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EXHIBIT 10.3

                          REGISTRATION RIGHTS AGREEMENT

                  REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of
February 14, 2003, by and between FTS Apparel, Inc., a company organized under
the laws of state of Colorado, with its principal executive office at FTS
Apparel, Inc. 1379 River Road, Yardley, Pennsylvania 19067 (the "Company"), and
the undersigned investor (the "Investor").

         WHEREAS, upon the terms and subject to the conditions of the
Subscription Agreement between the Investor and the Company (the "Subscription
Agreement"), the Company has agreed to issue and sell to the Investor
convertible debentures of the Company (the "Debentures"), which will be
convertible into shares of the common stock, $.001 par value per share (the
"Common Stock"), of the Company.

         WHEREAS, to induce the Investor to execute and deliver the Subscription
Agreement, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended, and the rules and regulations
thereunder, or any similar successor statute (collectively, the "1933 Act"), and
applicable state securities laws, with respect to the shares of Common Stock
issuable pursuant to the Subscription Agreement and Debenture.

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants contained hereinafter and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Company and the Investor hereby agree as follows:

1. DEFINITIONS.

         As used in this Agreement, the following terms shall have the following
meanings:

a. "Closing Date" means the date funds are received by the Company pursuant to
the Subscription Agreement.

b. "Holder" means the Investor.

c. "Person" means a corporation, a limited liability company, an association, a
partnership, an organization, a business, an individual, a governmental or
political subdivision thereof or a governmental agency.

d. "Potential Material Event" means any of the following: (i) the possession by
the Company of material information not ripe for disclosure in a Registration
Statement, which shall be evidenced by determinations in good faith by the Board
of Directors of the Company that disclosure of such information in the
Registration Statement would be detrimental to the business and affairs of the
Company, or (ii) any material engagement or activity by the Company which would,
in the good faith determination of the Board of Directors of the Company, be
adversely affected by disclosure in a Registration Statement at such time, which
determination shall be accompanied by a good faith determination by the Board of
Directors of the Company that the Registration Statement would be materially
misleading absent the inclusion of such information.

e. "Principal Market" means either The American Stock Exchange, Inc., The New
York Stock Exchange, Inc., the Nasdaq National Market, The Nasdaq SmallCap
Market, the National Association of Securities Dealer's, Inc. OTC electronic
bulletin board or the proposed BBX, whichever is the principal market on which
the Common Stock is listed.

f. "Register," "Registered," and "Registration" refer to a registration effected
by preparing and filing with the United States Securities and Exchange
Commission (the "SEC") one or more Registration Statements in compliance with
the 1933 Act and pursuant to Rule 415 under the 1933 Act or any successor rule
providing for offering securities on a continuous basis ("Rule 415"), and
effectiveness of such Registration Statement(s).

g. "Registrable Securities" means the shares of Common Stock issued or issuable
(i) pursuant to the Subscription Agreement, (ii) any shares of capital stock
issued or issuable with respect to the such shares of Common Stock and Warrants,
if any, as a result of any stock split, stock dividend, recapitalization,
exchange or similar event or otherwise, which have not been (x) included in a
Registration Statement that has been declared effective by the SEC, or (y) sold
under circumstances meeting all of the applicable conditions of Rule 144 (or any
similar provision then in force) under the 1933 Act.

h. "Registration Statement" means a registration statement of the Company filed
under the 1933 Act.

i. "Debenture" means the convertible debenture issued by the Company to the
Investor.

j. Face Amount means $400,000 to be invested by Dutchess Private Equities Fund,
LP

         All capitalized terms used in this Agreement and not otherwise defined
herein shall have the same meaning ascribed to them as in the Subscription
Agreement.

                  2.       REGISTRATION.

a. Mandatory Registration. The Company shall prepare, and, as soon as
practicable file with the SEC a Registration Statement or Registration
Statements (as is necessary) on Form SB-2 (or, if such form is unavailable for
such a registration, on such other form as is available for such a
registration), covering the resale of all of the Registrable Securities, which
Registration Statement(s) shall state that, in accordance with Rule 416
promulgated under the 1933 Act, such Registration Statement also covers such
indeterminate number of additional shares of Common Stock as may become issuable
upon stock splits, stock dividends or similar transactions. The Company shall
initially register for resale 16,000,000 shares of Common Stock which would be
issuable on the date preceding the filing of the Registration Statement based on
the closing bid price of the Company's Common Stock on such date and the amount
reasonably calculated that represents the number of shares issuable pursuant to
the terms of the Offering. In the event the Company cannot register sufficient
shares of Common Stock, due to the remaining number of authorized shares of
Common Stock being insufficient, the Company will use its best efforts to
register the maximum number of shares it can based on the remaining balance of
authorized shares and will use its best efforts to increase the number of its
authorized shares as soon as reasonably practicable.

b. The Company shall use its best efforts to have the Registration Statement for
the 16,000,000 shares of Common Stock filed with the SEC within forty-five (45)
calendar days after the Closing Date. If the Registration Statement covering the
16,000,000 Registrable Securities required to be filed by the Company pursuant
to Section 2(a) hereof is not filed within forty-five (45) calendar days
following the Closing Date, then the Company shall pay the Investor the sum of
two percent (2%) of the of the Debentures outstanding as liquidated damages, and
not as a penalty, for each thirty (30) calendar day period, pro rata, following
the forty-five (45) calendar day period until the Registration Statement is
filed compounded daily. In addition, for each sixty (60) calendar period, the
Conversion Price of the Debentures will decrease by two percent (2%).

         Notwithstanding the foregoing, the amounts payable by the Company
pursuant to this Section shall not be payable to the extent any delay in the
filing of the Registration Statement occurs because of an act of, or a failure
to act or to act timely by the Investor. The damages set forth in this Section
shall continue until the obligation is fulfilled and shall be paid within three
(3) business days after each thirty (30) day period, or portion thereof, until
the Registration Statement is filed. Failure of the Company to make payment
within said three (3) business days shall be considered a default.

