-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 TAHGhZWmESS+v9ZYcjAfVnHETsxUroVm/V0HVeGnvBYG/tucynsXN20LkptMhlsc
 JMG/AmrzrI/2phZ+Elbs2A==

<SEC-DOCUMENT>0001116502-03-001384.txt : 20030801
<SEC-HEADER>0001116502-03-001384.hdr.sgml : 20030801
<ACCEPTANCE-DATETIME>20030801141153
ACCESSION NUMBER:		0001116502-03-001384
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20030731
ITEM INFORMATION:		Other events
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20030801

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SINGING MACHINE CO INC
		CENTRAL INDEX KEY:			0000923601
		STANDARD INDUSTRIAL CLASSIFICATION:	PHONOGRAPH RECORDS & PRERECORDED AUDIO TAPES & DISKS [3652]
		IRS NUMBER:				953795478
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24968
		FILM NUMBER:		03817555

	BUSINESS ADDRESS:	
		STREET 1:		6601 LYONS ROAD
		STREET 2:		BLDG A-7
		CITY:			COCONUT CREEK
		STATE:			FL
		ZIP:			33073
		BUSINESS PHONE:		9545961000

	MAIL ADDRESS:	
		STREET 1:		6601 LYONS ROAD BLDG
		CITY:			COCONUT CREEK
		STATE:			FL
		ZIP:			33073
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>singingmachine8k.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>BP (x1-52748) The Singing Machine 8K</TITLE>
<META NAME="author" CONTENT="Bassett Press, Inc. 954-767-4877">
<META NAME="date" CONTENT="08/01/2003">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<BR>
<BR>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:111.3pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:162.55pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>WASHINGTON, D.C. 20549</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:193.5pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;_____________</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:201.55pt; width:486pt; line-height:16pt; font-family:Times New Roman; font-size:14pt"><B>FORM 8-K</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:193.5pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;_____________</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:181.5pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>CURRENT REPORT</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:111.9pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>PURSUANT TO SECTION 13 OR 15(d) OF THE</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:129.4pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>SECURITIES EXCHANGE ACT OF 1934</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:84.85pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Date of report (Date of earliest event reported): &nbsp;<B>July 31, 2003</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:115.35pt; width:486pt; line-height:18pt; font-family:Times New Roman; font-size:16pt"><B>The Singing Machine Company, Inc.</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:142.2pt; width:486pt; font-family:Times New Roman; font-size:9.5pt">(Exact Name of Registrant Specified in Charter)</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-14pt; text-indent:49pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Delaware</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-14pt; text-indent:214pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>0-24968</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:367pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>95-3795478</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-12pt; text-indent:17.6pt; width:486pt; font-family:Times New Roman">(State&nbsp;or&nbsp;Other&nbsp;Jurisdiction</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-12pt; text-indent:197.95pt; width:486pt; font-family:Times New Roman">(Commission&nbsp;File</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:361.8pt; width:486pt; font-family:Times New Roman">(I.R.S. Employer</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-12pt; text-indent:39.3pt; width:486pt; font-family:Times New Roman">of Incorporation</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-12pt; text-indent:217.6pt; width:486pt; font-family:Times New Roman">Number</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:358.7pt; width:486pt; font-family:Times New Roman">Identification&nbsp;No.)</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:-0.4pt; text-indent:167.75pt; width:486.4pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>601 Lyons Road, Bldg. A-7</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:-0.4pt; text-indent:171.7pt; width:486.4pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Coconut Creek, FL 33073</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:-0.4pt; text-indent:130.5pt; width:486.4pt; font-family:Times New Roman">(Address&nbsp;of&nbsp;Principal&nbsp;Executive&nbsp;Offices)(Zip Code)</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:68.5pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Registrant&#146;s telephone number, including area code<B>: &nbsp;(954) 596-1000</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<BR>
<BR>
<BR>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:10pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<p Style='page-break-before:always'><HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<BR>
<BR>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Item 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Events and Regulation FD Disclosure.</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:36pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">We entered into a thirteenth amendment to our credit facility with LaSalle Business Credit, LLC effective as of July 31, 2003. LaSalle extended the expiration of our credit facility until August 20, 2003, but did not waive any events of default.. A copy of the thirteenth amendment is attached hereto as Exhibit 10.1 and is incorporated herein by this reference. </P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:36pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">On July 28, 2003, John Klecha resigned from our Board of Directors. We intend to increase the size of our Board of Directors during the next few months and have commenced a search process for additional directors.</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Item 7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements, Pro Forma Financial Information and Exhibits.</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:36pt; width:450pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:36pt; width:450pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">(c)&nbsp;&nbsp;&nbsp;Exhibits</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-12pt; text-indent:72pt; width:486pt; font-family:Times New Roman; font-size:12pt"><B>Exhibit No.</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:144pt; width:486pt; font-family:Times New Roman"><B>Description</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-14pt; text-indent:85.5pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">10.1</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:144pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Thirteenth Amendment dated July 31, 2003 to the Loan and Security Agreement dated April 26, 2001 between LaSalle Business Credit, LLC, and The Singing Machine Company, Inc.</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:36pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<BR>
