Document:

Exhibit 10(y)

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

                            SECURED CONVERTIBLE NOTE
                                 (No. CTS-04-30)

October 21, 2004                                                     $479,392.54

FOR VALUE RECEIVED, NCT GROUP, INC., a Delaware corporation  (hereinafter called
the  "Borrower")  hereby  promises  to pay to the  order of  Carole  Salkind  or
registered assigns (the "Holder") the sum of Four Hundred Seventy-Nine  Thousand
Three Hundred Ninety-Two Dollars and Fifty-Four Cents ($479,392.54) on April 21,
2005,  and to pay  interest  on the  unpaid  principal  balance  hereof at eight
percent (8%) per annum (the "Ordinary  Interest Rate") from the date hereof (the
"Issue  Date") until the same  becomes due and  payable,  whether at maturity or
upon  acceleration or otherwise.  Any amount of principal of or interest on this
Note which is not paid when due shall bear  interest at the rate of five percent
(5%) above the Ordinary Interest Rate (the "Default Interest Rate") from the due
date thereof until the same is paid.  Interest  shall  commence  accruing on the
Issue Date and, to the extent not converted in accordance with the provisions of
Article II below,  shall be payable in arrears on the date the principal  amount
in  respect  of which  it has  accrued  is paid,  whether  at  maturity  or upon
acceleration  or by  prepayment  or  otherwise.  All payments of  principal  and
interest (to the extent not converted in accordance with the terms hereof) shall
be made in lawful money of the United States of America.  All payments  shall be
made at such  address as the Holder  shall  hereafter  give to the  Borrower  by
written notice made in accordance with the provisions of this Note.

The following terms shall apply to this Note:

                                    ARTICLE I

                                  NO PREPAYMENT

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

                                   ARTICLE II

            CONVERSION AND PURCHASE RIGHTS; PAYMENT OF EXERCISE PRICE

     2.1  CONVERSION  RIGHT.  The Holder  shall have the right (the  "Conversion
Right") at any time on or prior to the day this Note is paid in full, to convert
at any time all or from  time to time any  part of the  outstanding  and  unpaid
principal  amount of this Note of at least  $50,000,  or such  lesser  amount as
shall remain unpaid at the time of the conversion,  into, at Holder's  election,
(i) fully paid and  non-assessable  shares of common  stock,  par value $.01 per
share, of the Borrower ("Common  Stock"),  at the conversion price determined by
Section 2.2(a) hereof; (ii) if Artera Group International Limited

<PAGE>

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

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

     2.2 CONVERSION PRICE.

     (a) The per share  "Conversion  Price" for conversion of this Note into the
Borrower's  Common Stock shall be $0.019.  The Conversion Price shall be subject
to  equitable  adjustments  for stock  splits,  stock  dividends,  combinations,
recapitalization,  reclassifications  and  similar  events.  The Artera and DMCI
"Conversion  Price" shall be equal to the initial public  offering price of such
stock and also be subject  to  equitable  adjustments  for stock  splits,  stock
dividends, combinations, reclassifications and similar events.

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

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

                                       2
<PAGE>

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

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

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

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

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

     2.6 EFFECT OF MERGER,  CONSOLIDATION,  ETC. If at anytime when this Note is
issued and outstanding,  there shall be any merger,  consolidation,  exchange of
shares, recapitalization, reorganization, or other similar event, as a result of
which shares of Common Stock of the Borrower shall be changed into the same or a
different number of shares of another class or classes of stock or securities

                                       3
<PAGE>

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

     2.7 CONVERSION  AFTER EVENT OF DEFAULT.  The Holder's right to convert this
Note into stock as  described  above shall apply even if an Event of Default (as
defined in Article III below) shall have occurred.