         The Company acknowledges that its failure to have the Registration
Statement filed within said forty-five (45) calendar day period will cause the
Investor to suffer damages in an amount that will be difficult to ascertain.
Accordingly, the parties agree that it is appropriate to include in this
Agreement a provision for liquidated damages. The parties acknowledge and agree
that the liquidated damages provision set forth in this section represents the
parties' good faith effort to quantify such damages and, as such, agree that the
form and amount of such liquidated damages are reasonable and will not
constitute a penalty. The payment of liquidated damages shall not relieve the
Company from its obligations to register the Common Stock and deliver the Common
Stock pursuant to the terms of this Agreement, the Subscription Agreement and
the Debenture.

c. The Company shall use its best efforts to have the Registration Statement
declared effective by the SEC within ninety (90) calendar days after the Closing
Date. If the Registration Statement covering the Registrable Securities required
to be filed by the Company pursuant to Section 2(a) hereof has not become
effective within ninety (90) calendar days following the Closing Date, then the
Company shall pay the Investor the sum of two percent (2%) of the amount of the
Debentures outstanding as liquidated damages and not as a penalty for each
thirty (30) calendar day period, pro rata, following the ninety (90) calendar
day period until the Registration Statement is declared effective.

         If the Registration Statement covering the Registrable Securities
required to be filed by the Company pursuant to Section 2(a) hereof has become
effective, but after the effective date the Investor's right to sell is
suspended, then the Company shall pay the Investor the sum of 2% of the purchase
price plus interest and penalties due to the Investor for the Registrable
Securities pursuant to the Subscription Agreement for each thirty (30) calendar
day period, pro rata, following the suspension until such suspension ceases.

         Notwithstanding the foregoing, the amounts payable by the Company
pursuant to this Section shall not be payable to the extent any delay in the
effectiveness of the Registration Statement occurs because of an act of, or a
failure to act or to act timely by the Investor. The damages set forth in this
Section shall continue until the obligation is fulfilled and shall be paid
within three (3) business days after each thirty (30) day period, or portion
thereof, until the Registration Statement is declared effective or such
suspension is released. Failure of the Company to make payment within said three
(3) business days shall be considered a default.

         The Company acknowledges that its failure to have the Registration
Statement become effective within said ninety (90) calendar day period or to
permit the suspension of the effectiveness of the Registration Statement, will
cause the Investor to suffer damages in an amount that will be difficult to
ascertain. Accordingly, the parties agree that it is appropriate to include in
this Agreement a provision for liquidated damages. The parties acknowledge and
agree that the liquidated damages provision set forth in this section represents
the parties' good faith effort to quantify such damages and, as such, agree that
the form and amount of such liquidated damages are reasonable and will not
constitute a penalty. The payment of liquidated damages shall not relieve the
Company from its obligations to register the Common Stock and deliver the Common
Stock pursuant to the terms of this Agreement, the Subscription Agreement and
the Debenture.

d. The Company agrees not to include any other securities, in this Registration
Statement without Investor prior written consent, unless for the Investor.
Furthermore, the Company agrees that it will not file any other Registration
Statement, including those on Form S-8, for other securities (other than those
for existing option holders, strategic partners or in connection with a merger
or acquisition), until one hundred and eighty (180) calendar days after the
Registration Statement for the Registrable Securities is declared effective
unless it has written approval from the Investor. Failure to obtain written
approval from the Investor will cause the Investor to suffer damages that will
be difficult to ascertain. Accordingly, the parties agree that it is appropriate
to include a provision for liquidated damages and the Company agrees to pay, the
Investor the sum of two percent (2%) of the amount of the Debentures outstanding
as liquidated damages and not as a penalty for each thirty (30) calendar day
period, pro rata, until the unauthorized Registration Statement is withdrawn.

                  3. RELATED OBLIGATIONS.

         At such time as the Company is obligated to prepare and file a
Registration Statement with the SEC pursuant to Section 2(a), the Company will
use its best efforts to effect the registration of the Registrable Securities in
accordance with the intended method of disposition thereof and, with respect
thereto, the Company shall have the following obligations:

a. The Company shall use its best efforts to cause such Registration Statement
 relating to the Registrable Securities to become effective within ninety (90)
 calendar days after the date and shall keep such Registration Statement
 effective pursuant to Rule 415 until the earlier of (i) the date as of which
 the Investor may sell all of the Registrable Securities without restriction
 pursuant to Rule 144(k) promulgated under the 1933 Act or (ii) the date on
 which (A) the Investor shall have sold all the Registrable Securities and (B)
 the Investor has no right to convert the Shares it owns into Common Stock under
 the Subscription Agreement respectively (the "Registration Period"), which
 Registration Statement (including any amendments or supplements thereto and
 prospectuses contained therein) shall not contain any untrue statement of a
 material fact or omit to state a material fact required to be stated therein,
 or necessary to make the statements therein, in light of the circumstances in
 which they were made, not misleading. The Company shall respond to all SEC
 comments within seven (7) business days of receipt by the Company. If the
 Company fails to respond within seven (7) business days of receipt of SEC
 comments, the Company shall pay to the Investor a cash amount within three (3)
 business days of the end of the month equal to 2% per month, on a pro rata
 basis, of the amount paid to purchase the Debentures then outstanding, as
 liquidated damages and not as a penalty; provided that the seven (7) business
 day period provided herein shall be extended as may be required by delays
 caused by Holders' counsel pursuant to paragraph 3g below, and, provided
 further, that such seven (7) business day period shall be extended two (2)
 business days for responses to SEC staff accounting comments. The Company shall
 cause the Registration Statement relating to the Registrable Securities to
 become effective no later than three (3) business days after notice from the
 SEC that the Registration Statement may be declared effective. Failure to do so
 will result in the Debenture's Conversion Price to be lessened one percent (1%)
 per day the Company does not request acceleration from the SEC.

b. The Company shall prepare and file with the SEC such amendments (including
 post-effective amendments) and supplements to a Registration Statement and the
 prospectus used in connection with such Registration Statement, which
 prospectus is to be filed pursuant to Rule 424 promulgated under the 1933 Act,
 as may be necessary to keep such Registration Statement effective during the
 Registration Period, and, during such period, comply with the provisions of the
 1933 Act with respect to the disposition of all Registrable Securities of the
 Company covered by such Registration Statement until such time as all of such
 Registrable Securities shall have been disposed of in accordance with the
 intended methods of disposition by the Investor thereof as set forth in such
 Registration Statement. In the event the number of shares of Common Stock
 available under a Registration Statement filed pursuant to this Agreement is at
 any time insufficient to cover all of the Registrable Securities, the Company
 shall amend such Registration Statement, or file a new Registration Statement
 (on the short form available therefor, if applicable), or both, so as to cover
 all of the Registrable Securities, in each case, as soon as practicable, but in
 any event within thirty (30) calendar days after the necessity therefor arises
 (based on the then Purchase Price of the Common Stock and other relevant
 factors on which the Company reasonably elects to rely), assuming the Company
 has sufficient authorized shares at that time, and if it does not, within
 thirty (30) calendar days after such shares are authorized. The Company shall
 use it best efforts to cause such amendment and/or new Registration Statement
 to become effective as soon as practicable following the filing thereof.

