Document:

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED FOR SALE, SOLD OR
TRANSFERRED UNLESS A REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS SHALL BE EFFECTIVE WITH RESPECT THERETO, OR AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS IS
AVAILABLE IN CONNECTION WITH SUCH OFFER, SALE OR TRANSFER.

                        WARRANT TO PURCHASE COMMON STOCK

                                       OF

                        THE SINGING MACHINE COMPANY, INC.

Issue Date:  February _21, 2006                                    Warrant No. 3

         THIS CERTIFIES that koncepts International Limited or any subsequent
holder hereof (the "Holder"), has the right to purchase from THE SINGING MACHINE
COMPANY, INC., a Delaware corporation (the "Company"), up to 1,250,000 fully
paid and nonassessable shares of the Company's common stock, par value $0.01 per
share (the "Common Stock"), subject to adjustment as provided herein, at a price
per share equal to the Exercise Price (as defined below), at any time beginning
on the date hereof (the "the "Issue Date") and ending at 6:00 p.m., eastern
time, on the date that is the Fourth anniversary of the Issue Date (the
"Expiration Date").

         1. Exercise.

         (a) Right to Exercise. The Holder shall have the right to exercise this
Warrant at any time and from time to time during the period beginning on the
Issue Date and ending on the Expiration Date as to all or any part of the shares
of Common Stock covered hereby (the "Warrant Shares").

         (b) Exercise Price. The "Exercise Price" for each Warrant Share
purchased by the Holder upon the exercise of this Warrant shall be equal to
$0.350, subject to adjustment for the events specified in Section 4 below;
provided, however that if required by law, until this Warrant, the Securities
Purchase Agreement between the Company and Holder dated as of the date hereof
(the "Securities Purchase Agreement") and the transactions contemplated herein
and therein are approved by the holders of a majority of the outstanding shares
of capital stock of the Company entitled to vote ("Shareholder Approval"), ,
other than as a result of adjustments for the events specified in Section 4(a)
below. Payment of the Exercise Price is made in cash or by certified or official
bank check payable to the order of the Company equal to the applicable aggregate
Exercise Price for the number of Common Shares specified in such Exercise Notice
(as defined below) (as such exercise number shall be adjusted to reflect any
adjustment in the total number of shares of Common Stock issuable to the Holder
per the terms of this Warrant).

<PAGE>

         (c) Exercise Notice. In order to exercise this Warrant, the Holder
shall send by facsimile transmission, at any time prior to 6:00 p.m., eastern
time, on the business day (which means any day other than a Saturday, a Sunday
or a day which commercial banks located in New York City are permitted by law to
close) on which the Holder wishes to effect such exercise (the "Exercise Date"),
to the Company an executed copy of the notice of exercise in the form attached
hereto as Exhibit A (the "Exercise Notice"), the original Warrant and the
Exercise Price, which shall not be required if the Exercise Notice indicates the
Holder's election to effect a cashless exercise. The Exercise Notice shall also
state the name or names (with address) in which the shares of Common Stock that
are issuable on such exercise shall be issued. In the case of a dispute as to
the calculation of the Exercise Price or the number of Warrant Shares issuable
hereunder (including, without limitation, the calculation of any adjustment
pursuant to Section 6 below), the Company shall promptly issue to the Holder the
number of Warrant Shares that are not disputed and shall submit the disputed
calculations to a certified public accounting firm of national recognition
(other than the Company's independent accountants), reasonably acceptable to
Holder, within two (2) business days following the date on which the Exercise
Notice is delivered to the Company. The Company shall cause such accountant to
calculate the Exercise Price and/or the number of Warrant Shares issuable
hereunder and to notify the Company and the Holder of the results in writing no
later than three (3) business days following the day on which such accountant
received the disputed calculations (the "Dispute Procedure"). Such accountant's
calculation shall be deemed conclusive absent manifest error. The fees of any
such accountant shall be borne by the party whose calculations were most at
variance with those of such accountant.

