Common use of Payment of Loan Clause in Contracts

Payment of Loan. SMC will pay the Lender the total amount of Fifty thousand dollars US$50,000) plus interest payment by or before October 31, 2003. If the Singing Machine is unable to pay this amount in full on October 31, 2003, the Lender agrees that it will convert its loan and all accrued interest into equity of the Singing Machine. The conversion price will be equal to the average trading price of the Singing Machine's common stock during the last five trading days prior to August 1, 2003. In the event the average price of the Singing Machine's stock is below the Conversion Price on Maturity Date, the Conversion Price will be recalculated so that it equal the average of the high and low sales prices during the 5 trading days prior to Maturity Date. After the Lender has converted its loan into equity, the Lender agrees that the Singing Machine will not have any obligation to repay the $50,000 loan.

Payment of Loan. SMC SMG will pay the Lender lender the total amount of Fifty Four hundred thousand dollars (US$50,000400,000) plus interest payment by or before October 31, 2003. If the Singing Machine is unable to pay this amount in full on October 31, 2003, the Lender tender agrees that it will convert its loan and all accrued interest into equity of the Singing Machine. The conversion conversian price will be equal to the average trading price of the Singing Machine's common stock during the last five trading days prior to August 1, 2003. In the event the average price of the Singing Machine's stock is below the Conversion Price on Maturity Date, the Conversion Price will be recalculated so that it equal equals the average of the high and low sales prices during the 5 trading days prior to Maturity Date. After the Lender has converted its loan into equity, the Lender agrees that the Singing Singling Machine will not have any obligation to repay the $50,000 400,000 loan.

Payment of Loan. SMC SMG will pay the Lender lender the total amount of Fifty Three hundred and fifty thousand dollars (US$50,000350,000) plus interest payment by or before October 31, 2003. If the Singing Machine is unable to pay this amount in full on October 31, 2003, the Lender tender agrees that it will convert its loan and all accrued interest into equity of the Singing Machine. The conversion conversian price will be equal to the average trading price of the Singing Machine's common stock during the last five trading days prior to August 1, 2003. In the event the average price of the Singing Machine's stock is below the Conversion Price on Maturity Date, the Conversion Price will be recalculated so that it equal equals the average of the high and low sales prices during the 5 trading days prior to Maturity Date. After the Lender has converted its loan into equity, the Lender agrees that the Singing Singling Machine will not have any obligation to repay the $50,000 350,000 loan.

Payment of Loan. SMC SMG will pay the Lender lender the total amount of Fifty Two hundred thousand dollars (US$50,000200,000) plus interest payment by or before October 31, 2003. If the Singing Machine is unable to pay this amount in full on October 31, 2003, the Lender tender agrees that it will convert its loan and all accrued interest into equity of the Singing Machine. The conversion conversian price will be equal to the average trading price of the Singing Machine's common stock during the last five trading days prior to August 1, 2003. In the event the average price of the Singing Machine's stock is below the Conversion Price on Maturity Date, the Conversion Price will be recalculated so that it equal equals the average of the high and low sales prices during the 5 trading days prior to Maturity Date. After the Lender has converted its loan into equity, the Lender agrees that the Singing Singling Machine will not have any obligation to repay the $50,000 200,000 loan.