Document:

Exhibit 4.2

THIS  WARRANT  AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
NOT  BEEN  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
AND  THE  COMMON  SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
OFFERED  FOR  SALE,  PLEDGED  OR  HYPOTHECATED  IN  THE  ABSENCE OF AN EFFECTIVE
REGISTRATION  STATEMENT  UNDER  SAID  ACT  OR  AN  OPINION OF COUNSEL REASONABLY
SATISFACTORY  TO  FTS  GROUP  INC.  THAT  SUCH  REGISTRATION  IS  NOT  REQUIRED.

     Right to Purchase _______ shares of Common Stock of FTS Group Inc. (subject
to  adjustment  as  provided  herein)

                      CLASS B COMMON STOCK PURCHASE WARRANT

No.  2005-B-001                              Issue  Date:  December  ____,  2005

     FTS  GROUP  INC.,  a  corporation  organized under the laws of the State of
Nevada (the "Company"), hereby certifies that, for value received, ALPHA CAPITAL
AKTIENGESELLSCHAFT,  Pradafant  7,  9490  Furstentums, Vaduz, Lichtenstein, Fax:
011-42-32323196,  or  its  assigns  (the  "Holder"), is entitled, subject to the
terms  set forth below, to purchase from the Company at any time after the Issue
Date  until 5:00 p.m., E.S.T on the later of the date the Registration Statement
(as  defined  in  the  Subscription  Agreement)  has  been  effective  for  the
unrestricted  public resale of the Warrant Shares for 120 days, or 90 days after
the  actual  effective  date of the Second Registration Statement (as defined in
the  Subscription Agreement) registering for public resale of all Warrant Shares
(the  "Expiration  Date"), up to ________ fully paid and nonassessable shares of
Common Stock at a per share purchase price of $_____ [100% of the average of the
volume  weighted  average  price  (VWAP)  of  the  Common  Stock  as reported by
Bloomberg  LP for the OTC Bulletin Board ("Bulletin Board") for the five trading
days  preceding the Closing Date].  The aforedescribed purchase price per share,
as  adjusted  from time to time as herein provided, is referred to herein as the
"Purchase  Price."  The  number and character of such shares of Common Stock and
the  Purchase  Price  are subject to adjustment as provided herein.  The Company
may  reduce  the  Purchase Price without the consent of the Holder.  Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in
that  certain  Subscription  Agreement  (the  "Subscription  Agreement"),  dated
December  ___,  2005,  entered  into  by  the Company and Holders of the Class B
Warrants.

     As  used herein the following terms, unless the context otherwise requires,
have  the  following  respective  meanings:
(a)     The  term  "Company"  shall  include  FTS Group Inc. and any corporation
which  shall  succeed  or  assume  the  obligations of FTS Group Inc. hereunder.
(b)     The  term  "Common Stock" includes (a) the Company's Common Stock, $.001
par  value  per  share, as authorized on the date of the Subscription Agreement,
and  (b)  any  other  securities  into  which or for which any of the securities
described  in  (a)  may  be  converted  or  exchanged  pursuant  to  a  plan  of
recapitalization,  reorganization,  merger,  sale  of  assets  or  otherwise.
(c)     The  term  "Other  Securities"  refers  to  any stock (other than Common
Stock)  and  other  securities  of the Company or any other person (corporate or
otherwise)  which  the  holder  of  the Warrant at any time shall be entitled to
receive,  or  shall have received, on the exercise of the Warrant, in lieu of or
in  addition  to  Common  Stock, or which at any time shall be issuable or shall
have  been  issued  in  exchange  for or in replacement of Common Stock or Other
Securities  pursuant  to  Section  5  or  otherwise.

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<PAGE>
(d)     The  term  "Warrant  Shares"  shall  mean the Common Stock issuable upon
exercise  of  this  Warrant.
1.     Exercise  of  Warrant.
       ---------------------
     1.1.     Number of Shares Issuable upon Exercise.  From and after the Issue
              ---------------------------------------
Date  through  and  including  the  Expiration  Date, the Holder hereof shall be
entitled  to  receive, upon exercise of this Warrant in whole in accordance with
the  terms  of  subsection  1.2  or  upon  exercise  of  this Warrant in part in
accordance  with  subsection 1.3, shares of Common Stock of the Company, subject
to  adjustment  pursuant  to  Section  4.
1.2.     Full  Exercise.  This  Warrant  may  be exercised in full by the Holder
         --------------
hereof  by delivery of an original or facsimile copy of the form of subscription
attached  as  Exhibit  A  hereto (the "Subscription Form") duly executed by such
Holder  and  surrender of the original Warrant within four (4) days of exercise,
to the Company at its principal office or at the office of its Warrant Agent (as
provided  hereinafter),  accompanied  by  payment,  in cash, wire transfer or by
certified  or  official  bank  check payable to the order of the Company, in the
amount  obtained  by  multiplying the number of shares of Common Stock for which
this  Warrant  is  then  exercisable  by  the  Purchase  Price  then  in effect.
1.3.     Partial Exercise.  This Warrant may be exercised in part (but not for a
         ----------------
fractional  share)  by  surrender of this Warrant in the manner and at the place
provided  in subsection 1.2 except that the amount payable by the Holder on such
partial  exercise  shall be the amount obtained by multiplying (a) the number of
whole  shares  of Common Stock designated by the Holder in the Subscription Form
by  (b)  the  Purchase  Price then in effect.  On any such partial exercise, the
Company,  at  its expense, will forthwith issue and deliver to or upon the order
of  the  Holder  hereof  a  new Warrant of like tenor, in the name of the Holder
hereof or as such Holder (upon payment by such Holder of any applicable transfer
taxes)  may  request,  the whole number of shares of Common Stock for which such
Warrant  may  still  be  exercised.
1.4.     Fair Market Value. Fair Market Value of a share of Common Stock as of a
         -----------------
particular  date  (the  "Determination  Date")  shall  mean:
     (a)     If the Company's Common Stock is traded on an exchange or is quoted
on  the  National  Association  of  Securities Dealers, Inc. Automated Quotation
("NASDAQ"),  National  Market System, the NASDAQ SmallCap Market or the American
Stock Exchange, LLC, then the closing or last sale price, respectively, reported
for  the  last  business  day  immediately  preceding  the  Determination  Date;
(b)     If  the  Company's  Common  Stock is not traded on an exchange or on the
NASDAQ  National Market System, the NASDAQ SmallCap Market or the American Stock
Exchange,  Inc.,  but is traded in the over-the-counter market, then the average
of the closing bid and ask prices reported for the last business day immediately
preceding  the  Determination  Date;
(c)     Except as provided in clause (d) below, if the Company's Common Stock is
not publicly traded, then as the Holder and the Company agree, or in the absence
of  such an agreement, by arbitration in accordance with the rules then standing
of the American Arbitration Association, before a single arbitrator to be chosen
from  a  panel  of  persons  qualified  by education and training to pass on the
matter  to  be  decided;  or
(d)     If  the  Determination Date is the date of a liquidation, dissolution or
winding  up,  or any event deemed to be a liquidation, dissolution or winding up
pursuant  to  the Company's charter, then all amounts to be payable per share to
holders  of  the  Common  Stock  pursuant  to  the  charter in the event of such
liquidation, dissolution or winding up, plus all other amounts to be payable per
share  in respect of the Common Stock in liquidation under the charter, assuming
for  the purposes of this clause (d) that all of the shares of Common Stock then
issuable  upon  exercise  of  all  of  the  Warrants  are  outstanding  at  the
Determination  Date.