         (d) Limitations on Exercise. Notwithstanding anything to the contrary
contained herein, and only if required by law, until Shareholder Approval is
obtained, no holder of this Warrant shall be entitled to exercise this Warrant,
if after exercise such holder will, with the shares of Common Stock issued on
exercise and any other shares of the Company's Common Stock then held by such
holder, hold more than 19.99% of the outstanding Common Stock or voting power of
the Company on the date of such exercise.

         (e) Holder of Record. The Holder shall, for all purposes, be deemed to
have become the holder of record of the Warrant Shares specified in an Exercise
Notice on the Exercise Date specified therein, irrespective of the date of
delivery of such Warrant Shares. Except as specifically provided herein, nothing
in this Warrant shall be construed as conferring upon the Holder hereof any
rights as a stockholder of the Company prior to the Exercise Date.

         (f) Cancellation of Warrant. This Warrant shall be canceled upon its
exercise and, if this Warrant is exercised in part, the Company shall, at the
time that it delivers Warrant Shares to the Holder pursuant to such exercise as
provided herein, issue a new warrant, and deliver to the Holder a certificate
representing such new warrant, with terms identical in all respects to this
Warrant (except that such new warrant shall be exercisable into the number of
shares of Common Stock with respect to which this Warrant shall remain
unexercised); provided, however, that the Holder shall be entitled to exercise
all or any portion of such new warrant at any time following the time at which
this Warrant is exercised, regardless of whether the Company has actually issued
such new warrant or delivered to the Holder a certificate therefor.

                                       2
<PAGE>

         2. Delivery of Warrant Shares Upon Exercise. Upon receipt of an
Exercise Notice pursuant to Section 1 above, the Company shall: (a) no later
than the close of business on the later to occur of (i) the third (3rd) business
day following the Exercise Date set forth in such Exercise Notice and (ii) such
later date on which the Company shall have received payment of the Exercise
Price, and (b) with respect to Warrant Shares that are the subject of a Dispute
Procedure, the close of business on the third (3rd) business day following the
determination made pursuant to Section 1(b) (each of the dates specified in (A)
or (B) being referred to as a "Delivery Date"), issue and deliver or caused to
be delivered to the Holder the number of Warrant Shares as shall be determined
as provided herein. The Company shall effect delivery of Warrant Shares to the
Holder by, as long as the Transfer Agent participates in the Depository Trust
Company ("DTC") Fast Automated Securities Transfer program ("FAST"), crediting
the account of the Holder or its nominee at DTC (as specified in the applicable
Exercise Notice) with the number of Warrant Shares required to be delivered, no
later than the close of business on such Delivery Date. In the event that the
Transfer Agent is not a participant in FAST, or if the Warrant Shares are not
otherwise eligible for delivery through FAST, or if the Holder so specifies in
an Exercise Notice or otherwise in writing on or before the Exercise Date, the
Company shall effect delivery of Warrant Shares by delivering to the Holder or
its nominee physical certificates representing such Warrant Shares, no later
than the close of business on such Delivery Date.

         3. Failure to Deliver Warrant Shares.

         (a) In the event that the Company fails for any reason to deliver to
the Holder the number of Warrant Shares specified in the applicable Exercise
Notice on or before the Delivery Date therefor (an "Exercise Default"), and such
default continues for seven (7) business days following delivery of a written
notice of such default by the Holder to the Company, the Company shall pay to
the Holder payments ("Exercise Default Payments") in the amount of: (i) (N/365)
multiplied by (ii) the aggregate Exercise Price of the Warrant Shares which are
the subject of such Exercise Default multiplied by (iii) the lower of ten
percent (10%) and the maximum rate permitted by applicable law (the "Default
Interest Rate"), where "N" equals the number of days elapsed between the
original Delivery Date of such Warrant Shares and the date on which all of such
Warrant Shares are issued and delivered to the Holder. Cash amounts payable
hereunder shall be paid on or before the fifth (5th) business day of the
calendar month following the calendar month in which such amount has accrued.

         (b) In the event that the Holder has not received certificates
representing the Warrant Shares by the seventh (7th) business day following an
Exercise Default, the Holder may notify the Company in writing of its election
to revoke the Exercise Notice that is the subject of such default, in which
case, effective as of the date of such revocation notice, such Exercise Notice
shall be deemed rescinded and of no further force or effect.

