Document:

Exhibit 10(af)

THE SECURITIES  REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES ISSUABLE UPON
CONVERSION  HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED.  THE SECURITIES  HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD,
TRANSFERRED  OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE  REGISTRATION  STATEMENT
FOR THE SECURITIES  UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR AN OPINION
OF COUNSEL IN FORM,  SUBSTANCE AND SCOPE  REASONABLY  ACCEPTABLE TO THE BORROWER
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR UNLESS SOLD PURSUANT TO RULE
144 UNDER SAID ACT. ANY SUCH SALE,  ASSIGNMENT OR TRANSFER MUST ALSO COMPLY WITH
APPLICABLE STATE SECURITIES LAWS.

                            SECURED CONVERTIBLE NOTE
                                 (No. CTS-03-20)

July 28, 2003                                                        $410,000.00

FOR VALUE RECEIVED, NCT GROUP, INC., a Delaware corporation  (hereinafter called
the  "Borrower")  hereby  promises  to pay to the  order of  Carole  Salkind  or
registered  assigns (the "Holder") the sum of Four Hundred Ten Thousand  Dollars
and No Cents  ($410,000.00)  on January  28,  2004,  and to pay  interest on the
unpaid  principal  balance hereof at eight percent (8%) per annum (the "Ordinary
Interest  Rate") from the date hereof (the "Issue  Date") until the same becomes
due and payable,  whether at maturity or upon  acceleration  or  otherwise.  Any
amount of principal of or interest on this Note which is not paid when due shall
bear interest at the rate of five percent (5%) above the Ordinary  Interest Rate
(the "Default  Interest Rate") from the due date thereof until the same is paid.
Interest  shall  commence  accruing  on the Issue  Date and,  to the  extent not
converted  in  accordance  with the  provisions  of Article  II below,  shall be
payable in arrears on the date the  principal  amount in respect of which it has
accrued is paid,  whether at maturity or upon  acceleration  or by prepayment or
otherwise.  All payments of principal  and interest (to the extent not converted
in accordance with the terms hereof) shall be made in lawful money of the United
States of  America.  All  payments  shall be made at such  address as the Holder
shall  hereafter give to the Borrower by written notice made in accordance  with
the provisions of this Note.

The following terms shall apply to this Note:

                                    ARTICLE I

                                  NO PREPAYMENT

     1.1  PREPAYMENT.  This  Note is not  subject  to  prepayment.  This Note is
subject to optional conversion in accordance with Section 2.7 below.

                                   ARTICLE II

            CONVERSION AND PURCHASE RIGHTS; PAYMENT OF EXERCISE PRICE

     2.1  CONVERSION  RIGHT.  The Holder  shall have the right (the  "Conversion
Right") at any time on or prior to the day this Note is paid in full, to convert
at any time all or from  time to time any  part of the  outstanding  and  unpaid
principal  amount of this Note of at least  $50,000,  or such  lesser  amount as
shall remain unpaid at the time of the conversion,  into, at Holder's  election,
(i) fully paid and  non-assessable  shares of common  stock,  par value $.01 per
share, of the Borrower ("Common  Stock"),  at the

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conversion  price  determined  by Section  2.2(a)  hereof;  (ii) if Artera Group
International  Limited  ("Artera")  has made an initial  public  offering of its
common stock,  par value  (pound)1.00 per share,  fully paid and  non-assessable
shares of such stock owned by the Borrower,  at a conversion  price equal to the
initial  public  offering  price  of such  stock;  (iii)  if  Distributed  Media
Corporation  International  Limited  ("DMCI") has made a public  offering of its
common stock,  par value  (pound)1.00 per share,  fully paid and  non-assessable
shares of such stock owned by the Borrower,  at a conversion  price equal to the
initial public offering price of such stock; and (iv) if any other subsidiary of
the  Borrower  (other  than Pro  Tech  Communications,  Inc.)  has made a public
offering of its common stock, fully paid and non-assessable shares of such stock
owned  by the  Borrower,  at a  conversion  price  equal to the  initial  public
offering price of such stock. Upon the surrender of this Note,  accompanied by a
Notice of Conversion of Secured  Convertible Note in the form attached hereto as
Exhibit 1, properly  completed  and duly  executed by the Holder (a  "Conversion
Notice"), the Borrower shall issue and, within five (5) business days after such
surrender of this Note with the Conversion Notice,  deliver to or upon the order
of the Holder (x) that  number of shares of common  stock for the portion of the
Note converted as shall be determined in accordance  herewith and (y) a new Note
in the form hereof for the balance of the principal amount hereof, if any.

     The number of shares of common stock to be issued upon each  conversion  of
this Note shall be determined by dividing (i) the sum of (A) that portion of the
principal  amount  of the Note to be  converted  plus (B) the  "Conversion  Date
Interest" (as defined below), by (ii) the Conversion Price (as defined below) in
effect on the date the  Conversion  Notice is  delivered  to the Borrower by the
Holder.  Conversion Date Interest means the product of (i) the principal  amount
of the Note to be converted,  multiplied by (ii) a fraction (A) the numerator of
which is the number of days elapsed  since the date of issuance of this Note and
(B) the  denominator of which is 365,  multiplied by the Ordinary  Interest Rate
(iii) or, a  fraction  (A) the  numerator  of which is the number of days in the
period  of  time  after  the  occurrence  of an  Event  of  Default  and (B) the
denominator of which is 365, multiplied by the Default Interest Rate.

