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                                                                    EXHIBIT 10.3

                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of September
6, 2002, by and among MegaPro Tools, Inc., a corporation organized under the
laws of the State of Nevada, U.S.A. (the "COMPANY"), USI Mayfair Limited, a
company organized under the laws of England ("USI"), and PNC Tool Holdings, LLC,
a Nevada limited liability company ("PNC" and together with USI, the "HOLDERS").

                              PRELIMINARY STATEMENT

         The Company and USI have entered into a Stock Purchase Agreement dated
as of August 23, 2002 (the "PURCHASE AGREEMENT"); and the entering into this
Agreement is a condition precedent to the consummation of the transactions
contemplated by the Purchase Agreement. The Company, USI and PNC desire to
provide for certain arrangements with respect the registration under the
Securities Act (as hereinafter defined) of capital stock of the Company (i)
issued or issuable to USI under the Purchase Agreement and (ii) beneficially
owned by PNC.

                              TERMS AND CONDITIONS

         In consideration of the mutual covenants and agreements contained in
this Agreement and the Purchase Agreement, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

         SECTION 1. DEFINITIONS. As used in this Agreement, the following terms
         have the meanings indicated below:

         "AFFILIATE" shall mean, as to any Person, any entity which controls, is
controlled by, or is under common control with, such Person or any entity formed
as a result of a reorganization of such Person. Anything in this Agreement to
the contrary notwithstanding, for the purposes of this Agreement, USI shall not
be deemed an Affiliate of the Company.

         "COMMON STOCK" shall mean the Company's common stock, $.001 par value
per share, as the same may be constituted from time to time.

         "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder.

         "LOCK-UP PERIOD" shall mean that certain period of time during which
USI is not permitted to transfer shares of capital stock of the Company, which
is set forth in Section 2 of that certain Stockholders' Agreement dated as of
the date hereof by and among the Company, USI and certain other holders of
securities of the Company.

         "NASD" shall mean the National Association of Securities Dealers, Inc.

         "PERSON" shall mean individual, a partnership, a corporation, a limited
liability company or partnership, an association, a joint stock company, a
trust, a business trust, a joint venture, an unincorporated organization or a
government entity or any department, agency, or political subdivision thereof.

          "REGISTRABLE SECURITIES" shall mean (i) shares of Common Stock issued
or issuable to USI under the Purchase Agreement, (ii) shares of Common Stock
beneficially owned by PNC as of the date hereof, and (iii) shares of Common

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Stock issued or issuable as (or issuable upon the conversion or exercise of any
warrant, right or other security which is issued as) a dividend or other
distribution with respect to, or in exchange for or in replacement of the shares
referenced in (i) or (ii) above, including shares issuable upon a stock split;
provided, HOWEVER, that a Registrable Security ceases to be a Registrable
Security when (a) it is registered under the Securities Act and disposed of in
accordance with the registration statement covering it, (b) it is sold or
transferred in accordance with the requirements of Rule 144 (or similar
provisions then in effect) promulgated by the SEC under the Securities Act
("RULE 144"), or (c) it is eligible to be sold or transferred under Rule 144
without holding period or volume limitations and the holder thereof (when
aggregated with all of its Affiliates) owns less than one percent of the capital
stock of the Company on a fully diluted basis.

         "SEC" shall mean the United States Securities and Exchange Commission.

         "SECURITIES ACT" shall mean the Securities Act of 1933, as amended, and
the rules and regulations thereunder.

SECTION 2 . HOLDERS OF REGISTRABLE SECURITIES. A Person is deemed to be a holder
of Registrable Securities whenever that Person owns, directly or beneficially,
or has the right to acquire Registrable Securities, disregarding any legal
restrictions upon the exercise of that right.

         SECTION 3. DEMAND REGISTRATION.

         (a) REQUEST FOR REGISTRATION. Subject to the provisions of Section
3(b), at any time after the earlier of eighteen (18) months after the date of
this Agreement and the expiration or earlier termination of the Lock-Up Period,
(i) one or more holders of Registrable Securities holding at least fifteen
percent (15%) of the then outstanding Registrable Securities may demand that the
Company register all or part of their Registrable Securities under the
Securities Act on Form S-1 (or a similar form then in effect) promulgated by the
SEC under the Securities Act, and (ii) one or more holders of Registrable
Securities may demand that the Company register all or part of their Registrable
Securities under the Securities Act on Form S-3 (or a similar form then in
effect) promulgated by SEC under the Securities Act, provided that the
Registrable Securities to be covered by any such Form S-3 shall be expected to
result in gross proceeds of at least $250,000 (each demand right set forth in
(i) and (ii) above is hereinafter referred to as a "DEMAND REGISTRATION").
Within ten (10) days after receipt of a demand, the Company will notify in
writing all holders of Registrable Securities of the demand. Any holder who
wants to include its Registrable Securities in the Demand Registration must
notify the Company within ten (10) business days of receiving the notice of the
Demand Registration. Except as provided in this Section 3, the Company will
include in all Demand Registrations all Registrable Securities for which the
Company receives the timely written demands for inclusion. All demands made
pursuant to this Section 3(a) must specify the number of Registrable Securities
to be registered and the intended method of disposing of the Registrable
Securities.

         (b) NUMBER OF DEMANDS. Each Holder (including Person(s) to whom such
Holder transfers Registrable Securities) shall have the right to exercise an
aggregate of three (3) Demand Registrations on Form S-1 (or a similar form then
in effect) in accordance with clause (i) of Section 3(a). The Company shall be
deemed to have satisfied its obligation with regard to one Demand Registration
under such clause (i) of Section 3(a) each time the corresponding registration
statement is withdrawn prior to consummation of the offering at the request of
the holders of Registrable Securities; PROVIDED, HOWEVER, that such withdrawn
registration statement and such registration shall not count as a Demand
Registration if (1) the withdrawal is based upon material adverse information
concerning the Company of which the holders of Registrable Securities were not
aware at the time of the request or requests for the Demand Registration or (2)

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the withdrawal is due to delay at the request of the Company pursuant to Section
3(e) hereto and the holders of Registrable Securities have determined in good
faith that the general market conditions have adversely changed since the
original registration request to such an extent that it is not advisable to
proceed with such registration. Each holder of Registrable Securities shall have
the right to an unlimited number of Demand Registrations on Form S-3 (or a
similar form then in effect) in accordance with clause (ii) of Section 3(a);
PROVIDED, that the Company shall not be obligated to effect more than two (2)
Demand Registrations on Form S-3 in any twelve (12) month period.

         (c) SELECTION OF UNDERWRITERS. The holders of a majority of the
Registrable Securities who have requested a Demand Registration shall select the
investment banker(s) and manager(s) that will administer the offering (if any);
PROVIDED, that the Company shall have given its prior written consent to such
selection (which consent shall not be unreasonably delayed, conditioned or
withheld). The Company and the holders of Registrable Securities whose shares
are being registered shall enter into a customary underwriting agreement with
such investment banker(s) and manager(s); PROVIDED, that the liability of any
holder of Registrable Securities shall be limited to such holder's net proceeds
from the sale of its Registrable Securities in such offering and such limitation
shall not be amended by an underwriting agreement or arrangement.

         (d) PRIORITY ON DEMAND RESTRICTIONS. If the managing underwriter
advises the Company and the holders of the Registrable Securities being
registered that the number of Registrable Securities requested to be included in
the Demand Registration exceeds the number of securities that can be sold
without adversely affecting the pricing of the offering, the Company will
include in the registration only the number of Registrable Securities that the
underwriters believe can be sold without adversely affecting the pricing of the
offering. The number of securities registered shall be allocated, (i) first to
the Holders and their Affiliates to the extent the Holders and their Affiliates
are taking part in the Demand Registration, on a pro rata basis (based on the
total number of Registrable Securities requested to be included in the
registration), and (ii) second, pro rata among the other holders of Registrable
Securities other than the Holders and their Affiliates, if any, in the case of
each such holder other than the Holders and their Affiliates, on the basis of
the total number of Registrable Securities requested to be included in the
registration. If any holder of Registrable Securities (other than the holder
making the demand) disapproves of the terms of the underwriting, such holder may
withdraw therefrom by giving written notice to the Company and the managing
underwriter.

