Document:

EXHIBIT 10.4

                         REGISTRATION RIGHTS AGREEMENT

     REGISTRATION  RIGHTS  AGREEMENT  (this "Agreement"), dated as of August 23
2002,  by  and  between FTS Apparel, Inc., a company organized under the laws of
State  of  Colorado,  with  its  principal  executive office at 1379 River Road,
Yardley, PA 19067 (the "Company"), and Dutchess Private Equities Fund, L.P. (the
"Investor").

     WHEREAS,  in  connection  with  the Investment Agreement by and between the
Company and the Investor of even date herewith (the "Investment Agreement"), the
Company has agreed to issue and sell to the Investor (i) an indeterminate number
of  shares of the Company's common stock, $.001 par value per share (the "Common
Stock"), to be purchased pursuant to the terms and subject to the conditions set
forth  in  the  Investment  Agreement;  and

     WHEREAS,  to  induce  the  Investor  to  execute and deliver the Investment
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  Investment  Agreement.

     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.  "Execution  Date" means the date this Agreement and the Investment Agreement
are  signed  by  the  Company  and  the  Investor.

b.  "Holder"  means  Dutchess  Private  Equities  Fund, L.P., a Delaware limited
partnership.

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

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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"  shall  mean  the  National  Association  of  Securities
Dealer's, Inc. OTC electronic bulletin board or if the Common Stock ceases to be
traded  on the electronic bulletin board, The American Stock Exchange, Inc., the
Nasdaq  National Market or The Nasdaq SmallCap Market 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  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  the  declaration  or ordering of effectiveness of such Registration
Statement(s)  by  the  United  States  Securities  and  Exchange Commission (the
"SEC").

g.  "Registrable  Securities"  means  (i)  the  shares of Common Stock issued or
issuable  pursuant  to  the Investment Agreement, and (ii) any shares of capital
stock issued or issuable with respect to such shares of Common Stock, 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.

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

          2.  REGISTRATION.

a.     Mandatory  Registration.  The  Company  shall  prepare,  and,  as soon as
practicable  file,  but  not  later than thirty (30) calendar days following the
Execution  Date, [this conflicts with Section 9(vi) of the Investment Agreement,
which  allows  60  days  to  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 11,000,000 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 Common Stock issuable to other parties as
set  forth  in  the  Investment  Agreement.

b.     The  Company  shall  use  its  best  efforts  to  have  the  Registration
Statement(s)  declared  effective  by  the  SEC within ninety (90) calendar days
after  the  Execution  Date.

<PAGE>

c.     The  Company  agrees  not  to  include  any  other  securities  in  this
Registration  Statement  without  Investor's prior written consent. Furthermore,
the  Company  agrees  that it will not file any other Registration Statement for
other  securities,  until  thirty  (30)  calendar  days  after  the Registration
Statement  for  the  Registrable  Securities  is  declared  effective.

d.     Counsel.  Subject to Section 5 hereof, in connection with any offering of
the Registrable Securities pursuant to this Section 2, the Holder shall have the
right  to  select one legal counsel to administer its interests in the offering.
The  Company  shall  reasonably  cooperate  with  any  such  counsel.

          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)  days  after  the  Execution  Date and shall keep such Registration
Statement  effective  until the earlier to occur of (i) the date as of which the
Holders  may sell all of the Registrable Securities without restriction pursuant
to Rule 144(k) promulgated under the 1933 Act (or successor thereto) or (ii) the
date on which (A) the Holders shall have sold all the Registrable Securities and
(B)  the  Investor has no right to acquire any additional shares of Common Stock
under  the  Investment 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  a reasonable amount of time of receipt by the Company. 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. In order to achieve
the foregoing objectives, the Holder agrees to provide all information necessary
to  complete  the  registration  statement,  including  the  intended  method of
disposition  of  the  Registrable  Securities, and the Company's obligations set
forth  above  shall  be  conditioned  on  the  receipt  of  such  information.