<BR>
<BR>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:10pt; font-family:Times New Roman; font-size:12pt" align=center>2</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<p Style='page-break-before:always'><HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<BR>
<BR>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SIGNATURE</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:36pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:252pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-14pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Date:&nbsp;August 1, 2003</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:252pt; width:486pt; font-family:Times New Roman; font-size:12pt">By:&nbsp;&nbsp;<U>/s/ A<SMALL>PRIL<BIG> G<SMALL>REEN</SMALL></U></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:288pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">April Green</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:288pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Chief Financial Officer</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<BR>
<BR>
<BR>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:10pt; font-family:Times New Roman; font-size:12pt" align=center>3</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<p Style='page-break-before:always'><HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<BR>
<BR>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>EXHIBIT INDEX</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-12pt; width:486pt; font-family:Times New Roman"><B>Exhibit No.</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:72pt; width:486pt; font-family:Times New Roman"><B>Description</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-58.5pt; width:414pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">10.1</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:72pt; width:414pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Thirteenth Amendment dated July 31, 2003 to the Loan and Security Agreement dated April 26, 2001 between LaSalle Business Credit, LLC, and The Singing Machine Company, Inc.</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<BR>
<BR>
<BR>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:10pt; font-family:Times New Roman; font-size:12pt" align=center>4</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>lasallebusinesscredit.htm
<DESCRIPTION>AMENDED LOAN AND SECURITY AGREEMENT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>LaSalle Business Credit, LLC</TITLE>
<META NAME="author" CONTENT="Default">
<META NAME="date" CONTENT="08/01/2003">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>Exhibit 10.1</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:14pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:16pt; font-family:Times New Roman; font-size:14pt"><B>LaSalle Business Credit, LLC</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right><B>Member ABN AMRO Group</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman">135 South LaSalle Street</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman">Suite 425</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman">Chicago, Illinois 60603</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman">(312) 904-8490</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:252pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">July 31, 2003</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The Singing Machine Company, Inc.</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">6601 Lyons Road</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Suite A-7</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Coconut Creek, Florida 33071</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-14pt; text-indent:36pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Re:</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:72pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Thirteenth Amendment</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Gentlemen:</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:36pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The Singing Machine Company, Inc., a Delaware corporation (&#147;Borrower&#148;) and LaSalle Business Credit, LLC, a Delaware limited liability company (&#147;Lender&#148;) have entered into that certain Loan and Security Agreement dated April 26, 2001 (the &#147;Security Agreement&#148;). From time to time thereafter, Borrower and Bank may have executed various amendments (each an &#147;Amendment&#148; and collectively the &#147;Amendments&#148;) to the Security Agreement (the Security Agreement and the Amendments hereinafter are referred to, collectively, as the &#147;Agreement&#148;). Borrower and Lender now desire to further amend the Agreement as provided herein, subject to the terms and conditions hereinafter set forth.</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:36pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants and agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-14pt; padding-left:36pt; width:450pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">1.</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:36pt; text-indent:36pt; width:450pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The Agreement hereby is amended as follows:</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:36pt; width:450pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-14pt; text-indent:36pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">(a)</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:72pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Paragraph (1) of Exhibit A of the Agreement is deleted in its entirety and the following is substituted in its place:</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:36pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; width:378pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">(1)</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:108pt; width:378pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">LOANS: Subject to the terms and conditions of the Agreement and the Other Agreements, Lender shall, absent the occurrence of an Event of Default, advance an amount up to the sum of the following sublimits (the &#147;Loan Limit&#148;):</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-14pt; padding-left:144pt; text-indent:-36pt; width:342pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">(a)</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:144pt; width:342pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Up to seventy percent (70%), or such lesser percentage as determined by Lender in its sole discretion exercised in good faith, </P>