         (e) DELAY IN FILING. Notwithstanding the foregoing, the Company may
delay in filing a registration statement in connection with a Demand
Registration and may withhold efforts to cause the registration statement to
become effective, if the Company determines in good faith that such registration
might (i) interfere with or affect the negotiation or completion of any
transaction that is being contemplated by the Company (whether or not a final
decision has been made to undertake such transaction) at the time the right to
delay is exercised, or (ii) involve initial or continuing disclosure obligations
that might not be in the best interest of the Company's stockholders. The
Company may exercise such right to delay or withhold efforts not more than once
in any twelve (12) month period and for not more than ninety (90) days at a
time. If, after a registration statement becomes effective, the Company advises
the holders of registered shares that the Company considers it appropriate for
the registration statement to be amended, the holders of such shares shall
immediately suspend any further sales of their registered shares until the
Company advises them that the registration statement has been amended. The two
(2) year time period referred to in Section 6(a) during which the registration
statement must be kept current after its effective date shall be extended for an
additional number of business days equal to the number of business days during
which the right to sell shares was suspended pursuant to the preceding sentence.

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         (f) EFFECTIVE DEMAND REGISTRATION. A registration shall not constitute
a Demand Registration until it has become effective and remains continuously
effective for the lesser of (i) the period during which all Registrable
Securities registered in the Demand Registration are sold and (ii) two (2)
years; PROVIDED, HOWEVER, that a registration shall not constitute a Demand
Registration if after such Demand Registration has become effective, such
registration or the related offer, sale or distribution of Registrable
Securities thereunder is interfered with by any stop order, injunction or other
order or requirement of the SEC or other governmental agency or court for any
reason not attributable to either Holder and such interference is not thereafter
eliminated.

         (g) LIMITATION UPON EFFECTIVENESS OF DEMAND REGISTRATIONS.
Notwithstanding any provision set forth in this Agreement to the contrary, the
Company shall not be obligated to have declared effective any registration
statement with respect to a Demand Registration until the expiration, or earlier
termination of, the Lock-Up Period.

         SECTION 4. PIGGYBACK REGISTRATIONS.

         (a) RIGHT TO PIGGYBACK. At any time after the expiration, or earlier
termination, of the Lock-Up Period, whenever the Company proposes to register
any of its securities under the Securities Act (except for the registration of
securities to be offered pursuant to an employee benefit plan on Form S-8,
pursuant to a registration made on Form S-4 or any successor forms then in
effect) at any time other than pursuant to a Demand Registration and the
registration form to be used may be used for the registration of the Registrable
Securities (a "PIGGYBACK REGISTRATION"), it will so notify in writing all
holders of Registrable Securities no later than the earlier to occur of (i) the
tenth (10th) day following the Company's receipt of notice of exercise of other
demand registration rights, or (ii) thirty (30) days prior to the anticipated
filing date. Subject to the provisions of Section 4(b), the Company will include
in the Piggyback Registration all Registrable Securities, on a pro rata basis
based upon the total number of Registrable Securities with respect to which the
Company has received written requests for inclusion within ten (10) business
days after the applicable holder's receipt of the Company's notice. Such
Registrable Securities may be made subject to an underwriters' over-allotment
option, if so requested by the managing underwriter. The holders of Registrable
Securities may withdraw all or any part of the Registrable Securities from a
Piggyback Registration at any time before ten (10) business days prior to the
effective date of the Piggyback Registration. The Company, the holders of
Registrable Securities and any Person who hereafter become entitled to register
its securities in a registration initiated by the Company must sell their
securities on the same terms and conditions. A registration of Registrable
Securities pursuant to this Section 4 shall not be counted as a Demand
Registration under Section 3.

         (b) PRIORITY ON PIGGYBACK REGISTRATIONS. If the managing underwriter
advises the Company that the total number or dollar amount of securities
requested to be included in the registration exceeds the number or dollar amount
of securities that can be sold without adversely affecting the pricing of the
offering, the Company will include the maximum number of securities in the
registration as the Company and its advisors in good faith determine may be
included without a material adverse consequence on the offering, in the
following order of priority: (i) first, all securities the Company proposes to
sell; (ii) second, up to the full number or dollar amount of Registrable
Securities held by the Holders and their Affiliates requested to be included in
the registration (allocated pro rata among the Holders and their Affiliates),
and then pro rata among the other holders of Registrable Securities other than
the Holders and their Affiliates, if any, in each case, on the basis of the
dollar amount or number of Registrable Securities requested to be included, as
the case may be); and (iii) third, any other securities (provided they are of

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the same class as the securities sold by the Company) requested to be included,
allocated among the holders of such securities in such proportions as the
Company and those holders may agree; PROVIDED, that at least twenty-five percent
(25%) of the Registrable Securities requested to be included in such
registration shall have been included in the offering; PROVIDED, FURTHER, that
the holders of Registrable Securities shall not be subject to any cutback in the
amount of Registrable Securities requested to be included in the registration
unless all other holders of securities requesting to be included in such
registration have been excluded from such registration. In the event that the
managing underwriter advises the Company that an underwriters' over-allotment
option is necessary or advisable, the allocation provided for in this Section
4(b) shall apply to the determination of which securities are to be included in
the primary portion of such registration.

         (c) OTHER REGISTRATIONS. The Company agrees that after filing a
registration statement with respect to Registrable Securities pursuant to
Section 3 or this Section 4 that has not been withdrawn or abandoned, the
Company will not register any of its equity securities or securities convertible
or exchangeable into or exercisable for its equity securities under the
Securities Act, whether on its own behalf or at the request of any holder of
those securities until at least three (3) months have elapsed from the effective
date of the previous registration, and the parties hereto agree that the Company
will not be required to effect any such registration notwithstanding the other
provisions of this Agreement. This three (3) month hiatus does not apply to
registrations of securities (i) to be issued in connection with employee benefit
plans, (ii) to permit exercise or conversions of previously issued options,
warrants or other convertible securities, (iii) in connection with a Demand
Registration or (iv) made on Form S-4 (or any successor form).

         SECTION 5. RESTRICTIONS ON PUBLIC SALE BY THE COMPANY AND OTHERS. The
Company agrees not to make any public sale or distribution of its equity
securities, or any securities convertible into or exchangeable or exercisable
for its equity securities, including a sale under Regulation D under the
Securities Act or under any other exemption of the Securities Act (except as
part of the underwritten registration or pursuant to registrations on Forms S-8
or S-4 or any successor form), during the seven (7) days prior to and the 90
days after the effective date of any underwritten Demand Registration or any
underwritten Piggyback Registration unless the managing underwriter(s) agrees
otherwise, and the parties hereto agree that the Company will not be required to
effect any such registration or sale notwithstanding the other provisions of
this Agreement. The Company also agrees to use reasonable efforts to cause each
holder of at least 1% (on a fully-diluted basis) of its equity securities (other
than Registrable Securities) or any securities convertible into or exchangeable
or exercisable for its equity securities (other than Registrable Securities),
purchased from the Company at any time on or after the date of this Agreement
(other than in a registered public offering), to agree not to make any public
sale or distribution of those securities, including a sale pursuant to Rule 144
(except as part of the underwritten registration, if permitted), during the
seven (7) days prior to and the 90 days after the effective date of the
registration unless the managing underwriter(s) agrees otherwise.

         SECTION 6. REGISTRATION PROCEDURES.

         (a) OBLIGATIONS OF THE COMPANY. Whenever the holders of Registrable
Securities request the registration of any Registrable Securities pursuant to
this Agreement, the Company shall use its reasonable best efforts to register
and to permit the sale of the Registrable Securities in accordance with the
intended method of disposition. To carry out this obligation, the Company shall
as expeditiously as practicable take all steps reasonably necessary to effect
such registration of Registrable Securities contemplated hereby, including
without limitation, preparing and filing with the SEC such amendments and
supplements to the registration statement and the corresponding prospectus
necessary to keep the registration statement effective for a period of two (2)
years or such shorter period as may be required to sell all Registrable
Securities covered by the registration statement.

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         (b) SELLER INFORMATION. In the event of any registration by the
Company, from time to time, the Company may require each seller of Registrable
Securities subject to the registration to furnish to the Company information
regarding such seller and the distribution of the securities subject to the
registration, and such seller shall furnish all such information requested by
the Company.