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

<PAGE>

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.

c.     The Company shall furnish to the Holders 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 Holders may reasonably request) and (iii) such other
documents,  including  copies  of  any  preliminary  or final prospectus, as the
Holders  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 such other
securities  or "blue sky" laws of such states in the United States as any Holder
reasonably  requests,  (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

<PAGE>

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  ten  (10)  business  days  shall  result  in the Company paying
liquidated  damages  of  2.0%  of  the cost of all Common Stock 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 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

<PAGE>

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  by  the  Holder, 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.

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.

<PAGE>

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  on  the  Nasdaq  SmallCap Market for such Registrable
Securities and, without limiting the generality of the foregoing, to arrange for
at  least  two  market  makers  to  register  with  the  National Association of
Securities  Dealers,  Inc.  as such with respect to such Registrable Securities.
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.

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, 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

<PAGE>

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

q.     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.

r.     At  or prior to the date of the first Put Notice (as that term is defined
in  the  Investment  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.

s.     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  sale  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

<PAGE>

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
and  fees  of  the  Holder's  counsel  other than as set forth in the Investment
Agreement,  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

<PAGE>

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; (iii) any claims based
on  the  manner  of  sale  of the Registrable Securities by the Holder; (iv) any
omission of the Holder to notify the Company of any material fact that should be
stated in the Registration Statement or prospectus relating to the Holder or the
manner  of  sale;  or  (v)  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 and the Company's
agents  (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

<PAGE>

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. This
indemnification  provision shall apply separately to each Investor and liability
hereunder  shall  not  be  joint  and  several.

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
the  Holders,  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.

<PAGE>

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  5(c)  of  the
Investment  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.

<PAGE>

          10.  AMENDMENT  OF  REGISTRATION  RIGHTS.

     Provisions  of  this Agreement may be amended only with the written consent
of  the  Company and Holders. No such amendment shall be effective to the extent
that  it  applies to less than all of the Holders of the Registrable Securities.

          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  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  Galagher,  CEO
       Telephone:     (215)  369-9820
       Facsimile:     (215)  369-9821

And
       David  Babiarz,  Esq.
       7720  E.  Belleview,  Suite  200
       Greenwood  Village,  CO  80111

       Telephone:  303-779-5900
       Facsimile:    303-779-6006

If  to  the  Investor:

       At  the  address  listed  in  the  Questionnaire.

With  a  copy  to:

<PAGE>

       Joseph  B.  LaRocco,  Esq.
       49  Locust  Avenue,  Suite  107
       New  Canaan,  CT  06840
       Telephone  No.:  203-966-0566
       Telecopier  No.:  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.     The laws of the State of Colorado shall govern all issues arising from or
related  to this Agreement without regard to the principles of conflict of laws.
Each  party  hereby irrevocably submits to the non-exclusive jurisdiction of the
state  and federal courts sitting in the City of New York, borough of Manhattan,
for  the adjudication of any dispute hereunder or in connection herewith or with
any  transaction contemplated hereby or discussed herein, and hereby irrevocably
waives,  and  agrees  not to assert in any suit, action or proceeding, any claim
that  it  is  not personally subject to the jurisdiction of any such court, that
such  suit, action or proceeding is brought in an inconvenient forum or that the
venue  of  such  suit,  action  or  proceeding  is  improper.  Each party hereby
irrevocably  waives  personal  service  of process and consents to process being
served  in any such suit, action or proceeding by mailing a copy thereof to such
party at the address for such notices to it under this Agreement and agrees that
such  service shall constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way any right
to  serve  process  in  any  manner  permitted by law.  If any provision of this
Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or  unenforceability  shall  not  affect  the  validity or enforceability of the
remainder  of  this  Agreement  in  that  jurisdiction  or  the  validity  or
enforceability  of  any  provision  of this Agreement in any other jurisdiction.

e.     This  Agreement  and  the  Transaction  Documents  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.  Whenever required by
the  context  of  this  Agreement,  the  singular  shall  include the plural and
masculine  shall include the feminine.  This 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.

h.     This  Agreement  may  be  executed in two or more identical counterparts,
each  of which shall be deemed an original but all of which shall constitute one
and  the  same  agreement.  This  Agreement,  once  executed  by a party, may be
delivered  to  the  other  party  hereto  by  facsimile

<PAGE>

transmission  of  a copy of this Agreement bearing the signature of the party so
delivering  this  Agreement.