                                       3
<PAGE>

         (c) Nothing herein shall limit the Holder's right to pursue actual
damages for the Company's failure to issue and deliver Warrant Shares on the
applicable Delivery Date (including, without limitation, damages relating to any
purchase of Common Stock by the Holder to make delivery on a sale effected in
anticipation of receiving Warrant Shares upon exercise, such damages to be in an
amount equal to: (a) the aggregate amount paid by the Holder for the Common
Stock so purchased minus (b) the aggregate amount of net proceeds, if any,
received by the Holder from the sale of the Warrant Shares issued by the Company
pursuant to such exercise), and the Holder shall have the right to pursue all
remedies available to it at law or in equity (including, without limitation, a
decree of specific performance and/or injunctive relief); provided, however,
that, in the event, following an Exercise Default, the Company delivers to the
Holder the Warrant Shares that are required to be issued by the Company pursuant
to such exercise, the Holder shall use commercially reasonable efforts to sell
such shares promptly following such delivery.

         4. Anti-Dilution Adjustments; Distributions; Other Events. The Exercise
Price and the number of Warrant Shares issuable hereunder shall be subject to
adjustment from time to time as provided in this Section 6. In the event that
any adjustment of the Exercise Price or the number of Warrant Shares as required
herein results in a fraction of a cent or fraction of a share, as applicable,
such Exercise Price or number of Warrant Shares shall be rounded up or down to
the nearest cent or share, as applicable.

         (a) Subdivision or Combination of Common Stock. If the Company, at any
time after the Issue Date, subdivides (by any stock split, stock dividend,
recapitalization, reorganization, reclassification or otherwise) its shares of
Common Stock into a greater number of shares, then after the date of record for
effecting such subdivision, the Exercise Price in effect immediately prior to
such subdivision will be proportionately reduced. Any adjustment made pursuant
to the foregoing sentence that results in a decrease in the Exercise Price shall
also effect a proportional increase in the number of Warrant Shares into which
this Warrant is exercisable. If the Company, at any time after the initial
issuance of this Warrant, combines (by reverse stock split, recapitalization,
reorganization, reclassification or otherwise) its shares of Common Stock into a
smaller number of shares, then, after the date of record for effecting such
combination, the Exercise Price in effect immediately prior to such combination
will be proportionally increased. Any adjustment made pursuant to the foregoing
sentence that results in an increase in the Exercise Price shall also effect a
proportional decrease in the number of Warrant Shares into which this Warrant is
exercisable.

         (b) Distributions. If the Company shall declare or make any
distribution of its assets (or rights to acquire its assets) to holders of
Common Stock as a partial liquidating dividend or otherwise (including any
dividend or distribution to the Company's stockholders in cash or shares (or
rights to acquire shares) of capital stock of a subsidiary) (a "Distribution"),
the Company shall deliver written notice of such Distribution (a "Distribution
Notice") to the Holder at least five (5) business days prior to the earlier to
occur of (i) the record date for determining stockholders entitled to such
Distribution (the "Record Date") and (ii) the date on which such Distribution is
made (the "Distribution Date"). The Holder shall be entitled to receive the same
amount and type of assets being distributed in such Distribution as though the
Holder were a holder on the Record Date therefor of a number of shares of Common
Stock into which this Warrant is exercisable as of such Record Date (such number
of shares to be determined at the Exercise Price then in effect and without
giving effect to any limitations on such exercise contained in this Warrant or
the Subscription Agreement).

                                       4
<PAGE>

         (c) Dilutive Issuances.