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<PAGE>
     1.5.     Company  Acknowledgment.  The  Company  will,  at  the time of the
              -----------------------
exercise  of  the  Warrant, upon the request of the Holder hereof acknowledge in
writing  its  continuing obligation to afford to such Holder any rights to which
such Holder shall continue to be entitled after such exercise in accordance with
the  provisions  of  this  Warrant.  If  the  Holder shall fail to make any such
request,  such failure shall not affect the continuing obligation of the Company
to  afford  to  such  Holder  any  such  rights.
1.6.     Trustee  for Warrant Holders. In the event that a bank or trust company
         ----------------------------
shall  have been appointed as trustee for the Holder of the Warrants pursuant to
Subsection  3.2, such bank or trust company shall have all the powers and duties
of  a warrant agent (as hereinafter described) and shall accept, in its own name
for  the  account  of  the  Company  or such successor person as may be entitled
thereto,  all amounts otherwise payable to the Company or such successor, as the
case  may  be,  on  exercise  of  this  Warrant  pursuant  to  this  Section  1.
          1.7     Delivery  of Stock Certificates, etc. on Exercise. The Company
                  -------------------------------------------------
agrees  that  the shares of Common Stock purchased upon exercise of this Warrant
shall  be  deemed  to be issued to the Holder hereof as the record owner of such
shares  as of the close of business on the date on which this Warrant shall have
been  surrendered  and  payment  made  for  such shares as aforesaid. As soon as
practicable  after  the  exercise of this Warrant in full or in part, and in any
event  within  four  (4)  business  days  thereafter, the Company at its expense
(including  the  payment  by  it of any applicable issue taxes) will cause to be
issued  in  the  name  of  and delivered to the Holder hereof, or as such Holder
(upon  payment  by  such  Holder of any applicable transfer taxes) may direct in
compliance  with  applicable  securities laws, a certificate or certificates for
the  number  of  duly and validly issued, fully paid and nonassessable shares of
Common  Stock  (or  Other  Securities) to which such Holder shall be entitled on
such  exercise, plus, in lieu of any fractional share to which such Holder would
otherwise  be  entitled, cash equal to such fraction multiplied by the then Fair
Market Value of one full share of Common Stock, together with any other stock or
other  securities  and property (including cash, where applicable) to which such
Holder  is  entitled  upon  such  exercise  pursuant  to Section 1 or otherwise.
 2.     Cashless  Exercise.
        ------------------
     (a)     If  a  Registration  Statement  (as  defined  in  the  Subscription
Agreement)  ("Registration  Statement") is effective and the Holder may sell its
shares  of  Common  Stock  upon  exercise  hereof  pursuant  to the Registration
Statement,  this Warrant may be exercisable in whole or in part for cash only as
set  forth  in  Section 1 above.  If no such Registration Statement is available
during  the  time  that  such Registration Statement is required to be effective
pursuant  to  the  terms of the Subscription Agreement, then commencing one year
after  the  Closing Date, payment upon exercise may be made at the option of the
Holder  either in (i) cash, wire transfer or by certified or official bank check
payable  to  the order of the Company equal to the applicable aggregate Purchase
Price,  (ii)  by delivery of Common Stock issuable upon exercise of the Warrants
in  accordance  with  Section  (b) below or (iii) by a combination of any of the
foregoing  methods,  for  the  number of Common Stock specified in such form (as
such  exercise  number  shall be adjusted to reflect any adjustment in the total
number  of  shares  of Common Stock issuable to the holder per the terms of this
Warrant)  and  the  holder  shall thereupon be entitled to receive the number of
duly  authorized, validly issued, fully-paid and non-assessable shares of Common
Stock  (or  Other  Securities)  determined  as  provided  herein.

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<PAGE>
(b)     If  the  Fair  Market Value of one share of Common Stock is greater than
the  Purchase  Price (at the date of calculation as set forth below), in lieu of
exercising  this  Warrant for cash, the holder may elect to receive shares equal
to the value (as determined below) of this Warrant (or the portion thereof being
cancelled)  by  surrender of this Warrant at the principal office of the Company
together with the properly endorsed Subscription Form in which event the Company
shall  issue to the holder a number of shares of Common Stock computed using the
following  formula:

               X=Y  (A-B)
                    -----
                      C

          Where     X=     the  number of shares of Common Stock to be issued to
the  holder

Y=     the number of shares of Common Stock purchasable under the Warrant or, if
only  a  portion  of  the Warrant is being exercised, the portion of the Warrant
being  exercised  (at  the  date  of  such  calculation)
A=     the  highest Fair Market Value of one share of the Company's Common Stock
during  the  five  trading  days  preceding  the  date  of  exercise
B=     Purchase  Price  (as  adjusted  to  the  date  of  such  calculation)
C=     lowest  Fair  Market  Value  of  one  share of the Company's Common Stock
during  the  five  trading  days  preceding  the  Closing  Date
(c)     The Holder may employ the cashless exercise feature described in Section
     (b) above only during the pendency of a Non-Registration Event as described
in  Section  11  of  the  Subscription  Agreement.
     For  purposes  of  Rule 144 promulgated under the 1933 Act, it is intended,
understood  and  acknowledged  that  the  Warrant  Shares  issued  in a cashless
exercise  transaction  shall  be deemed to have been acquired by the Holder, and
the  holding period for the Warrant Shares shall be deemed to have commenced, on
the  date  this  Warrant  was  originally  issued  pursuant  to the Subscription
Agreement.
3.     Adjustment  for  Reorganization,  Consolidation,  Merger,  etc.
       ---------------------------------------------------------------
     3.1.     Reorganization,  Consolidation,  Merger, etc.  In case at any time
              --------------------------------------------
or  from  time  to  time,  the  Company  shall  (a) effect a reorganization, (b)
consolidate  with  or  merge  into  any  other  person  or  (c)  transfer all or
substantially all of its properties or assets to any other person under any plan
or  arrangement contemplating the dissolution of the Company, then, in each such
case,  as  a  condition  to  the  consummation of such a transaction, proper and
adequate  provision  shall  be  made  by  the Company whereby the Holder of this
Warrant,  on the exercise hereof as provided in Section 1, at any time after the
consummation  of  such  reorganization, consolidation or merger or the effective
date  of  such  dissolution,  as  the case may be, shall receive, in lieu of the
Common  Stock  (or  Other  Securities)  issuable  on such exercise prior to such
consummation or such effective date, the stock and other securities and property
(including  cash)  to  which  such  Holder  would  have  been entitled upon such
consummation or in connection with such dissolution, as the case may be, if such
Holder  had so exercised this Warrant, immediately prior thereto, all subject to
further  adjustment  thereafter  as  provided  in  Section  4.
3.2.     Dissolution.  In  the event of any dissolution of the Company following
         -----------
the  transfer  of  all  or  substantially  all  of its properties or assets, the
Company,  prior to such dissolution, shall at its expense deliver or cause to be
delivered  the  stock  and  other securities and property (including cash, where
applicable) receivable by the Holder of the Warrants after the effective date of
such  dissolution  pursuant  to  this  Section  3  to a bank or trust company (a
"Trustee")  having  its  principal  office  in  New York, NY, as trustee for the
Holder  of  the  Warrants.

