Document:

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                                                                     EXHIBIT 4.2

                                                                  EXECUTION COPY

                   $500,000,000 11-7/8% SENIOR NOTES DUE 2010

                          REGISTRATION RIGHTS AGREEMENT

                           Dated as of October 2, 2000

                                  by and among

                            NTL COMMUNICATIONS CORP.

                                       and

                   MORGAN STANLEY & CO. INTERNATIONAL LIMITED

                              CHASE SECURITIES INC.

                              GOLDMAN, SACHS & CO.

                         BANC OF AMERICA SECURITIES LLC

                          BNP PARIBAS SECURITIES CORP.

                            CIBC WORLD MARKETS CORP.

                         THE ROYAL BANK OF SCOTLAND PLC

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This Registration Rights Agreement (this "AGREEMENT") is made and entered into
as of October 2, 2000 by and among NTL Communications Corp., a Delaware
corporation (the "COMPANY"), and Morgan Stanley & Co. International Limited,
Chase Securities Inc., Goldman, Sachs & Co., BANC OF AMERICA SECURITIES LLC, BNP
PARIBAS SECURITIES CORP., CIBC WORLD MARKETS CORP. and The Royal Bank of
Scotland plc (each an "INITIAL PURCHASER" and collectively, the "INITIAL
PURCHASERS"). The Company proposes to issue and sell to the Initial Purchasers
(the "INITIAL PLACEMENT") $500,000,000 11-7/8% Senior Notes Due 2010 (the
"NOTES"). As an inducement to the Initial Purchasers to enter into the purchase
agreement, dated as of September 27, 2000 (the "PURCHASE AGREEMENT"), and in
satisfaction of a condition to the Initial Purchasers' obligations thereunder,
the Company agrees with the Initial Purchasers, (i) for the benefit of the
Initial Purchasers and (ii) for the benefit of the holders from time to time of
the Notes whose names appear in the register maintained by the Registrar in
accordance with the provisions of the Indenture (as defined in Section 1 hereof)
(including the Initial Purchasers), as follows:

1.   DEFINITIONS

Capitalized terms used herein without definition shall have their respective
meanings set forth in the Purchase Agreement. As used in this Agreement, the
following capitalized defined terms shall have the following meanings:

"ACT" means the U.S. Securities Act of 1933, as amended, and the rules and
regulations of the Commission promulgated thereunder.

"AFFILIATE" of any specified person means any other person which, directly or
indirectly, is in control of, is controlled by, or is under common control with,
such specified person. For purposes of this definition, control of a person
means the power, direct or indirect, to direct or cause the direction of the
management and policies of such person whether by contract or otherwise; and the
terms "CONTROLLING" and "CONTROLLED" have meanings correlative to the foregoing.

"CLEARSTREAM" means Clearstream Banking, Luxembourg, societe anonyme.

"CLOSING DATE" has the meaning set forth in the Purchase Agreement.

"COMMISSION" means the U.S. Securities and Exchange Commission.

"CONSUMMATE" means the occurrence of (i) the filing and effectiveness under the
Act of the Exchange Offer Registration Statement relating to the Exchange Notes
to be issued in the Registered Exchange Offer, (ii) the maintenance of such
Registration Statement continuously effective and the keeping of the Registered
Exchange Offer open for a period not less than the minimum period required
pursuant to Section 3(c)(ii) hereof, and (iii) the delivery by the Company to
the Registrar under the Indenture or the Exchange Notes Indenture, as the case
may be, of Exchange Notes in the same aggregate principal amount as the
aggregate principal amount of Notes that were tendered by Holders thereof and
accepted for exchange pursuant to the Registered Exchange Offer.

"DTC" means the Depositary Trust Company.

"EUROCLEAR" means the Euroclear System.

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"EXCHANGE ACT" means the U.S. Securities Exchange Act of 1934, as amended, and
the rules and regulations of the Commission promulgated thereunder.

"EXCHANGE NOTES INDENTURE" means an indenture between the Company and the
Exchange Notes Trustee, identical in all material respects to the Indenture
(except that paragraph 2 of, and the transfer restrictions on, the Notes will be
eliminated).

"EXCHANGE NOTES" means debt securities of the Company identical in all material
respects to the Notes (except that paragraph 2 of, and the transfer restrictions
on, the Notes will be eliminated) to be issued under the Indenture or the
Exchange Notes Indenture.

"EXCHANGE NOTES TRUSTEE" means a bank or trust company reasonably satisfactory
to the Initial Purchasers, as trustee with respect to the Exchange Notes under
the Exchange Notes Indenture.

"EXCHANGE OFFER REGISTRATION PERIOD" means a period expiring upon the earliest
to occur of (i) the one year period following the Consummation of the Registered
Exchange Offer, (ii) the date on which, in the opinion of counsel to the
Company, all of the Transfer Restricted Securities then held by the Holders may
be sold by such Holders in the public U.S. securities markets in the absence of
a registration statement covering such sales and (iii) the date on which there
ceases to be outstanding any Transfer Restricted Securities.

"EXCHANGE OFFER REGISTRATION STATEMENT" means a registration statement of the
Company on an appropriate form under the Act with respect to the Registered
Exchange Offer, all amendments and supplements to such registration statement,
including post-effective amendments, and in each case, including the Prospectus
contained therein, all exhibits thereto and all material incorporated by
reference therein.

"EXCHANGING DEALER" means any Holder (which may include the Initial Purchasers)
that is a broker-dealer, electing to exchange Transfer Restricted Securities,
acquired for its own account as a result of market-making activities or other
trading activities, for Exchange Notes.

"HOLDER" has the meaning set forth in Section 2 hereof.

"INDENTURE" means the indenture, dated as of October 2, 2000, between the
Company and the Trustee, relating to the Notes, as the same may be amended from
time to time in accordance with the terms thereof.

"INITIAL PLACEMENT" has the meaning set forth in the preamble hereto.

"LOSSES" has the meaning set forth in Section 8(d) hereof.

"MAJORITY HOLDERS" means the Holders of a majority of the aggregate principal
amount at maturity of securities registered under a Registration Statement.

"MANAGING UNDERWRITERS" means the investment banker or investment bankers and
manager or managers that shall administer an underwritten offering.

"NOTES" has the meaning set forth in the preamble hereto.

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"PROSPECTUS" means the prospectus included in any Registration Statement
(including, without limitation, a prospectus that discloses information
previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A under the Act), as amended or supplemented
by any prospectus supplement, with respect to the terms of the offering of any
portion of Transfer Restricted Securities or the Exchange Notes, covered by such
Registration Statement, and all amendments and supplements to the Prospectus,
including post-effective amendments.

"REGISTERED EXCHANGE OFFER" means the proposed offer to the Holders to issue and
deliver to such Holders, in exchange for Notes, a like principal amount at
maturity of the Exchange Notes.

"REGISTRATION STATEMENT" means any Exchange Offer Registration Statement or any
Shelf Registration Statement, which is filed pursuant to the provisions hereof,
and in each case, including the Prospectus contained therein, all amendments and
supplements thereto, including post-effective amendments, and all exhibits
thereto and all material incorporated by reference therein.

"SHELF REGISTRATION" means a registration effected pursuant to Section 4 hereof.

"SHELF REGISTRATION PERIOD" has the meaning set forth in Section 4(b) hereof.

"SHELF REGISTRATION STATEMENT" means a "shelf" registration statement of the
Company pursuant to the provisions of Section 4 hereof that covers some or all
of the Transfer Restricted Securities as applicable, on an appropriate form
under Rule 415 under the Act, or any similar rule that may be adopted by the
Commission, amendments and supplements to such registration statement, including
post-effective amendments, and in each case, including the Prospectus contained
therein, all exhibits thereto and all material incorporated by reference
therein.

"SUPPLEMENT DELAY PERIOD" means any period commencing on the date of receipt by
a Holder of Transfer Restricted Securities or Exchange Notes of any notice from
the Company of the existence of any fact or event of the kind described in
Section 5(b)(2) hereof and ending on the date of receipt by such Holder of an
amended or supplemented Registration Statement or Prospectus, as contemplated by
Section 5(j) hereof, or the receipt by such Holder of written notice from the
Company (the "ADVICE") that the use of the Prospectus may be resumed, and the
receipt of copies of any additional or supplemental filings that are
incorporated by reference in the Prospectus.

"TRANSFER RESTRICTED SECURITIES" means each Note until (i) the date on which
such Note has been exchanged by a person other than a broker-dealer for an
Exchange Note in the Registered Exchange Offer, (ii) following the exchange by
an Exchanging Dealer in the Registered Exchange Offer of a Note for an Exchange
Note, the date on which such Exchange Note is sold to a purchaser who receives
from such broker-dealer on or prior to the date of such sale a copy of the
prospectus contained in the Exchange Offer Registration Statement, (iii) the
date on which such Note has been effectively registered under the Act and
disposed of in accordance with the Shelf Registration Statement (iv) the date on
which such Note is distributed to the public pursuant to Rule 144 under the Act
(or any similar provision then in effect) or is saleable pursuant to Rule 144(k)
under the Act or (v) the date upon which such Note ceases to be outstanding.

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"TRUSTEE" means the trustee with respect to the Notes under the Indenture.

"UNDERWRITER" means any underwriter of Notes in connection with an offering
thereof under a Shelf Registration Statement.

2.   HOLDERS

A person is deemed to be a holder of Transfer Restricted Securities (each, a
"HOLDER") whenever such person becomes the registered holder of such Notes under
the Indenture and includes broker-dealers that hold Transfer Restricted
Securities (i) as a result of market making activities and other trading
activities and (ii) which were acquired directly from the Company or an
Affiliate.

3.   REGISTERED EXCHANGE OFFER

(a)  The Company shall prepare and, on or prior to 90 days following the Closing
     Date, shall file with the Commission the Exchange Offer Registration
     Statement with respect to the Registered Exchange Offer. The Company shall
     use its best efforts to cause the Exchange Offer Registration Statement to
     become effective under the Act on or prior to 180 days after the Closing
     Date. The Company shall use its best efforts to Consummate the Registered
     Exchange Offer on or prior to 220 days after the Closing Date.

(b)  Upon the effectiveness of the Exchange Offer Registration Statement, the
     Company shall promptly commence the Registered Exchange Offer, it being the
     objective of such Registered Exchange Offer to enable each Holder electing
     to exchange Transfer Restricted Securities for Exchange Notes (assuming
     that such Holder is not an Affiliate of the Company within the meaning of
     the Act, acquires the Exchange Notes in the ordinary course of such
     Holder's business and has no arrangements with any person to participate in
     the distribution of the Exchange Notes) to trade such Exchange Notes from
     and after their receipt without any limitations or restrictions under the
     Act and without material restrictions under the securities laws of a
     substantial proportion of the several states of the United States.