                  (i) Adjustment Upon Dilutive Issuance. If, at any time after
the Issue Date, the Company issues or sells, or in accordance with subparagraph
(ii) of this Section 4(c), is deemed to have issued or sold, any shares of
Common Stock for no consideration or for a consideration per share less than the
Exercise Price on the date of such issuance or sale (or deemed issuance or sale)
(a "Dilutive Issuance"), then effective immediately upon the Dilutive Issuance,
the Exercise Price shall be adjusted so as to equal an amount determined by
multiplying such Exercise Price by the following fraction:

                           N0 + N1
                           -------
                           N0 + N2

         where:

                           N0       = the number of shares of Common Stock
                                    outstanding immediately prior to the
                                    issuance, sale or deemed issuance or sale of
                                    such additional shares of Common Stock in
                                    such Dilutive Issuance without taking into
                                    account any shares of Common Stock issuable
                                    upon conversion, exchange or exercise of any
                                    securities or other instruments which are
                                    convertible into or exercisable or
                                    exchangeable for Common Stock ("Convertible
                                    Securities") or options, warrants or other
                                    rights to purchase or subscribe for Common
                                    Stock or Convertible Securities ("Purchase
                                    Rights");

                           N1       = the number of shares of Common Stock which
                                    the aggregate consideration, if any,
                                    received or receivable by the Company for
                                    the total number of such additional shares
                                    of Common Stock so issued, sold or deemed
                                    issued or sold in such Dilutive Issuance
                                    (which, in the case of a deemed issuance or
                                    sale, shall be calculated in accordance with
                                    subparagraph (ii) below) would purchase at
                                    the Exercise Price in effect immediately
                                    prior to such Dilutive Issuance; and

                           N2       = the number of such additional shares of
                                    Common Stock so issued, sold or deemed
                                    issued or sold in such Dilutive Issuance.

         Notwithstanding the foregoing, no adjustment shall be made pursuant
hereto if such adjustment would result in an increase in the Exercise Price.

                  (ii) Effect On Exercise Price Of Certain Events. For purposes
of determining the adjusted Exercise Price under subparagraph (i) of this
Section 4(c), the following will be applicable:

                                       5
<PAGE>

                           (A) Issuance Of Purchase Rights. If the Company
         issues or sells any Purchase Rights, whether or not immediately
         exercisable, and the price per share for which Common Stock is issuable
         upon the exercise of such Purchase Rights (and the price of any
         conversion of Convertible Securities, if applicable) is less than the
         Exercise Price in effect on the date of issuance or sale of such
         Purchase Rights, then the maximum total number of shares of Common
         Stock issuable upon the exercise of all such Purchase Rights (assuming
         full conversion, exercise or exchange of Convertible Securities, if
         applicable) shall, as of the date of the issuance or sale of such
         Purchase Rights, be deemed to have been issued and sold by the Company
         for such price per share. For purposes of the preceding sentence, the
         "price per share for which Common Stock is issuable upon the exercise
         of such Purchase Rights" shall be determined by dividing (x) the total
         amount, if any, received or receivable by the Company as consideration
         for the issuance or sale of all such Purchase Rights, plus the minimum
         aggregate amount of additional consideration, if any, payable to the
         Company upon the exercise of all such Purchase Rights, plus, in the
         case of Convertible Securities issuable upon the exercise of such
         Purchase Rights, the minimum aggregate amount of additional
         consideration payable upon the conversion, exercise or exchange of all
         such Convertible Securities (determined in accordance with the
         calculation method set forth in subparagraph (ii)(D) below), by (y) the
         maximum total number of shares of Common Stock issuable upon the
         exercise of all such Purchase Rights (assuming full conversion,
         exercise or exchange of Convertible Securities, if applicable). Except
         as provided in Section 6(c)(ii)(C) hereof, no further adjustment to the
         Exercise Price shall be made upon the actual issuance of such Common
         Stock upon the exercise of such Purchase Rights or upon the conversion,
         exercise or exchange of Convertible Securities issuable upon exercise
         of such Purchase Rights.