         Prior to conversion of all the Shares, if at any time the conversion of
all the Shares outstanding would result in an insufficient number of authorized
shares of Common Stock being available to cover all the conversions, then in
such event, the Company will move to call and hold a shareholder's meeting
within thirty (30) calendar days of such event for the sole purpose of
authorizing additional shares of Common Stock to facilitate the conversions. In
such an event the Company shall recommend to all shareholders and management of
the Company to vote their shares in favor of increasing the authorized number of
shares of Common Stock. The Company represents and warrants that under no
circumstances will it deny or prevent Purchaser's right to convert the Shares as
permitted under the terms of this Subscription Agreement or this Registration
Rights Agreement. The investor retains the right to request additional shares
upon the determination the company may not be able to facilitate conversions in
the future.

c The Company shall furnish to the Investor whose Registrable Securities are
included in any Registration Statement and its legal counsel without charge (i)
promptly after the same is prepared and filed with the SEC at least one copy of
such Registration Statement and any amendment(s) thereto, including financial
statements and schedules, all documents incorporated therein by reference and
all exhibits, the prospectus included in such Registration Statement (including
each preliminary prospectus) and, with regards to such Registration
Statement(s), any correspondence by or on behalf of the Company to the SEC or
the staff of the SEC and any correspondence from the SEC or the staff of the SEC
to the Company or its representatives, (ii) upon the effectiveness of any
Registration Statement, ten (10) copies of the prospectus included in such
Registration Statement and all amendments and supplements thereto (or such other
number of copies as the Investor may reasonably request) and (iii) such other
documents, including copies of any preliminary or final prospectus, as the
Investor may reasonably request from time to time in order to facilitate the
disposition of the Registrable Securities.

d. The Company shall use reasonable efforts to (i) register and qualify the
Registrable Securities covered by a Registration Statement under the applicable
securities or "blue sky" laws of such states of the United States as specified
by the Holder, (ii) prepare and file in those jurisdictions, such amendments
(including post-effective amendments) and supplements to such registrations and
qualifications as may be necessary to maintain the effectiveness thereof during
the Registration Period, (iii) take such other actions as may be necessary to
maintain such registrations and qualifications in effect at all times during the
Registration Period, and (iv) take all other actions reasonably necessary or
advisable to qualify the Registrable Securities for sale in such jurisdictions;
provided, however, that the Company shall not be required in connection
therewith or as a condition thereto to (x) qualify to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
Section 3(d), (y) subject itself to general taxation in any such jurisdiction,
or (z) file a general consent to service of process in any such jurisdiction.
The Company shall promptly notify each Holder who holds Registrable Securities
of the receipt by the Company of any notification with respect to the suspension
of the registration or qualification of any of the Registrable Securities for
sale under the securities or "blue sky" laws of any jurisdiction in the United
States or its receipt of actual notice of the initiation or threatening of any
proceeding for such purpose.

e. As promptly as practicable after becoming aware of such event, the Company
shall notify each Holder in writing of the happening of any event as a result of
which the prospectus included in a Registration Statement, as then in effect,
includes an untrue statement of a material fact or omission to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading,
("Registration Default") and use all diligent efforts to promptly prepare a
supplement or amendment to such Registration Statement and take any other
necessary steps to cure the Registration Default, (which, if such Registration
Statement is on Form S-3, may consist of a document to be filed by the Company
with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the 1934 Act (as
defined below) and to be incorporated by reference in the prospectus) to correct
such untrue statement or omission, and deliver ten (10) copies of such
supplement or amendment to each Holder (or such other number of copies as such
Holder may reasonably request). Failure to cure the Registration Default within
five (5) business days shall result in the Company paying liquidated damages of
2.0% of the price paid to purchase the Shares then held by the Holders for each
thirty (30) calendar day period or portion thereof, beginning on the date of
suspension. The Company shall also promptly notify each Holder in writing (i)
when a prospectus or any prospectus supplement or post-effective amendment has
been filed, and when a Registration Statement or any post-effective amendment
has become effective (notification of such effectiveness shall be delivered to
each Holder by facsimile on the same day of such effectiveness and by overnight
mail), (ii) of any request by the SEC for amendments or supplements to a
Registration Statement or related prospectus or related information, (iii) of
the Company's reasonable determination that a post-effective amendment to a
Registration Statement would be appropriate, (iv) in the event the Registration
Statement is no longer effective or, (v) the Registration Statement is stale for
a period of more than five (5) Trading Days as a result of the Company's failure
to timely file its financials.

         The Company acknowledges that its failure to cure the Registration
Default within ten (10) business days will cause the Investor to suffer damages
in an amount that will be difficult to ascertain. Accordingly, the parties agree
that it is appropriate to include in this Agreement a provision for liquidated
damages. The parties acknowledge and agree that the liquidated damages provision
set forth in this section represents the parties' good faith effort to quantify
such damages and, as such, agree that the form and amount of such liquidated
damages are reasonable and will not constitute a penalty.

         It is the intention of the parties that interest payable under any of
the terms of this Agreement shall not exceed the maximum amount permitted under
any applicable law. If a law, which applies to this Agreement which sets the
maximum interest amount, is finally interpreted so that the interest in
connection with this Agreement exceeds the permitted limits, then: (1) any such
interest shall be reduced by the amount necessary to reduce the interest to the
permitted limit; and (2) any sums already collected (if any) from the Company
which exceed the permitted limits will be refunded to the Company. The Investor
may choose to make this refund by reducing the amount that the Company owes
under this Agreement or by making a direct payment to the Company. If a refund
reduces the amount that the Company owes the Investor, the reduction will be
treated as a partial payment. In case any provision of this Agreement is held by
a court of competent jurisdiction to be excessive in scope or otherwise invalid
or unenforceable, such provision shall be adjusted rather than voided, if
possible, so that it is enforceable to the maximum extent possible, and the
validity and enforceability of the remaining provisions of this Agreement will
not in any way be affected or impaired thereby.

f. The Company shall use its best efforts to prevent the issuance of any stop
order or other suspension of effectiveness of a Registration Statement, or the
suspension of the qualification of any of the Registrable Securities for sale in
any jurisdiction and, if such an order or suspension is issued, to obtain the
withdrawal of such order or suspension at the earliest possible moment and to
notify each Holder who holds Registrable Securities being sold of the issuance
of such order and the resolution thereof or its receipt of actual notice of the
initiation or threat of any proceeding for such purpose.