         SECTION 7. REGISTRATION EXPENSES. All Registration Expenses incident to
the Company's performance of or compliance with this Agreement shall be paid by
the Company. The term "Registration Expenses" includes without limitation all
registration filing fees, reasonable professional fees and other reasonable
expenses of the Company's compliance with federal, state and other securities
laws (including fees and disbursements of counsel for the underwriters in
connection with state or other securities law qualifications and registrations),
printing expenses, messenger, telephone and delivery expenses; reasonable fees
and disbursements of counsel for the Company and for one counsel for the sellers
of the Registrable Securities; reasonable fees and disbursement of all
independent certified public accountants (including the expenses of any audit or
"comfort" letters required by or incident to performance of the obligations
contemplated by this Agreement); fees and expenses of the underwriters
(excluding discounts and commissions); fees and expenses of any special experts
retained by the Company at the request of the managing underwriters in
connection with the registration; and applicable stock exchange and NASD
registration and filing fees.

         SECTION 8. INDEMNIFICATION.

         (a) INDEMNIFICATION BY COMPANY. In the event of any registration of
Registrable Securities under the Securities Act pursuant to this Agreement, to
the full extent permitted by law, the Company agrees to indemnify each holder of
Registrable Securities, its officers, directors, trustees, partners, employees,
advisors and agents, and each Person who controls the holder (within the meaning
of the Securities Act and the Exchange Act) against all losses, claims, damages,
liabilities and expenses (including reasonable attorney fees and expenses)
caused by any untrue or allegedly untrue statement of material fact contained in
any registration statement under which such Registrable Securities were
registered under the Securities Act, any prospectus or preliminary prospectus
contained therein or any omission or alleged omission to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances under which such statements were made,
except to the extent the untrue statement or omission resulted from information
that the holder furnished in writing to the Company expressly for use therein.
In connection with a firm or best efforts underwritten offering, to the extent
customarily required by the managing underwriter, the Company will indemnify the
underwriters, their officers and directors and each Person who controls the
underwriters (within the meaning of the Securities Act and the Exchange Act), to
the extent customary in such agreements.

         (b) INDEMNIFICATION BY HOLDERS OF REGISTRABLE SECURITIES. In connection
with any registration statement, each participating holder of Registrable
Securities will furnish to the Company in writing such information and
affidavits as the Company reasonably requests for use in connection with any
registration statement or prospectus and each holder agrees to indemnify, to the
extent permitted by law, the Company, its directors, officers, trustees,
partners, employees, advisors and agents, and each Person who controls the
Company (within the meaning of the Securities Act and the Exchange Act) against
any losses, claims, damages, liabilities and expenses (including reasonable
attorney fees and expenses) resulting from any untrue or allegedly untrue
statement of a material fact or any omission or alleged omission to state a
material fact required to be stated in the registration statement or prospectus
or any amendment thereof or supplement thereto necessary to make the statements
therein not misleading in light of the circumstances under which such statements
were made, but only to the extent that the untrue statement or omission is
contained in or omitted from any information or affidavit the holder furnished
in writing to the Company expressly for use therein and only in an amount not
exceeding the net proceeds received by the holder with respect to securities

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sold pursuant to such registration statement. In connection with a firm or best
efforts underwritten offering, to the extent customarily required by the
managing underwriter, each participating holder of Registrable Securities will
indemnify the underwriters, their officers and directors and each Person who
controls the underwriters (within the meaning of the Securities Act and the
Exchange Act), to the extent that any untrue or allegedly untrue statement of a
material fact or any omission or alleged omission to state a material fact
required to be stated in the registration statement or prospectus or any
amendment thereof or supplement thereto necessary to make the statements therein
not misleading in light of the circumstances under which such statements were
made, is contained in or omitted from any information or affidavit the holder
furnished in writing to the Company expressly for use therein; PROVIDED, that
the indemnity obligations of any holder contained in such agreement shall be
limited to the amount of such holder's net proceeds received from the sale of
its Registrable Securities in such offering.

         (c) INDEMNIFICATION PROCEEDINGS. Any Person entitled to indemnification
under this Agreement will (i) give prompt notice to the indemnifying party of
any claim with respect to which it seeks indemnification and (ii) unless in the
indemnified party's reasonable judgment a conflict of interest may exist between
the indemnified and indemnifying parties with respect to the claim, permit the
indemnifying party to assume the defense of the claim with counsel reasonably
satisfactory to the indemnified party, and after notice from the indemnifying
party to such indemnified party of its election so to assume the defense
thereof, the indemnifying party will not be liable to such indemnified party
pursuant to the provisions of paragraph (a) and (b) above for any legal or other
expense subsequently incurred by such indemnified party in connection with the
defense thereof other than the reasonable costs of investigation. If the
indemnifying party does not assume the defense, the indemnifying party will not
be liable for any settlement made without its consent (but that consent may not
be unreasonably withheld). No indemnifying party will consent to entry of any
judgment or will enter into any settlement without the consent of the
indemnified party which consent shall not be unreasonably withheld.
Notwithstanding the foregoing, an indemnified party shall have the right to
retain its own counsel, with the fees and expenses to be paid by the
indemnifying party if in the reasonable judgment of an indemnified party a
conflict of interest may exist between the indemnified party and any other party
represented by such counsel in such proceeding.

         (d) CONTRIBUTION. If the indemnification provided for in Section 8(a)
or (b) is unavailable to an indemnified party in respect of any losses, claims,
damages, liabilities or expenses referred to therein, then each indemnifying
party thereunder shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages, liabilities or
expenses in such proportion as is appropriate to reflect the relative fault of
the Company and the participating holders of Registrable Securities in
connection with the statements or omissions that resulted in such losses,
claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations. The relative fault of the Company and the
participating holders of Registrable Securities shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company or by the participating holders
of Registrable Securities and the parties' relative intent and knowledge.

         The parties hereto agree that it would not be just and equitable if
contribution pursuant this Section 8(d) were determined by pro rata allocation
or by any other method of allocation that does not take account of the equitable
considerations referred to in the immediately preceding paragraph.
Notwithstanding anything herein to the contrary, no participating holder of
Registrable Securities shall be required to contribute any amount in excess of
the amount by which the net proceeds of the offering (before deducting expenses,

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if any) received by such participating holder exceeds the amount of any damages
that such participating holder has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No
Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

         (e) INDEMNIFICATION EXCEPTION. Notwithstanding any contrary provision
in this Section 8, neither the Company nor any seller of Registrable Securities
will be liable for indemnification or contribution in any case to the extent
that any untrue statement or omission attributable to the Company or such seller
of Registrable Securities was contained or made in a preliminary prospectus and
corrected in the final prospectus and any such loss, claim, damage or liability
suffered or incurred by an indemnified party resulted from an action, claim or
suit by any person who purchased shares from such indemnified party and such
indemnified party received a copy of the final prospectus but failed to deliver
or provide a copy of the final prospectus to such person at or prior to the
confirmation of the sale of such shares.

         SECTION 9. RULE 144 AND RULE 144A. The Company covenants that it will
use its best efforts to file the reports required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations adopted by the
SEC thereunder, and it will take such further action as any holder of
Registrable Securities reasonably may request, all to the extent required from
time to time, to enable such holder to sell Registrable Securities without
registration under the Securities Act within the limitation of the exemptions
provided by (a) Rule 144 under the Securities Act, or (b) any similar rule or
regulation hereafter adopted by the SEC. Upon the request of any holder of
Registrable Securities, the Company will deliver to such holder a written
statement as to whether it has complied with the requirements of Rule 144 or any
successor rule. The Company also covenants that in such event it will provide
all such information and it will take such further action as any holder of
Registrable Securities reasonably may request to enable such holder to sell
Registrable Securities without registration under the Securities Act within the
limitation of Rule 144A under the Securities Act or any successor rule
requirements.

         SECTION 10. PARTICIPATION IN UNDERWRITTEN REGISTRATION. No Person may
participate in any underwritten registration without (a) agreeing to sell
securities on the basis provided in underwriting arrangements approved by the
Persons entitled hereunder to approve such arrangements (the holders of the
Registrable Securities in a Demand Registration pursuant to Section 3(c) and the
Company in a piggyback registration pursuant to Section 4), and (b) completing
and executing all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required by the underwriting arrangements.