                           (B) Issuance Of Convertible Securities. If the
         Company issues or sells any Convertible Securities, whether or not
         immediately convertible, exercisable or exchangeable, and the price per
         share for which Common Stock is issuable upon such conversion, exercise
         or exchange is less than the Exercise Price in effect on the date of
         issuance or sale of such Convertible Securities, then the maximum total
         number of shares of Common Stock issuable upon the conversion, exercise
         or exchange of all such Convertible Securities shall, as of the date of
         the issuance or sale of such Convertible Securities, be deemed to have
         been issued and sold by the Company for such price per share. For the
         purposes of the immediately preceding sentence, the "price per share
         for which Common Stock is issuable upon such conversion, exercise or
         exchange" shall be determined by dividing (A) the total amount, if any,
         received or receivable by the Company as consideration for the issuance
         or sale of all such Convertible Securities, plus the minimum aggregate
         amount of additional consideration, if any, payable to the Company upon
         the conversion, exercise or exchange of all such Convertible Securities
         (determined in accordance with the calculation method set forth in
         subparagraph (ii)(D)), by (B) the maximum total number of shares of
         Common Stock issuable upon the exercise, conversion or exchange of all
         such Convertible Securities. Except as provided in Section 6(c)(ii)(C)
         hereof, no further adjustment to the Exercise Price shall be made upon
         the actual issuance of such Common Stock upon conversion, exercise or
         exchange of such Convertible Securities.

                           (C) Change In Option Price Or Conversion Rate. If
         there is a change at any time in (x) the purchase price or amount of
         additional consideration payable to the Company upon the exercise of
         any Purchase Rights; (y) the amount of additional consideration, if
         any, payable to the Company upon the conversion, exercise or exchange
         of any Convertible Securities the adjustment for which is not otherwise
         covered under Section 6(c)(ii)(B) above; or (z) the rate at which any
         Convertible Securities are convertible into or exercisable or
         exchangeable for Common Stock, then in any such case, the Exercise
         Price in effect at the time of such change shall be readjusted to the
         Exercise Price which would have been in effect at such time had such
         Purchase Rights or Convertible Securities still outstanding provided
         for such changed purchase price, additional consideration or changed
         conversion, exercise or exchange rate, as the case may be, at the time
         initially issued or sold.

                                       6
<PAGE>

                           (D) Calculation Of Consideration Received. If any
         Common Stock, Purchase Rights or Convertible Securities are issued or
         sold for cash, the consideration received therefor will be the amount
         received by the Company therefor, after deduction of all underwriting
         discounts or allowances in connection with such issuance, grant or
         sale. In case any Common Stock, Purchase Rights or Convertible
         Securities are issued or sold for a consideration part or all of which
         shall be other than cash, including in the case of a strategic or
         similar arrangement in which the other entity will provide services to
         the Company, purchase services from the Company or otherwise provide
         intangible consideration to the Company, the amount of the
         consideration other than cash received by the Company (including the
         net present value of the consideration expected by the Company for the
         provided or purchased services) shall be the fair market value of such
         consideration, except where such consideration consists of securities,
         in which case the amount of consideration received by the Company will
         be the average of the last sale prices thereof on the principal market
         for such securities during the period of ten Trading Days immediately
         preceding the date of receipt. In case any Common Stock, Purchase
         Rights or Convertible Securities are issued in connection with any
         merger or consolidation in which the Company is the surviving
         corporation, the amount of consideration therefor will be deemed to be
         the fair market value of such portion of the net assets and business of
         the non-surviving corporation as is attributable to such Common Stock,
         Purchase Rights or Convertible Securities, as the case may be. The
         independent members of the Company's Board of Directors shall calculate
         reasonably and in good faith, using standard commercial valuation
         methods appropriate for valuing such assets, the fair market value of
         any consideration other than cash or securities; provided, however,
         that if the Holder does not agree to such fair market value calculation
         within three business days after receipt thereof from the Company, then
         such fair market value shall be determined in good faith by an
         investment banker or other appropriate expert of national reputation
         selected by the Holder and reasonably acceptable to the Company, with
         the costs of such appraisal to be borne by the Company.