g. The Company shall permit each Holder and a single firm of counsel, designated
as selling shareholders' counsel by the Holders who hold a majority of the
Registrable Securities being sold, to review and comment upon a Registration
Statement and all amendments and supplements thereto at least seven (7) business
days prior to their filing with the SEC, and not file any document in a form to
which such counsel reasonably objects. The Company shall not submit to the SEC a
request for acceleration of the effectiveness of a Registration Statement or
file with the SEC a Registration Statement or any amendment or supplement
thereto without the prior approval of such counsel, which approval shall not be
unreasonably withheld.

h. At the request of any Holder, the Company shall cause to be furnished to such
Holder, on the date of the effectiveness of a Registration Statement, an
opinion, dated as of such date, of counsel representing the Company for purposes
of such Registration Statement, in the form of Exhibit D attached to the
Subscription Agreement.

i. The Company shall make available for inspection by (i) any Holder and (ii)
one firm of attorneys and one firm of accountants or other agents retained by
the Holders (collectively, the "Inspectors") all pertinent financial and other
records, and pertinent corporate documents and properties of the Company
(collectively, the "Records"), as shall be reasonably deemed necessary by each
Inspector, and cause the Company's officers, directors and employees to supply
all information which any Inspector may reasonably request; provided, however,
that each Inspector shall hold in strict confidence and shall not make any
disclosure (except to a Holder) or use of any Record or other information which
the Company determines in good faith to be confidential, and of which
determination the Inspectors are so notified, unless (a) the disclosure of such
Records is necessary to avoid or correct a misstatement or omission in any
Registration Statement or is otherwise required under the 1933 Act, (b) the
release of such Records is ordered pursuant to a final, non-appealable subpoena
or order from a court or government body of competent jurisdiction, or (c) the
information in such Records has been made generally available to the public
other than by disclosure in violation of this or any other agreement of which
the Inspector has knowledge. Each Holder agrees that it shall, upon learning
that disclosure of such Records is sought in or by a court or governmental body
of competent jurisdiction or through other means, give prompt notice to the
Company and allow the Company, at its expense, to undertake appropriate action
to prevent disclosure of, or to obtain a protective order for, the Records
deemed confidential.

j. The Company shall hold in confidence and not make any disclosure of
information concerning a Holder provided to the Company unless (i) disclosure of
such information is necessary to comply with federal or state securities laws,
(ii) the disclosure of such information is necessary to avoid or correct a
misstatement or omission in any Registration Statement, (iii) the release of
such information is ordered pursuant to a subpoena or other final,
non-appealable order from a court or governmental body of competent
jurisdiction, or (iv) such information has been made generally available to the
public other than by disclosure in violation of this Agreement or any other
agreement. The Company agrees that it shall, upon learning that disclosure of
such information concerning a Holder is sought in or by a court or governmental
body of competent jurisdiction or through other means, give prompt written
notice to such Holder and allow such Holder, at the Holder's expense, to
undertake appropriate action to prevent disclosure of, or to obtain a protective
order for, such information.

k. The Company shall use its best efforts to secure designation and quotation of
all the Registrable Securities covered by any Registration Statement on the
Principal Market. If, despite the Company's best efforts, the Company is
unsuccessful in satisfying the preceding sentence, it shall use its best efforts
to cause all the Registrable Securities covered by any Registration Statement to
be listed on each other national securities exchange and automated quotation
system, if any, on which securities of the same class or series issued by the
Company are then listed, if any, if the listing of such Registrable Securities
is then permitted under the rules of such exchange or system. If, despite the
Company's best efforts, the Company is unsuccessful in satisfying the two
preceding sentences, it will use its best efforts to secure the inclusion for
quotation with Pink Sheets, LLC. The Company shall pay all fees and expenses in
connection with satisfying its obligation under this Section 3(k).

l. The Company shall cooperate with the Investor to facilitate the timely
preparation and delivery of certificates (not bearing any restrictive legend)
representing the Registrable Securities to be offered pursuant to a Registration
Statement and enable such certificates to be in such denominations or amounts,
as the case may be, as the Holders may reasonably request and registered in such
names of the Persons who shall acquire such Registrable Securities from the
Holders, as the Holders may request.

m. The Company shall provide a transfer agent for all the Registrable Securities
not later than the effective date of the first Registration Statement filed
pursuant hereto.

n. If requested by the Holders holding a majority of the Registrable Securities,
the Company shall (i) as soon as reasonably practical incorporate in a
prospectus supplement or post-effective amendment such information as such
Holders reasonably determine should be included therein relating to the sale and
distribution of Registrable Securities, including, without limitation,
information with respect to the offering of the Registrable Securities to be
sold in such offering; (ii) make all required filings of such prospectus
supplement or post-effective amendment as soon as notified of the matters to be
incorporated in such prospectus supplement or post-effective amendment; and
(iii) supplement or make amendments to any Registration Statement if reasonably
requested by such Holders.

o. The Company shall use its best efforts to cause the Registrable Securities
covered by the applicable Registration Statement to be registered with or
approved by such other governmental agencies or authorities as may be necessary
to consummate the disposition of such Registrable Securities.

p. The Company shall make generally available to its security holders as soon as
reasonably practical, but not later than ninety (90) calendar days after the
close of the period covered thereby, an earnings statement (in form complying
with the provisions of Rule 158 under the 1933 Act) covering a twelve-month
period beginning not later than the first day of the Company's fiscal quarter
next following the effective date of any Registration Statement.

q. The Company shall otherwise use its best efforts to comply with all
applicable rules and regulations of the SEC in connection with any registration
hereunder.

r. Within one (1) business day after the Registration Statement which includes
Registrable Securities is declared effective by the SEC, the Company shall
deliver, and shall cause legal counsel for the Company to deliver, to the
transfer agent for such Registrable Securities, with copies to the Investor,
confirmation that such Registration Statement has been declared effective by the
SEC in the form attached hereto as Exhibit A.

s. At or prior to the date of the first Conversion Notice (as that term is
defined in the Subscription Agreement) and at such other times as the Holders
may reasonably request, the Company shall cause to be delivered, letters from
the Company's independent certified public accountants (i) addressed to the
Holders that such accountants are independent public accountants within the
meaning of the 1933 Act and the applicable published rules and regulations
thereunder, and (ii) in customary form and covering such financial and
accounting matters as are customarily covered by letters of independent
certified public accountants delivered to underwriters in connection with public
offerings.

t. The Company shall take all other reasonable actions necessary to expedite and
facilitate disposition by the Holders of Registrable Securities pursuant to a
Registration Statement.