     2.2 CONVERSION PRICE.

          (a) The per share "Conversion  Price" for conversion of this Note into
     the Borrower's Common Stock shall be equal to the closing sale price of the
     Common Stock on the Trading Day (as defined  below)  immediately  preceding
     the date of this Note; provided, however, that if, on the date of this Note
     and the three Trading Days thereafter  (the  "Window"),  neither the Holder
     nor any Related  Party (as defined  below) sells or,  whether in writing or
     otherwise,  agrees  to sell any  shares  of  Common  Stock  or any  option,
     warrant,  instrument  or right to  convert  into,  exchange  for or acquire
     Common  Stock,  then such price  shall be  reduced to a price  equal to the
     lowest closing sale price,  if lower than the price specified above in this
     sentence, of the Common Stock during the Window on the principal securities
     exchange or market on which the Common  Stock is then traded as reported on
     Bloomberg  Financial Markets. If any closing sale price of the Common Stock
     during the Window is lower than the price  specified  at the  beginning  of
     this Section  2.2(a),  the Holder shall give the  Borrower  prompt  written
     notice of any sale of or  agreement  to sell any  Common  Stock or  option,
     warrant,  instrument  or right to  convert  into,  exchange  for or acquire
     Common  Stock made by the  Holder or a Related  Party  during  the  Window.
     "Trading  Day" shall  mean any day on which the Common  Stock is traded for
     any period on the NASDAQ National  Market,  or on the principal  securities
     exchange or other securities market on which the Common Stock is then being
     traded.  "Related  Party"  shall  mean a member of the  Holder's  immediate
     family,  including  spouse  (even if  separated  or not  residing  with the
     Holder) and adult  children  (even if not residing with the Holder),  or an
     entity (other than the Borrower) of which the Holder or any such  immediate
     family member is an officer, director or beneficial shareholder (determined
     under Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the
     "1934  Act")).  The  Conversion  Price  shall also be subject to  equitable
     adjustments   for   stock   splits,    stock    dividends,    combinations,
     recapitalization,

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<PAGE>

     reclassifications  and  similar  events.  The Artera  and DMCI  "Conversion
     Price" shall be equal to the initial  public  offering  price of such stock
     and shall be subject to adjustment as provided in Section 2.2(b) hereof.

          (b) The  Conversion  Price  for NCT,  Artera  and DMCI  shall  also be
     subject  to  equitable  adjustments  for  stock  splits,  stock  dividends,
     combinations, reclassifications and similar events.

          (c) Borrower shall promptly  notify each Holder of any adjustment (and
     event that requires  adjustment) to the Conversion Price of NCT, Artera and
     DMCI pursuant to this Section 2.2.

     2.3 AUTHORIZED  SHARES.  The Borrower  covenants that during the period the
Conversion Right exists,  the Borrower will use its best efforts to reserve from
its  authorized  and  unissued  Common  Stock a  sufficient  number of shares to
provide for the issuance of Common Stock upon the full  conversion of this Note.
The Borrower represents that upon issuance; such shares will be duly and validly
issued,  fully paid and  non-assessable.  The Borrower (i) acknowledges  that it
will  irrevocably  instruct its transfer  agent as soon as  practicable to issue
certificates for the Common Stock issuable upon conversion of this Note and (ii)
agrees that its  issuance of this Note shall  constitute  full  authority to its
officers  and  agents,  who  are  charged  with  the  duty  of  executing  stock
certificates,  to execute  and issue the  necessary  certificates  for shares of
Common Stock upon the  conversion  of this Note.  In the event that a sufficient
number of shares cannot be reserved,  Borrower agrees to use its best efforts to
call an annual  meeting of the Borrowers  shareholders  and seek approval for an
increase in the authorized  shares of the Borrowers  Common Stock to a number of
shares sufficient to provide for the full conversion of this Note.

     2.4 METHOD OF  CONVERSION.  Except as  otherwise  provided  in this Note or
agreed to by the Holder,  this Note may be  converted  by the Holder in whole at
any time or in part (provided such partial  conversion is at least $50,000) from
time to time by (i) submitting to the Borrower a Conversion Notice (by facsimile
dispatched on the  Conversion  Date and confirmed by U.S. mail or overnight mail
service sent within two Trading Days thereafter) and (ii) surrendering this Note
with the mailed confirmation of the Conversion Notice at the principal office of
the Borrower.  Upon partial exercise of the conversion rights provided hereby, a
new Note containing the same date and provisions as this Note shall be issued by
the  Borrower to the Holder for the  principal  balance of this Note which shall
not have been converted.  This Note has been issued by the Borrower  pursuant to
the exemption from  registration  provided either by Section 4.2 or Regulation D
under the Securities Act of 1933, as amended (the "Act").

     2.5  RESTRICTIONS  ON SHARES.  The  shares of common  stock  issuable  upon
conversion  of this Note may not be sold or  transferred  unless  (i) they first
shall have been registered  under the Act and applicable  state securities laws,
(ii) the Borrower shall have been furnished with an opinion of legal counsel (in
form, substance and scope reasonably  acceptable to Borrower) to the effect that
such sale or transfer is exempt from the registration requirements of the Act or
(iii) they are sold  pursuant to Rule 144 under the Act.  Each  certificate  for
shares of common stock issuable upon  conversion of this Note that have not been
so registered  and that have not been sold pursuant to an exemption that permits
removal of the legend,  shall bear a legend substantially in the following form,
as appropriate:

          THE  SECURITIES   REPRESENTED  BY  THIS   CERTIFICATE  HAVE  NOT  BEEN
          REGISTERED  UNDER  THE  SECURITIES  ACT  OF  1933,  AS  AMENDED.   THE
          SECURITIES  HAVE BEEN  ACQUIRED  FOR  INVESTMENT  AND MAY NOT BE SOLD,
          TRANSFERRED  OR ASSIGNED IN THE ABSENCE OF AN  EFFECTIVE  REGISTRATION
          STATEMENT  FOR THE  SECURITIES  UNDER THE  SECURITIES  ACT OF 1933, AS
          AMENDED,  OR AN  OPINION  OF  COUNSEL  IN FORM,  SUBSTANCE  AND  SCOPE
          REASONABLY  ACCEPTABLE  TO  THE  BORROWER  THAT  REGISTRATION  IS  NOT
          REQUIRED UNDER SAID ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
          ACT.  ANY SUCH SALE,  ASSIGNMENT  OR  TRANSFER  MUST ALSO  COMPLY WITH
          APPLICABLE STATE SECURITIES LAWS.