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.

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 H. 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
Investment  Agreement (the "Investment 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 Investment Agreement.  Pursuant to the Investment
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 Investment 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 ____________ ___, 2002,
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 under the 1933 Act at [enter the time of
effectiveness]  on  [enter  the  date  of  effectiveness] and to the best of our
knowledge,  ,  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>EXHIBIT 10.5
                                ESCROW AGREEMENT

     THIS  ESCROW  AGREEMENT  ("AGREEMENT") is made as of August 23, 2002 by and
between  FTS Apparel, Inc. (the "COMPANY"), Dutchess Private Equities Fund, L.P.
(the  "INVESTOR")  and  Joseph  B.  LaRocco,  Esq.,  with an office at 49 Locust
Avenue,  Suite  107,  New  Canaan,  CT 06840 (the  "ESCROW AGENT").  Capitalized
terms  used  but  not  defined  herein  shall have the meanings set forth in the
Transaction  Documents  referred  to  in  the  first  recital.

                              W I T N E S S E T H:

     WHEREAS, the Company will from time to time sell shares of its common stock
(the  "SHARES")  to  the  Investor  upon  terms  as  set forth in the Investment
Agreement  and  related  documents  dated  the  date  hereof  (the  "TRANSACTION
DOCUMENTS")  entered  into  by  the  Company  and  Investor;  and

     WHEREAS,  the Company and the Investor have requested that the Escrow Agent
hold  the Shares and funds ("FUNDS") being used to purchase the Shares in escrow
pursuant  to  the  terms  of  this  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, subject to the right of the parties to remove
the  Escrow Agent and the right of the Escrow Agent to resign, shall receive the
Shares  and  Funds  in  escrow  and  distribute  the  same  as set forth in this
Agreement.

     1.2  Concurrent  with  each  Put  Notice  delivered  by  the Company to the
Investor,  the  Company  shall  deliver  a copy of said Put Notice to the Escrow
Agent,  and upon the conclusion of the Pricing Period, the Company shall deliver
a  subsequent  notice to the Investor and the Escrow Agent confirming the number
of  Shares  being purchased in accordance with the Transaction Documents and the
Purchase  Price  for  said  Shares.

     1.3  (a)  Prior  to each Closing Date, (i) the Company shall deliver to the
Escrow  Agent  certificates representing the Shares to be issued to the Investor
in  such denominations as may be requested by the Investor and (ii) the Investor
shall  deliver to the Escrow Agent that amount necessary to purchase such Shares
as  required  by  the  Transaction  Documents  (the  "Purchase  Amount")by  wire
transfer.  All  Funds  received  by  the  Escrow  Agent  shall  be

<PAGE>

maintained  in  a  separate account solely in the name of the Escrow Agent, free
from  the  claims  of  any  creditors  of  Escrow  Agent.

     (b)  In  the  alternative  to  physical delivery of certificates for Common
Stock  to  the  Escrow  Agent,  if  delivery of the Shares may be effectuated by
electronic  book-entry  through  The  Depository  Trust  Company  ("DTC"),  then
delivery  of  the  Shares  pursuant  to  such  purchase  shall, unless requested
otherwise  by  such Investor, settle by book-entry transfer to an account in the
name  of  the  Escrow Agent, free from the claims of any creditors of the Escrow
Agent,  through  DTC  by the Closing Date.  The parties agree to coordinate with
DTC  to  accomplish  this  objective.