                  4. OBLIGATIONS OF THE HOLDERS.

a. At least five (5) calendar days prior to the first anticipated filing date of
a Registration Statement the Company shall notify each Holder in writing of the
information the Company requires from each such Holder if such Holder elects to
have any of such Holder's Registrable Securities included in such Registration
Statement. It shall be a condition precedent to the obligations of the Company
to complete the registration pursuant to this Agreement with respect to the
Registrable Securities of a particular Holder that such Holder shall furnish in
writing to the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the Registrable
Securities held by it as shall reasonably be required to effect the registration
of such Registrable Securities and shall execute such documents in connection
with such registration as the Company may reasonably request. Each Holder
covenants and agrees that, in connection with any resale of Registrable
Securities by it pursuant to a Registration Statement, it shall comply with the
"Plan of Distribution" section of the current prospectus relating to such
Registration Statement.

b. Each Holder, by such Holder's acceptance of the Registrable Securities,
agrees to cooperate with the Company as reasonably requested by the Company in
connection with the preparation and filing of any Registration Statement
hereunder, unless such Holder has notified the Company in writing of such
Holder's election to exclude all of such Holder's Registrable Securities from
such Registration Statement.

c. Each Holder agrees that, upon receipt of any notice from the Company of the
happening of any event of the kind described in Section 3(f) or the first
sentence of 3(e), such Holder will immediately discontinue disposition of
Registrable Securities pursuant to any Registration Statement(s) covering such
Registrable Securities until such Holder's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 3(f) or the first
sentence of 3(e).

                  5. EXPENSES OF REGISTRATION.

         All reasonable expenses, other than underwriting discounts and
commissions, incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without limitation, all
registration, listing and qualifications fees, printing and accounting fees, and
fees and disbursements of counsel for the Company shall be paid by the Company.

                  6.       INDEMNIFICATION.

         In the event any Registrable Securities are included in a Registration
Statement under this Agreement:

a. To the fullest extent permitted by law, the Company will, and hereby does,
indemnify, hold harmless and defend each Holder who holds such Registrable
Securities, the directors, officers, partners, employees, agents,
representatives of, and each Person, if any, who controls, any Holder within the
meaning of the 1933 Act or the Securities Exchange Act of 1934, as amended (the
"1934 Act"), (each, an "Indemnified Person"), against any losses, claims,
damages, liabilities, judgments, fines, penalties, charges, costs, attorneys'
fees, amounts paid in settlement or expenses, joint or several (collectively,
"Claims"), incurred in investigating, preparing or defending any action, claim,
suit, inquiry, proceeding, investigation or appeal taken from the foregoing by
or before any court or governmental, administrative or other regulatory agency,
body or the SEC, whether pending or threatened, whether or not an indemnified
party is or may be a party thereto ("Indemnified Damages"), to which any of them
may become subject insofar as such Claims (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon: (i)
any untrue statement or alleged untrue statement of a material fact in a
Registration Statement or any post-effective amendment thereto or in any filing
made in connection with the qualification of the offering under the securities
or other "blue sky" laws of any jurisdiction in which Registrable Securities are
offered ("Blue Sky Filing"), or the omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which the statements therein were
made, not misleading, (ii) any untrue statement or alleged untrue statement of a
material fact contained in the final prospectus (as amended or supplemented, if
the Company files any amendment thereof or supplement thereto with the SEC) or
the omission or alleged omission to state therein any material fact necessary to
make the statements made therein, in light of the circumstances under which the
statements therein were made, not misleading, or (iii) any violation or alleged
violation by the Company of the 1933 Act, the 1934 Act, any other law,
including, without limitation, any state securities law, or any rule or
regulation thereunder relating to the offer or sale of the Registrable
Securities pursuant to a Registration Statement (the matters in the foregoing
clauses (i) through (iii) being, collectively, "Violations"). Subject to the
restrictions set forth in Section 6(c) with respect to the number of legal
counsel, the Company shall reimburse the Holders and each such controlling
person, promptly as such expenses are incurred and are due and payable, for any
reasonable legal fees or other reasonable expenses incurred by them in
connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement
contained in this Section 6(a): (i) shall not apply to a Claim arising out of or
based upon a Violation which occurs in reliance upon and in conformity with
information furnished in writing to the Company by any Indemnified Person
expressly for use in connection with the preparation of the Registration
Statement or any such amendment thereof or supplement thereto, if such
prospectus were timely made available by the Company pursuant to Section 3(c);
(ii) shall not be available to the extent such Claim is based on (a) a failure
of the Holder to deliver or to cause to be delivered the prospectus made
available by the Company or (b) the Indemnified Person's use of an incorrect
prospectus despite being promptly advised in advance by the Company in writing
not to use such incorrect prospectus; and (iii) shall not apply to amounts paid
in settlement of any Claim if such settlement is effected without the prior
written consent of the Company, which consent shall not be unreasonably
withheld. Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Indemnified Person and shall survive
the resale of the Registrable Securities by the Holders pursuant to the
Registration Statement.

b. In connection with any Registration Statement in which a Holder is
participating, each such Holder agrees to severally and not jointly indemnify,
hold harmless and defend, to the same extent and in the same manner as is set
forth in Section 6(a), the Company, each of its directors, each of its officers
who signs the Registration Statement, each Person, if any, who controls the
Company within the meaning of the 1933 Act or the 1934 Act (collectively and
together with an Indemnified Person, an "Indemnified Party"), against any Claim
or Indemnified Damages to which any of them may become subject, under the 1933
Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified Damages
arise out of or are based upon any Violation, in each case to the extent, and
only to the extent, that such Violation occurs in reliance upon and in
conformity with written information furnished to the Company by such Holder
expressly for use in connection with such Registration Statement; and, subject
to Section 6(c), such Holder will reimburse any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such Claim; provided, however, that the indemnity agreement contained in this
Section 6(b) and the agreement with respect to contribution contained in Section
7 shall not apply to amounts paid in settlement of any Claim if such settlement
is effected without the prior written consent of such Holder, which consent
shall not be unreasonably withheld; provided, further, however, that the Holder
shall be liable under this Section 6(b) for only that amount of a Claim or
Indemnified Damages as does not exceed the net proceeds to such Holder as a
result of the sale of Registrable Securities pursuant to such Registration
Statement. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of such Indemnified Party and shall
survive the resale of the Registrable Securities by the Holders pursuant to the
Registration Statement. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(b) with
respect to any preliminary prospectus shall not inure to the benefit of any
Indemnified Party if the untrue statement or omission of material fact contained
in the preliminary prospectus were corrected on a timely basis in the
prospectus, as then amended or supplemented.