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<PAGE>
3.3.     Continuation  of Terms.  Upon any reorganization, consolidation, merger
         ----------------------
or  transfer  (and  any  dissolution following any transfer) referred to in this
Section  3,  this  Warrant shall continue in full force and effect and the terms
hereof  shall  be  applicable to the Other Securities and property receivable on
the  exercise  of  this  Warrant  after the consummation of such reorganization,
consolidation  or merger or the effective date of dissolution following any such
transfer,  as the case may be, and shall be binding upon the issuer of any Other
Securities,  including,  in  the case of any such transfer, the person acquiring
all  or substantially all of the properties or assets of the Company, whether or
not  such  person  shall  have  expressly  assumed  the terms of this Warrant as
provided  in  Section  4.  In  the  event this Warrant does not continue in full
force  and  effect  after  the consummation of the transaction described in this
Section  3,  then  only in such event will the Company's securities and property
(including  cash,  where applicable) receivable by the Holder of the Warrants be
delivered  to  the  Trustee  as  contemplated  by  Section  3.2.
     3.4     Share  Issuance.  Until  the  Expiration Date, if the Company shall
             ---------------
issue  any  Common  Stock  except  for the Excepted Issuances (as defined in the
Subscription  Agreement),  prior  to the complete exercise of this Warrant for a
consideration  less  than the Purchase Price that would be in effect at the time
of  such  issue,  then,  and  thereafter  successively upon each such issue, the
Purchase  Price  shall be reduced to such other lower issue price.  For purposes
of  this  adjustment,  the  issuance  of  any security or debt instrument of the
Company  carrying  the  right  to  convert such security or debt instrument into
Common  Stock  or of any warrant, right or option to purchase Common Stock shall
result  in  an  adjustment  to  the  Purchase  Price  upon  the  issuance of the
above-described  security,  debt instrument, warrant, right, or option and again
at  any  time  upon  any  subsequent  issuances  of  shares of Common Stock upon
exercise  of  such  conversion or purchase rights if such issuance is at a price
lower  than  the  Purchase Price in effect upon such issuance.  The reduction of
the  Purchase  Price  described  in this Section 3.4 is in addition to the other
rights  of  the  Holder  described  in  the  Subscription  Agreement.
     4.     Extraordinary  Events Regarding Common Stock.  In the event that the
            --------------------------------------------
Company  shall  (a) issue additional shares of the Common Stock as a dividend or
other  distribution  on  outstanding Common Stock, (b) subdivide its outstanding
shares  of  Common  Stock,  or  (c) combine its outstanding shares of the Common
Stock  into  a  smaller number of shares of the Common Stock, then, in each such
event,  the  Purchase  Price  shall,  simultaneously  with the happening of such
event,  be  adjusted  by  multiplying the then Purchase Price by a fraction, the
numerator  of  which  shall  be the number of shares of Common Stock outstanding
immediately prior to such event and the denominator of which shall be the number
of  shares  of  Common  Stock  outstanding immediately after such event, and the
product  so  obtained shall thereafter be the Purchase Price then in effect. The
Purchase  Price, as so adjusted, shall be readjusted in the same manner upon the
happening  of any successive event or events described herein in this Section 4.
The  number  of  shares  of  Common  Stock that the Holder of this Warrant shall
thereafter,  on  the  exercise  hereof  as provided in Section 1, be entitled to
receive  shall  be  adjusted to a number determined by multiplying the number of
shares  of  Common  Stock  that  would otherwise (but for the provisions of this
Section 4) be issuable on such exercise by a fraction of which (a) the numerator
is  the  Purchase  Price  that  would  otherwise (but for the provisions of this
Section 4) be in effect, and (b) the denominator is the Purchase Price in effect
on  the  date  of  such  exercise.
5.     Certificate  as  to  Adjustments.  In  each  case  of  any  adjustment or
       --------------------------------
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise  of  the  Warrants,  the Company at its expense will promptly cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or  readjustment  in  accordance  with  the  terms  of the Warrant and prepare a
certificate  setting forth such adjustment or readjustment and showing in detail
the  facts  upon  which  such  adjustment  or readjustment is based, including a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to  have been issued or sold, (b) the number of shares of Common Stock (or Other
Securities)  outstanding or deemed to be outstanding, and (c) the Purchase Price
and  the  number  of shares of Common Stock to be received upon exercise of this
Warrant,  in  effect immediately prior to such adjustment or readjustment and as
adjusted  or  readjusted as provided in this Warrant. The Company will forthwith
mail  a  copy  of  each  such  certificate  to the Holder of the Warrant and any
Warrant  Agent  of  the  Company  (appointed  pursuant  to  Section  11 hereof).

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<PAGE>
6.     Reservation  of  Stock,  etc.  Issuable on Exercise of Warrant; Financial
       -------------------------------------------------------------------------
Statements.   The  Company  will at all times reserve and keep available, solely
   -------
for  issuance and delivery on the exercise of the Warrants, all shares of Common
Stock  (or  Other  Securities) from time to time issuable on the exercise of the
Warrant  subject  to  Section  9(r) of the Subscription Agreement.  This Warrant
entitles  the  Holder  hereof  to  receive  copies  of  all  financial and other
information  distributed  or  required  to  be distributed to the holders of the
Company's  Common  Stock.
7.     Assignment;  Exchange  of Warrant.  Subject to compliance with applicable
       ---------------------------------
securities  laws,  this  Warrant,  and  the  rights  evidenced  hereby,  may  be
transferred  by  any registered holder hereof (a "Transferor"). On the surrender
for  exchange  of this Warrant, with the Transferor's endorsement in the form of
Exhibit  B attached hereto (the "Transferor Endorsement Form") and together with
an  opinion  of counsel reasonably satisfactory to the Company that the transfer
of  this  Warrant  will  be  in  compliance with applicable securities laws, the
Company  at  its expense, twice, only, but with payment by the Transferor of any
applicable  transfer  taxes,  will  issue  and deliver to or on the order of the
Transferor  thereof  a new Warrant or Warrants of like tenor, in the name of the
Transferor  and/or  the  transferee(s)  specified in such Transferor Endorsement
Form  (each  a  "Transferee"),  calling  in  the  aggregate on the face or faces
thereof for the number of shares of Common Stock called for on the face or faces
of the Warrant so surrendered by the Transferor.  No such transfers shall result
in  a  public  distribution  of  the  Warrant.
8.     Replacement  of  Warrant.  On receipt of evidence reasonably satisfactory
       ------------------------
to  the  Company  of  the loss, theft, destruction or mutilation of this Warrant
and,  in  the  case  of  any such loss, theft or destruction of this Warrant, on
delivery  of  an indemnity agreement or security reasonably satisfactory in form
and  amount  to the Company or, in the case of any such mutilation, on surrender
and  cancellation  of this Warrant, the Company at its expense, twice only, will
execute  and  deliver,  in  lieu  thereof,  a  new  Warrant  of  like  tenor.
9.     Registration Rights.  The Holder of this Warrant has been granted certain
       -------------------
registration  rights by the Company.  These registration rights are set forth in
the  Subscription  Agreement.  The  terms  of  the  Subscription  Agreement  are
incorporated  herein  by  this  reference.
10.     Maximum  Exercise.  The  Holder  shall  not be entitled to exercise this
        -----------------
Warrant  on  an  exercise  date nor may the Company exercise its right to give a
Call  Notice (as defined in Section 11) in connection with that number of Common
Stock  which would be in excess of the sum of (i) the number of shares of Common
Stock beneficially owned by the Holder and its affiliates on an exercise date or
Call  Date,  and  (ii)  the number of Common Stock issuable upon the exercise of
this Warrant with respect to which the determination of this limitation is being
made  on  an  exercise  date  or  Call  Date,  which  would result in beneficial
ownership by the Holder and its affiliates of more than 4.99% of the outstanding
Common  Stock  on  such  date.  For  the  purposes  of the immediately preceding
sentence,  beneficial  ownership  shall be determined in accordance with Section
13(d)  of  the Securities Exchange Act of 1934, as amended, and Regulation 13d-3
thereunder.  Subject  to  the  foregoing,  the  Holder  shall  not be limited to
aggregate  exercises which would result in the issuance of more than 4.99%.  The
restriction described in this paragraph may be waived, in whole or in part, upon
sixty-one  (61)  days  prior written notice from the Holder to the Company.  The
Holder may allocate which of the equity of the Company deemed beneficially owned
by  the  Subscriber  shall  be  included in the 4.99% amount described above and
which shall be allocated to the excess above 4.99% provided such allocations are
consistent  with  applicable  law.  The  Holder  is  solely  responsible  for
determining  its  beneficial  ownership.

                                       6
<PAGE>
11.     Call.   The  Company shall have the option to "call" the exercise of the
        ----
shares issuable upon exercise of this Warrant (the "Warrant Call") in accordance
with  and  governed  by  the  following:
     (a)     The  Company  shall  exercise  the  Warrant  Call  by giving to the
Warrant Holder a written notice of call (the "Call Notice") during the period in
which the Warrant Call may be exercised.  The effective date of each Call Notice
(the  "Call  Date")  is  the  date on which notice is effective under the notice
provision  of  Section  14  of  this  Warrant.
(b)     The  Company's  right to exercise the Warrant Call shall commence thirty
trading  days  after  the  actual  effective  date  of  a Registration Statement
described  in  Section  11.1(iv)  of  the  Subscription Agreement and end thirty
trading  days  prior  to  the  Expiration  Date.
     (c)     The  number of shares of Common Stock to be issued upon exercise of
the  Warrant  which  are  subject  to  a  Call  Notice  must  be registered in a
Registration Statement effective from twenty (20) trading days prior to the Call
Date and through the date such Common Stock is actually delivered to the Warrant
Holder  ("Delivery  Date").