                                   ARTICLE III

                                EVENTS OF DEFAULT

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

     3.1 FAILURE TO PAY PRINCIPAL OR INTEREST. The Borrower fails (i) to pay the
principal hereof when due, whether at maturity or upon acceleration or otherwise
or (ii) to pay any  installment of interest  hereon when due and, in the case of
this  clause (ii) only,  such  failure  continues  for a period of five (5) days
after the due date thereof;

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

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

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

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

                                       4
<PAGE>

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

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

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

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

     Then,  upon the  occurrence  and  during the  continuation  of any Event of
Default specified in Sections 3.1, 3.2, 3.3, 3.4, 3.6, 3.8 or 3.9 hereof, at the
option of the Holder  hereof,  and upon the  occurrence  of any event of default
specified in Sections 3.5 or 3.7 hereof,  the Borrower  shall pay to the Holder,
in  satisfaction of its obligation to pay the  outstanding  principal  amount of
this Note and accrued and unpaid interest thereon, an amount equal to the sum of
(i) the  product  of (x) the then  outstanding  principal  amount  of this  Note
multiplied  by (y) 110% plus (ii)  accrued  and  unpaid  interest  on the unpaid
principal amount of this Note to the date of payment (the "Default  Amount") and
such Default Amount, together with all other ancillary amounts payable hereunder
shall  immediately  become due and payable,  all without demand,  presentment or
notice,  all of which  hereby are  expressly  waived,  together  with all costs,
including,  without limitation,  legal fees and expenses of collection,  and the
Holder shall be entitled to exercise all other rights and remedies  available at
law or in equity.

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

                                   ARTICLE IV

                                   COLLATERAL

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

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

                                       5
<PAGE>

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

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

                                    ARTICLE V

                                  MISCELLANEOUS

5.1 FAILURE OR  INDULGENCY  NOT  WAIVER.  No failure or delay on the part of the
Holder in the exercise of any power, right or privilege  hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such power,
right or privilege  preclude other or further  exercise  thereof or of any other
right,  power or  privilege.  All rights and  remedies  existing  hereunder  are
cumulative to, and not exclusive of, any rights or remedies otherwise available.

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

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

--------------------------------------------------------------------------------
Ms. Carole Salkind                           Peter Rosen, Esq.
P.O. Box 1292                                Rosen & Avigliano
Clifton, NJ  07012                           431 Route 10 East
                                             Randolph, NJ  07689
--------------------------------------------------------------------------------
Facsimile:  973-643-6500                     Facsimile:  973-361-1644
--------------------------------------------------------------------------------

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

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

                                       6
<PAGE>

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

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

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

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

     5.7 DAMAGES SHARES.  The shares of Common Stock that may be issuable to the
Holder  pursuant to Article III hereof  ("Damages  Shares")  shall be treated as
Common Stock issuable upon  conversion of this Note for all purposes  hereof and
shall be subject to all of the limitations and afforded all of the rights of the
other shares of Common Stock  issuable  hereunder.  For purposes of  calculating
interest payable on the outstanding principal amount hereof, amounts convertible
into Damages  Shares  ("Damages  Amounts")  shall not bear  interest but must be
converted  prior to the conversion of any outstanding  principal  amount hereof,
until the outstanding  Damages Amount is zero. Damaged Shares can only be issued
after Borrower has received the written notice that the Holder wishes to receive
such shares.

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

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

                                        NCT GROUP, INC.

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

                                       7
<PAGE>

                                                                       EXHIBIT 1
                                                                       ---------

                NOTICE OF CONVERSION OF SECURED CONVERTIBLE NOTE

TO:  NCT Group, Inc.

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

    _____  NCT Group, Inc., a Delaware corporation

    _____  Distributed Media Corporation International Limited, a UK corporation

    _____  Artera Group International Limited, a UK corporation

    _____  Other public subsidiary (identify: ________________________________)1

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

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

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

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

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

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

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

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

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

                                       8Exhibit 10.1

                                     FORM OF
                        INCENTIVE STOCK OPTION AGREEMENT

                      MID-WISCONSIN FINANCIAL SERVICES, INC.
                              1999 STOCK OPTION PLAN

                         INCENTIVE STOCK OPTION AGREEMENT

 Agreement made as of _________________ __, 20__ (the "Date of Grant") between
Mid-Wisconsin Financial Services, Inc., a bank holding company organized under
the laws of the State of Wisconsin with its principal place of business at
Medford, Wisconsin (the "Company"), and _______________________ (the
"Optionee") for the purpose of granting certain options described below under
the terms of the Mid-Wisconsin Financial Services, Inc. 1999 Stock Option Plan
(the "Plan").