     (c)  The  Escrow  Agent  shall  exercise reasonable care in safekeeping the
Shares and the Funds but shall not be under any obligations to invest, reinvest,
vote or otherwise deal with the escrowed Shares or the Funds except as otherwise
set  forth in this Agreement or unless otherwise instructed in writing signed by
both  Parties.

     (d)  In  addition,  each  of the Company and the Investor shall deliver all
documents,  instruments  and writings required to be delivered by either of them
to  the  Escrow  Agent pursuant to the Transaction Documents at or prior to each
Closing, which writings shall include instructions for delivery of the Shares to
the  Investor  and  wire  transfer  instructions  for  the  Company.

     1.4     With  regard  to  each Put Notice, the Escrow Period shall commence
upon  the receipt of either or both the Shares to be purchased pursuant to a Put
Notice  or  all  or  some  portion  of  the  Funds, and shall continue until the
earliest  to  occur  of  the  following  events:

     (a)     distribution  of  the  Shares  to the Investor and the Funds to the
Company  as  otherwise  provided  by  the  Transaction  Documents;  or

receipt  by  Escrow  Agent  of  a  written  agreement  executed  by
both Parties notifying  Escrow  Agent that the Escrow Period is terminated and
specifying the distribution  of  any  remaining  escrowed  Shares  or  Funds.

     1.5     (a) On each Closing Date, if the Escrow Agent has received both the
requisite  number  of Shares being purchased and the Purchase Amount, the Escrow
Agent  shall  forward  the  Shares being purchased to the Investor, and wire the
amount  necessary to purchase the Shares, pursuant to the Transaction Documents,
to  the Company, less any amounts which the Escrow Agent is authorized to deduct
pursuant  to  the  provisions  of  Section  1.5(c)  below..

     (b)If  the  number  of  correct  number of Shares or Funds representing the
Purchase  Amount  are  not  received by the Escrow Agent by the Closing Date, he
shall  hold  and retain such amount as he may have in his possession, notify the
parties  and  await  further  instructions.  In  no event shall the Escrow Agent
release  any  Shares  to  the  Investor  unless  and

<PAGE>

until  the  Escrow  Agent  shall  have  received  all  necessary  Funds  for the
corresponding  Purchase  Amount.

     (c) The Escrow Agent shall deduct from the Funds he receives in escrow from
the  Investor  the  following  amounts:

          (a)  On each Closing Date, Escrow Agent shall deduct from the Purchase
               Amount  as an escrow fee the sum of $750 for each Put Notice; and

          (b)  8%  of  the  [gross]  Purchase  Amount on each Closing Date to be
               wired  per  the written instructions of Dutchess Private Equities
               Fund,  L.P.

     1.6     After  Investor's receipt of a Put Notice, but prior to the related
Closing  Date,  the Investor may authorize the Escrow Agent to release a portion
of the Purchase Amount from escrow to the Company in exchange for a fixed number
of  Shares,  subject  to  the  following  conditions:

          (a)  The  Investor  shall  fill  out  and  sign  a "Partial Release of
               Purchase  Amount  and  Shares  from Escrow" (the "Partial Release
               Form").  See  Exhibit A attached hereto. The Partial Release Form
               shall  set  forth the number of Shares to be released to Investor
               and the dollar amount the Escrow Agent shall wire to the Company.

          (b)  The  Partial  Release  Form shall be filled out and signed by the
               Investor  and  faxed to the Company and the Escrow Agent prior to
               12:00  p.m.  New  York  City  time.

     The  number  of Shares stated in the Partial Release Form shall be equal to
the  dollar amount to be released divided by 92% of the lowest closing bid price
during  that  number  of  Trading Days in the Purchase Period that have expired.

     The  Company  and  Investor  agree  that  on  the  related Closing Date, an
adjustment shall be made so that the terms set forth in the Investment Agreement
shall  be  honored with the balance of the Purchase Amount being released to the
Company  and  the balance of Shares owed to Investor being released to Investor.