(c)  In connection with the Registered Exchange Offer, the Company shall:

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

     (ii)   keep the Registered Exchange Offer open for not less than 30 days
            and not more than 45 days after the date notice thereof is mailed to
            the Holders (or longer if required by applicable law);

     (iii)  utilize the services of one or more depositaries or exchange agents
            (which, in either case, may be the Trustee) for the Registered
            Exchange Offer with an address (A) in the Borough of Manhattan, The
            City of New York and (B) if the Notes are then listed on the
            Luxembourg Stock Exchange and the rules of the Luxembourg Stock
            Exchange so require, Luxembourg; and

     (iv)   comply in all material respects with all applicable laws.

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(d)  As soon as practicable after the close of the Registered Exchange Offer,
     the Company shall:

     (i)    accept for exchange all Transfer Restricted Securities tendered and
            not validly withdrawn pursuant to the Registered Exchange Offer;

     (ii)   deliver to the Trustee for cancellation all Transfer Restricted
            Securities so accepted for exchange; and

     (iii)  cause the Trustee or the Exchange Notes Trustee, as the case may be,
            promptly to authenticate and deliver to each Holder of Transfer
            Restricted Securities, Exchange Notes of a like principal amount at
            maturity to the Transfer Restricted Securities of such Holder so
            accepted for exchange.

(e)  The Initial Purchasers and the Company acknowledge that, pursuant to
     interpretations by the Commission's staff of Section 5 of the Act, and in
     the absence of an applicable exemption therefrom, each Exchanging Dealer is
     required to deliver a Prospectus in connection with a sale of any Exchange
     Notes received by such Exchanging Dealer pursuant to the Registered
     Exchange Offer in exchange for Transfer Restricted Securities acquired for
     its own account as a result of market-making activities or other trading
     activities. Accordingly, the Company shall, subject to comment by the
     Commission staff:

     (i)    include the information set forth in (A) Annex A hereto on the cover
            of the Exchange Offer Registration Statement, (B) Annex B hereto in
            the forepart of the Exchange Offer Registration Statement in a
            section setting forth details of the Registered Exchange Offer, (C)
            Annex C hereto in the "Plan of Distribution" section of the
            Prospectus contained in the Exchange Offer Registration Statement
            and (D) Annex D hereto in the Letter of Transmittal delivered
            pursuant to the Registered Exchange Offer; and

     (ii)   use its best efforts to keep the Exchange Offer Registration
            Statement continuously effective (subject to the existence of a
            Supplement Delay Period) under the Act during the Exchange Offer
            Registration Period for delivery by Exchanging Dealers in connection
            with sales of Exchange Notes received pursuant to the Registered
            Exchange Offer, as contemplated by Section 5(g) below.

(f)  In the event that any Initial Purchaser determines that it is not eligible
     to participate in the Registered Exchange Offer with respect to the
     exchange of Transfer Restricted Securities constituting any portion of an
     unsold allotment of Notes, at the written request of such Initial
     Purchaser, the Company shall issue and deliver to such Initial Purchaser or
     the party purchasing Transfer Restricted Securities registered under a
     Shelf Registration Statement as contemplated by Section 4 hereof from such
     Initial Purchaser, in exchange for such Transfer Restricted Securities, a
     like principal amount at maturity of Exchange Notes. Exchange Notes issued
     in exchange for Transfer Restricted Securities constituting any portion of
     an unsold allotment of Notes that are not registered under a Shelf
     Registration Statement as contemplated by Section 4 hereof shall bear a
     legend as to restrictions on transfer. The Company shall seek to cause the
     CUSIP Service Bureau to issue the same CUSIP/ISIN/Common

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     Code number for such Exchange Notes as for Exchange Notes issued pursuant
     to the Registered Exchange Offer.

4.   SHELF REGISTRATION

If, (i) the Company is not required to file the Exchange Offer Registration
Statement nor permitted to Consummate the Registered Exchange Offer because the
Registered Exchange Offer is not permitted by applicable law or Commission
policy or (ii) any Holder of Transfer Restricted Securities notifies the Company
in writing within 10 business days of the filing and effectiveness under the Act
of the Exchange Offer Registration Statement that (A) it is prohibited by law or
Commission policy from participating in the Registered Exchange Offer, (B) it
may not resell the Exchange Notes acquired by it in the Registered Exchange
Offer to the public without delivering a prospectus, and the prospectus
contained in the Exchange Offer Registration Statement is not appropriate or
available for such resales or (C) it is a broker-dealer and owns Notes acquired
directly from the Company or an Affiliate (it being understood that, for
purposes of this Section 4, (x) the requirement that an Initial Purchaser
deliver a Prospectus containing the information required by Items 507 and/or 508
of Regulation S-K under the Act in connection with sales of Exchange Notes
acquired in exchange for such Notes shall result in such Exchange Notes being
not "freely tradeable" but (y) the requirement that an Exchanging Dealer deliver
a Prospectus in connection with sales of Exchange Notes acquired in the
Registered Exchange Offer in exchange for Notes acquired as a result of
market-making activities or other trading activities shall not result in such
Exchange Notes being not "freely tradeable"), the following provisions shall
apply:

(a)  The Company shall as promptly as practicable, file with the Commission and
     thereafter shall use its best efforts to cause to be declared effective
     under the Act on or prior to 220 days after the date of original issuance
     of the Notes, a Shelf Registration Statement relating to the offer and sale
     of the Transfer Restricted Securities by the Holders from time to time in
     accordance with the methods of distribution elected by such Holders and set
     forth in such Shelf Registration Statement; provided, however, that with
     respect to Exchange Notes received by an Initial Purchaser in exchange for
     Transfer Restricted Securities constituting any portion of an unsold
     allotment of Notes, the Company may, if permitted by current
     interpretations by the Commission's staff, file a post-effective amendment
     to the Exchange Offer Registration Statement containing the information
     required by Regulation S-K Items 507 and/or 508, as applicable, in
     satisfaction of its obligations under this paragraph (a) with respect
     thereto, and any such Exchange Offer Registration Statement, as so amended,
     shall be referred to herein as, and governed by the provisions herein
     applicable to, a Shelf Registration Statement.

(b)  The Company shall use its best efforts to keep the Shelf Registration
     Statement continuously effective in order to permit the Prospectus forming
     part thereof to be usable by Holders for a period of two years from the
     date the Shelf Registration statement is declared effective by the
     Commission (or until one year after such effective date if such Shelf
     Registration Statement is filed at the request of an Initial Purchaser) or
     such shorter period that will terminate when (i) all the Transfer
     Restricted Securities covered by the Shelf Registration Statement have been
     sold pursuant to the Shelf Registration Statement, (ii) the date on which,
     in the opinion of counsel to the Company, all of the Transfer Restricted
     Securities then held by the Holders may be sold by such Holders in the
     public United States securities markets in

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     the absence of a registration statement covering such sales or (iii) the
     date on which there ceases to be outstanding any Transfer Restricted
     Securities (in any such case, such period being called the "SHELF
     REGISTRATION PERIOD"). The Company shall be deemed not to have used its
     best efforts to keep the Shelf Registration Statement effective during the
     requisite period if it voluntarily takes any action that would result in
     Holders of Transfer Restricted Securities covered thereby not being able to
     offer and sell such securities during that period, unless (i) such action
     is required by applicable law, (ii) such action is taken by the Company in
     good faith and for valid business reasons (not including avoidance of the
     Company's obligations hereunder), including the acquisition or divestiture
     of assets, so long as the Company promptly thereafter complies with the
     requirements of Section 5(j) hereof, if applicable or (iii) such action is
     taken because of any fact or circumstance giving rise to a Supplement Delay
     Period.

5.   REGISTRATION PROCEDURES

In connection with any Shelf Registration Statement and, to the extent
applicable, any Exchange Offer Registration Statement, the following provisions
shall apply:

(a)  The Company shall ensure that (i) any Registration Statement and any
     amendment thereto and any Prospectus forming part thereof and any amendment
     or supplement thereto complies in all material respects with the Act and
     the rules and regulations thereunder, (ii) any Registration Statement and
     any amendment thereto does not, when it becomes effective, contain an
     untrue statement of a material fact or omit to state a material fact
     required to be stated therein or necessary to make the statements therein
     not misleading and (iii) any Prospectus forming part of any Registration
     Statement, and any amendment or supplement to such Prospectus, does not
     include an untrue statement of a material fact or omit to state a material
     fact necessary in order to make the statements, in the light of the
     circumstances under which they were made, not misleading.

(b)  (1)    The Company shall advise the Initial Purchasers and, in the case of
            a Shelf Registration Statement, the Holders of Transfer Restricted
            Securities covered thereby, and, if requested by the Initial
            Purchasers or any such Holder, confirm such advice in writing when a
            Registration Statement and any amendment thereto has been filed with
            the Commission and when the Registration Statement or any
            post-effective amendment thereto has become effective.

     (2)    The Company shall advise the Initial Purchasers and, in the case of
            a Shelf Registration Statement, the Holders of Transfer Restricted
            Securities covered thereby, and, in the case of an Exchange Offer
            Registration Statement, any Exchanging Dealer which has provided in
            writing to the Company a telephone or facsimile number and address
            for notices, and, if requested by the Initial Purchasers or any such
            Holder or Exchanging Dealer, confirm such advice in writing:

            (i)    of any request by the Commission for amendments or
                   supplements to the Registration Statement or the Prospectus
                   included therein or for additional information;

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            (ii)   of the initiation by the Commission of proceedings relating
                   to a stop order suspending the effectiveness of the
                   Registration Statement;

            (iii)  of the issuance by the Commission of any stop order
                   suspending the effectiveness of the Registration Statement;

            (iv)   of the receipt by the Company of any notification with
                   respect to the suspension of the qualification of the
                   securities included therein for sale in any jurisdiction or
                   the initiation or threatening of any proceeding for such
                   purpose; and

            (v)    of the existence of any fact and the happening of any event
                   (including, without limitation, pending negotiations relating
                   to, or the consummation of, a transaction or the occurrence
                   of any event which would require additional disclosure of
                   material non-public information by the Company in the Shelf
                   Registration Statement as to which the Company has a bona
                   fide business purpose for preserving confidential or which
                   renders the Company unable to comply with Commission
                   requirements) that, in the opinion of the Company, makes
                   untrue any statement of a material fact made in its Shelf
                   Registration Statement, the Prospectus or any amendment or
                   supplement thereto or any document incorporated by reference
                   therein or requires the making of any changes in the
                   Registration Statement or the Prospectus so that, as of such
                   date, the statements therein are not misleading and do not
                   omit to state a material fact required to be stated therein
                   or necessary to make the statements therein (in the case of
                   the Prospectus, in light of the circumstances under which
                   they were made) not misleading.