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<PAGE>

     Upon the request of a holder of a  certificate  representing  any shares of
common stock  issuable upon  conversion of this Note,  the Borrower shall remove
the  foregoing  legend  from  the  certificate  or  issue  to such  holder a new
certificate  therefor free of any transfer legend, if (i) with such request, the
Borrower  shall  have  received   either  an  opinion  of  counsel,   reasonably
satisfactory  to the Borrower in form,  substance and scope,  to the effect that
any such legend may be removed  from such  certificate,  or (ii) a  registration
statement under the Act covering such  securities is in effect.  Nothing in this
Note shall affect in any way the Holder's  obligations to comply with applicable
securities laws upon the resale of the securities referred to herein.

          Borrower  agrees  to  use  its  best  efforts  to  register  with  the
     Securities  and Exchange  Commission,  no later than the end of the term of
     this Note (unless legally  prohibited from doing so), a number of shares of
     Common Stock equal to the principal  amount of this Note outstanding at the
     time of  registration  divided  by the  Conversion  Price  with  respect to
     Borrower.  Such Common Stock shall not be used, without permission from the
     Holder, for any other purposes.

     2.6 EFFECT OF MERGER,  CONSOLIDATION,  ETC. If at anytime when this Note is
issued and outstanding,  there shall be any merger,  consolidation,  exchange of
shares, recapitalization, reorganization, or other similar event, as a result of
which shares of Common Stock of the Borrower shall be changed into the same or a
different number of shares of another class or classes of stock or securities of
the Borrower or another  entity,  or in case of any sale or conveyance of all or
substantially  all of the assets of the Borrower other than in connection with a
plan of complete liquidation of the Borrower, then the Holder of this Note shall
thereafter  have the right to receive  upon  conversion  of this Note,  upon the
bases and upon the  terms and  conditions  specified  herein  and in lieu of the
shares of Common Stock then issuable upon  conversion of this Note (assuming the
occurrence of the Amendments whether or not that has then occurred), such stock,
securities  or assets  which the Holder  would have been  entitled to receive in
such  transaction  had  this  Note  been  converted  immediately  prior  to such
transaction,  and in any such  case  appropriate  provisions  shall be made with
respect to the rights and  interests  of the Holder of this Note to the end that
the provisions hereof (including, without limitation,  provisions for adjustment
of the Conversion  Price and of the number of shares issuable upon conversion of
this Note) shall  thereafter be  applicable,  as nearly as may be practicable in
relation to any securities or assets  thereafter  deliverable  upon the exercise
hereof. The Borrower shall not effect any transaction  described in this Section
2.6 unless the  resulting  successor or acquiring  entity (if not the  Borrower)
assumes by written  instrument  the  obligations of this Section 2.6. The Holder
will have the right if a merger or consolidation  occurs to force the payment in
full of this note.

     2.7  OPTIONAL  CONVERSION.  So long as no Event of Default  (as  defined in
Article III below)  shall have  occurred  and be  continuing  the Holder has the
right to require the conversion of the note into stock.

                                   ARTICLE III

                                EVENTS OF DEFAULT

     If of any of the following  events of default (each, an "Event of Default")
shall occur:

     3.1 FAILURE TO PAY PRINCIPAL OR INTEREST. The Borrower fails (i) to pay the
principal hereof when due, whether at maturity upon acceleration or otherwise or
(ii) to pay any

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installment  of  interest  hereon  when due and, in the case of this clause (ii)
only,  such failure  continues  for a period of five (5) days after the due date
thereof;

     3.2  CONVERSION.  The Borrower fails to issue shares of common stock to the
Holder  upon  exercise by the Holder of the  conversion  rights of the Holder in
accordance  with the terms of this Note,  and any such  failure  shall  continue
uncured for five (5) business  days after the Borrower  shall have been notified
thereof in writing by the Holder;

     3.3 BREACH OF  COVENANT.  The Borrower  breaches  any material  covenant or
other  material  term or  condition  of this Note  (other  than as  specifically
provided in Sections 3.1 and 3.2 hereof), and such breach continues for a period
of ten (10) business days after written  notice thereof to the Borrower from the
Holder.

     3.4  BREACH  OF  REPRESENTATIONS  AND  WARRANTIES.  Any  representation  or
warranty  of  the  Borrower  made  herein  or in  any  agreement,  statement  or
certificate given in writing pursuant hereto or in connection  herewith shall be
false or  misleading  in any material  respect when made and the breach of which
would have a material  adverse  effect on the  Borrower or the  prospects of the
Borrower or a material  adverse effect on the Holder or the rights of the Holder
with respect to this Note or the shares of common stock issuable upon conversion
of this Note;

     3.5  RECEIVER OR TRUSTEE.  The Borrower or any  subsidiary  of the Borrower
shall make an assignment  for the benefit of creditors,  or apply for or consent
to the appointment of a receiver or trustee for it or for a substantial  part of
its  property or  business;  or such a receiver or trustee  shall  otherwise  be
appointed;

     3.6 JUDGMENTS. Any money judgment, writ or similar process shall be entered
or filed  against the Borrower or any  subsidiary  of the Borrower or any of its
property or other assets for more than  $250,000,  and shall  remain  unvacated,
unbonded or unstayed for a period of twenty (20) days unless otherwise consented
to by the Holder; or

     3.7  BANKRUPTCY.  Bankruptcy,  insolvency,  reorganization  or  liquidation
proceedings or other  proceedings for relief under any bankruptcy law or any law
for the relief of debtors  shall be instituted by or against the Borrower or any
subsidiary of the Borrower.

     3.8 MATERIAL LOSS OR THEFT.  Material loss or theft,  substantial damage or
destruction or unauthorized  sale or encumbrance of any material  portion of the
Collateral  (as defined in Article IV hereof) in excess of  reasonably  expected
recoveries under insurance policies, or the making of any levy on, or seizure or
attachment  of or  entry  of a  judgment  against  a  material  portion  of  the
Collateral.