  1.  GRANT OF OPTION.  The Company hereby grants the Optionee the option to
purchase ___________ shares of the Common Stock (the "Shares") upon the terms
and conditions of the Plan, and the terms hereinafter stated.  It is intended
by the Company that this option constitute an incentive stock option within the
meaning of Section 422 of the Code.  There is no assurance that this option
will, in fact, be treated as an incentive stock option.

 2. PURCHASE PRICE.  The Option Price shall be $______ for each Share.

 3. TIME OF EXERCISE.

   (a) INITIAL EXERCISABILITY.  This option may be first exercised as to any or
all of the Shares subject to this option on or after _________, 20__.

   (b) EXERCISE DURING OPTIONEE'S LIFETIME.  This option is exercisable during
the Optionee's lifetime only by him and only if this option is exercised prior
to the  Expiration  Date  of  this option.  For purposes of this Agreement, the
term "Expiration Date" of this option means the first to occur of:

        (i)   the tenth anniversary of the Date of Grant;

        (ii)  if the Optionee's Termination of Employment occurs because of the
      death of the Optionee, the first anniversary of the Optionee's death;

        (iii) if the Optionee's Termination of Employment occurs because of the
      Disability of the Optionee, the first anniversary of the Optionee's
      Termination of Employment;
<PAGE>

        (iv)  if the Optionee's Termination of Employment occurs because of the
      Retirement of the Optionee, the 91st day following the date on which the
      Optionee's Termination of Employment occurred;

        (v)   if the Optionee's Termination of Employment occurs because of a
      reason other than Disability, Retirement, or death, the date on which the
      Optionee's Termination of Employment occurs; or

        (vi)  if the Optionee has engaged in any act or omitted to take any
      action, and such action or omission constitutes Cause, the date of such
      action or failure to act.

provided, however, that notwithstanding the foregoing, in the event the
Optionee incurs a Termination of Employment for a reason other than for Cause
during the 24-month period following a Change in Control of the Company, this
option shall be exercisable in accordance with the terms of Section 6.3(e)(v)
of the Plan.

   (c)  EXERCISE AFTER OPTIONEE'S DEATH.  In the event of Termination of
Employment by  reason of the Optionee's death, this option may be exercised in
whole or in part prior to the Expiration Date specified in subparagraph
3(b)(ii) by his estate or his designee by will to the extent this option was
exercisable by the Optionee immediately prior to his death but only prior to
the first anniversary of the Optionee's death.  In the event of the Optionee's
death after he had incurred a Termination of Employment by reason of Disability
or Retirement, this option may be exercised in whole or in part by the
Optionee's estate or his designee by will prior to the first to occur of (i)
the Expiration Date specified in subparagraph 3(b)(iii) or (iv), as the case
may be, and (ii) the first anniversary of the Optionee's death, but only to the
extent this option was exercisable by the Optionee immediately prior to his
death.

 4. METHOD OF EXERCISE.

   (a)  NOTICE OF EXERCISE.  This option shall be exercisable by written notice
to the Secretary of the Company at its principal place of business at Medford,
Wisconsin.  Such notice shall be in substantially the form set forth as Form 1
attached to this Agreement and shall state the exact number of Shares as to
which this option is being exercised and shall be signed by the person or
persons exercising this option.  The date of exercise shall be the date such
written notice and payment have been delivered to the Secretary of the Company
either in person or by depositing said notice and payment of the purchase price
in the United States mail, postage prepaid and addressed to the Secretary of
the Company at the Company's home business office.

  (b) MINIMUM NUMBER OF SHARES.  This option cannot be exercised with respect
to any fractional Shares.

  (c) PAYMENT FOR SHARES.  A notice of exercise shall be accompanied by payment
of the full purchase price of such Shares (plus minimum required tax
withholding, if any) by:
<PAGE>

         (i)  tendering cash (in the form of a check or otherwise) in such
      amount;

        (ii) except as otherwise provided by the Committee prior to exercise of
      this option, tendering Shares with a Fair Market Value on the date of
      exercise equal to such amount; or

         (iii)  delivering irrevocable instructions to a broker to promptly
      deliver to the Company the sale or loan proceeds equal  to  such  amount,
      along with documentation from such broker guaranteeing such payment.