            Such advice may be accompanied by an instruction to suspend the use
            of the Prospectus until the requisite changes have been made.

(c)  The Company shall use its best efforts to obtain the withdrawal of any
     order suspending the effectiveness of any Registration Statement at the
     earliest possible time.

(d)  The Company shall use its best efforts to furnish to each selling Holder
     included within the coverage of any Shelf Registration Statement who so
     requests in writing and who has provided to the Company an address for
     notices, without charge, at least one conformed copy of such Shelf
     Registration Statement and any post-effective amendment thereto, including
     financial statements and, if the Holder so requests in writing, all
     exhibits and schedules (including those incorporated by reference).

(e)  The Company shall, during the Shelf Registration Period, deliver to each
     Holder of Transfer Restricted Securities covered by any Shelf Registration
     Statement and who has provided to the Company an address for notices,
     without charge, as many copies of the Prospectus (including each
     preliminary Prospectus) contained in such Shelf Registration Statement and
     any amendment or supplement thereto as such Holder may reasonably request;
     subject to any notice by the Company in accordance with Section 6(b)
     hereof, the Company consents to the use of the Prospectus or any amendment
     or supplement thereto by each of the selling Holders for the purposes of
     offering and

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     resale of the Transfer Restricted Securities covered by the Prospectus in
     accordance with the applicable regulations promulgated under the Act.

(f)  The Company shall furnish to each Exchanging Dealer, which so requests in
     writing, without charge, at least one copy of the Exchange Offer
     Registration Statement and any post-effective amendment thereto, including
     financial statements, and, if the Exchanging Dealer so requests in writing,
     any documents incorporated by reference therein and all exhibits and
     schedules (including those incorporated by reference).

(g)  The Company shall, during the Exchange Offer Registration Period, promptly
     deliver to each Exchanging Dealer, without charge, as many copies of the
     Prospectus included in such Exchange Offer Registration Statement and any
     amendment or supplement thereto as such Exchanging Dealer may reasonably
     request for delivery by such Exchanging Dealer in connection with a sale of
     Exchange Notes received by it pursuant to the Registered Exchange Offer;
     the Company consents to the use of the Prospectus or any amendment or
     supplement thereto by any such Exchanging Dealer for the purposes
     contemplated by the Act or the applicable regulations promulgated under the
     Act.

(h)  Prior to the Registered Exchange Offer or any offering of Transfer
     Restricted Securities pursuant to any Registration Statement, the Company
     shall register or qualify or cooperate with the Holders of Transfer
     Restricted Securities named therein and their respective counsel in
     connection with the registration or qualification of such Transfer
     Restricted Securities for offer and sale under the securities or blue sky
     laws of such jurisdictions of the United States as any such Holders
     reasonably request in writing not later than the date that is five business
     days prior to the date upon which this Agreement specifies that the
     Registration Statement shall become effective; provided, however, that the
     Company will not be required to qualify generally to do business in any
     jurisdiction where it is not then so qualified or to take any action which
     would subject it to general service of process or to taxation in any such
     jurisdiction where it is not then so subject.

(i)  The Company shall endeavor to cooperate with the Holders of Transfer
     Restricted Securities to facilitate the timely preparation and delivery of
     certificates representing Transfer Restricted Securities to be sold
     pursuant to any Registration Statement free of any restrictive legends and
     in such denominations and registered in such names as Holders may request
     in writing at least two business days prior to sales of securities pursuant
     to such Registration Statement.

(j)  Upon the occurrence of any event contemplated by paragraph (b)(2)(v)
     hereof, the Company shall promptly prepare a post-effective amendment to
     any Registration Statement or an amendment or supplement to the related
     Prospectus or file any other required document so that as thereafter
     delivered to purchasers of the Transfer Restricted Securities covered
     thereby, the Prospectus will not include an untrue statement of a material
     fact or omit to state any material fact necessary to make the statements
     therein, in the light of the circumstances under which they were made, not
     misleading; provided that in the event of a material business transaction
     (including, without limitation, pending negotiations relating to such a
     transaction) which would, in the opinion of counsel to the Company, require
     disclosure by the Company in the Shelf Registration Statement of material
     non-public information for which the

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     Company has a bona fide business purpose for not disclosing, then for so
     long as such circumstances exist, the Company shall not be required to
     prepare and file a supplement or post-effective amendment hereunder.

(k)  Not later than the effective date of any such Registration Statement
     hereunder, the Company shall cause to be provided a CUSIP/ISIN number for
     the Notes or Exchange Notes, as the case may be, registered under such
     Registration Statement, and provide the applicable trustee with printed
     certificates for such Notes or Exchange Notes, in a form eligible for
     deposit with DTC, Euroclear or Clearstream, as the case may be.

(l)  The Company shall use its best efforts to comply with all applicable rules
     and regulations of the Commission and shall make generally available to its
     security holders in a regular filing on Form 10-Q or 10-K an earnings
     statement satisfying the provisions of Rule 158 (which need not be audited)
     for the twelve-month period commencing after effectiveness of the Shelf
     Registration Statement.

(m)  The Company shall cause the Indenture or the Exchange Notes Indenture, as
     the case may be, to be qualified under the Trust Indenture Act in a timely
     manner.

(n)  The Company may require each Holder of Transfer Restricted Securities,
     which are to be sold pursuant to any Shelf Registration Statement, to
     furnish to the Company within 20 business days after written request for
     such information has been made by the Company, such information regarding
     the Holder and the distribution of such securities as the Company may from
     time to time reasonably require for inclusion in such Registration
     Statement and such other information as may be necessary or advisable in
     the reasonable opinion of the Company and its counsel, in connection with
     such Shelf Registration Statement. No Holder of Transfer Restricted
     Securities shall be entitled to use the Prospectus unless and until such
     Holder shall have furnished the information required by this Section 5(n)
     and all such information required to be disclosed in order to make the
     information previously furnished to the Company by such Holder not
     materially misleading.

(o)  The Company shall, if requested, promptly incorporate in a Prospectus
     supplement or post-effective amendment to a Shelf Registration Statement,
     such information as the Managing Underwriters and Majority Holders
     reasonably agree should be included therein and shall make all required
     filings of such Prospectus supplement or post-effective amendment as soon
     as notified of the matters to be incorporated in such Prospectus supplement
     or post-effective amendment; provided, however, that the Company shall not
     be required to take any action pursuant to this Section 5(o) that would, in
     the opinion of counsel for the Company, violate applicable law or to
     include information the disclosure of which at the time would have an
     adverse effect on the business or operations of the Company and/or its
     subsidiaries, as determined in good faith by the Company.

(p)  In the case of any Shelf Registration Statement, the Company shall enter
     into such agreements (including underwriting agreements) and take all other
     reasonably appropriate actions in order to expedite or facilitate the
     registration or the disposition of the Transfer Restricted Securities, and
     in connection therewith, if an underwriting agreement is entered into,
     cause the same to contain indemnification provisions and procedures no less
     favorable than those set forth in Section 8 (or such other provisions

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     and procedures acceptable to the Majority Holders and the Managing
     Underwriters, if any), with respect to all parties to be indemnified
     pursuant to Section 8 from Holders of Notes to the Company.

(q)  In the case of any Shelf Registration Statement, the Company shall:

     (i)    make reasonably available for inspection by representatives of the
            Holders of Transfer Restricted Securities to be registered
            thereunder, the Managing Underwriter participating in any
            disposition pursuant to such Registration Statement, and any
            attorney, accountant or other agent retained by the Holders or any
            such Managing Underwriter, at the office where normally kept during
            normal business hours, all financial and other records, pertinent
            corporate documents and properties of the Company and its
            subsidiaries, and cause the Company's officers, directors and
            employees to supply all relevant information reasonably requested by
            the Holders or any Managing Underwriter, attorney, accountant or
            other agent in connection with any such Registration Statement as is
            customary for similar due diligence examinations; provided, however,
            that the foregoing inspection and information gathering shall be
            coordinated by the Managing Underwriters, if any, or by one counsel
            designated by the Holders and that such persons shall first agree in
            writing with the Company that any information that is designated in
            writing by the Company, in good faith, as confidential at the time
            of delivery of such information shall be kept confidential by such
            person, unless such disclosure is made in connection with a court
            proceeding or required by law, or such information becomes available
            to the public generally or through a third party without an
            accompanying obligation of confidentiality;

     (ii)   make such representations and warranties to the Holders of Transfer
            Restricted Securities registered thereunder and the underwriters, if
            any, in form, substance and scope as are customarily made by issuers
            to underwriters in underwritten offerings and covering matters
            including, but not limited to, those set forth in the Purchase
            Agreement;

     (iii)  obtain opinions of counsel to the Company and updates thereof (which
            counsel and opinions (in form, scope and substance) shall be
            reasonably satisfactory to the Managing Underwriters, if any),
            addressed to each selling Holder and the underwriters, if any,
            covering such matters as are customarily covered in opinions
            requested in underwritten offerings and such other matters as may be
            reasonably requested by such Holders and underwriters;

     (iv)   obtain "cold comfort" letters (or, in the case of any person that
            does not satisfy the conditions for receipt of a "cold comfort"
            letter specified in Statement on Auditing Standards No. 72, an
            "agreed-upon procedures letter") and updates thereof from the
            independent certified public accountants of the Company (and, if
            necessary, any other independent certified public accountants of any
            subsidiary of the Company or of any business acquired by the Company
            for which financial statements and financial data are, or are
            required to be, included in the Registration Statement), addressed
            where reasonably practicable to each selling Holder of Transfer
            Restricted Securities registered thereunder and the underwriters, if
            any, in customary form and covering

                                     - 11 -
<PAGE>   13

            matters of the type customarily covered in "cold comfort" letters in
            connection with primary underwritten offerings; and

     (v)    deliver such documents and certificates as may be reasonably
            requested by the Majority Holders and the Managing Underwriters, if
            any, including those to evidence compliance with Section 5(j) and
            with any customary conditions contained in the underwriting
            agreement or other agreement entered into by the Company.

     The foregoing actions set forth in clauses (ii), (iii), (iv) and (v) of
     this Section 5(q) shall, if reasonably requested by the Majority Holder or
     the Majority Underwriters, be performed at (A) the effectiveness of such
     Registration Statement and each post-effective amendment thereto and (B)
     each closing under any underwriting or similar agreement, as to the extent
     required thereunder.

(r)  The Company may offer securities of the Company other than the Notes or the
     Exchange Notes under the Shelf Registration Statement, except where such
     offer would conflict with the terms of the Purchase Agreement.