     3.9 REPORTS.  A material  omission or  misstatement  in any of the Debtor's
previously or hereafter filed reports  pursuant to the  requirements of the 1934
Act or the rules and regulations promulgated thereunder.

     Then,  upon the  occurrence  and  during the  continuation  of any Event of
Default specified in Sections 3.1, 3.2, 3.3, 3.4, 3.6, 3.8 or 3.9 hereof, at the
option of the Holder  hereof,  and upon the  occurrence  of any event of default
specified in Sections 3.5 or 3.7 hereof,  the Borrower  shall pay to the Holder,
in  satisfaction of its obligation to pay the  outstanding  principal  amount of
this Note and accrued and unpaid interest thereon, an amount equal to the sum of
(i) the  product  of (x) the then  outstanding  principal  amount  of this  Note
multiplied  by (y) 110% plus (ii)  accrued  and  unpaid  interest  on the unpaid
principal amount of this Note to the date of payment (the "Default  Amount") and
such Default Amount, together with all other ancillary amounts payable hereunder
shall  immediately  become due and payable,

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all without  demand,  presentment  or notice,  all of which hereby are expressly
waived, together with all costs, including,  without limitation,  legal fees and
expenses of  collection,  and the Holder shall be entitled to exercise all other
rights and remedies available at law or in equity.

     If the Borrower  fails to pay the Default  Amount  within five (5) business
days of written  notice  that such  amount is due and  payable,  then the Holder
shall have the right at any time, so long as the Borrower remains in default, to
require the Borrower,  upon written notice,  to immediately issue (in accordance
with the terms of Article II hereof),  in lieu of the Default Amount, the number
of shares of Common Stock of the Borrower equal to the Default Amount divided by
the Conversion Price then in effect.

                                   ARTICLE IV

                                   COLLATERAL

     Borrower  hereby  grants to Holder a security  interest  in all  inventory,
machinery,  equipment,  stocks, bonds, notes, accounts receivable, any rights or
claims that they may have against any other  person,  firm, or  corporation  for
monies, choses in action, any bank accounts, checking accounts,  certificates of
deposit or any financial instrument, patents and intellectual property rights or
any  other  assets  owned  by  Borrower  as of the  date of this  agreement,  or
hereafter acquired.

     Borrower hereby represents that none of the collateral encumbered hereunder
has been sold or  assigned  since the  original  promissory  note of Borrower to
Holder  of  January  26,  1999 and that the lien of the  holder  of this note is
uninterrupted  from January 26, 1999 and shall  continue until this note is paid
or otherwise disposed of in accordance with its terms and conditions.

     All  collateral  rights in  intellectual  property is  subordinated  to the
Borrower's current licenses and future licenses  provided,  that with respect to
future  licenses,  the consent of the Holder must be obtained,  but such consent
will not be unreasonably  withheld.  The patents and intellectual property which
are licensed under the cross license  agreement dated September 27, 1997,  among
NXT plc, New Transducers Limited, being related companies,  the Borrower and NCT
Audio Products,  Inc. (or any successor  agreements) are  specifically  excluded
from the collateral.  There are approximately 20 pieces of intellectual property
in which,  under the cross license  agreement,  Borrower may not, and hence does
not herein, grant a security interest.  In addition,  all agreements between NCT
Audio  Products,  Inc. and the Borrower that relate to such  agreement,  and the
stock of NCT Audio  Products,  Inc.  owned by the Borrower,  shall  similarly be
excluded from the security interest granted in this Note.

     If Borrower does not pay the debt or other obligations under this Note when
due, the  collateral may be sold in order to pay such debt and  obligations,  or
same may be transferred  to the name of the Holder,  as Holder in her discretion
decides.  Holder may inspect the  collateral at all reasonable  times.  Borrower
further agrees that it will do anything reasonably  requested by Holder in order
to make Holder's security interest in the collateral legally effective including
the execution of a UCC-1.

                                    ARTICLE V

                                  MISCELLANEOUS

     5.1 FAILURE OR  INDULGENCY  NOT WAIVER.  No failure or delay on the part of
the Holder in the  exercise of any power,  right or  privilege  hereunder  shall
operate as a waiver  thereof,  nor shall any single or partial  exercise  of any
such power,  right or privilege preclude other or further exercise thereof or

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<PAGE>

of any other  right,  power or  privilege.  All  rights  and  remedies  existing
hereunder  are  cumulative  to, and not  exclusive  of,  any rights or  remedies
otherwise available.

     5.2 NOTICES.  Notices,  demands and other  communications  given under this
Note shall be in writing  and shall be deemed to have been given when  delivered
(if personally  delivered),  on the scheduled date of delivery (if delivered via
commercial  courier),  three  days  after  mailed  (if  mailed by  certified  or
registered mail, return receipt requested) or when sent by facsimile (if sent by
facsimile  with  evidence of  successful  transmission  retained by the sender);
provided, however, that failure to give proper and timely notice as set forth in
the "with a copy to" provisions below shall not invalidate a notice properly and
timely given to the associated party. Unless another address or facsimile number
is specified by notice hereunder, all notices shall be sent as follows:

If to the Holder:                          with a copy to:
----------------                           --------------

Ms. Carole Salkind                         Peter Rosen, Esq.
c/o Sills, Cummis, Radin, Tishman,         Rosen & Avigliano
    Epstein & Gross                        431 Route 10 East
One Riverfront Plaza                       Randolph, NJ  07689
Newark, NJ  07102
Facsimile:  973-643-6500                   Facsimile:  973-361-1644

If to the Borrower:                        with a copy to:
------------------                         --------------

NCT Group, Inc.                            NCT Group, Inc.
20 Ketchum Street                          20 Ketchum Street
Westport, CT  06880                        Westport, CT  06880
Attention:  Chief Financial Officer        Attention:  General Counsel
Facsimile:  203-226-4338                   Facsimile:  203-226-4338

     5.3 AMENDMENT  PROVISION.  This Note and any  provision  hereof may only be
amended by an instrument in writing  signed by the Borrower and the Holder.  The
term "Note" and all references  thereto,  as used  throughout  this  instrument,
shall  mean this  instrument  as  originally  executed,  or if later  amended or
supplemented, then as so amended or supplemented.