     (d)     A  Call  Notice  may  be given not sooner than fifteen trading days
after  the  prior  Call  Date.

          (e)     A  Call  Notice may be given by the Company in connection with
shares  of  Common  Stock  issuable upon exercise of the Warrant only within ten
days  after  the  Common  Stock  has  had  a  closing  price as reported for the
Principal Market (as defined in the Subscription Agreement) of $0.08 or more for
thirty  (30)  consecutive  trading  days  ("Lookback  Period").

     (f)     The  Common  Stock  must  be listed on the Principal Market for the
Lookback  Period  and  through  the  Delivery  Date.
(g)     The  Company  shall not have received a notice from the Principal Market
during  the  ninety calendar days prior to the Call Date that the Company or its
Common  Stock does not meet the requirements for continued quotation, listing or
trading  on  the  Principal  Market.
(h)     The  Company  and  the  Common  Stock  shall  meet  the requirements for
continued quotation, listing or trading on the Principal Market for the Lookback
Period  and  through  the  Delivery  Date.
(i)     Unless  otherwise agreed to by the Holder of this Warrant, a Call Notice
must  be  given  to  all  Warrant  Holders  who receive Warrants similar to this
Warrant  (in  terms  of  exercise  price and other principal terms) issued on or
about  the  same  Issue  Date  as  this Warrant, in proportion to the amounts of
Common  Stock  which  may  be  purchased  by  the  respective Warrant Holders in
accordance  with  the  respective  Warrants  held  by  each.
(j)     The  Warrant  Holder  shall exercise his Warrant rights and purchase the
Called  Warrant  Shares  and pay for same within fourteen trading days after the
Call Date.  If the Warrant Holder fails to timely pay the amount required by the
Warrant  Call,  the  Company's  sole  remedy  shall be to cancel a corresponding
amount  of  this  Warrant.
          (k)     The  Company  may  not exercise the right to Call this Warrant
after  the  occurrence  of  a  default by the Company of a material term of this
Warrant  or  the  Subscription  Agreement  or  the  Notes  referred  to  in  the
Subscription  Agreement.
12.     Warrant  Agent.  The Company may, by written notice to the Holder of the
        --------------
Warrant,  appoint an agent (a "Warrant Agent") for the purpose of issuing Common
Stock  (or Other Securities) on the exercise of this Warrant pursuant to Section
1,  exchanging  this  Warrant  pursuant to Section 7, and replacing this Warrant
pursuant  to  Section  8,  or  any  of  the  foregoing,  and thereafter any such
issuance,  exchange  or  replacement,  as the case may be, shall be made at such
office  by  such  Warrant  Agent.

                                       7
<PAGE>
13.     Transfer  on  the Company's Books.  Until this Warrant is transferred on
        ---------------------------------
the  books of the Company, the Company may treat the registered holder hereof as
the  absolute  owner  hereof for all purposes, notwithstanding any notice to the
contrary.
     14.     Notices.   All notices, demands, requests, consents, approvals, and
             -------
other  communications  required  or permitted hereunder shall be in writing and,
unless  otherwise  specified  herein,  shall  be  (i)  personally  served,  (ii)
deposited  in  the  mail,  registered  or  certified,  return receipt requested,
postage  prepaid,  (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed
as  set  forth below or to such other address as such party shall have specified
most  recently by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or  delivery  by  facsimile,  with  accurate  confirmation  generated  by  the
transmitting  facsimile  machine,  at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be  received),  or  the first business day following such delivery (if delivered
other  than  on a business day during normal business hours where such notice is
to  be received) or (b) on the second business day following the date of mailing
by  express  courier  service, fully prepaid, addressed to such address, or upon
actual  receipt of such mailing, whichever shall first occur.  The addresses for
such  communications  shall  be:  (i) if to the Company to: FTS Group Inc., 7610
West  Hillsborough  Avenue,  Tampa,  FL  33615,  Attn:  Scott  Gallagher,  CEO,
telecopier:  (813)  878-2337,  with  a  copy by telecopier only to: Amy Trombly,
Esq.,  Trombly  Business  Law,  1320 Centre Street, Suite 202, Newton Center, MA
02459,  Fax:  (617)  243-0066,  and  (ii)  if  to the Holder, to the address and
telecopier  number  listed  on  the  first  paragraph  of  this Warrant, with an
additional  copy  by  telecopier  only  to:  Grushko  & Mittman, P.C., 551 Fifth
Avenue, Suite 1601, New York, New York 10176, telecopier number: (212) 697-3575.
     15.     Miscellaneous.  This  Warrant  and  any term hereof may be changed,
             -------------
waived,  discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is  sought.  This Warrant shall be construed and enforced in accordance with and
governed by the laws of New York.  Any dispute relating to this Warrant shall be
adjudicated  in  New York County in the State of New York.  The headings in this
Warrant  are  for  purposes  of reference only, and shall not limit or otherwise
affect  any  of  the  terms  hereof.  The  invalidity or unenforceability of any
provision  hereof  shall  in no way affect the validity or enforceability of any
other  provision.

                                       8
<PAGE>
IN  WITNESS  WHEREOF, the Company has executed this Warrant as of the date first
written  above.

     FTS  GROUP  INC.

     By:_________________
     Name:
     Title:

Witness:

___________________

                                       9

<PAGE>
                                    Exhibit A

                              FORM OF SUBSCRIPTION
                   (to be signed only on exercise of Warrant)
TO:  FTS  GROUP  INC.
The  undersigned,  pursuant  to the provisions set forth in the attached Warrant
(No.____),  hereby  irrevocably  elects  to  purchase  (check  applicable  box):

___     ________  shares  of  the  Common  Stock  covered  by  such  Warrant; or
___     the  maximum  number  of  shares of Common Stock covered by such Warrant
pursuant  to  the  cashless  exercise  procedure  set  forth  in  Section  2.

The  undersigned  herewith  makes  payment  of  the full purchase price for such
shares  at  the  price  per  share  provided  for  in  such  Warrant,  which  is
$___________.  Such  payment  takes the form of (check applicable box or boxes):

___     $__________  in  lawful  money  of  the  United  States;  and/or
___     the  cancellation  of  such  portion  of  the  attached  Warrant  as  is
exercisable  for  a total of _______ shares of Common Stock (using a Fair Market
Value  of  $_______  per  share  for  purposes  of  this  calculation);  and/or

___     the  cancellation  of  such  number  of  shares  of  Common  Stock as is
necessary,  in  accordance  with the formula set forth in Section 2, to exercise
this  Warrant  with  respect  to  the  maximum  number of shares of Common Stock
purchasable  pursuant to the cashless exercise procedure set forth in Section 2.

The  undersigned requests that the certificates for such shares be issued in the
name  of, and delivered to _____________________________________________________
whose  address  is
________________________________________________________________________________

Number  of  Shares  of  Common Stock Beneficially Owned on the date of exercise:
Less  than  five  percent (5%) of the outstanding Common Stock of FTS Group Inc

The  undersigned  represents  and  warrants  that  all  offers  and sales by the
undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of
1933,  as  amended  (the  "Securities  Act"),  or  pursuant to an exemption from
registration  under  the  Securities  Act.

Dated:___________________

________________________________________________________________________________
     (Signature  must  conform to name of holder as specified on the face of the
Warrant)

________________________________________________________________________________
     (Address)

                                       10
<PAGE>
                                    Exhibit B

                         FORM OF TRANSFEROR ENDORSEMENT
                   (To be signed only on transfer of Warrant)
     For  value  received,  the undersigned hereby sells, assigns, and transfers
unto  the  person(s)  named  below  under  the  heading  "Transferees" the right
represented  by  the  within  Warrant  to  purchase the percentage and number of
shares  of  Common  Stock  of FTS GROUP INC. to which the within Warrant relates
specified  under the headings "Percentage Transferred" and "Number Transferred,"
respectively,  opposite  the  name(s)  of  such person(s) and appoints each such
person  Attorney to transfer its respective right on the books of FTS GROUP INC.
with  full  power  of  substitution  in  the  premises.