   (d)  DELIVERY OF SHARES.  The Company shall deliver a certificate or
certificates representing Shares attributable to an exercise of this option as
soon as practicable after the notice of exercise and payment shall have been
received.  The certificate or certificates for the Shares as to which this
option shall have been exercised shall be registered in the name of the person
or persons exercising this option and shall be delivered as provided above to
the person or persons exercising this option.  The Company shall not be
obligated to deliver any certificates prior to the fulfillment by it of any
listing obligations with respect to the Shares on any exchange or over-the-
counter market or the registration or qualification of the Shares under any
federal or state securities laws which the Company deems advisable.

 5. EFFECT OF CERTAIN EVENTS ON ISO STATUS.

  (a) TERMINATION OF ISO TREATMENT.  This option is intended to constitute an
incentive stock option under Section 422 of the Code.  Among other things, such
status will not be afforded this option if:

        (i) the exercise of this option occurs more than three months following
      the Optionee's Termination of Employment, except in the event of a
      Termination of Employment by reason of death or Disability; and

        (ii) the Optionee disposes of any Shares received upon exercise of this
      option within two years after the date of this Agreement or within one
      year after such Shares were transferred to such Optionee.  In such case,
      the Optionee will be treated for federal income tax purposes as having
      received ordinary income at the time of such disposition in an amount
      generally measured by the difference between the Option Price and the
      lower of the Fair Market Value of the Shares at the date of the exercise
      or the Fair Market Value of the Shares at the date of disposition. If
      the Optionee sells or disposes of such Shares at any time after the
      expiration of the two-year and one-year holding periods, any gain on such
      sale will be taxed as long-term capital gain.

   (b)  NOTICE OF DISQUALIFYING DISPOSITION OF SHARES.  The Optionee hereby
agrees to notify the Company in writing within 30 days after the date of any
sale or other disposition of any Shares received upon exercise of this option
within (i) two years after the date of this Agreement or (ii) one year after
such Shares were transferred to such Optionee.  Such notice shall be in a
Notice of Disqualifying Disposition in substantially the form attached hereto
as Form 2, which shall state the number of Shares sold or disposed of, the date
the shares were sold or disposed of, and the sale price, if applicable.
<PAGE>

 6. ADJUSTMENT UPON CHANGES IN CAPITALIZATION.  If the Common Stock is changed
into a greater or lesser number of shares as a result of a stock dividend,
stock split-up, or combination of Shares, then the number of Shares subject to
this option and the Option Price shall be proportionately increased or
decreased to give effect to the change as provided for in the Plan.  In the
event of any other change in the Common Stock or change in the capitalization
of the Company, the Committee may make such changes in the terms of this option
as provided for in Section 3.5 of the Plan.

 7. NON TRANSFERABILITY OF OPTION.  This option may be exercised only by the
Optionee or, if the Optionee dies, by the personal representative or designee
under the Optionee's will or by the Optionee's estate, as the case may be.
Except as otherwise provided in the preceding sentence, this option may not be
assigned, transferred, pledged or hypothecated in any way, shall not be
assignable by operation of law and shall not be subject to execution,
attachment or similar process.  Any attempted assignment, transfer, pledge,
hypothecation or other disposition of this option contrary to the provisions
hereof, and the levy of any execution, attachment or similar process upon this
option, shall be null and void and without effect.

  8.  SHARES AS INVESTMENT.  If not registered by the Company under the
Securities Act of 1933 (the "Act"), the Shares acquired pursuant to the
exercise of this option, will be "restricted" stock which will not be freely
transferrable by the holder after exercise of this option. The Optionee and
any successor in interest  of  the Optionee accordingly represents and
acknowledges, as a condition of the granting of this option, that (a) Shares
which are unregistered under the Act will be acquired for the Optionee's (or
his successor's) own account for investment only and not with a view to offer
for sale or for sale in connection with the distribution or transfer thereof
and (b) that the certificates representing Shares purchased pursuant to this
option which have not been registered pursuant to the Act will bear a legend as
to such restrictions on transfer.

  9.  EMPLOYMENT.  This Agreement does not constitute a contract of employment
between the Company or any subsidiary of the Company and the Optionee and it
shall not affect the right of the Company or any present or future subsidiary
of the Company to terminate the employment of the Optionee, with or without
cause, at any time.