<p Style='page-break-before:always'><HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>The Singing Machine Company, Inc.</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>July 31, 2003</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Page 2</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:144pt; width:342pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:144pt; width:342pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">of the face amount (less maximum discounts, credits and allowances which may be taken by or granted to Account Debtors in connection therewith in the ordinary course of Borrower&#146;s business) of Borrower&#146;s Eligible Accounts; <U>plus</U></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-14pt; padding-left:144pt; text-indent:-36pt; width:342pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">(b)</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:144pt; width:342pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Subject to subparagraph (3)(a) of this Exhibit A, the lesser of: up to twenty-five percent (25%), or such lesser percentage as determined by Lender in its sole discretion exercised in good faith, of the lower of the cost of market value of Borrower&#146;s Eligible Inventory or Six Million and No/100 Dollars ($6,000,000.00) during the period of August 1, 2003 through August 20, 2003; provided, however, that said sublimit shall reduce by sixty percent (60%) of the cost of inventory sold after the first Two Million Five Hundred Thousand and No/100 Dollars ($2,500,000.00) in Borrower&#146;s cost of sales until said sublimit reaches zero; <U>plus</U></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-14pt; padding-left:144pt; text-indent:-36pt; width:342pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">(c)</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:144pt; width:342pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Subject to subparagraph (3)(a) of this Exhibit A, up to sixty percent (60%), or such lesser percentage as determined by Lender in its sole discretion exercised in good faith, against the face amount of commercial Letters of Credit issued or guaranteed by Lender for the purpose of purchasing Eligible inventory; provided, that such commercial Letters of Credit are in form and substance satisfactory to Lender or up to Three Million and No/100 Dollars ($3,000,000.00) during the period of August 1 2003 through August 20, 2003; <U>minus</U></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-14pt; padding-left:144pt; text-indent:-36pt; width:342pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">(d)</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:144pt; width:342pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Such reserves as Lender elects, in its sole discretion exercised in good faith, to establish from time to time;</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; padding-left:144pt; width:342pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">provided, that the Loan Limit shall in no event exceed Ten Million and No/100 Dollars ($10,000,000.00) during the period of August 1, 2003 through August 20, 2003, (the &#147;Maximum Loan Limit&#148;), except as such amount may be increased or, following the connection therewith in the ordinary course of Borrower&#146;s business) of Borrower&#146;s Eligible Accounts; <U>plus</U></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-14pt; text-indent:36pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">2.</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:72pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">This Amendment shall not become effective until fully executed by all parties hereto.</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:-14pt; text-indent:36pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">3.</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:72pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Except as expressly amended hereby and by any other supplemental documents or instruments executed by either party hereto in order to effectuate the transactions contemplated </P>
<p Style='page-break-before:always'><HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>The Singing Machine Company, Inc.</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>July 31, 2003</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Page 3</B></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">hereby, the Agreement and Exhibit A thereto hereby are ratified and confirmed by the parties hereto and remain in full force and effect in accordance with the terms thereof.</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:216pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">LASALLE BUSINESS CREDIT, LLC, A</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:216pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">DELAWARE LIMITED LIABILITY COMPANY</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:216pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">By&nbsp;&nbsp;&nbsp;<U>/s/ Casey Orlowsky</U></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; text-indent:216pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Title&nbsp;&nbsp;Vice President</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">ACKNOWLEDGED AND AGREED TO</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">this 31<SUP>st</SUP> day of July, 2003.</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The Singing Machine Company, Inc.</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">By <U>/s/ Yi Ping Chan</U></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Yi Ping Chan</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Title: Chief Operating Officer</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">By <U>/s/ April J. Green</U></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">April J. Green</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Title: Chief Financial Officer</P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:126pt; margin-bottom:0pt; width:486pt; font-family:Times New Roman; font-size:12pt"><BR></P>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