     5.4  ASSIGNABILITY.  This Note shall be binding  upon the  Borrower and its
successors  and  assigns and shall inure to be the benefit of the Holder and its
successors and assigns;  PROVIDED,  HOWEVER, that so long as no Event of Default
has occurred,  this Note shall only be transferable in whole or in increments of
$100,000 to "Accredited Investors" (as defined in Rule 501(a) under the Act).

     5.5 COST OF COLLECTION. If default is made in the payment of this Note, the
Borrower shall pay the Holder hereof costs of collection,  including  reasonable
attorneys' fees.

     5.6  GOVERNING  LAW AND  JURISDICTION.  This Note shall be  governed by the
internal  laws of the State of  Delaware,  without  regard to  conflicts of laws
principles.  The parties hereto hereby submit to the exclusive  jurisdiction  of
the United States Federal Courts located in the state of New Jersey with respect
to any dispute arising under this Note.

     5.7 DAMAGES SHARES.  The shares of Common Stock that may be issuable to the
Holder  pursuant to Article III hereof  ("Damages  Shares")  shall be treated as
Common Stock issuable upon  conversion of this Note for all purposes  hereof and
shall be subject to all of the limitations and afforded

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<PAGE>

all of the rights of the other shares of Common Stock  issuable  hereunder.  For
purposes of calculating  interest  payable on the outstanding  principal  amount
hereof,  amounts  convertible into Damages Shares ("Damages  Amounts") shall not
bear interest but must be converted  prior to the conversion of any  outstanding
principal amount hereof,  until the outstanding  Damages Amount is zero. Damaged
Shares can only be issued after  Borrower  has received the written  notice that
the Holder wishes to receive such shares.

     5.8  DENOMINATIONS.  At the request of the Holder,  upon  surrender of this
Note, the Borrower  shall promptly issue new Notes in the aggregate  outstanding
principal amount hereof, in the form hereof,  in such  denominations of at least
$50,000 as the Holder shall request.

     IN WITNESS WHEREOF,  Borrower has caused this Note to be signed in its name
by its duly authorized officer as of the date first written above.

                                   NCT GROUP, INC.

                                   By:  /s/   Michael J. Parrella
                                   ---------------------------------------------
                                              Michael J. Parrella
                                              Chairman & Chief Executive Officer

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                                                                       EXHIBIT 1
                                                                       ---------

                NOTICE OF CONVERSION OF SECURED CONVERTIBLE NOTE

TO:  NCT Group, Inc.

   (1)   Pursuant to the terms of the  attached  Secured  Convertible  Note (the
"Note"),  the undersigned hereby elects to convert $________ principal amount of
the Note into shares of common stock of:

         _____  NCT Group, Inc., a Delaware corporation

         _____  Distributed Media Corporation International Limited, a UK
                corporation

         _____  Artera Group International Limited, a UK corporation

         _____  Other public subsidiary (identify: ___________________________)1

Capitalized terms used herein and not otherwise defined herein have the
respective meanings provided in the Note.

   (2)   Please issue a certificate or certificates  for the number of shares of
common stock into which such principal  amount of the Note is convertible in the
name(s) specified immediately below or, if additional space is necessary,  on an
attachment hereto:

Name:    Carole Salkind                    Name:
         -----------------------------              ----------------------------

Address:                                   Address:
         -----------------------------              ----------------------------

SS or Tax ID Number:                       SS or Tax ID Number:
                     -----------------                          ----------------

   (3)   In the event of partial  exercise,  please reissue an appropriate  Note
for the principal balance which shall not have been converted.

   (4)   If the shares of common stock issuable upon conversion of the Note have
not been  registered  under the  Securities Act of 1933, as amended (the "Act"),
the undersigned represents and warrants that (i) such shares of common stock are
being acquired for the account of the undersigned for investment, and not with a
present view to, or for resale in connection with, the distribution thereof, and
that the undersigned has no present  intention of distributing or reselling such
securities,  in each case, other than pursuant to a registration statement under
the Act and (ii) the  undersigned  is an  "Accredited  Investor"  as  defined in
Regulation  D under  the  Act.  The  undersigned  further  agrees  that (A) such
securities  shall not be sold or transferred  unless either (i) they first shall
have been registered  under the Act and applicable state securities laws or (ii)
the Borrower first shall have been furnished with either (x) an opinion of legal
counsel (in form,  substance and scope  reasonably  satisfactory to Borrower) to
the  effect  that  such  sale  or  transfer  is  exempt  from  the  registration
requirements of the Act or (y) satisfactory representations from the undersigned
that the undersigned may immediately  sell all of such securities (to the extent
such  securities  are deemed to have been acquired on the same date) pursuant to
Rule 144 under the Act (or a successor thereto) and (B) the Borrower may place a
legend on the certificate(s) for such securities to that effect and place a stop
transfer restriction in its records relating to such securities.

Date   ___________________________

                           -----------------------------------------------------
                           Signature of Registered Holder
                           (must  be  signed  exactly  as  name  appears  in the
                           Note.  The  signature  must be guaranteed by a member
                           firm of the New York Stock  Exchange or the  National
                           Association   of   Securities   Dealers   or   by   a
                           commercial  bank or trust  having  an  office  in the
                           United States)

------------------------------------
1 May not be Pro Tech Communications, Inc.

                                       9Exhibit 4(ag)

THIS  WARRANT  HAS NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS
AMENDED,  OR APPLICABLE  STATE  SECURITIES  LAWS, NOR THE SECURITIES LAWS OF ANY
OTHER  JURISDICTION.  THIS WARRANT MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THOSE SECURITIES LAWS OR AN OPINION
OF COUNSEL, IN FORM AND SUBSTANCE  SATISFACTORY TO THE COMPANY, THAT THE SALE OR
TRANSFER IS PURSUANT TO AN EXEMPTION TO THE  REGISTRATION  REQUIREMENTS OF THOSE
SECURITIES LAWS.