     1.7  If  the  Escrow Agent does not have the exact number of Shares to send
Investor,  because  of  the denominations of the various Share certificates, the
parties  will  mutually  agree  on  how  to  resolve  the  matter.

     1.8  This  Escrow Agreement may be altered or amended only with the written
consent  of  all  of  the  parties hereto. Should Company attempt to change this
Escrow  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 upon not less than 30 days advance notice. Escrow Agent
may be removed at any time by an instrument or concurrent instruments in writing
delivered to Escrow Agent and signed by each of the Company and the Investor. In
the  case  of  the  Escrow  Agent's  resignation  or  removal

<PAGE>

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. In the event of
the  resignation  of  Escrow  Agent, if a substitute Escrow Agent shall not have
been  selected  as aforesaid within the 30-day notice period referred to in this
Section  1.8,  Escrow Agent shall be entitled to petition any court of competent
jurisdiction  for  the  appointment  of a substitute for it hereunder or, in the
alternative,  it may transfer and deliver the Escrowed Shares then held by it to
or upon the order of such court. 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.

     1.9   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, upon
whose reasonable advice the Escrow Agent may rely. 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  to  the  Company  in  connection  with  this
transaction.  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. The Company
acknowledges and represents that it is not being represented in a legal capacity
by  Joseph B. LaRocco, and has had the opportunity to consult with its own legal
advisors  prior  to the signing of this Agreement. The Company acknowledges that
the  Escrow Agent is not rendering securities advice to the Company with respect
to  this  proposed transaction.  The Escrow Agent has acted as legal counsel for
the  Investor  and  may  continue to act as legal counsel for the Investor, from
time  to  time,  notwithstanding  its  duties as the Escrow Agent hereunder. The
Company  consents  to  the Escrow Agent acting in such capacity as legal counsel
for  the  Investor  and  waives  any claim that such representation represents a
conflict  of  interest on the part of the Escrow Agent.  The Company understands
that  the  Investor  and  Escrow  Agent  are relying explicitly on the foregoing
provisions  contained  in  this  Section  1.8  in  entering into this Agreement.

     1.10  The  Escrow Agent shall be obligated only for the performance of such
duties  as are specifically set forth herein and may rely and shall be protected
in  relying  or  refraining from acting on any instrument reasonably believed by
the  Escrow  Agent  to  be  genuine  and to have been signed or presented by the
proper party or parties. The Escrow Agent shall not be personally liable for any
act  the  Escrow  Agent may do or omit to do hereunder as the Escrow Agent while
acting  in  good  faith, and any act done or omitted by the Escrow Agent in good

<PAGE>

faith  pursuant  to  the  advice of the Escrow Agent's attorneys-at-law shall be
conclusive  evidence  of  such  good  faith.

     1.11  The  Escrow Agent is hereby expressly authorized to disregard any and
all  warnings  given  by  any  of  the  parties hereto or by any other person or
corporation,  excepting only final, nonappealable orders or process of courts of
law  or  written agreements of the parties and is hereby expressly authorized to
comply  with  and  obey those orders, judgments or decrees of any court. In case
the  Escrow Agent obeys or complies with any such order, judgment or decree, the
Escrow  Agent  shall  not be liable to any of the parties hereto or to any other
person,  firm  or  corporation  by  reason  of  such  decree  being subsequently
reversed,  modified,  annulled, set aside, vacated or found to have been entered
without  jurisdiction.

     1.12  The Escrow Agent shall not be liable in any respect on account of the
identity,  authorities  or  rights  of  the  parties  executing or delivering or
purporting  to  execute  or  deliver  the  Agreement  or any documents or papers
deposited  or  called  for  hereunder.

     1.13  If the Escrow Agent reasonably requires other or further documents in
connection  with  this  Agreement,  the  necessary  parties hereto shall join in
furnishing  such  documents.