         SECTION 11. TERMINATION. This Agreement shall terminate with respect to
a holder of Registrable Securities upon the ability of such holder to rely on
Rule 144(k) for sales of Registrable Securities without registration under the
Securities Act and without compliance with the public information, sales volume,
manner of sale or notice requirements of Rule 144 (c), (e), (f) or (h);
PROVIDED, that the Registrable Securities held by such holder constitute less
than one percent (1%) of the then outstanding capital stock of the Company on a
fully diluted basis.

         SECTION 12. MISCELLANEOUS.

         (a) RECAPITALIZATIONS, EXCHANGES, ETC. The provisions of this Agreement
shall apply to the full extent set forth herein with respect to (i) the
Registrable Securities, (ii) any and all shares of voting common stock of the
Company into which the Registrable Securities are converted, exchanged or
substituted in any recapitalization or other capital reorganization by the
Company and (iii) any and all equity securities of the Company or any successor
or assign of the Company (whether by merger, consolidation, sale of assets or

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otherwise) which may be issued in respect of, in conversion of, in exchange for
or in substitution of, the Registrable Securities and shall be appropriately
adjusted for any stock dividends, splits, reverse splits, combinations,
recapitalizations and the like occurring after the date hereof. The Company
shall use its best efforts to cause any successor or assign (whether by sale,
merger or otherwise) to enter into a new registration rights agreement with the
holders of Registrable Securities on terms substantially the same as this
Agreement as a condition of any such transaction.

         (b) AMENDMENT. This Agreement may be amended or modified only by a
written agreement executed by the Company and by the holders of at least
seventy-five percent (75%) of the Registrable Securities then outstanding.

         (c) ATTORNEYS' FEES. In any legal action or proceeding brought to
enforce any provision of this Agreement, the prevailing party shall be entitled
to recover all reasonable expenses, charges, court costs and attorneys' fees in
addition to any other available remedy at law or in equity.

         (d) BENEFIT OF PARTIES; ASSIGNMENT. All of the terms and provisions of
this Agreement shall be binding on and inure to the benefit of the parties and
their respective successors and permitted assigns, including without limitation
all subsequent holders of securities entitled to the benefits of this Agreement
who agree in writing to become bound by the terms of this Agreement.

         (e) COOPERATION. The parties agree that after execution of this
Agreement they will from time to time, upon the request of any other party and
without further consideration, execute, acknowledge and deliver in proper form
any further instruments and take such other action as any other party may
reasonably require to carry out effectively the intent of this Agreement.

         (f) NO INCONSISTENT AGREEMENTS. Except with the prior written consent
of the holders of at least seventy-five percent (75%) of the Registrable
Securities then outstanding, the Company will not enter into any agreement with
respect to its securities that shall grant to any Person registration rights
that in any way conflict with or are prior in right to the rights provided under
this Agreement.

         (g) SPECIFIC PERFORMANCE. Each of the parties agrees that damages for a
breach of or default under this Agreement would be inadequate and that in
addition to all other remedies available at law or in equity that the parties
and their successors and assigns shall be entitled to specific performance or
injunctive relief, or both, in the event of a breach or a threatened breach of
this Agreement.

         (h) VALIDITY OF PROVISIONS. Should any part of this Agreement for any
reason be declared by any court of competent jurisdiction to be invalid, that
decision shall not affect the validity of the remaining portion, which shall
continue in full force and effect as if this Agreement had been executed with
the invalid portion eliminated, it being the intent of the parties that they
would have executed the remaining portion of the Agreement without including any
part or portion that may for any reason be declared invalid.

         (i) INCORPORATION OF PROVISIONS. The parties hereto hereby agree that
the following provisions contained in Article 11 of the Purchase Agreement are
hereby incorporated by reference as though fully set forth herein: (i) Section
11.01 ("Notices"), (ii) Section 11.05 ("Governing Law"), (iii), Section 11.06
("Waiver of Jury Trial"), (iv) Section 11.07 ("Counterparts; Third Party
Beneficiaries"), (v) Section 11.08 ("Entire Agreement"), and Section 11.09
("Captions"). With respect to any notice to be provided to PNC hereunder, the
address to which any such notice shall be delivered is as follows: 5030 Champion
Boulevard, Suite 6-272, Boca Raton, Florida 33495, Attn: Dennis Crowley. .

                            [SIGNATURE PAGE FOLLOWS]

                                       9
<PAGE>

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

                                   MEGAPRO TOOLS, INC.

                                   By:
                                        ---------------------------------------
                                        Name:
                                        Title:

                                   USI MAYFAIR LIMITED

                                   By:
                                        ---------------------------------------
                                        Name:
                                        Title:

                                   PNC TOOL HOLDINGS, LLC

                                   By:
                                        ---------------------------------------
                                        Name:
                                        Title:

                                       10<PAGE>
                                                                    EXHIBIT 4.2

                         FORM OF SUPPLEMENTAL INDENTURE

         SUPPLEMENTAL INDENTURE (this "Supplemental Indenture") dated as of
         September __, 2002, among Gray Television, Inc. (f/k/a Gray
         Communications Systems, Inc.), a Georgia corporation (the "Company"),
         Gray MidAmerica Television, Inc., a Delaware corporation and a newly
         formed wholly-owned subsidiary of the Company (the "New Guarantor"),
         the Subsidiary Guarantors (as listed on the signature pages hereof)
         and Deutsche Bank Trust Company Americas (f/k/a Bankers Trust
         Company), a New York banking corporation, as trustee under the
         indenture referred to below (the "Trustee"). All capitalized terms
         used in this Supplemental Indenture that are defined in the Indenture,
         either directly or by reference therein, have the respective meanings
         assigned to them therein.

                                  WITNESSETH:

WHEREAS, the Company and the subsidiaries of the Company existing as such on
December 15, 2001 (the "Existing Guarantors") have heretofore executed and
delivered to the Trustee an Indenture (the "Indenture"), dated as of December
15, 2001, providing for the issuance of an aggregate principal amount of up to
$280,000,000 of 9.25% Senior Subordinated Notes due 2011 (the "Notes");

WHEREAS, Section 2.16 of the Indenture provides that the Company may, from time
to time, without the consent of the Holders, create and issue, pursuant to the
Indenture, Additional Notes;

WHEREAS, the Company intends to issue Additional Notes that will be registered
under the Securities Act;

WHEREAS, Sections 2.16 and 9.01(a) of the Indenture permit the making by the
Company, the Subsidiary Guarantors and the Trustee of certain amendments and
supplements to the Indenture with respect to the issuance of Additional Notes
without the consent of any Holder;

WHEREAS, Section 4.17 of the Indenture provides that under certain
circumstances the Company is required to cause the New Guarantor to execute and
deliver to the Trustee a supplemental indenture pursuant to which the New
Guarantor shall unconditionally guarantee all of the Company's obligations
under the Notes pursuant to a Guarantee on the terms and conditions set forth
herein;

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee, the Company
and the Subsidiary Guarantors are authorized to execute and deliver this
Supplemental Indenture to add the New Guarantor pursuant to Section 4.17 of the
Indenture; and

WHEREAS, the Company, the New Guarantor and each of the Subsidiary Guarantors
have duly authorized the execution and delivery of this Supplemental Indenture,
and all things necessary to make this Supplemental Indenture (when executed by
each of them) a valid and binding

<PAGE>

agreement of the Company, the New Guarantor and the Subsidiary Guarantors have
been done and performed;

NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
Company, the New Guarantor, the Subsidiary Guarantors and the Trustee mutually
covenant and agree for the equal and ratable benefit of the holders of the
Notes as follows:

         1.       Amendment to Section 1.01. Pursuant to the terms and
provisions of Section 9.01(a) of the Indenture, Section 1.01 of the Indenture
is hereby amended to replace the definitions of "Company" and "Trustee" with
the following respective definitions:

         "Company" means Gray Television, Inc. (f/k/a Gray Communications
Systems, Inc.), a Georgia corporation, unless and until a successor replaces it
in accordance with Article V and thereafter means such successor.

         "Trustee" means Deutsche Bank Trust Company Americas (f/k/a Bankers
Trust Company) until a successor replaces it in accordance with the applicable
provisions of this Indenture and thereafter means such successor.