                                -----------------

No. CS-51                                              Dated as of July 28, 2003
---------

           Void after 5:00 p.m., New York City time, on July 28, 2008

                                     WARRANT

              for the Purchase of 2,000,000 Shares of Common Stock

     FOR  VALUE  RECEIVED,   NCT  GROUP,   INC.  (the  "Company"),   a  Delaware
corporation,  on this day of July 28, 2003 (the "Grant Date") hereby issues this
warrant (the  "Warrant")  and certifies  that Carole  Salkind (the  "Holder") is
granted the right,  subject to the  provisions of the Warrant,  to purchase from
the Company,  at any time, or from time to time during the period  commencing at
9:00 a.m.  New York City  local  time on July 28,  2003,  and  expiring,  unless
earlier  terminated as  hereinafter  provided,  at 5:00 p.m. New York City local
time on July 28, 2008 up to Two Million (2,000,000) fully paid and nonassessable
shares of Common Stock, $.01 par value, of the Company at a price per share (the
"Exercise  Price")  equal to the  closing  sale  price of the  Common  Stock (as
defined below) on the Trading Day (as defined below)  immediately  preceding the
date of this Warrant;  provided,  however,  that if, on the date of this Warrant
and the three Trading Days thereafter (the "Window"), neither the Holder nor any
Related  Party (as defined  below)  sells or,  whether in writing or  otherwise,
agrees to sell any shares of Common Stock or any option, warrant,  instrument or
right to convert into,  exchange for or acquire Common Stock,  then the Exercise
Price shall be reduced to a price  equal to the lowest  closing  sale price,  if
lower than the price  specified  above in this  sentence,  of the  Common  Stock
during the Window on the  principal  securities  exchange or market on which the
Common Stock is then traded as reported on Bloomberg  Financial Markets.  If any
closing sale price of the Common Stock during the Window is lower than the price
specified  in the  immediately  preceding  sentence,  the Holder  shall give the
Borrower  prompt  written  notice of any sale of or agreement to sell any Common
Stock or option,  warrant,  instrument or right to convert into, exchange for or
acquire  Common  Stock made by the Holder or a Related  Party during the Window.
"Trading Day" shall mean any day on which the applicable  common stock is traded
for any period on the NASDAQ  National  Market,  or on the principal  securities
exchange or other securities market on which the applicable common stock is then
being  traded.  "Related  Party" shall mean a member of the  Holder's  immediate
family, including spouse (even if separated or not residing with the Holder) and
adult children (even if not residing with the Holder),  or an entity (other than
the  Company)  of which the  Holder or any such  immediate  family  member is an
officer,  director or beneficial shareholder  (determined under Rule 13d-3 under
the Securities Exchange Act of 1934, as amended).

<PAGE>

     The term "Common  Stock" means the shares of Common Stock,  $.01 par value,
of the Company constituted on the Grant Date of this Warrant,  together with any
other equity securities that may be issued by the Company in addition thereto or
in  substitution  therefor.  The number of shares of Common Stock to be received
upon  the  exercise  of  this  Warrant  may be  adjusted  from  time  to time as
hereinafter  set  forth.  The  shares  of  Common  Stock  deliverable  upon such
exercise,  and as adjusted from time to time, are hereinafter sometimes referred
to as "Warrant Stock".

     Upon receipt by the Company of evidence  reasonably  satisfactory  to it of
the loss, theft,  destruction or mutilation of this Warrant, and (in the case of
loss, theft or destruction) of reasonably satisfactory indemnification, and upon
surrender  and  cancellation  of this Warrant,  if mutilated,  the Company shall
execute and  deliver a new Warrant of like tenor and date.  Any such new Warrant
executed and delivered shall constitute an additional  contractual obligation on
the part of the Company,  whether or not this Warrant so lost, stolen, destroyed
or mutilated shall be at any time enforceable by anyone.

     The Holder agrees with the Company that this Warrant is issued, and all the
rights  hereunder shall be held,  subject to all of the conditions,  limitations
and provisions set forth herein.

     1.  Exercise of Warrant.  This Warrant may be exercised in whole or in part
at any time,  or from time to time,  during the period  commencing at 9:00 a.m.,
New York City local time, on July 28, 2003,  and expiring at 5:00 p.m., New York
City local time,  on July 28,  2008,  or, if such day is a day on which  banking
institutions in the City of New York are authorized by law to close, then on the
next succeeding day that shall not be such a day.

          Subject to the  restrictions  and  limitations  set forth above,  this
     Warrant  may be  exercised  by  presentation  and  surrender  hereof to the
     Company at its  principal  office with the Warrant  Exercise  Form attached
     hereto  duly  executed  and  accompanied  by payment  (either in cash or by
     certified or official  bank check,  payable to the order of the Company) of
     the  Exercise  Price for the  number of shares  specified  in such Form and
     instruments of transfer,  if appropriate,  duly executed by the Holder.  If
     this  Warrant  should be exercised in part only,  the Company  shall,  upon
     surrender  of this  Warrant  for  cancellation,  execute  and deliver a new
     Warrant evidencing the rights of the Holder thereof to purchase the balance
     of the shares  purchasable  hereunder.  Upon receipt by the Company of this
     Warrant, together with the Warrant Exercise Form and the Exercise Price, at
     its office,  in proper form for exercise,  the Holder shall be deemed to be
     the  holder of record of the  shares  of Common  Stock  issuable  upon such
     exercise,  notwithstanding  that the stock  transfer  books of the  Company
     shall  then be  closed or that  certificates  representing  such  shares of
     Common  Stock  shall not then be  actually  delivered  to the  Holder.  The
     Company  shall  pay any and all  documentary  stamp  or  similar  issue  or
     transfer  taxes  payable in respect of the issue or  delivery  of shares of
     Common Stock on exercise of this Warrant.