c. Promptly after receipt by an Indemnified Person or Indemnified Party under
this Section 6 of notice of the commencement of any action or proceeding
(including any governmental action or proceeding) involving a Claim, such
Indemnified Person or Indemnified Party shall, if a Claim in respect thereof is
to be made against any indemnifying party under this Section 6, deliver to the
indemnifying party a written notice of the commencement thereof, and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume control of the defense thereof with counsel
mutually satisfactory to the indemnifying party and the Indemnified Person or
the Indemnified Party, as the case may be; provided, however, that an
Indemnified Person or 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 opinion of counsel retained by the indemnifying party, the
representation by such counsel of the Indemnified Person or Indemnified Party
and the indemnifying party would be inappropriate due to actual or potential
differing interests between such Indemnified Person or Indemnified Party and any
other party represented by such counsel in such proceeding. The indemnifying
party shall pay for only one separate legal counsel for the Indemnified Persons
or the Indemnified Parties, as applicable, and such counsel shall be selected by
Holders holding a majority-in-interest of the Registrable Securities included in
the Registration Statement to which the Claim relates, if the Holders are
entitled to indemnification hereunder, or the Company, if the Company is
entitled to indemnification hereunder, as applicable. The Indemnified Party or
Indemnified Person shall cooperate fully with the indemnifying party in
connection with any negotiation or defense of any such action or claim by the
indemnifying party and shall furnish to the indemnifying party all information
reasonably available to the Indemnified Party or Indemnified Person which
relates to such action or claim. The indemnifying party shall keep the
Indemnified Party or Indemnified Person fully appraised at all times as to the
status of the defense or any settlement negotiations with respect thereto. No
indemnifying party shall be liable for any settlement of any action, claim or
proceeding effected without its written consent, provided, however, that the
indemnifying party shall not unreasonably withhold, delay or condition its
consent. No indemnifying party shall, without the consent of the Indemnified
Party or Indemnified Person, consent to entry of any judgment or enter into any
settlement or other compromise which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such Indemnified Party or
Indemnified Person of a release from all liability in respect to such Claim.
Following indemnification as provided for hereunder, the indemnifying party
shall be surrogated to all rights of the Indemnified Party or Indemnified Person
with respect to all third parties, firms or corporations relating to the matter
for which indemnification has been made. The failure to deliver written notice
to the indemnifying party within a reasonable time of the commencement of any
such action shall not relieve such indemnifying party of any liability to the
Indemnified Person or Indemnified Party under this Section 6, except to the
extent that the indemnifying party is prejudiced in its ability to defend such
action.

d. The indemnification required by this Section 6 shall be made by periodic
payments of the amount thereof during the course of the investigation or
defense, as and when bills are received or Indemnified Damages are incurred.

e. The indemnity agreements contained herein shall be in addition to (i) any
cause of action or similar right of the Indemnified Party or Indemnified Person
against the indemnifying party or others, and (ii) any liabilities the
indemnifying party may be subject to pursuant to the law.

                  7.       CONTRIBUTION.

         To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable
under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no contribution shall be made under circumstances where the maker would not
have been liable for indemnification under the fault standards set forth in
Section 6; (ii) no seller of Registrable Securities guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled to contribution from any seller of Registrable Securities who was not
guilty of fraudulent misrepresentation; and (iii) contribution by any seller of
Registrable Securities shall be limited in amount to the net amount of proceeds
received by such seller from the sale of such Registrable Securities.

                  8. REPORTS UNDER THE 1934 ACT.

         With a view to making available to the Holders the benefits of Rule 144
promulgated under the 1933 Act or any other similar rule or regulation of the
SEC that may at any time permit the Holders to sell securities of the Company to
the public without registration ("Rule 144"), the Company agrees to:

a. make and keep public information available, as those terms are understood and
defined in Rule 144;

b. file with the SEC in a timely manner all reports and other documents required
of the Company under the 1933 Act and the 1934 Act so long as the Company
remains subject to such requirements (it being understood that nothing herein
shall limit the Company's obligations under Section 4(c) of the Subscription
Agreement) and the filing of such reports and other documents is required for
the applicable provisions of Rule 144; and

c. furnish to the Investor, promptly upon request, (i) a written statement by
the Company that it has complied with the reporting requirements of Rule 144,
the 1933 Act and the 1934 Act, (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed by
the Company, and (iii) such other information as may be reasonably requested to
permit the Investor to sell such securities pursuant to Rule 144 without
registration.

                  9. NO ASSIGNMENT OF REGISTRATION RIGHTS.

         The rights under this Agreement shall not be assignable.

                  10. AMENDMENT OF REGISTRATION RIGHTS.

         Provisions of this Agreement may be amended and the observance thereof
may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company
and Holders who hold two-thirds (2/3) of the Registrable Securities. Any
amendment or waiver effected in accordance with this Section 10 shall be binding
upon each Holder and the Company. No such amendment shall be effective to the
extent that it applies to less than all of the Holders of the Registrable
Securities. No consideration shall be offered or paid to any Person to amend or
consent to a waiver or modification of any provision of any of this Agreement
unless the same consideration also is offered to all of the parties to this
Agreement.

                  11.      MISCELLANEOUS.

a. A Person is deemed to be a Holder of Registrable Securities whenever such
Person owns of record such Registrable Securities. If the Company receives
conflicting instructions, notices or elections from two or more Persons with
respect to the same Registrable Securities, the Company shall act upon the basis
of instructions, notice or election received from the registered owner of such
Registrable Securities.

b. Any notices, consents, waivers or other communications required or permitted
to be given under the terms of this Agreement must be in writing and will be
deemed to have been delivered (i) upon receipt, when delivered personally; (ii)
upon receipt, when sent by facsimile (provided a confirmation of transmission is
mechanically or electronically generated and kept on file by the sending party);
or (iii) one (1) day after deposit with a nationally recognized overnight
delivery service, in each case properly addressed to the party to receive the
same. The addresses and facsimile numbers for such communications shall be:

If to the Company:
         FTS Apparel, Inc.
         1379 River Road
         Yardley, Pennsylvania 19067
         Attention:  Scott Gallagher, CEO
         Telephone:        (215) 369-9820
         Facsimile:        (215) 369-9821

If to the Investor:

         At the address listed in the Questionnaire.