In addition, all references in the Indenture, and the Exhibits thereto, to Gray
Communications Systems, Inc. and Bankers Trust Company hereafter shall be
deemed to be references to Gray Television, Inc. and Deutsche Bank Trust
Company Americas, respectively.

         2.       Amendment to Section 2.16. Pursuant to the terms and
provisions of Sections 2.16 and 9.01(a) of the Indenture, Section 2.16 of the
Indenture is hereby amended and restated in its entirety to read as follows:

                  "Section 2.16 Additional Notes. The Company may, from time to
time, subject to compliance with any other applicable provisions of this
Indenture (including, without limitation, the covenant under Section 4.07),
without the consent of the Holders, create and issue pursuant to this Indenture
Additional Notes having terms and conditions set forth in Exhibit A identical
to those of other Notes, except that Additional Notes:

                           (i)      may have a different issue date from other
Notes;

                           (ii)     may have a different amount of interest
payable on the first interest payment date after issuance than is payable on
other Notes;

                           (iii)    may have terms specified in the Additional
Note Board Resolution or Additional Note Supplemental Indenture for such
Additional Notes making appropriate adjustments to this Article II and Exhibit
A (and related definitions) applicable to such Additional Notes in order to
conform to and ensure compliance with the Securities Act (or other applicable
securities laws) and any registration rights or similar agreement applicable to
such Additional Notes, which are not adverse in any material respect to the
Holder of any outstanding Notes (other than such Additional Notes) (which such
adjustments, for the avoidance of doubt, may include, without limitation, the
removal of any legend not required by the Securities Act (or

<PAGE>

other applicable securities laws), and related conforming changes, as a result
of the issuance of such Additional Notes in an offering registered with the
Commission); and

                           (iv)     may entitle the Holders thereof to
liquidated damages as provided in Section 2.15 not applicable to Holders of
other outstanding Notes and may not entitle the Holders thereof to such
liquidated damages applicable to Holders of other outstanding Notes."

         3.       Amendment to Section 12.02. Pursuant to the terms and
provisions of Section 9.01(a) of the Indenture, Section 12.02 of the Indenture
is hereby amended to provide a new address for the Trustee as follows:

                  Deutsche Bank Trust Company Americas
                  c/o DB Services New Jersey, Inc.
                  100 Plaza One
                  Mail Stop JCY03-0603
                  Jersey City, New Jersey 07311
                  Attention:  Corporate Trust and Agency Services
                  Facsimile:  (201) 593-6443

         4.       Amendment to Appendix A. Pursuant to the terms and provisions
of Section 9.01(a) of the Indenture, Section 2.3(e) of Appendix A to the
Indenture is hereby amended and restated in its entirety to read as follows:

"(e)     Legend.

                  (i)      Except as permitted by the following paragraphs
         (ii), (iii), (iv) or (vii), each Note certificate evidencing the
         Global Notes and the Definitive Notes (and all Notes issued in
         exchange therefor or in substitution thereof) shall bear a legend in
         substantially the following form (each defined term in the legend
         being defined as such for purposes of the legend only):

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

                  THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO
                  OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE, PRIOR TO THE
                  DATE (THE "RESALE RESTRICTION TERMINATION DATE") WHICH IS TWO
                  YEARS AFTER THE LATER OF THE ORIGINAL ISSUE

<PAGE>

         DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF
         THE COMPANY WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF SUCH
         NOTE), ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION
         STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT,
         (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE
         144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON IT REASONABLY
         BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A
         THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
         INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
         MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT
         OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S
         UNDER THE SECURITIES ACT, (E) TO AN "ACCREDITED INVESTOR" WITHIN THE
         MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT
         THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE NOTE FOR
         ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED
         INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE NOTES OF
         $500,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER
         OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE
         SECURITIES ACT OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM
         THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE
         COMPANY'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
         TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY
         OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
         SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE
         REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE."

Each Note evidencing a Global Note offered and sold to QIBs pursuant to Rule
144A shall bear a legend in substantially the following form:

                  "EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE
                  SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE
                  PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY
                  RULE 144A THEREUNDER."

<PAGE>

Each Definitive Note shall bear the following additional legend:

                  "IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO
                  THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
                  INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO
                  CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
                  RESTRICTIONS."

                  (ii)     Upon any sale or transfer of a Transfer Restricted
         Note that is a Definitive Note, the Registrar shall permit the Holder
         thereof to exchange such Transfer Restricted Note for a Definitive
         Note that does not bear the legends set forth above and shall rescind
         any restriction on the transfer of such Transfer Restricted Note if
         the Holder certifies in writing to the Registrar that its request for
         such exchange was made in reliance on Rule 144 (such certification to
         be in the form set forth on the reverse of the Initial Note).

                  (iii)    After a transfer of any Initial Notes, Additional
         Notes or Private Exchange Notes during the period of the effectiveness
         of a Shelf Registration Statement with respect to such Initial Notes,
         Additional Notes or Private Exchange Notes, as the case may be, all
         requirements pertaining to the Restricted Notes Legend on such Initial
         Notes, Additional Notes or Private Exchange Notes shall cease to apply
         and the requirements that any such Initial Notes, Additional Notes or
         Private Exchange Notes be issued in global form shall continue to
         apply.

                  (iv)     Upon the consummation of a Registered Exchange Offer
         with respect to the Initial Notes (or Additional Notes) pursuant to
         which Holders of such Notes are offered Exchange Notes in exchange for
         their Notes, all requirements pertaining to such Initial Notes (or
         Additional Notes) that such Notes be issued in global form shall
         continue to apply, and Exchange Notes in global form without the
         Restricted Notes Legend shall be available to Holders that exchange
         such Initial Notes (or such Additional Notes) in such Registered
         Exchange Offer.

                  (v)      Upon the consummation of a Private Exchange with
         respect  to the Initial Notes (or Additional Notes) pursuant to which
         Holders of such Notes are offered Private Exchange Notes in exchange
         for their Notes, all requirements pertaining to such Initial Notes (or
         such Additional Notes) that such Notes be issued in global form shall
         continue to apply, and Private Exchange Notes in global form bearing
         the Restricted Notes Legend shall be available to Holders that exchange
         such Initial Notes (or such Additional Notes) in such Private Exchange.

                  (vi)     Upon a sale or transfer after the expiration of the
         Restricted Period of any Initial Note (or Additional Note) acquired
         pursuant to Regulation S, all requirements that such Initial Note (or
         such Additional Note) bear the Restricted Notes Legend shall cease to
         apply and the requirements requiring any such Initial Note (or such
         Additional Note) be issued in global form shall continue to apply.

<PAGE>

                  (vii)    Upon the issuance of Additional Notes in an offering
         registered with the Commission, all requirements pertaining to such
         Additional Notes that such Additional Notes be issued bearing the
         Restricted Notes Legend shall not apply, and, furthermore, such
         Additional Notes so registered and issued may be issued in global form
         in the form of Exhibit A hereto."

         5.       Amendment to Exhibit A. Pursuant to the terms and provisions
of Sections 2.16 and 9.01(a) of the Indenture, Exhibit A to the Indenture is
hereby amended and restated in its entirety to read as set forth in Exhibit 1
attached hereto.

         6.       Agreement to Guarantee. The New Guarantor hereby agrees,
jointly and severally with the Existing Guarantors, to unconditionally
guarantee the Company's obligations under the Notes on the terms and subject to
the conditions set forth in Article XI of the Indenture and to be bound by all
other applicable provisions of the Indenture and the Notes to the same extent
as the Existing Guarantors.

         7.       Ratification of Indenture; Supplemental Indentures Part of
Indenture. Except as expressly amended hereby, the Indenture is in all respects
ratified and confirmed and all the terms, conditions and provisions thereof
shall remain in full force and effect, and by its execution hereof, each
Existing Guarantor hereby confirms its obligations under the Indenture and the
guarantee of the Notes. This Supplemental Indenture shall form a part of the
Indenture for all purposes, and every Holder of a Note heretofore or hereafter
authenticated and delivered shall be bound hereby.