     1.13  It  is  understood  and  agreed  that  should  any dispute arise with
respectto  the delivery and/or ownership or right of possession of the documents
or  the Funds held by the Escrow Agent hereunder, the Escrow Agent is authorized
and  directed  in the Escrow Agent's sole discretion (a) to retain in the Escrow
Agent's possession without liability to anyone all or any part of said documents
or  the  Funds  until  such  disputes  shall  have been settled either by mutual
written  agreement  of  the  parties  concerned  or  by a final order, decree or
judgment  of  a  court  of  competent jurisdiction after the time for appeal has
expired and no appeal has been perfected, but the Escrow Agent shall be under no
duty whatsoever to institute or defend any such proceedings or (b) to interplead
the  Funds  and  any  other  property  and  documents  held  by the Escrow Agent
hereunder  to  a  state  or  federal  court  having  competent  subject  matter
jurisdiction  and  located  in  the  State of Connecticut in accordance with the
applicable  procedure  therefor.

                                    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  not  be  assignable.

     2.3  This  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 Agreement may not
be  modified,  changed,

<PAGE>

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 Agreement, the singular shall
include the plural and masculine shall include the feminine.  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.

     2.5  The  parties  hereto  expressly  agree  that  this  Agreement shall be
governed  by, interpreted under, and construed and enforced in accordance of the
laws  of  the  State  of Connecticut. The parties agree that any dispute arising
under  or  with  respect to or in connection with this Agreement, whether during
the  term  of  this Agreement or at any subsequent time, shall be resolved fully
and  exclusively  by binding arbitration in accordance with the commercial rules
then  in  force  of  the  American  Arbitration Association with the proceedings
taking  place  in Stamford, Connecticut before a panel of three (3) arbitrators.

     2.6  Any  notice  required  or permitted hereunder shall be given in manner
provided in the Section headed "NOTICES" in the Investment Agreement , the terms
of  which  are  incorporated  herein  by  reference.

     2.7 By signing this Agreement, the Escrow Agent becomes a party hereto only
for  the  purpose of this Agreement; the Escrow Agent does not become a party to
the  Transaction  Documents.

     2.8  Each  party  acknowledges  and agrees that this Agreement shall not be
deemed prepared or drafted by any one party. In the event of any dispute between
the  parties  concerning  this  Agreement,  the  parties  agree that any rule of
construction,  to the effect that any ambiguity in the language of the Agreement
is  to  be  resolved  against  the  drafting  party,  shall  not  apply.

                [Balance of this page intentionally left blank.]

<PAGE>

     IN  WITNESS  WHEREOF, the parties hereto have executed this Agreement as of
the 23  day  of  August  2002.

                                 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 H. Leighton
                          By:   ____________________________________
                                Name:  Douglas  H.  Leighton
                                Title: A  Managing  Member

                                JOSEPH  B.  LAROCCO,  ESCROW  AGENT

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

<PAGE>

                                    EXHIBIT A

            PARTIAL RELEASE OF PURCHASE AMOUNT AND SHARES FROM ESCROW

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

With  a  copy  to:
     David  Babiarz,  Esq.
     7720  E.  Belleview,  Suite  200
     Greenwood  Village,  CO  80111
     Telephone:  303-779-5900
     Facsimile:  303-779-6006

With  a  copy  to:
     Joseph  B.  LaRocco,  Esq.
     49  Locust  Avenue,  Suite  107
     New  Canaan,  CT  06840
     Telephone  No.:  203-966-0566
     Telecopier No.:  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.

Pursuant  to  the  terms  of  the Escrow Agreement, the Investor and the Company
requests  the  release  from escrow of __________ shares of the Company's Common
Stock  by  overnight  delivery  and  authorizes the Escrow Agent to release from
escrow  $___________  .

                            By:____________________________________________

Note: The number of Shares stated in this PARTIAL RELEASE OF PURCHASE AMOUNT AND
SHARES  FROM  ESCROW  Form  shall  be  equal to the dollar amount to be released
divided  by  92%  of  the lowest closing bid price during that number of Trading
Days  in  the  Purchase  Period  that  have  expired.

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