6.   HOLDERS' AGREEMENTS

Each Holder of Transfer Restricted Securities and Exchange Notes, by the
acquisition of such Transfer Restricted Securities or Exchange Notes, as the
case may be, agrees:

(a)  To furnish the information required to be furnished pursuant to Section
     5(n) hereof within the time period set forth therein.

(b)  That upon receipt of a notice of the commencement of a Supplement Delay
     Period, it will keep the fact of such notice confidential, forthwith
     discontinue disposition of its Transfer Restricted Securities or Exchange
     Notes, as the case may be, pursuant to the Registration Statement, and will
     not deliver any Prospectus forming a part thereof until receipt of the
     amended or supplemented Registration Statement or Prospectus, as
     applicable, as contemplated by Section 5(j) hereof, or until receipt of the
     Advice. If a Supplement Delay Period should occur, the Exchange Offer
     Registration Period or the Shelf Registration Period, as applicable, shall
     be extended by the number of days of which the Supplement Delay Period is
     comprised; provided that the Shelf Registration Period shall not be
     extended if the Company has received an opinion of counsel (which counsel,
     if different from counsel to the Company referred to in Section 6(a) and
     (b) of the Purchase Agreement, shall be reasonably satisfactory to the
     Majority Holders of the Transfer Restricted Securities named in the Shelf
     Registration Period) to the effect that the Transfer Restricted Securities
     can be freely tradeable without the continued effectiveness of the Shelf
     Registration Statement.

(c)  If so directed by the Company in a notice of the commencement of a
     Supplement Delay Period, each Holder of Transfer Restricted Securities or
     Exchange Notes, as the case may be, will deliver to the Company (at the
     Company's expense) all copies, other than permanent file copies then in
     such Holder's possession, of the Prospectus covering the Transfer
     Restricted Securities or Exchange Notes, as the case may be.

                                     - 12 -
<PAGE>   14

(d)  Sales of such Transfer Restricted Securities pursuant to a Registration
     Statement shall only be made in the manner set forth in such currently
     effective Registration Statement.

7.   REGISTRATION EXPENSES

The Company shall bear all expenses incurred in connection with the performance
of its obligations under Sections 3, 4 and 5 hereof and, in the event of any
Shelf Registration Statement, will reimburse the Holders for the reasonable fees
and disbursements of one firm or counsel designated by the Majority Holders to
act as counsel for the Holders in connection therewith, and, in the case of any
Exchange Offer Registration Statement, will reimburse the Initial Purchasers for
the reasonable fees and disbursements of counsel acting in connection therewith.
Notwithstanding the foregoing or anything in this Agreement to the contrary,
each Holder shall pay all underwriting discounts and commission of any
underwriters with respect to any Transfer Restricted Securities sold by it.

8.   INDEMNIFICATION AND CONTRIBUTION

(a)  In connection with Registration Statement, the Company agrees to indemnify
     and hold harmless each Holder of Transfer Restricted Securities covered
     thereby (including each Initial Purchaser and, with respect to any
     Prospectus delivery as contemplated in Section 5(g) hereof, each Exchanging
     Dealer), the directors, officers, employees, partners, representatives and
     agents of each such Holder and each person who controls any such Holder
     within the meaning of either Section 15 of the Act or Section 20 of the
     Exchange Act against any and all losses, claims, damages or liabilities,
     joint or several, to which they or any of them may become subject under the
     Act, the Exchange Act or other Federal or state statutory law or
     regulation, at common law or otherwise, insofar as such losses, claims,
     damages or liabilities (or actions in respect thereof) arise out of, or are
     based upon, any untrue statement or alleged untrue statement of a material
     fact contained in the Registration Statement as originally filed or in any
     amendment thereof, or in any preliminary Prospectus or Prospectus, or in
     any amendment thereof or supplement thereto, or arise out of, or are based
     upon, the omission or alleged omission to state therein a material fact
     required to be stated therein or necessary to make the statements therein
     not misleading, and to reimburse each such indemnified party, as incurred,
     for any legal or other expenses reasonably incurred by them in connection
     with investigating or defending any such loss, claim, damage, liability or
     action; provided, however, that (i) the Company will not be liable in any
     case to the extent that any such loss, claim, damage or liability arises
     out of, or is based upon, any such untrue statement or alleged untrue
     statement or omission or alleged omission made therein in reliance upon and
     in conformity with written information furnished to the Company by or on
     behalf of any such Holder or by the Managing Underwriters specifically for
     inclusion therein and (ii) the Company will not be liable to any
     indemnified party under this indemnity agreement with respect to the
     Registration Statement or Prospectus to the extent that any such loss,
     claim, damage or liability of such indemnified party results solely from an
     untrue statement of a material fact contained in, or the omission of a
     material fact from, the Registration Statement or Prospectus, which untrue
     statement or omission was corrected in an amended or supplemented
     Registration Statement or Prospectus, if the person alleging such loss,
     claim, damage or liability was not sent or given, at or prior to the
     written confirmation of such sale, a copy of the amended or supplemented

                                     - 13 -
<PAGE>   15

     Registration Statement or Prospectus if the Company had previously
     furnished copies thereof to such indemnified party and if delivery of a
     prospectus is required by the Act and was not so made. This indemnity
     agreement will be in addition to any liability which the Company may
     otherwise have.

     The Company also agrees to indemnify or contribute to Losses of, as
     provided in Section 8(d), any underwriters of Notes registered under a
     Shelf Registration Statement, their officers and directors and each person
     who controls such underwriters on substantially the same basis as that of
     the indemnification of the Initial Purchasers and the selling Holders
     provided in this Section 8(a) and shall, if requested by any Holder, enter
     into an underwriting agreement reflecting such agreement, as provided in
     Section 5(p) hereof.

(b)  Each Holder of Transfer Restricted Securities or Exchange Notes covered by
     a Registration Statement (including each Initial Purchaser and, with
     respect to any Prospectus delivery as contemplated in Section 5(g) hereof,
     each Exchanging Dealer) severally agrees to indemnify and hold harmless (i)
     the Company, (ii) each of its directors, (iii) each of its officers who
     signs such Registration Statement and (iv) each person who controls the
     Company within the meaning of either the Act or the Exchange Act to the
     same extent as the foregoing indemnity from the Company to each such
     Holder, but only with reference to written information relating to such
     Holder furnished to the Company by or on behalf of such Holder specifically
     for inclusion in the documents referred to in the foregoing indemnity. This
     indemnity agreement will be in addition to any liability which any such
     Holder may otherwise have. In no event shall any Holder, its directors,
     officers or any person who controls such Holder be liable or responsible
     for any amount in excess of the amount by which the total amount received
     by such Holder with respect to its sale of Transfer Restricted Securities
     pursuant to a Registration Statement exceeds (i) the amount paid by such
     Holder for such Transfer Restricted Securities and (ii) the amount of any
     damages that such Holder, its directors, officers or any person who
     controls such Holder has otherwise been required to pay by reason of such
     untrue or alleged untrue statement or omission or alleged omission.

(c)  Promptly after receipt by an indemnified party under this Section 8 or
     notice of the commencement of any action, the indemnified party will, if a
     claim in respect thereof is to be made against the indemnifying party under
     this Section 8, notify the indemnifying party in writing of the
     commencement thereof; but the failure to so notify the indemnifying party
     (i) will not relieve it from liability under paragraph (a) or (b) above
     unless and to the extent it did not otherwise learn of such action and such
     failure results in the forfeiture by the indemnifying party of substantial
     rights and defenses and (ii) will not, in any event, relieve the
     indemnifying party from any obligations to any indemnified party other than
     the indemnification obligation provided in paragraph (a) or (b) above. The
     indemnifying party shall be entitled to appoint counsel of the indemnifying
     party's choice at the indemnifying party's expense to represent the
     indemnified party in any action for which indemnification is sought (in
     which case the indemnifying party shall not thereafter be responsible for
     the fees and expenses of any separate counsel retained by the indemnified
     party or parties except as set forth below); provided, however, that such
     counsel shall be reasonably satisfactory to the indemnified party.
     Notwithstanding the indemnifying party's election to appoint counsel to
     represent the indemnified party in an action, the

                                     - 14 -
<PAGE>   16

     indemnified party shall have the right to employ separate counsel
     (including local counsel), and the indemnifying party shall bear the
     reasonable fees, costs and expenses of such separate counsel (and local
     counsel) if (i) the use of counsel chosen by the indemnifying party to
     represent the indemnified party would present such counsel with a conflict
     of interest, (ii) the actual or potential defendants in, or targets of, any
     such action include both the indemnified party and the indemnifying party,
     and the indemnified party reasonably concluded that there may be legal
     defenses available to it and/or other indemnified parties that are
     different from or additional to those available to the indemnifying party,
     (iii) the indemnifying party did not employ counsel satisfactory to the
     indemnified party to represent the indemnified party within a reasonable
     time after notice of the institution of such action or (iv) the
     indemnifying party authorized the indemnified party to employ separate
     counsel at the expense of the indemnifying party. An indemnifying party
     shall not, without the prior written consent of the indemnified parties,
     settle or compromise or consent to the entry of any judgment with respect
     to any pending or threatened claim, action, suit or proceeding for which
     indemnification or contribution may be sought hereunder (whether or not the
     indemnified parties are actual or potential parties to such claim or
     action), unless such settlement, compromise or consent includes an
     unconditional release of each indemnified party from all liability arising
     out of such claim, action, suit or proceeding and does not include a
     statement as to or an admission of fault, culpability or a failure to act,
     by or on behalf of the indemnified party.

