Document:

Exhibit 10.1

LASALLE BUSINESS CREDIT, LLC
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                                                           MEMBER ABN AMRO GROUP
135 South LaSalle Street
Suite 425
Chicago, Illinois 60603                         May 30, 2003
(312) 904-8490

The Singing Machine Company, Inc.
6601 Lyons Road
Suite A-7
Coconut Creek, Florida 33073

         Re: ELEVENTH AMENDMENT

Gentlemen:

         The Singing Machine Company, Inc., a Delaware corporation ("BORROWER")
and LaSalle Business Credit, LLC, a Delaware limited liability company
("LENDER") have entered into that certain Loan and Security Agreement dated
April 26, 2001 (the "Security Agreement). From time to time thereafter,
Borrower and Bank may have executed various amendments (each an "Amendment" and
collectively the "Amendments") to the Security Agreement (the Security Agreement
and the Amendments hereinafter are referred to, collectively;, as the
"Agreement"). Borrower and Lender now desire to further amend the Agreement as
provided herein, subject to the terms and conditions hereinafter set forth.

         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:

         1.       The Agreement hereby is amended as follows:

         (a)      Paragraph (1) of Exhibit A of the Agreement is deleted in its
                  entirety and the following is substituted in its place:

                  (1)      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 "Loan Limit"):

                           (a)      Up to seventy percent (70%), or such lesser
                                    percentage as determined by Lender in its
                                    sole discretion exercised in good faith, of
                                    the face amount (less maximum discounts,
                                    credits and allowances which may be taken by
                                    or granted to Account Debtors in

<PAGE>

LASALLE BUSINESS CREDIT, LLC
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                                                           MEMBER ABN AMRO GROUP

THE SINGING MACHINE COMPANY, INC.
May 30, 2003
Page 2

                                    connection therewith in the ordinary course
                                    of Borrower's business) of Borrower's
                                    Eligible Accounts; plus

                           (b)      Subject to subparagraph (3)(a) of this
                                    Exhibit A, the lesser of: up to ten percent
                                    (10%), or such lesser percentage as
                                    determined by Lender in its sole discretion
                                    exercised in good faith, of the lower of the
                                    cost or market value of Borrower's Eligible
                                    Inventory or Two Million and No/100 dollars
                                    ($2,000,000.00) during the period of May 31,
                                    2003 through June 30, 2003; plus

                           (C)      "INTENTIONALLY OMITTED"; minus

                           (d)      Such reserves as tender elects, in its sole
                                    discretion exercised in good faith, to
                                    establish from time to TIME, including
                                    without limitation, (i) a seasonal dilution
                                    reserve in the amount of One Million and
                                    No/100 Dollars ($1,000,000.00) against
                                    Borrower's "Eligible Accounts" during the
                                    period of May 31, 2003 until June 30, 2003,
                                    and (ii) to the extent that the ratio of
                                    Free on Board sales to domestic sales
                                    increases, Lender in its sole discretion may
                                    create a reserve to account for the
                                    additional dilution;

                                    provided, that the Loan Limit shall in no
                                    event exceed Ten Million and No/100 Dollars
                                    ($10,000,000.00) during the period of May
                                    31, 2003 through June 30, 2003, (the
                                    "Maximum Loan Limit"), except as such amount
                                    may be increased or; following the
                                    occurrence of an Event of Default, decreased
                                    by Lender, in its sole discretion, exercised
                                    in good faith, from time to time.

         (b)      Paragraph (5)(c) of Exhibit A of the Agreement is deleted in
                  its entirety and the following is substituted in its place:

         (c)      ONE-TIME AMENDMENT FEE: Borrower shall pay to Bank a one-time
                  amendment fee of Ten Thousand

<PAGE>

LASALLE BUSINESS CREDIT, LLC
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                                                           MEMBER ABN AMRO GROUP
The Singing Machine Company, Inc.
May 30, 2003
Page 3

                  and No/100 Dollars (10,000.00), which fee shall be deemed
                  fully earned on the date of this Amendment and payable on or
                  before June 30, 2003.

         2.       This Amendment shall not become effective until fully executed
                  by all parties hereto,

         3.       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
                  hereby: the Agreement and Exhibit A thereto hereby are
                  ratified and confirmed by the parties hereto and remain ire
                  full force and effect in accordance with the terms thereof.

                                         LASALLE BUSINESS CREDIT, LLC, A
                                         DELAWARE LIMITED LIABILITY COMPANY

                                         By /s/ Casey Orlowski
                                            ---------------------------------
                                                Casey Orlowski
                                         Title  Vice President

ACKNOWLEDGED AND AGREED TO this 30th day of May, 2003.