With a copy to:
         Joseph B. LaRocco, Esq.
         49 Locust Avenue, Suite 107
         New Canaan, CT 06840
         Telephone:  203-966-0566
         Facsimile:  203-966-0363

         Each party shall provide five (5) business days prior notice to the
other party of any change in address, phone number or facsimile number.

c. Failure of any party to exercise any right or remedy under this Agreement or
otherwise, or delay by a party in exercising such right or remedy, shall not
operate as a waiver thereof.

d. All disputes arising under this agreement shall be governed by and
interpreted in accordance with the laws of the Commonwealth of Massachusetts,
without regard to principles of conflict of laws. The parties to this agreement
will submit all disputes arising under this agreement to arbitration in Boston,
Massachusetts before a single arbitrator of the American Arbitration Association
("AAA"). The arbitrator shall be selected by application of the rules of the
AAA, or by mutual agreement of the parties, except that such arbitrator shall be
an attorney admitted to practice law in the Commonwealth of Massachusetts. No
party to this agreement will challenge the jurisdiction or venue provisions as
provided in this section.

e. This Agreement and the Transaction Documents (as defined in the Subscription
Agreement) constitute the entire agreement among the parties hereto with respect
to the subject matter hereof and thereof. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein and
therein.

f. This Agreement and the Transaction Documents supersede all prior agreements
and understandings among the parties hereto with respect to the subject matter
hereof and thereof.

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

h. This Agreement may be executed in two or more counterparts, all of which
taken together shall constitute one instrument. Execution and delivery of this
Agreement by exchange of facsimile copies bearing the facsimile signature of a
party shall constitute a valid and binding execution and delivery of this
Agreement by such party. Such facsimile copies shall constitute enforceable
original documents.

i. Each party shall do and perform, or cause to be done and performed, all such
further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other party may
reasonably request in order to carry out the intent and accomplish the purposes
of this Agreement and the consummation of the transactions contemplated hereby.

j. All consents and other determinations to be made by the Holders pursuant to
this Agreement shall be made, unless otherwise specified in this Agreement, by
Holders holding a majority of the Registrable Securities.

k. The language used in this Agreement will be deemed to be the language chosen
by the parties to express their mutual intent and no rules of strict
construction will be applied against any party.

IN WITNESS WHEREOF, the parties have caused this Registration Rights Agreement
to be duly executed as of the day and year first above written.

                           FTS Apparel, Inc.

                                    /s/ Scott Gallagher
                           By:      ____________________________________
                           Name:    Scott Gallagher
                           Title:   CEO

                           DUTCHESS PRIVATE EQUITIES FUND, L.P.
                           BY ITS GENERAL PARTNER DUTCHESS
                           CAPITAL MANAGEMENT, LLC

                               /s/ Douglas Leighton
                           By:__________________________________
                           Name:  Douglas H. Leighton
                           Title:  A Managing Member

<PAGE>

                                    EXHIBIT A

FORM OF NOTICE OF EFFECTIVENESS
OF REGISTRATION STATEMENT

                                                              Date: __________
[TRANSFER AGENT]

                  Re:      FTS Apparel, Inc..

Ladies and Gentlemen:

         We are counsel to FTS Apparel, Inc., a Colorado corporation (the
"Company"), and have represented the Company in connection with that certain
Subscription Agreement (the "Subscription Agreement") entered into by and among
the Company and _________________________ (the "Investor") pursuant to which the
Company has agreed to issue to the Investor shares of the Company's common
stock, $.001 par value per share (the "Common Stock") on the terms and
conditions set forth in the Subscription Agreement. Pursuant to the Subscription
Agreement, the Company also has entered into a Registration Rights Agreement
with the Investor (the "Registration Rights Agreement") pursuant to which the
Company agreed, among other things, to register the Registrable Securities (as
defined in the Registration Rights Agreement), including the shares of Common
Stock issued or issuable under the Subscription Agreement under the Securities
Act of 1933, as amended (the "1933 Act"). In connection with the Company's
obligations under the Registration Rights Agreement, on ____________ ___, 2001,
the Company filed a Registration Statement on Form S- ___ (File No.
333-________) (the "Registration Statement") with the Securities and Exchange
Commission (the "SEC") relating to the Registrable Securities which names the
Investor as a selling shareholder thereunder.

         In connection with the foregoing, we advise you that [a member of the
SEC's staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective] [the Registration Statement has
become effective] under the 1933 Act at [enter the time of effectiveness] on
[enter the date of effectiveness] and to the best of our knowledge, after
telephonic inquiry of a member of the SEC's staff, no stop order suspending its
effectiveness has been issued and no proceedings for that purpose are pending
before, or threatened by, the SEC and the Registrable Securities are available
for resale under the 1933 Act pursuant to the Registration Statement.

                                                              Very truly yours,

                                                              [Company Counsel]

                                                  By:      ____________________
cc:      [Investor]

<PAGE><PAGE>

EXHIBIT 10.4

                                ESCROW AGREEMENT
                                ----------------

     THIS AGREEMENT is made as of February 14, 2003, by and between FTS APPAREL,
INC.  (the  "COMPANY"),  DUTCHESS PRIVATE EQUITIES FUND, LP (the "INVESTOR") and
JOSEPH  B.  LAROCCO,  ESQ.,  with  an office at 49 Locust Avenue, Suite 107, New
Canaan,  CT  06840  (the  "ESCROW  AGENT").

                              W I T N E S S E T H:

     WHEREAS,  INVESTOR  will be purchasing $200,000 of the Company's debentures
convertible  into  Common Stock (the "Debentures"), from COMPANY as set forth in
the  Subscription  Agreement  entered  into  by  the  COMPANY  and INVESTOR; and

     WHEREAS, COMPANY and INVESTOR have requested that the Escrow Agent hold the
$200,000  in  escrow  pursuant  to  the  terms  of  this  Escrow  Agreement.

