities are also for the benefit of, and
enforceable by, any subsequent holder of Registrable Securities.

          (f)  Incorporation of Shareholders' Agreement Provisions.  The
paragraphs entitled "SEVERABILITY," "COUNTERPARTS," "EXHIBITS AND HEADINGS,"
"NOTICES" and "GOVERNING LAW" of the Shareholders' Agreement are hereby
incorporated in this Agreement by reference and made a part hereof, except that
the provisions of such paragraphs shall refer to this Agreement rather than the
Shareholders' Agreement and shall continue to apply hereto regardless of whether
or not the Shareholders' Agreement is in effect.


                               *   *   *   *   *

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


                                   THE DERBY CYCLE CORPORATION


                                   By /s/ Daniel S. Lynch
                                      -----------------------------

                                   Its Chief Financial Officer
                                       ----------------------------


                                   QUANTUM INDUSTRIAL PARTNERS LDC


                                   By /s/ Michael C. Neus
                                      -----------------------------

                                   Its Attorney-in-Fact
                                       ----------------------------