Transferees     Percentage  Transferred     Number  Transferred
-----------     -----------------------     -------------------

Dated:  ______________,  ___________      ______________________________________

                                          (Signature  must  conform to name of
                                          holder as specified on the face of the
                                          warrant)

Signed  in  the  presence  of:
____________________                      ______________________________________
 (Name)                                                  (address)

ACCEPTED  AND  AGREED:
[TRANSFEREE]

____________________                      ______________________________________
 (Name)                                                  (address)Exhibit 10.1

THIS  NOTE  AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THIS NOTE AND THE
COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED FOR
SALE,  PLEDGED  OR  HYPOTHECATED  IN  THE  ABSENCE  OF AN EFFECTIVE REGISTRATION
STATEMENT  AS  TO  THIS  NOTE UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY  TO  FTS  GROUP  INC.  THAT  SUCH  REGISTRATION  IS  NOT  REQUIRED.

Principal  $_______________                    Issue  Date: December  ___,  2005

                       SECURED CONVERTIBLE PROMISSORY NOTE
                       -----------------------------------

     FOR  VALUE  RECEIVED,  FTS  GROUP  INC.,  a Nevada corporation (hereinafter
called  "Borrower"), hereby promises to pay to ALPHA CAPITAL AKTIENGESELLSCHAFT,
Pradafant  7,  9490  Furstentums, Vaduz, Lichtenstein, Fax: 011-42-32323196 (the
"Holder")  or its registered assigns or successors in interest or order, without
demand,  the  sum  of ________________________ Dollars ($__________) ("Principal
Amount"),  with  unpaid  interest  thereon,  on  March  ___, 2007 (the "Maturity
Date"),  if  not  sooner  paid.

This  Note  has  been  entered  into  pursuant  to  the  terms of a subscription
agreement  between the Borrower and the Holder, dated of even date herewith (the
"Subscription  Agreement"),  and  shall  be  governed  by  the  terms  of  such
Subscription  Agreement.  Unless  otherwise  separately  defined  herein,  all
capitalized  terms used in this Note shall have the same meaning as is set forth
in  the  Subscription  Agreement.  The following terms shall apply to this Note:

                                    ARTICLE I

                             INTEREST; AMORTIZATION
                                     =

      1.1.     Minimum  Monthly Principal Payments.   Amortizing payments of the
               -----------------------------------
outstanding  Principal  Amount  and  interest of this Note shall commence on the
earlier  of  the  Actual  Effective  Date (as defined in Section 11.1(iv) of the
Subscription Agreement), or the ninety-first (91st) day after the Issue Date and
on  the  same  day  of each month thereafter (each a "Repayment Date") until the
Principal  Amount  has been repaid in full, whether by the payment of cash or by
the conversion of such principal into Common Stock pursuant to the terms hereof.
Subject to Section 2.1 and Article 3 below, on each Repayment Date, the Borrower
shall  make  payments  to  the  Holder equal to the initial Principal Amount the
quotient  of the number of days from the first Repayment Date until the Maturity
Date  divided  by 30, together with any other amounts which are then owing under
this  Note  that  have  not  been paid (collectively, the "Monthly Amount").  In
addition to the regular payment of the Monthly Amount, additional payments (each
an "Interim Payment") will be required to be made at the written election of the
Holder  (a  form  of  which  is  annexed  hereto) for each and every day (each a
"Determination  Date")  the  total  reported  dollar  volume of the Common Stock
exceeds  $100,000  ("Liquidity  Benchmark").  The amount of each Interim Payment
will  be determined by multiplying the Fixed Principal Portion by a fraction the
numerator  of which is the total reported dollar volume of the Common Stock on a
Determination Date and the denominator of which is the Liquidity Benchmark.  The
Holder must give written notice to the Borrower within two business days after a
Determination  Date of Holder's election to receive an Interim Payment.  If such
notice  is  given,  the Holder may elect to receive and the Borrower must pay or
deliver  either  (i) cash on the third business day following the date notice is
given,  or (ii) Common Stock valued at eighty-five percent (85%) of the weighted
average  volume  price of the Common Stock using the AQR function as reported by
Bloomberg  L.P. ("VWAP") for the five (5) trading days preceding the date notice
is  given  by  the  Holder  of the demand for an Interim Payment.  If the Holder
elects  to  receive Common Stock in satisfaction of an Interim Payment, then the
date  of  the  Holder's  notice shall be deemed a Conversion Date and the Common
Stock  must  be  delivered  in  the same manner and under the same conditions as
required  in  connection  with  a Notice of Conversion.  All payments of cash or
amounts  converted  into  Common  Stock  pursuant  to this Note by the Holder or
Borrower  shall  be  applied  first  against  outstanding fees and damages, then
accrued  interest  on  the Principal Amount and then to Principal Amounts of not
yet  due  Monthly  Amounts,  commencing with the Monthly Amount next payable and
then  Monthly  Amounts thereafter in reverse chronological order.  Any Principal
Amount,  interest and any other sum arising under the Transaction Documents that
remains  outstanding  on  the  Maturity  Date  shall  be  due and payable on the
Maturity  Date.

                                       1
<PAGE>
     1.2.     Default  Interest  Rate.  Following  the occurrence and during the
              -----------------------
pendency  of  an  Event  of  Default, which, if susceptible to cure is not cured
within  twenty (20) days, otherwise then from the first date of such occurrence,
the  annual  interest  rate  on  this  Note  shall  (subject  to  Section  6.7)
automatically  be  fifteen  percent (15%) compound interest, and all outstanding
obligations under this Note shall accrue interest from the date of such Event of
Default at such interest rate applicable to such obligations until such Event of
Default  is  cured  or  waived.

                                   ARTICLE II

                              CONVERSION REPAYMENT

     2.1.     Payment  of  Monthly  Amount  in  Cash or CommonStock.  Subject to
              ------------------------------------------------
Section  3.2  hereof,  the  Borrower,  at the Borrower's election, shall pay the
Monthly  Amount  (i) in cash within three (3) business days after the applicable
Repayment Date, or (ii) in registered Common Stock at an applied conversion rate
equal to the lesser of (A) the Fixed Conversion Price (as defined in Section 3.1
hereof),  or  (B) eighty-five percent (85%) of the weighted average volume price
of  the  Common  Stock using the AQR function as reported by Bloomberg, L.P. for
the  Principal  Market  ("VWAP")  for  the  five (5) trading days preceding such
Repayment  Date ("Alternate Price") (as such amount may be adjusted as described
herein).  The  Borrower  must  send notice to the Holder by confirmed telecopier
not later than 3:00 PM, New York City time on the eleventh Trading Day preceding
a  Repayment  Date  notifying  Holder  of Borrower's election to pay the Monthly
Redemption  Amount  in  cash  or stock.  The Notice must state the amount of the
Monthly Redemption Amount and include supporting calculations.  Elections by the
Borrower must be made to all Holders of Notes similar to this Note in proportion
to the relative Note principal held by such Note Holders.  If such notice is not
timely  sent  or  if the Monthly Redemption Amount is not timely delivered or if
the Borrower elects to pay the Monthly Redemption Amount with Common Stock, then
Holder  shall have the right, instead of the Company, to elect in writing within
three  trading  days prior to the applicable Repayment Date or required Delivery
Date, as the case may be whether to be paid in cash or Common Stock or defer the
cash payment of the relevant Monthly Redemption Amount until three business days
after  demand  therefore  by  the  Holder.  Such  Holder's election shall not be
construed  to  be  a  waiver  of  any default by Borrower relating to non-timely
compliance  by Borrower with any of its obligations under this Note.   Shares of
Common  Stock  must be delivered to the Holder not later than three (3) business
days  after  the  applicable  Repayment  Date.  If the Company elects to pay the
Monthly Amount in cash or if the payment of an Interim Payment is required to be
made  with cash, then such payment must include an additional amount equal to 3%
of  the  principal  portion  of  the Monthly Amount.  Whichever of the Principal
Market  or  such  other  principal  market or exchange where the Common Stock is
listed  or  traded  is  the  principal trading exchange or market for the Common
Stock  is  the  Principal  Market.