     NOW,  THEREFORE,  in  consideration  of  the  covenants and mutual promises
contained  herein  and  other  good  and valuable consideration, the receipt and
legal  sufficiency  of which are hereby acknowledged and intending to be legally
bound  hereby,  the  parties  agree  as  follows:

                                    ARTICLE 1
                                    ---------
                    TERMS  OF  THE  ESCROW

1.1      The  parties hereby agree to have Joseph B. LaRocco, Esq. act as Escrow
Agent  whereby  the  Escrow  Agent  shall  hold the $200,000 in escrow until the
Escrow  Agent  has  received the Debentures from the COMPANY and faxed copies of
executed  signature  pages from the Company and Investor, whereupon Escrow Agent
shall  release funds to the Company in the amount of $200,000, less a $5,000 fee
to  Escrow  Agent,  and a $10,000 to Seth A. Farbman, P.C. and $70,000 to Simply
Cellular,  Inc., all of which amounts shall be wired out of escrow by the Escrow
Agent  upon  closing.  In  the  event  the  Escrow  Agent  does  not receive the
Debentures  at  his  office  on or before February 18, 2003, he shall notify the
INVESTOR,  who may cancel and terminate this Agreement by sending written notice
to  the Escrow Agent, in which case Escrow Agent shall wire back the $200,000 to
INVESTOR,  without  interest.

     1.2  Upon  Escrow  Agent's receipt of funds from INVESTOR into the attorney
escrow  account  the  Escrow  Agent shall notify COMPANY of the amount received.

     1.3  COMPANY,  prior  to  or  upon  receipt  of said notice from the Escrow
Agent,  shall  deliver  to  Escrow  Agent  the  Debentures  being  purchased.

1.4     This  Agreement  may be altered or amended only with the written consent
of  all  of the parties hereto.  Should COMPANY attempt to change this Agreement
in  a  manner which, in the Escrow Agent's discretion, shall be undesirable, the
Escrow  Agent  may  resign  as Escrow Agent by notifying COMPANY and INVESTOR in
writing.  In  the  case of the Escrow Agent's resignation or removal pursuant to
the  foregoing, his only duty, until receipt of notice from COMPANY and INVESTOR
that  a successor escrow agent has been appointed, shall be to hold and preserve
the  Shares  and  funds  that are in his possession.  Upon receipt by the Escrow
Agent of said notice from COMPANY and INVESTOR of the appointment of a successor
     escrow  agent,  the  name  of a successor escrow account and a direction to
transfer  the  Shares  and  funds,  the  Escrow  Agent shall promptly thereafter
transfer all of the Shares and funds that he is still holding in escrow, to said
successor  escrow  agent.  Immediately  after  said  transfer  of the Shares and
funds,  the  Escrow  Agent shall furnish COMPANY and INVESTOR with proof of such
transfer.  The  Escrow  Agent  is authorized to disregard any notices, requests,
instructions  or demands received by it from COMPANY or INVESTOR after notice of
resignation  or  removal  has  been  given.

     1.5   The  Escrow Agent shall be reimbursed by COMPANY and INVESTOR for any
reasonable  expenses  incurred  in  the  event  there  is a conflict between the
parties  and  the  Escrow  Agent shall deem it necessary to retain counsel.  The
Escrow  Agent shall not be liable for any action taken or omitted by him in good
faith and in no event shall the Escrow Agent be liable or responsible except for
the Escrow Agent's own gross negligence or willful misconduct.  The Escrow Agent
has  made  no  representations or warranties in connection with this transaction
and  has  not  been  involved in the negotiation of the terms of the transaction
between COMPANY and INVESTOR, or any matters relative thereto.  The Escrow Agent
has  no  liability  hereunder  to either party other than to hold the Shares and
funds received by the INVESTOR and to deliver them under the terms hereof.  Each
party  hereto  agrees  to  indemnify and hold harmless the Escrow Agent from and
with respect to any suits, claims, actions or liabilities arising in any way out
of  this transaction including the obligation to defend any legal action brought
which in any way arises out of or is related to this Agreement or the investment
being  made  by  INVESTOR.  COMPANY and INVESTOR each  acknowledge and represent
that  they  are  not being represented in a legal capacity by Joseph B. LaRocco,
and they have had the opportunity to consult with their own legal advisors prior
to  the signing of this agreement.  The Escrow Agent is not rendering securities
advice  to COMPANY or INVESTOR with respect to this proposed transaction; nor is
the  Escrow  Agent  opining  on the compliance of the proposed transaction under
applicable  securities  laws.

                                    ARTICLE 2
                                    ---------
                                  MISCELLANEOUS

          2.1  No  waiver  of  any  breach  of  any covenant or provision herein
contained  shall  be  deemed  a  waiver  of  any  preceding or succeeding breach
thereof,  or  of any other covenant or provision herein contained.  No extension
of  time  for performance of any obligation or act shall be deemed any extension
of  the  time  for  performance  of  any  other  obligation  or  act.

2.2     This  Agreement  shall be binding upon and shall inure to the benefit of
the  permitted  successors  and  assigns  of  the  parties  hereto.

          2.3 This Escrow Agreement is the final expression of, and contains the
entire  agreement between, the parties with respect to the subject matter hereof
and  supersedes  all  prior  understandings  with  respect thereto.  This Escrow
Agreement  may not be modified, changed, supplemented or terminated, nor may any
obligations  hereunder  be  waived,  except  by written instrument signed by the
parties to be charged or by its agent duly authorized in writing or as otherwise
expressly  permitted  herein.

          2.4   Whenever  required  by the context of this Escrow Agreement, the
singular  shall  include  the  plural  and masculine shall include the feminine.
This  Escrow  Agreement shall not be construed as if it had been prepared by one
of  the parties, but rather as if all the parties had prepared the same.  Unless
otherwise  indicated,  all references to Articles are to this  Escrow Agreement.

          2.5  The  parties  hereto  expressly agree that this  Escrow Agreement
shall  be  governed  by,  interpreted  under,  and  construed  and  enforced  in
accordance  of  the  laws  of  the State of Connecticut.  Any action to enforce,
arising  out  of,  or  relating  in  any  way  to, any provisions of this Escrow
Agreement  shall  be brought through the American Arbitration Association at the
designated  locale  of  Stamford,  Connecticut.

     IN  WITNESS  WHEREOF, the parties hereto have executed this Agreement as of
the  14th  day  of  February,  2003.

                              DUTCHESS PRIVATE EQUITIES FUND, L.P.
                              BY ITS GENERAL PARTNER DUTCHESS
                              CAPITAL MANAGEMENT, LLC

                             /s/ Douglas Leighton
                         By:__________________________________
                         Name:  Douglas  H.  Leighton
                         Title:  A  Managing  Member

                         FTS  APPAREL  ,  INC.
                        /s/ Scott Gallagher
                        By:__________________________________
                                           , its CEO

                          JOSEPH  B.  LAROCCO,  ESCROW  AGENT

                         By: /s/ Joseph B. LaRocco
                          Joseph  B.  LaRocco,  Esq.

<PAGE>

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