(d)  In the event that the indemnity provided in paragraph (a) or (b) of this
     Section 8 is unavailable or insufficient to hold harmless an indemnified
     party for any reason, then each applicable indemnifying party, in lieu of
     indemnifying such indemnified party, shall have a joint and several
     obligation to contribute to the aggregate losses, claims, damages and
     liabilities (including legal or other expenses reasonably incurred in
     connection with investigating or defending same) (collectively "LOSSES") to
     which such indemnified party may be subject in such proportion as is
     appropriate to reflect the relative benefits received by such indemnifying
     party, on the one hand, and such indemnified party, on the other hand, from
     the Initial Placement and the Registration Statement that resulted in such
     Losses; provided, however, that in no case shall any Initial Purchaser or
     any subsequent Holder of any Note or Exchange Note be responsible, in the
     aggregate, for any amount in excess of the purchase discount on the initial
     offering price of such Notes or commission applicable to such Note, or in
     the case of an Exchange Note, applicable to the Note which was exchangeable
     into such Exchange Note, nor shall any underwriter be responsible for any
     amount in excess of the underwriting discount or commission applicable to
     the securities purchased by such underwriter under the Registration
     Statement that resulted in such Losses. If the allocation provided by the
     immediately preceding sentence is unavailable for any reason, the
     indemnifying party and the indemnified party shall contribute in such
     proportion as is appropriate to reflect not only such relative benefits,
     but also the relative fault of such indemnifying party, on the one hand,
     and such indemnified party, on the other hand, in connection with the
     statements or omissions which resulted in such Losses, as well as any other
     relevant equitable considerations. Benefits received by the Company shall
     be deemed to be equal to the sum of (x) the total net proceeds from the
     Initial Placement (before deducting expenses) and (y) the total amount of
     additional interest that the Company was not required to pay as a result of
     registering the securities covered by the Registration

                                     - 15 -
<PAGE>   17

     Statement that resulted in such Losses. Benefits received by the Initial
     Purchasers shall be deemed to be equal to the total purchase discounts and
     commissions in connection with the Initial Placement, and benefits received
     by any other Holders shall be deemed to be equal to the value of receiving
     Notes or Exchange Notes, as applicable, registered under the Act. Benefits
     received by any underwriter shall be deemed to be equal to the total
     underwriting discounts and commissions, as set forth on the cover page of
     the Prospectus forming a part of the Registration Statement that resulted
     in such Losses. Relative fault shall be determined by reference to whether
     any alleged untrue statement or omission relates to information provided by
     the indemnifying party, on the one hand, or by the indemnified party, on
     the other hand. The parties agree that it would not be just and equitable
     if contribution were determined by pro rata allocation or any other method
     of allocation that does not take account of the equitable considerations
     referred to above. Notwithstanding the provisions of this paragraph (d), no
     person guilty of fraudulent misrepresentation (within the meaning of
     Section 11(f) of the Act) shall be entitled to contribution from any person
     who was guilty of such fraudulent misrepresentation. For purposes of this
     Section 8, each person who controls a Holder within the meaning of either
     the Act or the Exchange Act and each director, officer, employee and agent
     of such Holder shall have the same rights to contribution as such Holder,
     and each person who controls the Company within the meaning of either the
     Act or the Exchange Act, each officer of the Company who shall have signed
     the Registration Statement and each director of the Company shall have the
     same rights to contribution as the Company, subject in each case to the
     applicable terms and conditions of this paragraph (d).

(e)  The provisions of this Section 8 shall remain in full force and effect,
     regardless of any investigation made by or on behalf of any Holder or the
     Company or any of the officers, directors or controlling persons referred
     to in Section 8 hereof, and will survive the sale by a Holder of Transfer
     Restricted Securities or Exchange Notes.

9.   RULE 144A AND RULE 144

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

10.  MISCELLANEOUS

(a)  No Inconsistent Agreements. The Company has not, as of the date hereof,
     entered into, nor shall it, on or after the date hereof, enter into, any
     agreement with respect to its securities that is inconsistent with the
     rights granted to the Holders herein or otherwise conflicts with the
     provisions hereof.

                                     - 16 -
<PAGE>   18

(b)  Amendments and Waivers. The provisions of this Agreement, including the
     provisions of this sentence, may not be amended, qualified, modified or
     supplemented, and waivers or consents to departures from the provisions
     hereof may not be given, unless the Company has obtained the written
     consent of the Holders of at least a majority of the then outstanding
     aggregate principal amount of Notes (or, after the consummation of any
     Registered Exchange Offer in accordance with Section 3 hereof, of Exchange
     Notes); provided, however, that with respect to any matter that directly or
     indirectly affects the rights of any Initial Purchaser hereunder, the
     Company shall obtain the written consent of each such Initial Purchaser
     against which such amendment, qualification, supplement, waiver or consent
     is to be effective. Notwithstanding the foregoing (except the foregoing
     proviso), a waiver or consent to depart from the provisions hereof, with
     respect to a matter, which relates exclusively to the rights of Holders
     whose securities are being sold pursuant to a Registration Statement and
     does not directly or indirectly affect the rights of other Holders, may be
     given by the Majority Holders, determined on the basis of Notes being sold
     rather than registered under such Registration Statement.

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

     (i)    if to a Holder, at the most current address given by such holder to
            the Company in accordance with the provisions of this Section 10(c),
            which address initially is, with respect to each Holder, the address
            of such Holder maintained by the registrar under the Indenture or
            the Exchange Note Indenture, as the case may be, with a copy in like
            manner to Morgan Stanley & Co. International Limited;

     (ii)   if to the Initial Purchasers, initially at the respective addresses
            set forth in the Purchase Agreement; and

     (iii)  if to the Company, initially at its address set forth in the
            Purchase Agreement.

     All such notices and communications shall be deemed to have been duly given
     when received.

     The Initial Purchasers or the Company by notice to the other may designate
     additional or different addresses for subsequent notices or communications.

(d)  Successors and Assigns. This Agreement shall inure to the benefit of, and
     be binding upon, the successors and assigns of each of the parties hereto,
     including, without the need for an express assignment or any consent by the
     Company thereto, subsequent Holders of Notes and/or Exchange Notes. The
     Company hereby agrees to extend the benefits of this Agreement to any
     Holder of Notes and/or Exchange Notes and any such Holder may specifically
     enforce the provisions of this Agreement as if an original party hereto.

(e)  Counterparts. This Agreement may be executed in any number of counterparts
     and by the parties hereto in separate counterparts, each of which when so
     executed shall be

                                     - 17 -
<PAGE>   19

     deemed to be an original, and all of which taken together shall constitute
     one and the same agreement.

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

(g)  Governing Law. This Agreement shall be governed by and construed in
     accordance with the internal laws of the State of New York applicable to
     agreements made and to be performed in said State (without reference to the
     conflict of law rules thereof).

(h)  Severability. In the event that any one or more of the provisions contained
     herein, or the application thereof in any circumstances, is 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 the remaining provisions hereof shall not be in any way impaired or
     affected thereby, it being intended that all of the rights and privileges
     of the parties shall be enforceable to the fullest extent permitted by law.

(i)  Notes Held by the Company, etc. Whenever the consent or approval of Holders
     of a specified percentage of principal amount at maturity of Notes or
     Exchange Notes is required hereunder, Notes or Exchange Notes, as
     applicable, held by the Company or its Affiliates (other than subsequent
     Holders of Notes or Exchange Notes if such subsequent Holders are deemed to
     be Affiliates solely by reason of their holdings of such Notes or Exchange
     Notes) shall not be counted in determining whether such consent or approval
     was given by the Holders of such required percentage.

(j)  Entire Agreement. This Agreement is intended by the parties as a final
     expression of their agreement and intended to be a complete and exclusive
     statement of the agreement and understanding of the parties hereto with
     respect to the subject matter contained herein. There are no restrictions,
     promises, warranties or undertakings, other than those set forth or
     referred to herein with respect to the registration rights granted with
     respect to the Transfer Restricted Securities. This Agreement supersedes
     all prior agreements and understandings between the parties with respect to
     such subject matter.

                            [Signature page follows]

                                     - 18 -
<PAGE>   20

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

                                        NTL  Communications Corp.

                                        By: /s/ Richard J. Lubasch
                                            ------------------------------------
                                            Name:  Richard J. Lubasch
                                            Title: Executive Vice President,
                                                   General Counsel and Secretary

Morgan Stanley & Co. International Limited
Chase Securities Inc.
Goldman, Sachs & Co.
Banc of America Securities LLC
BNP Paribas Securities Corp.
CIBC World Markets Corp.
The Royal Bank of Scotland plc

By: Morgan Stanley & Co. International Limited

By: /s/ Donal Quigley
    ----------------------------------
    Name:  Donal Quigley
    Title: Executive Director

Registration Rights signature page

<PAGE>   21

                                     ANNEX A

Each broker-dealer that receives Exchange Notes for its own account pursuant to
the Registered Exchange Offer must acknowledge that it will deliver a prospectus
in connection with any resale of such Exchange Notes. The Letter of Transmittal
states that by so acknowledging and by delivering a prospectus, a broker-dealer
will not be deemed to admit that it is an "underwriter" within the meaning of
the Act. This Prospectus, as it may be amended or supplemented from time to
time, may be used by a broker-dealer in connection with resales of Exchange
Notes received in exchange for Notes where such Exchange Notes were acquired by
such broker-dealer as a result of market-making activities or other trading
activities. The Company has agreed that, starting on the Expiration Date (as
defined herein) and ending on the close of business on the 180th day following
the Expiration Date, it will make this Prospectus available to any broker-dealer
for use in connection with any such resale. See "Plan of Distribution."

Annex A
<PAGE>   22

                                     ANNEX B

Each broker-dealer that receives Exchange Notes for its own account in exchange
for Notes, where such Notes were acquired by such broker-dealer as a result of
market-making activities or other trading activities, must acknowledge that it
will deliver a prospectus in connection with any resale of such Exchange Notes.
See "Plan of Distribution."

Annex B

<PAGE>   23

                                     ANNEX C

                              PLAN OF DISTRIBUTION

Each broker-dealer that receives Exchange Notes for its own account pursuant to
the Registered Exchange Offer must acknowledge that it will deliver a prospectus
in connection with any resale of such Exchange Notes. The Prospectus, as it may
be amended or supplemented from time to time, may be used by a broker-dealer in
connection with resales of Exchange Notes received in exchange for Notes where
such Notes were acquired as a result of market-making activities or other
trading activities. The Company has agreed that, starting on the Expiration Date
and ending on the close of business on the 180th day following the Expiration
Date, it will make this Prospectus, as amended or supplemented, available to any
broker-dealer for use in connection with any such resale.

The Company will not receive any proceeds from any sale of Exchange Notes by
broker-dealers. Exchange Notes received by broker-dealers for their own account
pursuant to the Exchange Offer may be sold from time to time in one or more
transactions in the over-the-counter market, in negotiated transactions, through
the writing of options on the Exchange Notes or by a combination of such methods
of resale, at market prices prevailing at the time of resale, at prices related
to such prevailing market prices or at negotiated prices. Any such resale may be
made directly to purchaser or to or through brokers or dealers who may receive
compensation in the form of commissions or concessions from any such
broker-dealer and/or the purchasers of any such Exchange Notes. Any broker-
dealer that resells Exchange Notes that were received by it for its own account
pursuant to the Registered Exchange Offer and any broker or dealer that
participates in a distribution of such Exchange Notes may be deemed to be an
"underwriter" within the meaning of the Act and any profit of any such resale of
Exchange Notes and any commissions or concessions received by any such persons
may be deemed to be underwriting compensation under the Act. The Letter of
Transmittal states that by acknowledging that it will deliver and by delivering
a prospectus, a broker-dealer will not be deemed to admit that it is an
"underwriter" within the meaning of the Act.