     2.2.     No  Effective  Registration.   Notwithstanding  anything  to  the
              ---------------------------
contrary  herein,  no  amount  payable  hereunder may be paid in shares ofCommon
                                                              ============
Stock  by  the  Borrower  without  the Holder's consent unless (a) either (i) an
effective  current Registration Statement covering the shares of Common Stock to
be  issued in satisfaction of such obligations exists, or (ii) an exemption from
registration  of  the  Common  Stock is available pursuant to Rule 144(k) of the
Securities  Act,  and (b) an Event of Default (or an event that with the passage
of  time  or  the  giving  of  notice  could  become an Event of Default) is not
continuing  or  was  not  extant  during  the  prior  twenty business days, then
commencing  after  the  date  the  Registration  Statement  described in Section
11.1(iv)  of  the  Subscription  Agreement  has been declared effective ("Actual
Effective  Date")  is not extent or  waived in writing by the Holder in whole or
in  part  at  the  Holder's  option.

                                       2
<PAGE>
                                   ARTICLE III

                                CONVERSION RIGHTS

     3.1.     Holder's  Conversion  Rights.   Subject  to  Section  3.2  and the
              ----------------------------
mandatory  conversion  provisions  therein, the Holder shall have the right, but
not  the  obligation,  to  convert  all  or  any  portion  of the then aggregate
outstanding  Principal  Amount of this Note, together with interest and fees due
hereon,  and  any sum arising under the Transaction Documents, including but not
limited to Liquidated Damages, into shares of Common Stock, subject to the terms
and  conditions set forth in this Article III at the rate equal to $0.04 ("Fixed
Conversion  Price")  as  same  may  be  adjusted  pursuant  to this Note and the
Subscription  Agreement.  The  Holder may exercise such right by delivery to the
Borrower  of  a  written  Notice  of  Conversion  pursuant  to  Section  3.3.

     3.2.     Conversion Limitation.   Notwithstanding anything contained herein
              ---------------------
to  the  contrary,  the  Holder shall not be entitled to convert pursuant to the
terms  of  this  Note nor may this Note be converted in whole or in part into an
amount  of  Common  Stock  that  would be convertible into that number of Common
Stock  which  would exceed the difference between the number of shares of Common
Stock  beneficially  owned by such Holder and 4.99% of the outstanding shares of
Common Stock. For the purposes of the immediately preceding sentence, beneficial
ownership  shall  be determined in accordance with Section 13(d) of the Exchange
Act  and  Regulation  13d-3  thereunder.  The  foregoing  limitation  shall  be
calculated  as  of  each Conversion Date.  Aggregate conversions over time shall
not  be  limited to 4.99%.  The Holder may waive the Conversion Share limitation
described in this Section 3.2, in whole or in part, upon 61 days prior notice to
the  Borrower.  The  Holder  may  allocate  which  of the equity of the Borrower
deemed  beneficially  owned  by the Holder shall be included in the 4.99% amount
described  above  and  which  shall be allocated to the excess above 4.99%.  The
Holder  is  solely  responsible  for  determining  its  beneficial  ownership.

     3.3.     Mechanics  of  Holder's  Conversion.
              -----------------------------------

          (a)     In  the  event  that  the Holder elects to convert any amounts
outstanding  under  this Note into Common Stock, the Holder shall give notice of
such  election  by  delivering an executed and completed notice of conversion (a
"Notice  of  Conversion")  to  the  Borrower,  which  Notice of Conversion shall
provide  a  breakdown  in  reasonable  detail  of  the Principal Amount, accrued
interest  and  amounts being converted.  The original Note is not required to be
surrendered  to  the  Borrower until all sums due under the Note have been paid.
On  each  Conversion  Date  (as  hereinafter defined) and in accordance with its
Notice  of  Conversion,  the  Holder shall make the appropriate reduction to the
Principal  Amount,  accrued  interest  and fees as entered in its records.  Each
date  on which a Notice of Conversion is delivered or telecopied to the Borrower
in  accordance with the provisions hereof shall be deemed a "Conversion Date." A
form  of  Notice of Conversion to be employed by the Holder is annexed hereto as
Exhibit  A.

                                       3
<PAGE>
          (b)     Pursuant  to the terms of a Notice of Conversion, the Borrower
will  issue  instructions  to  the  transfer  agent accompanied by an opinion of
counsel,  if  so  required  by  the  Borrower's  transfer  agent, within two (2)
                                                                         ======
business  days  after  the  date  of  the  delivery to Borrower of the Notice of
          ====
Conversion  and  shall  cause  the  transfer  agent to transmit the certificates
representing the Conversion Shares to the Holder by crediting the account of the
Holder's designated broker with the Depository Trust Corporation ("DTC") through
its  Deposit  Withdrawal  Agent  Commission  ("DWAC")  system  within  three (3)
business  days  after  receipt  by the Borrower of the Notice of Conversion (the
"Delivery Date"). In the case of the exercise of the conversion rights set forth
herein  the  conversion privilege shall be deemed to have been exercised and the
Conversion  Shares  issuable  upon  such conversion shall be deemed to have been
issued upon the date of receipt by the Borrower of the Notice of Conversion. The
Holder  shall be treated for all purposes as the record holder of such shares of
Common  Stock,  unless  the Holder provides the Borrower written instructions to
the  contrary.Notwithstanding the foregoing to the contrary, the Borrower or its
transfer  agent  shall  only be obligated to issue and deliver the shares to the
DTC  on  the  Holder's  behalf  via  DWAC  (or  certificates free of restrictive
legends) if the registration statement providing for the resale of the shares of
Common  Stock  issuable  upon  the  conversion of this Note is effective and the
Holder  has  complied with all applicable securities laws in connection with the
sale of the Common Stock, including, without limitation, the prospectus delivery
requirements.  In  the  event  that Conversion Shares cannot be delivered to the
Holder  via  DWAC, the Borrower shall deliver physical certificates representing
the  Conversion  Shares  by  the  Delivery  Date.

     3.4.     Conversion  Calculations  and  Adjustments.
              ------------------------------------------

          (a)     The  number  of  shares of Common Stock to be issued upon each
conversion  of  this  Note  pursuant  to this Article III shall be determined by
dividing  that  portion  of  the  Principal  Amount  and interest and fees to be
converted,  if  any,  by  the  then  applicable  Fixed  Conversion  Price.

     (b)     The  Fixed  Conversion Price and number and kind of shares or other
securities to be issued upon conversion shall be subject to adjustment from time
to time upon the happening of certain events while this conversion right remains
outstanding,  as  follows:

     A.     Merger,  Sale  of  Assets,  etc.  If  the Borrower at any time shall
consolidate  with  or  merge into or sell or convey all or substantially all its
assets  to  any other corporation, this Note, as to the unpaid principal portion
thereof and accrued interest thereon, shall thereafter be deemed to evidence the
right  to  purchase  such  number  and  kind  of  shares or other securities and
property  as  would  have  been  issuable  or  distributable  on account of such
consolidation,  merger,  sale  or  conveyance,  upon  or  with  respect  to  the
securities subject to the conversion or purchase right immediately prior to such
consolidation,  merger,  sale  or  conveyance.  The  foregoing  provision  shall
similarly  apply  to  successive  transactions  of  a similar nature by any such
successor  or  purchaser.  Without limiting the generality of the foregoing, the
anti-dilution  provisions of this Section shall apply to such securities of such
successor or purchaser after any such consolidation, merger, sale or conveyance.

     B.     Reclassification,  etc.  If  the  Borrower  at  any  time  shall, by
reclassification  or  otherwise,  change  the  Common  Stock  into the same or a
different  number  of  securities  of any class or classes, this Note, as to the
unpaid  principal portion thereof and accrued interest thereon, shall thereafter
be  deemed  to  evidence  the  right  to  purchase  an  adjusted  number of such
securities  and  kind of securities as would have been issuable as the result of
such  change  with  respect  to  the  Common  Stock  immediately  prior  to such
reclassification  or  other  change.