         8.       GOVERNING LAW. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT
WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE
EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

         9.       Trustee's Assumption; Trustee Makes No Representation. The
Trustee assumes no duties, responsibilities or liabilities under this
Supplemental Indenture other than as set forth in the Indenture. The Trustee
makes no representation as to the validity or sufficiency of this Supplemental
Indenture. The Trustee's execution of this Supplemental Indenture should not be
construed to be an approval or disapproval of the amendment to the Indenture as
provided herein.

         10.      Compliance with TIA. The Company represents and warrants
that, upon execution, this Supplemental Indenture shall comply with the TIA, as
in effect on the date hereof.

         11.      Counterparts. The parties may sign any number of copies of
this Supplemental Indenture. Each signed copy shall be an original, but all of
them together shall constitute the same agreement.

         12.      Effect of Headings. The Section headings herein are for
convenience only and shall not affect the construction thereof.

<PAGE>

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

                           GRAY TELEVISION, INC.

                           By
                             --------------------------------------------------
                             Name:
                             Title:

                           GRAY MIDAMERICA TELEVISION, INC.

                           By
                             --------------------------------------------------
                             Name:
                             Title:

<PAGE>

                           THE SUBSIDIARY GUARANTORS:

                           THE ALBANY HERALD PUBLISHING COMPANY, INC.
                           POST-CITIZEN MEDIA, INC.
                           GRAY COMMUNICATIONS OF INDIANA, INC.
                           WEAU-TV, INC.
                           WVLT-TV, INC.
                           WRDW-TV, INC.
                           WITN-TV, INC
                           GRAY KENTUCKY TELEVISION, INC.
                           GRAY COMMUNICATIONS OF TEXAS, INC.
                           GRAY COMMUNICATIONS OF TEXAS - SHERMAN, INC.
                           GRAY TRANSPORTATION COMPANY, INC.
                           GRAY REAL ESTATE AND DEVELOPMENT CO.
                           GRAY FLORIDA HOLDINGS, INC.
                           KOLN/KGIN, INC.
                           WEAU LICENSEE CORP.
                           KOLN/KGIN LICENSE, INC.
                           WJHG LICENSEE CORP.
                           WCTV LICENSEE CORP.
                           WVLT LICENSEE CORP.
                           WRDW LICENSEE CORP.
                           WITN LICENSEE CORP.
                           WKYT LICENSEE CORP.
                           WYMT LICENSEE CORP.
                           KWTX-KBTX LICENSEE CORP.
                           KXII LICENSEE CORP.
                           GRAY TELEVISION MANAGEMENT, INC.
                           GRAY MIDAMERICA HOLDINGS, INC.
                           GRAY PUBLISHING, INC.
                           GRAY DIGITAL, INC.
                           KWTX-KBTX LP CORP.
                           KXII LP CORP.
                           PORTA-PHONE PAGING LICENSEE CORP.
                           KXII L.P.
                           KWTX - KBTX L.P.
                           LYNQX COMMUNICATIONS, INC.

                           For each of the above:

                           By:
                              -------------------------------------------------
                              Name:
                              Title:

<PAGE>

                           DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee

                           By
                             --------------------------------------------------
                             Name:
                             Title:

<PAGE>
                                        Exhibit 1 to the Supplemental Indenture

                                                                      EXHIBIT A

                       [FORM OF FACE OF ADDITIONAL NOTE]

                             [Global Notes Legend]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW YORK,
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT
IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE
REFERRED TO ON THE REVERSE HEREOF.

<PAGE>

No. N-                                                          $

                    9.25% Senior Subordinated Note due 2011

                                                            CUSIP No. 389375AA4

Gray Television, Inc., a Georgia corporation, promises to pay to Cede & Co., or
registered assigns, the principal sum listed on the Schedule of Increases or
Decreases in Global Note attached hereto on December 15, 2011.

Interest Payment Dates: June 15 and December 15.

Record Dates: June 1 and December 1.

Additional provisions of this Note are set forth on the other side of this
Note.

IN WITNESS WHEREOF, the parties have caused this instrument to be duly
executed.

Dated:

                           GRAY TELEVISION, INC.

                           By
                             --------------------------------------------------
                             Name:
                             Title:

                           By
                             --------------------------------------------------
                             Name:
                             Title:

<PAGE>

                    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the 9.25% Senior Subordinated Notes due 2011 referred to in the
Indenture.

Dated:

                           DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee

                           By
                             --------------------------------------------------
                                            Authorized Signatory

<PAGE>

                   [FORM OF REVERSE SIDE OF ADDITIONAL NOTE]

                    9.25% Senior Subordinated Note Due 2011

         1.       Interest

Gray Television, Inc., a Georgia corporation (such corporation, and its
successors and assigns under the Indenture hereinafter referred to, being
herein called the "Company"), promises to pay interest on the principal amount
of this Note at the rate per annum shown above. The Company shall pay interest
semiannually on June 15 or December 15 of each year (or if such day is not a
Business Day, on the next succeeding Business Day) commencing on December 15,
2002. Interest on the Notes shall accrue from the most recent date to which
interest has been paid or, if no interest has been paid or duly provided for,
from June 15, 2002 until the principal hereof is due. Interest shall be
computed on the basis of a 360-day year of twelve 30-day months. The Company
shall pay cash interest on overdue principal at the rate borne by the Notes
plus 1% per annum, and it shall pay interest on overdue installments of
interest at the same rate to the extent lawful.

         2.       Method of Payment

The Company shall pay interest on the Notes (except defaulted interest) to the
Persons who are registered Holders at the close of business on the June 1 or
December 1 next preceding the interest payment date even if Notes are canceled
after the record date and on or before the interest payment date. Holders must
surrender Notes to a Paying Agent to collect principal payments. The Company
shall pay principal, premium and interest in money of the United States of
America that at the time of payment is legal tender for payment of public and
private debts. Payments in respect of the Notes represented by a Global Note
(including principal, premium and interest) shall be made by wire transfer of
immediately available funds to the accounts specified by The Depository Trust
Company. The Company will make all payments in respect of a certificated Note
(including principal, premium and interest), by mailing a check to the
registered address of each Holder thereof; provided, however, that payments on
the Notes may also be made, in the case of a Holder of at least $1,000,000
aggregate principal amount of Notes, by wire transfer to a U.S. dollar account
maintained by the payee with a bank in the United States if such Holder elects
payment by wire transfer by giving written notice to the Trustee or the Paying
Agent to such effect designating such account no later than 30 days immediately
preceding the relevant due date for payment (or such other date as the Trustee
may accept in its discretion).

         3.       Paying Agent and Registrar

The Company initially appoints Deutsche Bank Trust Company Americas, a New York
banking corporation (the "Trustee"), as Registrar, Paying Agent and agent for
service of notices and demands in connection with the Notes. If the Company
fails to appoint or maintain a Registrar and/or Paying Agent, the Trustee shall
act as such.

<PAGE>

         4.       Indenture

The Company issued the Notes under an Indenture, dated as of December 15, 2001
(the "Indenture"), among the Company, the subsidiaries of the Company, as
guarantors (the "Subsidiary Guarantors"), and the Trustee. The terms of the
Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. (S)(S)
77aaa-77bbbb) as in effect on the date of the Indenture (the "TIA").
Capitalized terms used herein and not defined herein have the meanings assigned
thereto in the Indenture. The Notes are subject to all terms and provisions of
the Indenture, and Holders are referred to the Indenture and the TIA for a
statement of such terms and provisions.

The Notes are senior subordinated unsecured obligations of the Company limited
to $280,000,000 aggregate principal amount at any one time outstanding (subject
to Section 2.07 of the Indenture). This Note is one of the Additional Notes
referred to in the Indenture. The Notes include the Initial Notes, Additional
Notes and any Exchange Notes and Private Exchange Notes issued in exchange for
Initial Notes or Additional Notes. The Initial Notes, Additional Notes,
Exchange Notes and Private Exchange Notes are treated as a single class of
notes under the Indenture. The Indenture imposes certain limitations on the
ability of the Company and its Subsidiaries to, among other things, make
certain Investments and other Restricted Payments, pay dividends and other
distributions, incur Indebtedness, enter into consensual restrictions upon the
payment of certain dividends and distributions by Subsidiaries, enter into or
permit certain transactions with Affiliates and Asset Sales. The Indenture also
imposes limitations on the ability of the Company to consolidate or merge with
or into any other Person or convey, transfer or lease all or substantially all
of the property of the Company.