                                       2
<PAGE>

          2.  Reservation  of Shares.  The Company will at all times reserve for
     issuance  and delivery  upon  exercise of this Warrant all shares of Common
     Stock of the Company  from time to time  receivable  upon  exercise of this
     Warrant.  All such shares shall be duly  authorized  and,  when issued upon
     such exercise,  shall be validly issued,  fully paid and  nonassessable and
     free of all preemptive rights.

          3. Warrant Stock  Transfer to Comply with the  Securities Act of 1933.
     The  Warrant  Stock  may  not be  sold  or  otherwise  disposed  of  unless
     registered  pursuant to the  provisions of the  Securities  Act of 1933, as
     amended  (the "1933  Act"),  or an  opinion of counsel in form and  content
     satisfactory  to the  Company is obtained  stating  that such sale or other
     disposition  is made in compliance  with an available  exemption  from such
     registration.  Any sale or other disposition of the Warrant Stock must also
     comply with all applicable state securities laws and regulations.

          4.  Fractional  Shares.  No  fractional  shares or scrip  representing
     fractional  shares shall be issued upon the exercise of this  Warrant,  but
     the Company shall issue one additional share of its Common Stock in lieu of
     each  fraction of a share  otherwise  called for upon any  exercise of this
     Warrant.

          5. Exchange, Transfer,  Assignment of Loss of Warrant. This Warrant is
     not registered under the 1933 Act nor under any applicable state securities
     law or  regulation.  This Warrant cannot be sold,  exchanged,  transferred,
     assigned  or  otherwise  disposed  of  unless  registered  pursuant  to the
     provisions  of the 1933 Act or an opinion  of  counsel in form and  content
     satisfactory to the Company is obtained stating that such disposition is in
     compliance  with  an  available  exemption  from  registration.   Any  such
     disposition  must also comply with  applicable  state  securities  laws and
     regulations.

          6. Rights of the Holder.  The Holder shall not, by virtue  hereof,  be
     entitled to any rights of a stockholder of the Company, either at law or in
     equity, and the rights of the Holder are limited to those expressed in this
     Warrant.

          7. Redemption. This Warrant is not redeemable by the Company.

          8. Anti-Dilution Provisions.

          8.1  Adjustment  for Dividends in Other  Securities,  Property,  Etc.:
     Reclassification,  Etc.  In case at any time or from time to time after the
     Grant Date the holders of Common Stock (or any other securities at the time
     receivable upon the exercise of this Warrant) shall have received, or on or
     after the record date fixed for the determination of eligible stockholders,
     shall have become entitled to receive without payment  therefor:  (a) other
     or additional  securities or property (other than cash) by way of dividend,
     (b) any cash paid or payable except out of earned surplus of the Company at
     the Grant Date as increased  (decreased)  by subsequent  credits  (charges)
     thereto (other than credits in respect of any capital or paid-in surplus or
     surplus  created as a result of a revaluation  of property) or (c) other or
     additional  (or less)  securities  or property  (including  cash) by way of
     stock-split, spin-off, split-up,

                                       3
<PAGE>

     reclassification, combination of shares or similar corporate rearrangement,
     then, and in each such case, the Holder of this Warrant,  upon the exercise
     thereof as provided in Section 1, shall be entitled to receive,  subject to
     the limitations and  restrictions set forth above, the amount of securities
     and property  (including  cash in the cases  referred to in clauses (b) and
     (c) above) which such Holder would hold on the date of such  exercise if on
     the Grant  Date it had been the holder of record of the number of shares of
     Common Stock (as  constituted  on the Grant Date)  subscribed for upon such
     exercise  as provided  in Section 1 and had  thereafter,  during the period
     from the Grant Date to and  including the date of such  exercise,  retained
     such shares and/or all other  additional (or less)  securities and property
     (including  cash in the cases  referred  to in  clauses  (b) and (c) above)
     receivable  by it as  aforesaid  during such period,  giving  effect to all
     adjustments called for during such period by Section 8.2.

          8.2 Adjustment for Reorganization, Consolidation, Merger, Etc. In case
     of any  reorganization  of the  Company  (or  any  other  corporation,  the
     securities  of which are at the time  receivable  on the  exercise  of this
     Warrant)  after the Grant Date or in case after such date the  Company  (or
     any such other  corporation)  shall  consolidate with or merge into another
     corporation  or convey  all or  substantially  all of its assets to another
     corporation,  then,  and in each such case, the Holder of this Warrant upon
     the  exercise  thereof  as  provided  in  Section  1 at any time  after the
     consummation of such reorganization,  consolidation,  merger or conveyance,
     shall be  entitled  to  receive,  in lieu of the  securities  and  property
     receivable  upon the exercise of this Warrant  prior to such  consummation,
     the  securities  or property to which such Holder would have been  entitled
     upon  such   consummation   if  such  Holder  had  exercised  this  Warrant
     immediately prior thereto, all subject to further adjustment as provided in
     Section  8.1;  in each  such  case,  the  terms  of this  Warrant  shall be
     applicable to the  securities or property  receivable  upon the exercise of
     this Warrant after such consummation.

          8.3  Certificate as to  Adjustments.  In each case of an adjustment in
     the  number of shares of Common  Stock (or other  securities  or  property)
     receivable on the exercise of the Warrant,  the Company at its expense will
     promptly  compute  such  adjustment  in  accordance  with the  terms of the
     Warrant and prepare a certificate setting forth such adjustment and showing
     in detail  the facts  upon  which such  adjustment  is based,  including  a
     statement  of (a)  the  consideration  received  or to be  received  by the
     Company for any additional  shares of Common Stock issued or sold or deemed
     to have been  issued  or sold,  (b) the  number  of shares of Common  Stock
     outstanding  or deemed to be  outstanding,  and (c) the pro forma  adjusted
     Exercise.  The Company will forthwith mail a copy of each such  certificate
     to the holder of this Warrant.