THE SINGING MACHINE COMPANY, INC.

By /s/ Edward Steele
   --------------------------
       EDWARD STEELE

Title CHIEF EXECUTIVE OFFICER

/s/ April Green
    CFO<PAGE>

                               FORM OF LOCK-UP AGREEMENT

                                                               February  , 2003

PAULSON INVESTMENT COMPANY, INC.
As Representative of the several
Underwriters named in Schedule I to
the Underwriting Agreement referred to below
811 SW Front Avenue
Portland, Oregon 97204

                Re: Q Comm International, Inc. - Public Offering
                    --------------------------------------------

Ladies and Gentlemen:

                  The undersigned understands that you, as Representative of the
several Underwriters, propose to enter into an Underwriting Agreement (the
"Underwriting Agreement") with Q Comm International, Inc., a Utah corporation
(the "Company"), providing for the public offering (the "Public Offering") by
the several Underwriters named in Schedule I to the Underwriting Agreement (the
"Underwriters"), of Units ("Units"), each Unit consisting of two shares of
Common Stock, par value $0.001, of the Company ("Common Stock") and one Common
Stock purchase warrant, all as more fully described in the Prospectus (defined
below.)

                  In consideration of the Underwriters' agreement to purchase
and make the Public Offering of the Units, and for other good and valuable
consideration receipt of which is hereby acknowledged, the undersigned hereby
agrees that, without the prior written consent of Paulson Investment Company,
Inc. on behalf of the Underwriters, the undersigned will not, during the period
ending six months after the date of the prospectus relating to the Public
Offering (the "Prospectus"), (1) offer, pledge, announce the intention to sell,
sell, contract to sell, sell any option or contract to purchase, purchase any
option or contract to sell, grant any option, right or warrant to purchase, or
otherwise transfer or dispose of, directly or indirectly, any shares of Common
Stock, or any securities of the Company that are substantially similar to the
Common Stock, or any securities convertible into or exercisable or exchangeable
for Common Stock (including, but not limited to, Common Stock which may be
deemed to be beneficially owned by the undersigned in accordance with the rules
and regulations of the Securities and Exchange Commission and securities which
may be issued upon exercise of a stock option or warrant) or (2) enter into any
swap, option, future, forward or other agreement that transfers, in whole or in
part, any of the economic consequences of ownership of the Common Stock or any
securities of the Company which are substantially similar to the Common Stock,
including, but not limited to, any security convertible into or exercisable or
exchangeable for Common Stock, whether any such transaction described in clause
(1) or (2) above is to be settled by delivery of Common Stock or such other
securities, in cash or otherwise. In addition, the undersigned agrees that,
without the prior written consent of Paulson Investment Company, Inc. on behalf
of the Underwriters, it will not, during the period ending one year after the
date of the Prospectus, make any demand for or exercise any right with respect
to, the registration of any shares of Common Stock or any substantially similar
securities of the Company, including but not limited to, any security
convertible into or exercisable or exchangeable for Common Stock.
<PAGE>

                  The undersigned represents and warrants that it is not a party
to any agreement or understanding that would cause a breach of this Lock-Up
Agreement if it were entered into during the period in which the restrictions
set forth herein are effective.

                  In furtherance of the foregoing, the Company and any duly
appointed transfer agent for the registration or transfer of the securities
described herein are hereby authorized to decline to make any transfer of
securities if such transfer would constitute a violation or breach of this
Lock-Up Agreement.

                  The undersigned hereby represents and warrants that the
undersigned has full power and authority to enter into this Lock-up Agreement.
All authority herein conferred or agreed to be conferred and any obligations of
the undersigned shall be binding upon the successors, assigns, heirs or personal
representatives of the undersigned.

                  The undersigned understands that, if the Underwriting
Agreement does not become effective, on or prior to September 30, 2003, or if
the Underwriting Agreement (other than the provisions thereof which survive
termination) shall terminate or be terminated prior to payment for and delivery
of the Common Stock to be sold thereunder, the undersigned shall be released
from all obligations under this Lock-Up Agreement.

                  The undersigned understands that the Underwriters are entering
into the Underwriting Agreement and proceeding with the Public Offering in
reliance upon this Lock-Up Agreement.

<PAGE>

                  THIS LOCK-UP AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE
CONFLICT OF LAWS PRINCIPLES THEREOF.

                                       Very truly yours,

                                       By:
                                           ----------------------------------
                                           Name:
                                           Title:

Accepted as of the date first set forth above:

PAULSON INVESTMENT COMPANY, INC.

     Acting severally on behalf of themselves and the several
     Underwriters to be named in Schedule I to the
     Underwriting Agreement

By:
     ----------------------------
     Name:
     Title:

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