To guarantee the due and punctual payment of the principal and interest on the
Notes and all other amounts payable by the Company under the Indenture and the
Notes when and as the same shall be due and payable, whether, by acceleration
or otherwise, according to the terms of the Notes and the Indenture, the
Subsidiary Guarantors jointly and severally, unconditionally guarantee the
Obligations of the Company under the Indenture and the Notes on a senior
subordinated basis pursuant to the terms of the Indenture.

         5.       Optional Redemption

Except as described below in this Section 5, the Notes are not redeemable at
the Company's option prior to December 15, 2006. On and after such date, the
Notes will be subject to redemption at the option of the Company, in whole or
in part, at the redemption prices (expressed as percentages of the principal
amount of the Notes) set forth below, plus accrued and unpaid interest to the
date fixed for redemption, if redeemed during the twelve-month period beginning
on December 15, of the years indicated below.

<TABLE>
<CAPTION>
                           YEAR                                  PERCENTAGE

<S>                                                              <C>
2006.....................................................         104.625%
2007.....................................................         103.083%
2008.....................................................         101.542%
2009 and thereafter......................................         100.000%
</TABLE>

<PAGE>

Notwithstanding the foregoing, at any time prior to December 15, 2004, the
Company may, at its option, use the net proceeds of one or more Public Equity
Offerings to redeem up to 35% of the aggregate principal amount of the Notes
originally issued at a redemption price equal to 109.250% of the principal
amount thereof, together with accrued and unpaid interest to the date fixed for
redemption; provided, however, that at least $117.0 million in aggregate
principal amount of the Notes remains outstanding immediately after any such
redemption.

At any time prior to December 15, 2006, the Notes may be redeemed as a whole
but not in part at the option of the Company, upon not less than 30 or more
than 60 days' prior notice mailed by first-class mail to each holder's
registered address, at a redemption price equal to 100% of the principal amount
thereof plus the Make Whole Premium as of, and accrued but unpaid interest, if
any, to, the redemption date, subject to the right of holders on the relevant
record date to receive interest due on the relevant interest payment date.

"Make Whole Premium" means with respect to a Note at any redemption date, the
greater of (i) 1.0% of the principal amount of such Note or (ii) the excess of
(A) the present value of (1) the redemption price of such Note at December 15,
2006 (such redemption price being set forth in the table above) plus (2) all
required interest payments due on such Note through December 15, 2006, computed
using a discount rate equal to the Treasury Rate plus 50 basis points, over (B)
the then-outstanding principal amount of such Note.

"Treasury Rate" means the yield to maturity at the time of computation of
United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H. 15(519)
which has become publicly available at least two Business Days prior to the
redemption date or, if such Statistical Release is no longer published, any
publicly available source or similar market data) most nearly equal to the
period from the redemption date to December 15, 2006; provided, however, that
if the period from the redemption date to December 15, 2006 is not equal to the
constant maturity of a United States Treasury security for which a weekly
average yield is given, the Treasury Rate shall be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly
average yields of United States Treasury securities for which such yields are
given, except that if the period from the redemption date to December 15, 2006
is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year shall be
used.

         6.       Sinking Fund

The Notes are not subject to any sinking fund.

         7.       Notice of Redemption

Notice of redemption will be mailed by first-class mail at least 30 days but
not more than 60 days before the redemption date to each Holder of Notes that
are to be redeemed at his or her registered address. Notes in denominations
larger than $1,000 of principal amount may be redeemed in part but only in
whole multiples of $1,000 of principal amount. If money sufficient to pay the
redemption price of and accrued and unpaid interest and liquidated damages, if
any, on all Notes (or portions thereof) to be redeemed on the redemption date
is deposited with the

<PAGE>

Paying Agent on or before the redemption date and certain other conditions are
satisfied, on and after such date interest ceases to accrue on such Notes (or
such portions thereof) called for redemption.

         8.       Repurchase of Notes at the Option of Holders upon Change of
                  Control

Upon a Change of Control, each Holder will have the right, subject to certain
conditions specified in the Indenture, to require the Company to repurchase all
or any part of such Holder's Notes at a purchase price in cash equal to 101% of
the principal amount on the Change of Control Purchase Date, plus accrued and
unpaid interest, if any, to the Change of Control Purchase Date (subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date), as provided in, and subject to the
terms of, the Indenture.

         9.       Subordination

The Notes are subordinated to Senior Debt. To the extent provided in the
Indenture, Senior Debt must be paid before the Notes may be paid. The Company
and each Subsidiary Guarantor agrees, and each Holder by accepting a Note
agrees, to the subordination provisions contained in the Indenture and
authorizes the Trustee to give it effect and appoints the Trustee as
attorney-in-fact for such purpose.

         10.      Denominations; Transfer; Exchange

The Notes are in registered form without coupons in denominations of $1,000 and
whole multiples of $1,000. A Holder may transfer or exchange Notes in
accordance with the Indenture. Upon any transfer or exchange, the Registrar and
the Trustee may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes required by law or
permitted by the Indenture. The Registrar need not register the transfer of or
exchange any Notes selected for redemption (except, in the case of a Note to be
redeemed in part, the portion of the Note not to be redeemed) or to transfer or
exchange any Notes for a period of 15 days prior to a selection of Notes to be
redeemed.

         11.      Persons Deemed Owners

The registered Holder of this Note may be treated as the owner of it for all
purposes.

         12.      Unclaimed Money

If money for the payment of principal or interest remains unclaimed for two
years, the Trustee or Paying Agent shall pay the money back to the Company at
its written request unless an abandoned property law designates another Person.
After any such payment, Holders entitled to the money must look only to the
Company and not to the Trustee for payment.

         13.      Discharge and Defeasance

Subject to certain conditions, the Company at any time may terminate some of or
all its obligations under the Notes and the Indenture if the Company deposits
with the Trustee money or U.S. Government Obligations for the payment of
principal and interest on the Notes to redemption or maturity, as the case may
be.

<PAGE>

         14.      Amendment, Waiver

Subject to certain exceptions set forth in the Indenture, (i) the Indenture or
the Notes may be amended or supplemented with the written consent of the
Holders of at least a majority in aggregate principal amount of the outstanding
Notes (including consents obtained in connection with a tender offer or
exchange offer for the Notes) and (ii) any existing Default or Event of Default
or noncompliance with any provision of the Indenture or the Notes may be waived
with the consent of Holders of at least a majority in principal amount of the
outstanding Notes (including consents obtained in connection with a tender
offer or exchange offer for the Notes). Subject to certain exceptions set forth
in the Indenture, without the consent of any Holder, the Company, the
Subsidiary Guarantors and the Trustee may amend the Indenture or the Notes to:
(i) cure any ambiguity, defect or inconsistency; (ii) provide for
uncertificated Notes in addition to or in place of certificated Notes; (iii)
provide for the assumption of the Company's obligations to the Holders in the
event of any Disposition involving the Company that is permitted under Article
V of the Indenture in which the Company is not the Surviving Person; (iv) make
any change that would provide any additional rights or benefits to Holders or
does not adversely affect the interests of any Holder; (v) comply with the
requirements of the Commission in order to effect or maintain the qualification
of the Indenture under the TIA; (vi) add additional Subsidiary Guarantors
pursuant to Section 4.17 of the Indenture; (vii) provide for the issuance of
Exchange Notes or Private Exchange Notes, subject to the provisions of the
Indenture; or (viii) provide for the issuance of Additional Notes as permitted
by Section 2.16 of the Indenture.

         15.      Defaults and Remedies

If any Event of Default (other than an Event of Default specified under Section
6.01(a)(ix) or (x) of the Indenture with respect to the Company or any
Subsidiary Guarantor) occurs and is continuing, the Trustee or the Holders of
at least 25% in principal amount of the then outstanding Notes may, and the
Trustee at the request of such Holders shall, declare all the Notes to be due
and payable immediately. In the case of any Event of Default arising from the
events specified in Section 6.01(a)(ix) or (x) of the Indenture with respect to
the Company or any Subsidiary Guarantor occurs, the principal of, premium, if
any, and accrued and unpaid interest on all outstanding Notes shall ipso facto
become immediately due and payable without further action or Notice. Under
certain circumstances, the Holders of a majority in principal amount of the
outstanding Notes may rescind any such acceleration with respect to the Notes
and its consequences.