 10. CONSTRUCTION AND DEFINITIONS. This Agreement is subject to and shall be
construed in accordance with the terms of the Plan which are explicitly made
applicable to this Agreement and incorporated by this reference.  Unless
otherwise defined, all terms used in this Agreement, when capitalized, have the
same meaning as such terms are defined in the Plan and each such definition is
hereby incorporated by this reference. In the event of any conflict between
the provisions of this Agreement and the Plan, the provisions of the Plan shall
govern.

 11. GOVERNING LAW. This Agreement shall be governed by the laws of the State
of Wisconsin.
<PAGE>

 12. BINDING EFFECT. This Agreement shall be binding upon and inure to the
benefit of the Company and the Optionee and their successors in interest.

 13. RECEIPT OF INFORMATION. The Optionee hereby acknowledges receipt of a
copy of the Plan and of the Company's most recent annual report to its
shareholders.

 IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by its
officer, thereunto duly authorized, and the Optionee has acknowledged his
acceptance of this option in accordance with the terms of this Agreement and
the Plan, all as of the Date of Grant.

OPTIONEE:                        MID-WISCONSIN FINANCIAL SERVICES, INC.

_________________________        By:___________________________
_________________________              ________________________
Optionee                             As its ___________________
<PAGE>

                                                                       Form 1
                      MID-WISCONSIN FINANCIAL SERVICES, INC.
                            1999 STOCK OPTION PLAN
                    NOTICE OF INTENT TO EXERCISE STOCK OPTION

 The undersigned Optionee hereby exercises the option to purchase shares of
common stock of Mid-Wisconsin Financial Services, Inc. under the Mid-Wisconsin
Financial Services, Inc. 1999 Stock Option Plan as follows:

Date of Grant:       __________________, _____
Type of Option:  ( ) Incentive Stock Option
                 ( ) Non-qualified Stock Option

Number of Shares: ____________ (whole shares only)

Option Price:     $___________ per Share

Income Tax Due*:  $___________

   *The Company is required to withhold taxes when a non-qualified option is
   being exercised.  Under current tax law, the Company is not required to
   withhold taxes when an optionee exercises an incentive stock option.

Total Amount Due: $___________

Method of Payment: Indicate the method or methods by which payment will be
made:

 ( ) Check
 ( ) Withholding
     The Company is directed to withhold ____ Shares.
 ( ) Surrender of Company Shares (subject to approval of the Committee)
     No. of Shares surrendered:_____________
     ( ) by delivery  ( ) by attestation
     (Shares must have been purchased on the open market and held for at least 6
     months)
 ( ) Cashless exercise and sale or loan by broker (attach copy of broker sale or
     loan agreement) By checking this box, the Optionee certifies that no
     shares to be sold will violate any Company policies on insider
     trading.

Date: _______________, 200__.

Optionee Name:  _______________________       Signature:  ______________________

Social Security No.  ____________________

Address: Street: ______________________________________________________________
City:  _____________________________  State: ____  Zip: __________
<PAGE>

                                                                          Form 2
                    MID-WISCONSIN FINANCIAL SERVICES, INC.
                           1999 STOCK OPTION PLAN

                     NOTICE OF DISQUALIFYING DISPOSITION

To: Mid-Wisconsin Financial Services, Inc. (the "Company")

 I hereby notify the Company that I have disposed of the following Shares which

I acquired upon exercise of an option under the Mid-Wisconsin Financial
Services, Inc. 1999 Stock Option Plan. I understand that for federal income
tax purposes, the Company is required to report as compensation on Form W-2 the
net proceeds of my sale of Shares which I acquired upon exercise of an
incentive stock option if I sell the Shares (1) within one year from the date I
exercised the option, or (2) within two years from the date of the grant of the
option.

 I sold the following shares:

 Date of Grant:  ___________________, _________

 Exercise Date:  ___________________, _________

 Option Price:   $__________________

 Date of Sale or Other
 Disposition:    ___________________, _________

 Market Value or Sales
 Price Received: $__________________

 No. of Shares Sold or
 Disposed of:  ___________________

Date: _______________, 200__.

Optionee Name:  _______________________ Signature:  ______________________

Social Security No.  ____________________

Address: Street: ______________________________________________________________

City:  _____________________________  State: ____  Zip: __________

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