                                       4
<PAGE>
C.     Stock  Splits, Combinations and Dividends.  If the shares of Common Stock
are  subdivided or combined into a greater or smaller number of shares of Common
Stock,  or  if a dividend is paid on the Common Stock in shares of Common Stock,
the  Conversion Price shall be proportionately reduced in case of subdivision of
shares or stock dividend or proportionately increased in the case of combination
of  shares,  in  each such case by the ratio which the total number of shares of
Common  Stock outstanding immediately after such event bears to the total number
of  shares  of  Common  Stock  outstanding  immediately  prior  to  such  event.

               D.     Share  Issuance.   So long as this Note is outstanding, if
the  Borrower shall issue any Common Stock except for the Excepted Issuances (as
defined  in  the  Subscription  Agreement),  prior to the complete conversion or
payment  of  this Note, for a consideration less than the Fixed Conversion Price
that  would  be  in  effect  at  the  time  of  such issue, then, and thereafter
successively  upon  each  such  issuance,  the  Fixed  Conversion Price shall be
reduced  to  such other lower issue price.  For purposes of this adjustment, the
issuance  of  any security or debt instrument of the Borrower carrying the right
to convert such security or debt instrument into Common Stock or of any warrant,
right  or  option  to purchase Common Stock shall result in an adjustment to the
Fixed  Conversion  Price upon the issuance of the above-described security, debt
instrument,  warrant,  right, or option and again upon the issuance of shares of
Common  Stock  upon  exercise  of  such  conversion  or  purchase rights if such
issuance  is  at  a  price lower than the then applicable Conversion Price.  The
reduction  of  the  Fixed  Conversion  Price  described  in this paragraph is in
addition  to  the  other  rights  of  the  Holder  described in the Subscription
Agreement.

(c)     Whenever  the Conversion Price is adjusted pursuant to Section 3.4(b) or
any  Transaction  Document,  the Borrower shall promptly deliver to the Holder a
notice  setting  forth  the  Conversion  Price after such adjustment and setting
forth  a  statement  of  the  facts  requiring  such  adjustment.

     3.5.     Reservation.   Borrower  will  reserve  from  its  authorized  and
              -----------
unissued  Common  Stock  not  less  than the number of shares to provide for the
issuance  of  Common  Stock  upon  the  full  conversion  of thisNote as further
described  in  the  Subscription  Agreement.  Borrower  represents  that  upon
issuance,  such  shares  will  be  duly  and  validly  issued,  fully  paid  and
non-assessable.  Borrower agrees that its issuance of this Note shall constitute
full authority to its officers, agents, and transfer agents who are charged with
the  duty  of  executing and issuing stock certificates to execute and issue the
necessary  certificates  for  shares of Common Stock upon the conversion of this
Note.

     3.6     Issuance  of Replacement Note.  Upon any partial conversion of this
             -----------------------------
Note,  a  replacement  Note containing the same date and provisions of this Note
shall,  at  the  written request of the Holder, be issued by the Borrower to the
Holder  for  the  outstanding Principal Amount of this Note and accrued interest
which  shall not have been converted or paid, provided Holder has surrendered an
original  Note  to  the  Company.  In  the  event  that the Holder elects not to
surrender  a  Note for reissuance upon partial payment or conversion, the Holder
hereby  indemnifies the Borrower against any and all loss or damage attributable
to  a  third-party  claim  in  an amount in excess of the actual amount then due
under  the  Note.

                                       5
<PAGE>
                                   ARTICLE IV

                                SECURITY INTEREST

     4.     Security  Interest/Waiver  of Automatic Stay.   This Note is secured
            --------------------------------------------
by  a  security  interest granted to the Collateral Agent for the benefit of the
Holder  pursuant  to  a  Security Agreement, as delivered by Borrower to Holder.

                                    ARTICLE V

     EVENTS  OF  DEFAULT

     The  occurrence  of  any  of  the  following  events  of default ("Event of
Default")  shall, at the option of the Holder hereof, make all sums of principal
and  interest  then  remaining  unpaid  hereon  and  all  other  amounts payable
hereunder  immediately  due  and  payable,  upon demand, without presentment, or
grace  period,  all  of  which  hereby are expressly waived, except as set forth
below:

     5.1     Failure  to  Pay  Principal or Interest.  The Borrower fails to pay
             ---------------------------------------
any  installment  of Principal Amount, interest or other sum due under this Note
or  any Transaction Document when due and such failure continues for a period of
five  (5)  business  days  after  the  due  date.

     5.2     Breach of Covenant.  The Borrower breaches any material covenant or
             ------------------
other  term or condition of the Subscription Agreement, this Note or Transaction
Document  in any material respect and such breach, if subject to cure, continues
for a period of ten (10) business days after written notice to the Borrower from
the  Holder.

     5.3     Breach  of  Representations  and  Warranties.  Any  material
             --------------------------------------------
representation  or  warranty  of  the  Borrower made herein, in the Subscription
Agreement,  Transaction  Document  or in any agreement, statement or certificate
given in writing pursuant hereto or in connection herewith or therewith shall be
false  or  misleading in any material respect as of the date made and as of each
Closing  Date.

     5.4     Receiver  or  Trustee.  The  Borrower or any Subsidiary of Borrower
             ---------------------
shall  make  an assignment for the benefit of creditors, or apply for or consent
to  the  appointment of a receiver or trustee for them or for a substantial part
of  their property or business; or such a receiver or trustee shall otherwise be
appointed.

     5.5     Judgments.  Any money judgment, writ or similar final process shall
             ---------
be  entered  or  filed  against Borrower or any subsidiary of Borrower or any of
their  property  or  other  assets  for  more  than  $50,000,  and  shall remain
unvacated,  unbonded  or  unstayed  for  a  period  of  forty-five  (45)  days.

     5.6     Non-Payment.   The  Borrower  shall  have  received  a  notice  of
             -----------
default,  which  remains  uncured for a period of more than twenty (20) days, on
the  payment  of  any  one or more debts or obligations aggregating in excess of
Fifty  Thousand  Dollars  (US  $50,000.00)  beyond  any applicable grace period;

5.7     Bankruptcy.  Bankruptcy,  insolvency,  reorganization  or  liquidation
        ----------
proceedings  or other proceedings or relief under any bankruptcy law or any law,
or  the  issuance  of  any  notice  in relation to such event, for the relief of
debtors  shall  be  instituted  by  or against the Borrower or any Subsidiary of
Borrower and if instituted against them are not dismissed within forty-five (45)
days  of  initiation.

5.8     Delisting.   Delisting  of  the  Common Stock from any Principal Market;
        ---------
failure  to  comply  with  the requirements for continued listing on a Principal
Market  for  a  period of seven consecutive trading days; or notification from a
Principal  Market that the Borrower is not in compliance with the conditions for
such  continued  listing  on  such  Principal  Market.

                                       6
<PAGE>
     5.9     Stop  Trade.  An  SEC  or  judicial  stop  trade order or Principal
             -----------
Market trading suspension with respect to Borrower's Common Stock that lasts for
five  or  more  consecutive  trading  days.

     5.10     Failure  to  Deliver Common Stock or Replacement Note.  Borrower's
              -----------------------------------------------------
failure to timely deliver Common Stock to the Holder pursuant to and in the form
required  by  this  Note  or  the  Subscription  Agreement, and, if requested by
Borrower,  a  replacement  Note.
                               =

     5.11     Non-Registration  Event.  The  occurrence  of  a  Non-Registration
              -----------------------
Event  as  described  in  the  Subscription  Agreement.

     5.12     Reverse  Splits.   The Borrower effectuates a reverse split of its
              ---------------
Common  Stock  without  ten  business  days  prior written notice to the Holder.

     5.13     Cross  Default.  A  default  by  the  Borrower of a material term,
              --------------
covenant, warranty or undertaking of any Transaction Document or other agreement
to  which  the  Borrower and Holder are parties, or the occurrence of a material
event  of  default  under  any such other agreement which is not cured after any
required  notice  and/or  cure  period.

5.14     Reservation  Default.   The  occurrence  of  Reservation  Default  as
         --------------------
described  in  the  Subscription  Agreement.