If an Event of Default occurs and is continuing, the Trustee shall be under no
obligation to exercise any of its rights or powers under the Indenture at the
request of any Holders unless such Holders shall have offered to the Trustee
security or indemnity satisfactory to it against any loss, liability or
expense. Except to enforce the right to receive payment of principal, premium
(if any) or interest when due, no Holder may pursue any remedy with respect to
the Indenture or the Notes unless (1) the Holder gives to the Trustee notice of
a continuing Event of Default; (2) the Holders of at least 25% in principal
amount of the then outstanding Notes make a request to the Trustee to pursue
the remedy; (3) such Holder or Holders offer to the Trustee indemnity

<PAGE>

satisfactory to the Trustee against any loss, liability or expense; (4) the
Trustee does not comply with the request within 60 days after receipt of the
request and the offer of indemnity; and (5) during such 60-day period the
Holders of a majority in aggregate principal amount of the then outstanding
Notes do not give the Trustee a direction inconsistent with the request.
Subject to certain restrictions, the Holders of a majority in aggregate
principal amount of the then outstanding Notes may direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on it by the Indenture. However, the
Trustee may refuse to follow any direction that conflicts with law or the
Indenture, that the Trustee determines may be unduly prejudicial to the rights
of other Holders, or would involve the Trustee in personal liability.

         16.      Trustee Dealings with the Company

Subject to certain limitations imposed by the TIA, the Trustee, in its
individual or any other capacity, may become the owner or pledgee of Notes and
may otherwise deal with the Company or any of its Affiliates with the same
rights it would have if it were not Trustee. However, if the Trustee acquires
any conflicting interest, it must eliminate such conflict within 90 days, apply
to the Commission for permission to continue as Trustee, or resign.

         17.      No Recourse Against Others

No director, officer, employee, incorporator or stockholder, of the Company or
any Subsidiary Guarantor shall have any liability for any obligation of the
Company or any Subsidiary Guarantor under the Indenture, the Notes or the
Subsidiary Guarantees. Each Holder, by accepting a Note (including Subsidiary
Guarantees), waives and releases such Persons from all such liability and such
waiver and release are part of the consideration for the issuance of the Notes.

         18.      Authentication

This Note shall not be valid until an authorized signatory of the Trustee (or
an authenticating agent) manually signs the certificate of authentication on
the other side of this Note.

         19.      Abbreviations

Customary abbreviations may be used in the name of a Holder or an assignee,
such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT
TEN (=joint tenants with rights of survivorship and not as tenants in common),
CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act).

         20.      GOVERNING LAW

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

<PAGE>

         21.      CUSIP Numbers

Pursuant to a recommendation promulgated by the Committee on Uniform Security
Identification Procedures, the Company has caused CUSIP numbers to be printed
on the Notes and has directed the Trustee to use CUSIP numbers in notices of
redemption as a convenience to Holders. No representation is made as to the
accuracy of such numbers either as printed on the Notes or as contained in any
notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

The Company will furnish to any Holder upon written request and without charge
to the Holder a copy of the Indenture which has in it the text of this Note.

<PAGE>

                                ASSIGNMENT FORM

To assign this Note, fill in the form below:

I or we assign and transfer this Note to

------------------------------------------------------------------------------
             (Print or type assignee's name, address and zip code)

------------------------------------------------------------------------------
                 (Insert assignee's soc. sec. or tax I.D. No.)

and irrevocably appoint _______________________ agent to transfer this Note on
the books of the Company. The agent may substitute another to act for him.

Date:                               Your Signature:
     ------------------                            ----------------------------

-------------------------------------------------------------------------------
Sign exactly as your name appears on the other side of this Note. Signature
must be guaranteed by a participant in a recognized signature guaranty
medallion program or other signature guarantor acceptable to the Trustee.

<PAGE>

                        [TO BE ATTACHED TO GLOBAL NOTES]

               SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

The initial principal amount of this Global Note is $100,000,000.00. The
following increases or decreases in this Global Note have been made:

<TABLE>
<CAPTION>
Date of           Amount of decrease in      Amount of increase in    Principal Amount of      Signature of
Exchange          Principal amount of        Principal Amount of      this                     authorized
                  this                       this                     Global Note following    signatory of Trustee
                  Global Note                Global Note              such decrease or         or Notes Custodian
                                                                      increase

<S>               <C>                        <C>                      <C>                      <C>

</TABLE>

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

If you want to elect to have this Note purchased by the Company pursuant to
Section 4.13 (Change of Control) or 4.14 (Limitation on Asset Sales) of the
Indenture, check the box:

         Change of Control [ ]                        Asset Sales [ ]

If you want to elect to have only part of this Note purchased by the Company
pursuant to Section 4.13 or 4.14 of the Indenture, state the principal amount:
$______________

Date:                               Your Signature:
     ------------------                            ----------------------------
                                                   (Sign exactly as your name
                                                   appears on the other side
                                                   of the Note)

Signature Guarantee:
                    -----------------------------------------------------------
                    Signature must be guaranteed by a participant in a
                    recognized signature guaranty medallion program or other
                    signature guarantor acceptable to the Trustee

<PAGE>

                            FORM OF NOTATION ON NOTE
                        RELATING TO SUBSIDIARY GUARANTEE

Each Subsidiary Guarantor, jointly and severally, unconditionally guarantees,
to the extent set forth in the Indenture and subject to the provisions of the
Indenture that: (i) the principal of, premium, if any, and interest on the
Notes will be promptly paid in full when due, whether at maturity, by
acceleration, redemption or otherwise, and interest on the overdue principal of
and interest on the Notes, if any, to the extent lawful, and all other
Obligations of the Company to the Holders or the Trustee under the Indenture
and the Notes will be promptly paid in full, all in accordance with the terms
of the Indenture and the Notes; and (ii) in case of any extension of time of
payment or renewal of any Notes or any of such other Obligations, that the
Notes will be promptly paid in full when due in accordance with the terms of
such extension or renewal, whether at stated maturity, by acceleration or
otherwise.

The obligations of each Subsidiary Guarantor to the Holders of Notes and the
Trustee pursuant to this guarantee and the Indenture are set forth in Article
XI of the Indenture, to which reference is hereby made.

<PAGE>

                                    THE SUBSIDIARY GUARANTORS:

                                    THE ALBANY HERALD PUBLISHING COMPANY, INC.
                                    POST-CITIZEN MEDIA, INC.
                                    GRAY COMMUNICATIONS OF INDIANA, INC.
                                    WEAU-TV, INC.
                                    WVLT-TV, INC.
                                    WRDW-TV, INC.
                                    WITN-TV, INC
                                    GRAY KENTUCKY TELEVISION, INC.
                                    GRAY COMMUNICATIONS OF TEXAS, INC.
                                    GRAY COMMUNICATIONS OF TEXAS - SHERMAN, INC.
                                    GRAY TRANSPORTATION COMPANY, INC.
                                    GRAY REAL ESTATE AND DEVELOPMENT CO.
                                    GRAY FLORIDA HOLDINGS, INC.
                                    KOLN/KGIN, INC.
                                    WEAU LICENSEE CORP.
                                    KOLN/KGIN LICENSE, INC.
                                    WJHG LICENSEE CORP.
                                    WCTV LICENSEE CORP.
                                    WVLT LICENSEE CORP.
                                    WRDW LICENSEE CORP.
                                    WITN LICENSEE CORP.
                                    WKYT LICENSEE CORP.
                                    WYMT LICENSEE CORP.
                                    KWTX-KBTX LICENSEE CORP.
                                    KXII LICENSEE CORP.
                                    GRAY TELEVISION MANAGEMENT, INC.
                                    GRAY MIDAMERICA HOLDINGS, INC.
                                    GRAY PUBLISHING, INC.
                                    GRAY DIGITAL, INC.
                                    KWTX-KBTX LP CORP.
                                    KXII LP CORP.
                                    PORTA-PHONE PAGING LICENSEE CORP.
                                    KXII L.P.
                                    KWTX - KBTX L.P.
                                    LYNQX COMMUNICATIONS, INC.
                                    GRAY MIDAMERICA TELEVISION, INC.

                                    For each of the above:

                                    By
                                      -----------------------------------------
                                      Name:
                                      Title:

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