          8.4 Notices of Record Date, Etc.

              In case:

               (a) the Company  shall take a record of the holders of its Common
          Stock (or other securities at the time receivable upon the exercise of
          the Warrant) for the purpose of entitling them to receive any dividend
          (other than a cash  dividend) or other  distribution,  or any right to
          subscribe  for,  purchase or otherwise  acquire any shares of stock of
          any class or any other securities, or to receive any other right; or

                                       4
<PAGE>

               (b) of any capital  reorganization  of the Company  (other than a
          stock  split or reverse  stock  split),  any  reclassification  of the
          capital  stock of the  Company,  any  consolidation  or  merger of the
          Company  with or into  another  corporation  (other  than a merger for
          purposes  of  change  of  domicile)  or  any   conveyance  of  all  or
          substantially all of the assets of the Company to another corporation;
          or

               (c) of any voluntary or involuntary  dissolution,  liquidation or
          winding-up of the Company,  then,  and in each such case,  the Company
          shall mail or cause to be mailed to each  holder of the Warrant at the
          time outstanding a notice specifying, as the case may be, (i) the date
          on which a record is to be taken  for the  purpose  of such  dividend,
          distribution  or right,  and stating the amount and  character of such
          dividend,  distribution  or  right,  or (ii) the  date on  which  such
          reorganization,  reclassification,  consolidation, merger, conveyance,
          dissolution, liquidation or winding-up is to take place, and the time,
          if any,  is to be fixed,  as to which the  holders of record of Common
          Stock  (or  such  other  securities  at the time  receivable  upon the
          exercise of the Warrant) shall be entitled to exchange their shares of
          Common  Stock  (or such  other  securities)  for  securities  or other
          property  deliverable  upon  such  reorganization,   reclassification,
          consolidation,   merger,  conveyance,   dissolution,   liquidation  or
          winding-up.  Such  notice  shall be mailed at least  twenty  (20) days
          prior to the date therein  specified  and the Warrant may be exercised
          prior to said date  during the term of the  Warrant no later than five
          (5) days prior to said date.

          9.  Legend.  In the  event of the  exercise  of this  Warrant  and the
     issuance  of  any  of  the  Warrant  Stock   hereunder,   all  certificates
     representing Warrant Stock shall bear on the face thereof substantially the
     following legends, insofar as is consistent with Delaware law:

          "The shares of common stock  represented by this  certificate have not
          been registered  under the Securities Act of 1933, as amended,  or the
          Securities  laws of any  state or other  jurisdiction,  and may not be
          sold,  offered for sale,  assigned,  transferred or otherwise disposed
          of, unless  registered  pursuant to the  provisions of that Act and of
          such  Securities  laws or an  opinion  of  counsel  acceptable  to the
          Corporation is obtained stating that such disposition is in compliance
          with an available exemption from such registration."

          10. Governing Law and Jurisdiction.  This Warrant shall be governed by
     the internal laws of the State of Delaware,  without regard to conflicts of
     laws  principles.  The  parties  hereto  hereby  submit  to  the  exclusive
     jurisdiction  of the United States  Federal  Courts located in the state of
     New Jersey with respect to any dispute arising under this Warrant.

          11. Notices.  Notices,  demands and other  communications  given under
     this  Agreement  shall be in writing and shall be deemed to have been given
     when delivered (if personally delivered), on the scheduled date of delivery
     (if delivered via commercial  courier),  three days after mailed (if mailed
     by certified or registered mail, return receipt  requested) or when sent by
     facsimile (if sent by facsimile  with  evidence of successful  transmission
     retained by the sender); provided, however, that failure to give proper and
     timely notice as set forth in the "with a copy to"  provisions  below shall
     not invalidate a notice properly and timely given to the

                                       5
<PAGE>

     associated  party.  Unless another address or facsimile number is specified
     by notice hereunder, all notices shall be sent as follows:

If to the Holder:                             with a copy to:
----------------                              --------------

Ms. Carole Salkind                            Peter Rosen, Esq.
c/o Sills, Cummis, Radin, Tishman,            Rosen & Avigliano
    Epstein & Gross                           431 Route 10 East
One Riverfront Plaza                          Randolph, NJ  07689
Newark, NJ  07102
Facsimile:  973-643-6500                      Facsimile:  973-361-1644

If to the Company:                            with a copy to:
-----------------                             --------------

NCT Group, Inc.                               NCT Group, Inc.
20 Ketchum Street                             20 Ketchum Street
Westport, CT  06880                           Westport, CT  06880
Attention:  Chief Financial Officer           Attention:  General Counsel
Facsimile:  203-226-4338                      Facsimile:  203-226-4338

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed on its
behalf,  in its corporate name, by its duly authorized  officer,  as of the date
first written above.

                                              NCT GROUP, INC.

                                              By:  /s/  Michael J. Parrella
                                              ----------------------------------
                                              Michael J. Parrella
                                              Chairman & Chief Executive Officer

                                       6
<PAGE>

                              WARRANT EXERCISE FORM

         (To be executed by the Holder in order to Exercise the Warrant)

                  TO:         NCT Group, Inc.
                              20 Ketchum Street
                              Westport, CT  06880
                              Attention:  Chief Financial Officer

     The undersigned hereby irrevocably elects to exercise the within Warrant to
the extent of purchasing _________ shares of Common Stock of NCT Group, Inc. and
hereby  makes  payment at the rate of  $______  per share,  or an  aggregate  of
$________, in payment therefor.

     The  undersigned  represents,  warrants and  certifies  that all offers and
sales  of the  Warrant  Stock  shall  be  made:  (i)  pursuant  to an  effective
registration  statement  under the 1933 Act or pursuant to an exemption from, or
in a transaction not subject to, the registration  requirements of the 1993 Act;
and (ii) in compliance  with applicable  state  securities laws and those of any
other applicable jurisdiction.

Dated:
           ---------------------------------

                                                  ------------------------------
                                                  Name of Warrant Holder

                                                  ------------------------------
                                                  Signature

                ------------------------------------------------

                       INSTRUCTIONS FOR ISSUANCE OF STOCK

         (if other than to the registered holder of the within Warrant)

Name:        ________________________________________________________
                  (Please type or print in block letters)

Address:  ________________________________________________________

Social Security or Taxpayer Identification Number:  ______________________

                                       7

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