For a period of 180 days after the Expiration Date, the Company will promptly
send additional copies of this Prospectus and any amendment or supplement to
this Prospectus to any broker-dealer that requests such documents in the Letter
of Transmittal. The Company has agreed to pay all expenses incident to the
Registered Exchange Offer (including the expenses of one counsel for the holders
of the Notes) other than commissions or concessions of any brokers or dealers
and will indemnify the holders of the Notes (including any broker-dealers)
against certain liabilities, including liabilities under the Act.

[Add information required by Regulation S-K Items 507 and/or 508.]

Annex C
<PAGE>   24

                                     ANNEX D

Rider A

[  ]     CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL
         COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS
         THERETO.

Name:    _______________________________

Address:______________________________________________________________

        ______________________________________________________________

Rider B

If the undersigned is not a broker-dealer, the undersigned represents that it is
not engaged in, and does not intend to engage in, a distribution of Exchange
Notes. If the undersigned is a broker-dealer that will receive Exchange Notes
for its own account in exchange for Notes that were acquired as a result of
market making activities or other trading activities, it acknowledges that it
will deliver a prospectus in connection with any resale of such Exchange Notes;
however, by so acknowledging and by delivering a prospectus, the undersigned
will not be deemed to admit that it is an "underwriter" within the meaning of
the Act.

Annex D<PAGE>   1
                                                                   EXHIBIT 10.25
                                                                    Page 1 of 22

                       BRADY CORPORATION RESTORATION PLAN

                            EFFECTIVE JANUARY 1, 2000

<PAGE>   2

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----
<S>               <C>                                                                                          <C>
ARTICLE I         INTRODUCTION....................................................................................1
         1.1      Establishment and Effective Date................................................................1
         1.2      Purpose.........................................................................................1

ARTICLE II        DEFINITIONS.....................................................................................2
         2.1      Account.........................................................................................2
         2.2      Affiliate.......................................................................................2
         2.3      Beneficiary.....................................................................................2
         2.4      Board...........................................................................................2
         2.5      Code............................................................................................2
         2.6      Committee.......................................................................................2
         2.7      Compensation....................................................................................2
         2.8      Elective Deferral...............................................................................2
         2.9      Elective Deferral Account.......................................................................2
         2.10     Eligible Employee...............................................................................2
         2.11     Employee .......................................................................................2
         2.12     Employer........................................................................................2
         2.13     Employer Contribution...........................................................................3
         2.14     Employer Contribution Account...................................................................3
         2.15     Matching Contribution...........................................................................3
         2.16     Matching Contribution Account...................................................................3
         2.17     Participant.....................................................................................3
         2.18     Plan............................................................................................3
         2.19     Plan Year.......................................................................................3
         2.20     Qualified 401(k) Plan ..........................................................................3

ARTICLE III       PARTICIPATION...................................................................................4
         3.1      Eligibility to Participate......................................................................4
         3.2      Continuation of Eligibility.....................................................................4

ARTICLE IV        DEFERRALS.......................................................................................5
         4.1      Elective Deferrals..............................................................................5
         4.2      Elective Deferral Elections.....................................................................5
         4.3      Matching Contribution...........................................................................6
         4.4      Employer Contribution ..........................................................................6

ARTICLE V         ACCOUNTS AND CREDITS............................................................................7
         5.1      Credits to Accounts.............................................................................7
         5.2      No Funding......................................................................................7
         5.3      Deemed Investment of Accounts...................................................................8
         5.4      Reports to Participants.........................................................................8

</TABLE>

                                       i
<PAGE>   3
<TABLE>
<S>               <C>                                                                                            <C>
ARTICLE VI        VESTING.........................................................................................9

ARTICLE VII       PAYMENT OF ACCOUNTS............................................................................10
         7.1      Termination of Employment......................................................................10
         7.2      Death..........................................................................................10
         7.3      Financial Hardship.............................................................................10
         7.4      Change in Law..................................................................................11

ARTICLE VIII      PLAN OPERATION AND ADMINISTRATION..............................................................12
         8.1      Administrator..................................................................................12
         8.2      Committee......................................................................................12
         8.3      Authority to Act...............................................................................12
         8.4      Information from Participants..................................................................12
         8.5      Committee Discretion...........................................................................12
         8.6      Committee Members' Conflict of Interest........................................................13
         8.7      Governing Law..................................................................................13
         8.8      Expenses.......................................................................................13
         8.9      Minor or Incompetent Payees....................................................................13
         8.10     Withholding....................................................................................13
         8.11     Indemnification................................................................................14

ARTICLE IX        CLAIMS PROCEDURE...............................................................................15
         9.1      Claims.........................................................................................15
         9.2      Review Procedure...............................................................................15

ARTICLE X         AMENDMENT AND TERMINATION......................................................................16

ARTICLE XI        MISCELLANEOUS PROVISIONS.......................................................................17
         11.1     Headings.......................................................................................17
         11.2     Plan Not Contract of Employment................................................................17
         11.3     Rights of Participants and Beneficiaries.......................................................17
         11.4     Nonalienation of Benefits......................................................................17
         11.5     Tax Treatment..................................................................................17
         11.6     Other Plans and Agreements.....................................................................18
         11.7     Number and Gender..............................................................................18
         11.8     Plan Provisions Controlling....................................................................18
         11.9     Severability...................................................................................18
         11.10    Evidence Conclusive............................................................................18
         11.11    Status of Plan Under ERISA.....................................................................19
         11.12     Name and Address Changes......................................................................19
</TABLE>

                                       ii
<PAGE>   4
                                    ARTICLE I

                                  INTRODUCTION

1.1      ESTABLISHMENT AND EFFECTIVE DATE

         Brady Corporation hereby establishes the Brady Corporation Restoration
         Plan effective as of January 1, 2000.

1.2      PURPOSE

         The Plan is intended to restore to key management employees of Brady
         and its affiliates income deferral opportunities and employer
         contributions they would have had under the Company's tax qualified
         Brady Gold and Money Purchase Plans but for the limitations of the
         Internal Revenue Code of 1986, as amended.

                                       1
<PAGE>   5
                                  ARTICLE II

                                  DEFINITIONS

The following terms, when used in the Plan with initial capital letters, shall
have the meaning given to them in this Article.

2.1      ACCOUNT shall mean Elective Deferral Account, Matching Contribution
         Account and Employer Contribution Account.

2.2      AFFILIATE shall mean each incorporated or unincorporated trade or
         business in which Brady Corporation directly or indirectly owns, as
         applicable, eighty percent (80%) of the voting stock or eighty percent
         (80%) of the capital or profits interest.

2.3      BENEFICIARY shall mean the person designated by a Participant in
         accordance with Section 7.2 to receive any amounts payable pursuant to
         the Plan in the event of his death.

2.4      BOARD shall mean the Board of Directors of Brady Corporation.

2.5      CODE shall mean the Internal Revenue Code of 1986, as amended, and any
         regulations issued thereunder.

2.6      COMMITTEE shall mean the Compensation Committee of the Board.

2.7      COMPENSATION shall mean the total compensation payable to a Participant
         by the Employer for any period (prior to elective deferrals under this
         Plan or any other plan or deferral agreement) required to be reported
         as wages on the Employee's Form W-2 for income tax purposes, but
         reduced by all of the following items (even if includable in gross
         income): reimbursements or other expense allowances, fringe benefits
         (cash and non-cash), moving expenses and welfare benefits.

2.8      ELECTIVE DEFERRAL shall mean the portion of a Participant's
         Compensation that is reduced and credited to his Elective Deferral
         Account pursuant to his election under Section 4.1.

2.9      ELECTIVE DEFERRAL ACCOUNT shall mean the Account maintained under the
         Plan to record a Participant's interest under the Plan attributable to
         his Elective Deferrals.

2.10     ELIGIBLE EMPLOYEE shall mean an Employee eligible under Sections 3.1
         and 3.2.

2.11     EMPLOYEE shall mean an employee of the Employer.

2.12     EMPLOYER shall mean Brady Corporation and any Affiliate that adopts the
         Plan with the approval of the Board.

2.13     EMPLOYER CONTRIBUTION shall mean the amount credited to a Participant
         pursuant to Section 4.4.

                                       2
<PAGE>   6
2.14     EMPLOYER CONTRIBUTION ACCOUNT shall mean the Account maintained under
         the Plan to record a Participant's interest under the Plan attributable
         to Employer Contributions on his behalf.

2.15     MATCHING CONTRIBUTION shall mean the amount credited to a Participant
         pursuant to Section 4.3.

2.16     MATCHING CONTRIBUTION ACCOUNT shall mean the Account maintained under
         the Plan to record a Participant's interest under the Plan attributable
         to Matching Contributions on his behalf.

2.17     PARTICIPANT shall mean (i) an Eligible Employee under Section 3.1 or
         (ii) a former Eligible Employee who has an Account under the Plan.

2.18     PLAN shall mean the Brady Corporation Restoration Plan, as set forth in
         this document, as the same may be amended or restated from time to
         time.

2.19     PLAN YEAR shall mean the calendar year.

2.20     QUALIFIED 401(K) PLAN shall mean the Brady Gold Plan (or any successor
         plan thereto qualified under Code ss.ss. 401(a) and 401(k)).

                                       3
<PAGE>   7
                                   ARTICLE III

                                  PARTICIPATION

3.1      ELIGIBILITY TO PARTICIPATE

                  An Employee shall be eligible to elect deferrals and receive
                  Employer contributions in accordance with the provisions of
                  Article IV during any Plan Year in which the Employee is
                  reasonably anticipated to earn compensation from the Employer
                  in excess of the limit described in Code Section 401(a)(17).

3.2      CONTINUATION OF ELIGIBILITY

         (a)      An Employee shall continue to be eligible to elect deferrals
                  and receive Employer contributions in accordance with the
                  provisions of Article IV only for so long as he continues in
                  employment with the Employer and satisfies the requirements of
                  Section 3.1.

         (b)      An individual who terminates employment with the Employer
                  shall cease to be eligible and shall again be eligible to
                  elect deferrals and receive Employer contributions in
                  accordance with the provisions of Article IV only in
                  accordance with Section 3.1.

                                       4
<PAGE>   8
                                   ARTICLE IV

                                    DEFERRALS

4.1      ELECTIVE DEFERRALS

         (a)      An Eligible Employee may elect an Elective Deferral of up to
                  four percent (4%) of his Compensation for a Plan Year.

         (b)      An Eligible Employee's Elective Deferral election under
                  subsection (a) of this Section shall apply to and reduce the
                  portion of his Compensation earned during a Plan Year after
                  the date the Compensation he has earned during the Plan Year
                  equals the limit in Code Section 401(a)(17) for such Plan
                  Year.