                                   ARTICLE VI

     MISCELLANEOUS

     6.1     Failure  or Indulgence Not Waiver.  No failure or delay on the part
             ---------------------------------
of  Holder  hereof  in  the  exercise of any power, right or privilege hereunder
shall  operate  as a waiver thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof or
of  any  other  right,  power  or  privilege.  All  rights and remedies existing
hereunder  are  cumulative  to,  and  not  exclusive  of, any rights or remedies
otherwise  available.

     6.2     Notices.  All  notices, demands, requests, consents, approvals, and
             -------
other  communications  required  or permitted hereunder shall be in writing and,
unless  otherwise  specified  herein,  shall  be  (i)  personally  served,  (ii)
deposited  in  the  mail,  registered  or  certified,  return receipt requested,
postage  prepaid,  (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed
as  set  forth below or to such other address as such party shall have specified
most  recently by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or  delivery  by  facsimile,  with  accurate  confirmation  generated  by  the
transmitting  facsimile  machine,  at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be  received),  or  the first business day following such delivery (if delivered
other  than  on a business day during normal business hours where such notice is
to  be received) or (b) on the second business day following the date of mailing
by  express  courier  service, fully prepaid, addressed to such address, or upon
actual  receipt of such mailing, whichever shall first occur.  The addresses for
such  communications  shall  be: (i) if to the Borrower to: FTS Group Inc., 7610
West  Hillsborough  Avenue,  Tampa,  FL  33615,  Attn:  Scott  Gallagher,  CEO,
telecopier:  (813)  878-2337,  with  a  copy by telecopier only to: Amy Trombly,
Esq.,  Trombly  Business  Law,  1320 Centre Street, Suite 202, Newton Center, MA
02459,  Fax: (617) 243-0066, and (ii) if to the Holder, to the name, address and
telecopy  number  set  forth  on  the  front  page  of this Note, with a copy by
telecopier  only  to  Grushko & Mittman, P.C., 551 Fifth Avenue, Suite 1601, New
York,  New  York  10176,  telecopier  number:  (212)  697-3575.

                                       7
<PAGE>
     6.3     Amendment Provision.  The term "Note" and all reference thereto, as
             -------------------
used  throughout  this  instrument,  shall  mean  this  instrument as originally
executed,  or  if  later  amended  or  supplemented,  then  as  so  amended  or
supplemented.

     6.4     Assignability.  This  Note  shall  be binding upon the Borrower and
             -------------
its successors and assigns, and shall inure to the benefit of the Holder and its
successors  and  assigns.

     6.5     Cost  of  Collection.  If  default  is  made in the payment of this
             --------------------
Note,  Borrower  shall  pay  the  Holder  hereof reasonable costs of collection,
including  reasonable  attorneys'  fees.

     6.6     Governing  Law.  This  Note  shall  be governed by and construed in
             --------------
accordance  with  the laws of the State of New York, without regard to conflicts
of  laws principles that would result in the application of the substantive laws
of  another  jurisdiction.  Any action brought by either party against the other
concerning the transactions contemplated by this Agreement shall be brought only
in the state courts of New York or in the federal courts located in the state of
New  York.  Both  parties  and the individual signing this Note on behalf of the
Borrower  agree  to  submit  to  the jurisdiction of such courts. The prevailing
party  shall  be  entitled  to  recover  from  the  other  party  its reasonable
attorney's  fees  and  costs.  In  the  event that any provision of this Note is
invalid  or unenforceable under any applicable statute or rule of law, then such
provision  shall  be  deemed  inoperative  to  the  extent  that it may conflict
therewith  and  shall be deemed modified to conform with such statute or rule of
law.  Any  such provision which may prove invalid or unenforceable under any law
shall not affect the validity or unenforceability of any other provision of this
Note. Nothing contained herein shall be deemed or operate to preclude the Holder
from  bringing  suit  or  taking  other legal action against the Borrower in any
other  jurisdiction  to  collect  on  the  Borrower's  obligations to Holder, to
realize  on  any  collateral  or  any other security for such obligations, or to
enforce  a  judgment  or  other  court  in  favor  of  the  Holder.

     6.7     Maximum  Payments.  Nothing  contained  herein  shall  be deemed to
             -----------------
establish  or  require  the  payment  of  a rate of interest or other charges in
excess  of  the maximum permitted by applicable law.  In the event that the rate
of  interest  required  to be paid or other charges hereunder exceed the maximum
permitted  by such law, any payments in excess of such maximum shall be credited
against  amounts  owed  by  the  Borrower to the Holder and thus refunded to the
Borrower.

     6.8.     Construction.   Each  party  acknowledges  that  its legal counsel
              ------------
participated in the preparation of this Note and, therefore, stipulates that the
rule  of  construction  that ambiguities are to be resolved against the drafting
party shall not be applied in the interpretation of this Note to favor any party
against  the  other.

     6.9     Redemption.  This  Note  may  not be redeemed or called without the
             ----------
consent  of  the  Holder  except  as  described  in  this  Note.

     6.10     Shareholder  Status.  The  Holder  shall  not  have  rights  as  a
              -------------------
shareholder  of  the Borrower with respect to unconverted portions of this Note.
However,  the  Holder will have the rights of a shareholder of the Borrower with
respect  to  the  Shares  of  Common  Stock to be received after delivery by the
Holder  of  a  Conversion  Notice  to  the  Borrower.

                                       8
<PAGE>
IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by an
authorized  officer  as  of  the  ____  day  of  December,  2005.

FTS  GROUP  INC.

     By:________________________________
     Name:
     Title:

WITNESS:

______________________________________
                                       9
<PAGE>
     NOTICE  OF  CONVERSION
     ----------------------

(To  be  executed  by  the  Registered  Holder  in  order  to  convert the Note)

     The  undersigned  hereby  elects to convert $_________ of the principal and
$_________  of the interest due on the Note issued by FTS Group Inc. on December
____,  2005  into  Shares  of  Common  Stock  of FTS Group Inc. (the "Borrower")
according  to  the  conditions  set  forth  in such Note, as of the date written
below.

Date  of
Conversion:____________________________________________________________________

Conversion
Price:______________________________________________________________________

Number of Shares of Common Stock Beneficially Owned on the Conversion Date: Less
than  5%  of  the  outstanding  Common  Stock  of  FTS  Group  Inc.

Shares  To  Be
Delivered:_________________________________________________________________

Signature:_____________________________________________________________________

Print Name:____________________________________________________________________

Address:_______________________________________________________________________

   ____________________________________________________________________________

                                       10
<PAGE>
                           DEMAND FOR INTERIM PAYMENT
                           --------------------------

     The  undersigned holder of a Note issued by FTS Group Inc. on December ___,
2005 hereby demands the payment of an Interim Payment pursuant to the following:

____________     Determination Date (the date dollar-volume trading exceeded the
Liquidity  Benchmark)

$___________     Total  dollar-volume  trading  on  the  Determination  Date.

$___________     Liquidity  Multiple  (Total  dollar-volume  trading  on
Determination  Date  divided  by  Liquidity  Benchmark).

$___________     Fixed  Principal  Portion  payable  on  each  Repayment  Date.

$___________     Interim  Payment  Amount  (103%  of  Fixed  Principal  Portion
multiplied  by  Liquidity  Multiple).

  [ ]  Demand  is  made  for  the  Interim  Payment  to  be  paid  in  cash.

  [ ]Demand  is  made  that  _________  shares  of  Common Stock be delivered in
satisfaction of the Interim Payment Amount with such shares valued at 85% of the
VWAP  for  the  15  trading  days  preceding the date of this Demand For Interim
Payment  is  given  to  the  Company.

Number of Shares of Common Stock Beneficially Owned on the Conversion Date: Less
than  5%  of  the  outstanding  Common  Stock  of  FTS  Group  Inc.

Shares  To  Be
Delivered:_________________________________________________________________

Signature:_____________________________________________________________________

Print Name:____________________________________________________________________

Address:_______________________________________________________________________

   ____________________________________________________________________________

Delivery Instructions:_________________________________________________________

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