4.2      ELECTIVE DEFERRAL ELECTIONS

         (a)      An Eligible Employee's Elective Deferral election under
                  Section 4.1 shall (i) if made within the thirty (30) day
                  period following the date he is first eligible to participate
                  or reparticipate in the Plan, be effective on the date the
                  election is received by the Employer, and (ii) if not made
                  within said thirty (30) day period, be effective on the
                  January 1 following the date the election is received by the
                  Employer, or its designee.

         (b)      Once effective, an Eligible Employee's election or elections
                  under subsection (a) of this Section shall continue in effect
                  (notwithstanding any change in his Compensation) until changed
                  or revoked by him or otherwise revoked under this Section.

         (c)      An Eligible Employee may change or revoke his election under
                  subsection (a) of this Section each January 1. Any such change
                  or revocation must be received by the Employer, or its
                  designee, before the January 1 it is to be effective.

         (d)      If an Eligible Employee participates in a 401(k) plan (i.e., a
                  qualified cash or deferred arrangement) of the Employer (or
                  any affiliate treated under the Code as a single employer with
                  the Employer for purposes of the 401(k) plan) and receives a
                  withdrawal of his elective contributions thereunder on account
                  of financial hardship prior to his attainment of age
                  fifty-nine and one-half (59 1/2) under the deemed distribution
                  rule of I.T. Reg.ss. 1.401(k)-1(d)(2)(iv)(B) (or its
                  successor), his election under Section 4.1 shall be revoked
                  automatically (effective on the date such hardship withdrawal
                  is made or as soon as practicable thereafter). In addition,
                  such Eligible Employee shall not be eligible to have another
                  election effect for a twelve (12) month suspension period that
                  begins on the first day of the calendar month following the
                  date the hardship withdrawal is made. Such Eligible Employee
                  may make another election effective for any January 1
                  following the end of such suspension period, if then still
                  eligible to do so.

                                       5
<PAGE>   9

         (e)      An Eligible Employee's election under Section 4.1 shall be
                  revoked automatically upon the termination of his employment
                  with the Employer (and the Eligible Employee shall cease to be
                  an Eligible Employee).

         (f)      All elections and revocations made by an Eligible Employee
                  under this Section shall be made in accordance with procedures
                  prescribed by the Committee, and all elections and revocations
                  under this Section shall be effective with the payroll period
                  beginning with or next following the effective date of the
                  election or revocation.

4.3      MATCHING CONTRIBUTION

         An Eligible Employee who elects an Elective Deferral for a Plan Year
         shall be credited with a Matching Contribution for the Plan Year in an
         amount equal to the amount of the Elective Deferral made on the
         Eligible Employee's behalf for the Plan Year.

4.4      EMPLOYER CONTRIBUTION

         An Eligible Employee shall be credited with an Employer Contribution
         for a Plan Year in an amount equal to 4% of the amount by which the
         Eligible Employee's Compensation exceeds the limit in Code Section
         401(a)(17) for the Plan Year; provided the Eligible Employee remains in
         the Employer's employ on the last day of such Plan Year.

                                       6
<PAGE>   10
                                    ARTICLE V

                              ACCOUNTS AND CREDITS

5.1      CREDITS TO ACCOUNTS

         (a)      An amount equal to the amount by which a Participant's
                  Compensation has been reduced pursuant to his elective
                  deferral election under Section 4.1 shall be credited to his
                  Elective Deferral Account.

         (b)      Matching Contributions on a Participant's behalf shall be
                  credited to his Matching Contribution Account.

         (c)      Employer Contributions on a Participant's behalf shall be
                  credited to his Employer Contribution Account.

         (d)      Said credits shall be made at times established by the
                  Committee but no later than as of the last day of the Plan
                  Year to which they relate.

         (e)      Each Account shall also be credited or charged with deemed
                  earnings and losses as if it were invested in accordance with
                  Section 5.3.

5.2      NO FUNDING

         (a)      The right of any individual to receive payment under the
                  provisions of this Plan shall be an unsecured claim against
                  the general assets of the Employer, and no provisions
                  contained in this Plan, nor any action taken pursuant to this
                  Plan, shall be construed to give any individual at any time a
                  security interest in any asset of the Employer, of any
                  affiliated company, or of the stockholders of the Employer.
                  The liabilities of the Employer to any individual pursuant to
                  this Plan shall be those of a debtor pursuant to such
                  contractual obligations as are created by this Plan and to the
                  extent any person acquires a right to receive payment from the
                  Employer under this Plan, such right shall be no greater than
                  the right of any unsecured general creditor of the Employer.

         (b)      The Employer may establish a grantor trust (but shall not be
                  required to do so) to which shall be contributed (subject to
                  the claims of the general creditors of the Employer) the
                  amounts credited to the Accounts. If a grantor trust is so
                  established, except as specifically provided otherwise by the
                  terms of the trust agreement for the trust, payment by the
                  trust of the amounts due to a Participant or his Beneficiary
                  under the Plan shall be considered a payment by the Employer
                  for purposes of the Plan.

                                       7
<PAGE>   11
5.3      DEEMED INVESTMENT OF ACCOUNTS

         (a)      The Committee shall select one or more investment funds for
                  the deemed investment of Accounts. However, in no event shall
                  the Employer be required to make any such investment in the
                  investment funds, and to the extent such investments are made,
                  such investments shall remain an asset of the Employer subject
                  to the claims of its general creditors.

         (b)      On the date credited to the respective Account, a
                  Participant's Elective Deferrals, Matching Contributions and
                  Employer Contributions shall be deemed to be invested in one
                  or more of the investment funds designated by the Participant
                  for such deemed investment. Once made, the Participant's
                  investment designation shall continue in effect for all future
                  Elective Deferrals, Matching Contributions and Employer
                  Contributions until changed by the Participant. Any such
                  change may be elected by the Participant at the times
                  established by the Committee, which shall be no less
                  frequently than quarterly, and shall be effective only for
                  Elective Deferrals, Matching Contributions and Employer
                  Contributions credited from and after its effective date.

         (c)      A Participant may elect to reallocate the balance of his
                  Accounts deemed to be invested in the investment funds under
                  this Section at the times established by the Committee, which
                  shall be no less frequently quarterly.

         (d)      All elections and designations under this Section shall be
                  made in accordance with procedures prescribed by the
                  Committee. The Committee may prescribe uniform percentages for
                  such elections and designations.

5.4      REPORTS TO PARTICIPANTS

         The Employer shall provide annual reports to each Participant showing
         (a) the value of the Account as of the most recent December 31st (b)
         the amount of contributions made by the Employer for the year ending on
         such date and (c) the amount of any interest, earnings or investment
         gain or loss credited or debited to the Participant's Account.

                                       8
<PAGE>   12
                                   ARTICLE VI

                                     VESTING

         A Participant shall be fully vested and nonforfeitable at all times in
all of his Accounts herein.

                                       9
<PAGE>   13
                                   ARTICLE VII

                               PAYMENT OF ACCOUNTS

7.1      TERMINATION OF EMPLOYMENT

         (a)      The Employer shall pay the balance of a Participant's Accounts
                  to him within thirty (30) days of the date his employment with
                  the Employer and its Affiliates terminates.

         (b)      Payment of a Participant's Accounts shall be made in a single
                  cash payment.

7.2      DEATH

         (a)      If a Participant dies before receiving the balance of his
                  Accounts, the Employer shall pay the balance of his Accounts
                  to his Beneficiary in a single cash payment within thirty (30)
                  days of the date of his death.

         (b)      A Participant's designation of a Beneficiary for this purpose
                  shall be made in a written designation filed in accordance
                  with procedures prescribed by the Committee, and a Participant
                  may change his designation of a Beneficiary at any time in
                  another written designation filed in accordance with such
                  procedures. If there is no Beneficiary designated by the
                  Participant or surviving at the death of the Participant, the
                  Participant shall be deemed to have designated as Beneficiary
                  with priority in the order named (i) his surviving spouse and
                  (ii) his estate.

7.3      FINANCIAL HARDSHIP

         (a)      The Employer shall pay the balance of a Participant's Accounts
                  to him in a single cash payment in the event of his financial
                  hardship, but only in an amount necessary to satisfy the
                  financial hardship (including reasonably anticipated taxes
                  resulting from such a payment) and only to the extent that
                  such financial hardship cannot be relieved (i) through
                  reimbursement or compensation by insurance or otherwise, (ii)
                  by liquidation of the Participant's assets to the extent such
                  liquidation would not result in a financial hardship or (iii)
                  by cessation of Elective Deferrals.

         (b)      For purposes of subsection (a) of this Section, financial
                  hardship shall mean a severe financial hardship to the
                  Participant resulting from a sudden and unexpected illness or
                  accident of the Participant or his dependent, loss of the
                  Participant's property due to casualty, or other similar
                  extraordinary and unforeseeable circumstances arising as a
                  result of events outside the control of the Participant.

                                       10
<PAGE>   14

         (c)      The Committee shall have the sole discretion to determine the
                  amount (if any) to be paid to a Participant under this
                  Section.

7.4      CHANGE IN LAW

         Notwithstanding any of the above, the Committee may direct payment of a
         Participant's Account before it otherwise would be payable under this
         Article VII if, based on notification from the Internal Revenue Service
         or a review by the Committee in light of Internal Revenue Service
         guidance, the Committee determines that a Participant has or will
         recognize income for federal income tax purposes with respect to
         amounts that are or will be payable under the Plan before they are to
         be paid. Further, the Committee may direct payment of a Participant's
         Account before it otherwise would be payable and may terminate a
         Participant's participation in the Plan if, based on notification from
         the Department of Labor or a review by the Committee in light of
         Department of Labor guidance, the Committee determines that an
         individual's participation in the Plan jeopardizes the Plan's status as
         a plan described in Section 11.11 hereof.

                                       11
<PAGE>   15
                                  ARTICLE VIII

                        PLAN OPERATION AND ADMINISTRATION

8.1      ADMINISTRATOR

         The Committee shall be the plan administrator and shall be responsible
         for and perform the duties imposed on a plan administrator.

8.2      COMMITTEE

         The Committee shall have the power and duty to administer the Plan in
         accordance with its terms, including, but not limited to, the
         following:

         (a)      to make and enforce such rules and regulations as it may deem
                  necessary or desirable for the efficient administration of the
                  Plan;

         (b)      to interpret the Plan, including the right to remedy possible
                  ambiguities, inconsistencies or omissions;

         (c)      to decide all questions related to participation in, and
                  payment of amounts under, the Plan, including all factual
                  questions related thereto; and

         (d)      to maintain all necessary records for the administration of
                  the Plan.

8.3      AUTHORITY TO ACT

         Brady Corporation or the Committee may authorize one or more of Brady
         Corporation's employees, members, representatives or agents, as
         applicable, to execute on its behalf instructions or directions to any
         interested party, and any such interested party may rely thereupon and
         the information contained therein.

8.4      INFORMATION FROM PARTICIPANTS

         Each Participant and Beneficiary shall furnish the Committee in the
         form prescribed by it and at its request, such personal data,
         affidavits, authorizations to obtain information, or other information
         as the Committee deems necessary or desirable for the administration of
         the Plan.

8.5      COMMITTEE DISCRETION

         The Committee has full and complete discretionary authority to
         determine eligibility for benefits, to construe the terms of the Plan
         and to decide any matter presented through the claims review procedure.
         Any final determination by the Committee (including claims decisions
         made pursuant to Article IX) shall be binding on all parties and
         afforded the maximum deference allowed by law. If challenged in court,
         such determination shall not

                                       12
<PAGE>   16

         be subject to de novo review and shall not be overturned unless proven
         to be arbitrary and capricious upon the evidence considered by the
         Committee at the time of such determination.

8.6      COMMITTEE MEMBERS' CONFLICT OF INTEREST

         A member of the Committee who is covered hereunder may not vote or
         decide upon any matter relating solely to himself or vote in any case
         in which his individual right to any benefit under the Plan is
         particularly involved nor may a member of the Board who is covered
         hereunder vote to amend the Plan regarding the timing of distributions
         or vote with respect to direct or indirect termination of the Plan.
         Decisions shall be made by remaining Committee or Board members even if
         there is no quorum under normal Committee or Board rules.

8.7      GOVERNING LAW

         This Plan shall be construed in accordance with the laws of the State
         of Wisconsin to the extent not preempted by the provisions of the
         Employee Retirement Income Security Act of 1974 or other federal law.

8.8      EXPENSES

         All expenses and costs incurred in connection with the administration
         and operation of the Plan shall be borne by the Employer and/or the
         Trust.

8.9      MINOR OR INCOMPETENT PAYEES

         If a person to whom a benefit is payable is a minor or is otherwise
         incompetent by reason of a physical or mental disability, the Committee
         may cause the payments due to such person to be made to another person
         for the first person's benefit without any responsibility to see to the
         application of such payment. Such payments shall operate as a complete
         discharge of the obligations to such person under the Plan.

8.10     WITHHOLDING

         To the extent required by law, the Employer shall withhold any taxes
         required to be withheld by the federal or any state or local government
         from payments made hereunder or from other amounts paid to the
         Participant by the Employer. To the extent that FICA taxes are required
         to be withheld from the Participant with respect to amounts credited
         under this Plan and no amounts are to be paid to the Participant
         hereunder or otherwise from the Employer from which such FICA taxes may
         be withheld, then the Employer shall pay such FICA taxes and the
         Participant's Account hereunder shall be reduced by the amount of the
         FICA tax paid.

8.11     INDEMNIFICATION

                                       13
<PAGE>   17

         Except as otherwise provided by law, neither the Board or the Committee
         nor any individual member of the Board or the Committee, nor the
         Employer, nor any officer, shareholder or employee of the Employer
         shall be liable for any error of judgment, action or failure to act
         hereunder or for any good faith exercise of discretion, excepting only
         liability for gross negligence or willful misconduct. Such individuals
         and entities shall be indemnified and held harmless by the Employer
         against any and all claims, damages, liabilities, costs and expenses
         (including attorneys' fees) arising by reason of any good faith error
         of omission or commission with respect to any responsibility, duty or
         action hereunder. Nothing herein contained shall preclude the Employer
         from purchasing insurance to cover potential liability of one or more
         persons who serve in an administrative capacity with respect to the
         Plan.

                                       14
<PAGE>   18
                                   ARTICLE IX

                                CLAIMS PROCEDURE

9.1      CLAIMS

         If the Participant or the Participant's Beneficiary (hereinafter
         refereed to as "claimant") believes he is being denied any benefit to
         which he is entitled under this Plan for any reason, he may file a
         written claim with the member of the Committee designated as the claims
         administrator. The claims administrator shall review the claim and
         notify the claimant of his decision within 90 days of receipt of such
         claim, unless the claimant receives written notice prior to the end of
         the 90 day period stating that special circumstances require an
         extension of the time for decision. The claim administrator's decision
         shall be in writing, sent by first class mail to the claimant's last
         known address, and if a denial of the claim, shall contain the specific
         reasons for the denial, reference to pertinent provisions of the Plan
         on which the denial is based, a description of any additional
         information or material necessary to perfect the claim, and an
         explanation of the claims review procedure.

9.2      REVIEW PROCEDURE

         A claimant is entitled to request the entire Committee to review any
         denial by written request to the Committee within 60 days of receipt of
         the denial. Absent a request for review within the 60-day period, the
         claim will be deemed to be conclusively denied. The Committee shall
         afford the claimant or his authorized representative the opportunity to
         review all pertinent documents and submit issues and comments in
         writing and shall render a review decision in writing, all within 60
         days after receipt of a request for review (provided that in special
         circumstances the Committee may extend the time for decision by not
         more than 60 days upon written notice to the claimant). The Committee's
         review decision shall contain specific reasons for the decision and
         reference to the pertinent provisions of the Plan.

                                       15
<PAGE>   19
                                    ARTICLE X

                            AMENDMENT AND TERMINATION

         The Board may amend or terminate this Plan at any time; provided,
however, that no such amendment or termination shall deprive any Participant or
Beneficiary of any amounts accrued to him under this Plan prior to the date of
such amendment or termination. If this Plan is terminated, a Participant's
Account hereunder as of the date of Plan termination shall continue to be
credited with investment earnings under Article V and be paid at such time and
in such form as provided for under the terms of the Plan as in effect on the
date of Plan termination (subject to the Board's absolute discretion to
accelerate distributions at any time following Plan termination); provided,
however, that no additional contributions shall be credited after such
termination. Notwithstanding any other provision of the Plan to the contrary,
the Board shall always have the right to prospectively amend the investment
funds available under Section 5.3 of the Plan.

                                       16
<PAGE>   20
                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

11.1     HEADINGS

         The headings of the Plan have been inserted for convenience of
         reference and shall be ignored in the construction of the provisions
         herein.

11.2     PLAN NOT CONTRACT OF EMPLOYMENT

         The existence of the Plan shall not create or change any contract,
         express or implied, between the Employer and its employees and shall
         not affect the Employer's right to take any action with respect to its
         employees.

11.3     RIGHTS OF PARTICIPANTS AND BENEFICIARIES

         The interest and rights of a Participant and Beneficiary under the Plan
         shall be those of a general unsecured creditor of the Employer, and
         with respect to the creditors of the Employer, no Participant or
         Beneficiary shall have any preferred claims on, or any beneficial
         ownership in, the assets of the Employer, including any assets in which
         the Employer may invest to aid in meeting its obligations under the
         Plan.

11.4     NONALIENATION OF BENEFITS

         All benefits payable hereunder are for the sole use and benefit of the
         Participants and their Beneficiaries and, to the extent permitted by
         law, shall be free, clear and discharged of and from, and are not to be
         in any way liable for, debts, contracts or agreements, now contracted
         or which may hereafter be contracted and from all claims and
         liabilities now or hereafter incurred by any Participant or Beneficiary
         covered by this Plan. No Participant or Beneficiary covered by this
         Plan shall have the right to anticipate, surrender, encumber, alienate
         or assign, whether voluntarily or involuntarily, any of the benefits to
         become due hereunder unto any person or person upon any terms
         whatsoever, and any attempt to do so shall be void.

11.5     TAX TREATMENT

         There is no commitment or guarantee with respect to the tax treatment
         to be accorded to a Participant or Beneficiary under the Plan.

11.6     OTHER PLANS AND AGREEMENTS

         (a)      Participation in the Plan shall not affect a Participant's
                  rights to participate in and receive benefits under any other
                  plans of the Employer, nor shall it affect his rights under
                  any other agreement entered into with the Employer, unless
                  explicitly provided otherwise by such agreement.

                                       17
<PAGE>   21

         (b)      Any amount credited under or paid pursuant to the Plan shall
                  not be treated as wages, salary or any other type of
                  compensation or otherwise taken into account in the
                  determination of the Participant's benefits under any other
                  plans of the Employer, unless explicitly provided otherwise by
                  such plan.

11.7     NUMBER AND GENDER

         The use of the singular shall be interpreted to include the plural and
         the plural the singular, as the context shall require. The use of the
         masculine, feminine or neuter shall be interpreted to include the
         masculine, feminine or neuter, as the context shall require.

11.8     PLAN PROVISIONS CONTROLLING

         In the event of any conflict between the provisions of the Plan and the
         provisions of a summary or description of the Plan or the terms of any
         agreement or instrument related to the Plan, the provisions of the Plan
         shall be controlling.

11.9     SEVERABILITY

         If any provisions of the Plan shall be held illegal or invalid for any
         reason, such illegality or invalidity shall not affect the remaining
         parts of the Plan, but this Plan shall be construed and enforced as if
         the illegal and invalid provisions had never been included herein.

11.10    EVIDENCE CONCLUSIVE

         The Employer, the Committee and any person or persons involved in the
         administration of the Plan shall be entitled to rely upon any
         certification, statement, or representation made or evidence furnished
         by any person with respect to any facts required to be determined under
         any of the provisions of the Plan, and shall not be liable on account
         of the payment of any monies or the doing of any act or failure to act
         in reliance thereon. Any such certification, statement, representation,
         or evidence, upon being duly made or furnished, shall be conclusively
         binding upon the person furnishing it but not upon the Employer, the
         Committee or any other person involved in the administration of the
         Plan. Nothing herein contained shall be construed to prevent any of
         such parties from contesting any such certification, statement,
         representation, or evidence or to relieve any person from the duty of
         submitting satisfactory proof of any fact.

11.11    STATUS OF PLAN UNDER ERISA

         The Plan is intended to be an unfunded plan maintained by an Employer
         primarily for the purpose of providing deferred compensation for a
         select group of management or highly compensated employees, as
         described in Section 201(2), Section 301(a)(3), Section 401(a)(1) and
         Section 4021(b)(6) of the Employee Retirement Income Security Act of
         1974, as amended.

11.12    NAME AND ADDRESS CHANGES

         Each Participant shall keep his name and address on file with the
         Employer and shall promptly notify the Employer of any changes in his
         name or address. All notices required

                                       18
<PAGE>   22

         or contemplated by this Plan shall be deemed to have been given to a
         Participant if mailed with adequate postage prepaid thereon addressed
         to him at his last address on file with the Employer. If any check in
         payment of a benefit hereunder (which was mailed to the last address of
         the payee as shown on the Employer's records) is returned unclaimed,
         further payments shall be discontinued unless evidence is furnished
         that the recipient is still alive.

                                       19

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