                  (iii) Exceptions To Adjustment Of Exercise Price.
Notwithstanding the foregoing, no adjustment to the Exercise Price shall be made
pursuant to this Section 6(c) upon the issuance of any Excluded Securities. For
purposes hereof, "Excluded Securities" means (1) securities purchased under the
Securities Purchaser Agreement; (2) securities issued upon conversion or
exercise of the Warrants (as defined in the Securities Purchase Agreement); (3)
shares of Common Stock issuable or issued to employees, consultants or directors
from time to time upon the exercise of options, in such case granted or to be
granted in the discretion of the Board of Directors pursuant to one or more
stock option plans or restricted stock plans in effect as of the Issue Date; (4)
shares of Common Stock issued in connection with any stock split, stock dividend
or recapitalization of the Company; (5) securities issued upon conversion of
outstanding shares of the Company's Convertible Preferred Stock outstanding as
of the date of this Warrant, if any, provided that the terms of such preferred
stock have not been amended since the date hereof; (6) securities issued upon
conversion or exercise of Debentures or Warrants issued under the Securities
Purchase Agreement, dated as of August 20., 2003 and (7) 1,820,600 shares
issuable upon exercise of currently outstanding warrants and options listed on
Schedule 1 hereto.

                                       7
<PAGE>

                  (iv) Notice Of Adjustments. Upon the occurrence of each
adjustment or readjustment of the Exercise Price pursuant to this Section 4
resulting in a change in the Exercise Price by more than one percent (1%), or
any change in the number or type of stock, securities and/or other property
issuable upon exercise of this Warrant, the Company, at its expense, shall
promptly compute such adjustment or readjustment or change and prepare and
furnish to the Holder a certificate setting forth such adjustment or
readjustment or change and showing in detail the facts upon which such
adjustment or readjustment or change is based. The Company shall, upon the
written request at any time of the Holder, furnish to the Holder a like
certificate setting forth: (i) such adjustment or readjustment or change, (ii)
the Exercise Price at the time in effect and (iii) the number of shares of
Common Stock and the amount, if any, of other securities or property which at
the time would be received upon exercise of this Warrant.

         (a) Major Transactions. In the event of a merger, consolidation,
business combination, tender offer, exchange of shares, recapitalization,
reorganization, redemption or other similar event, as a result of which shares
of Common Stock of the Company shall be changed into the same or a different
number of shares of the same or another class or classes of stock or securities
or other assets of the Company or another entity or the Company shall sell all
or substantially all of its assets (each of the foregoing being a "Major
Transaction"), the Company will give the Holder at least twenty (20) days
written notice prior to the closing of such Major Transaction in a manner that
does not constitute disclosure of material non-public information (unless
otherwise previously consented to in writing by the Holder), and: (i) the Holder
shall be permitted to exercise this Warrant in whole or in part at any time
prior to the record date for the receipt of such consideration and shall be
entitled to receive, for each share of Common Stock issuable to Holder for such
exercise, the same per share consideration payable to the other holders of
Common Stock in connection with such Major Transaction, and (ii) if and to the
extent that the Holder retains any portion of this Warrant following such record
date, the Company will cause the surviving or, in the event of a sale of assets,
purchasing entity, as a condition precedent to such Major Transaction, to assume
the obligations of the Company under this Warrant, with such adjustments to the
Exercise Price and the securities covered hereby as may be necessary in order to
preserve the economic benefits of this Warrant to the Holder.

         (b) Adjustments; Additional Shares, Securities or Assets. In the event
that at any time, as a result of an adjustment made pursuant to this Section 4,
the Holder of this Warrant shall, upon exercise of this Warrant, become entitled
to receive securities or assets (other than Common Stock) then, wherever
appropriate, all references herein to shares of Common Stock shall be deemed to
refer to and include such shares and/or other securities or assets; and
thereafter the number of such shares and/or other securities or assets shall be
subject to adjustment from time to time in a manner and upon terms as nearly
equivalent as practicable to the provisions of this Section 6.

                                       8
<PAGE>

         5.       Fractional Interests.

                  No fractional shares or scrip representing fractional shares
shall be issuable upon the exercise of this Warrant, but on exercise of this
Warrant, the Holder hereof may purchase only a whole number of shares of Common
Stock. If, on exercise of this Warrant, the Holder hereof would be entitled to a
fractional share of Common Stock or a right to acquire a fractional share of
Common Stock, the Company shall, in lieu of issuing any such fractional share,
pay to the Holder an amount in cash equal to the product resulting from
multiplying such fraction by the market price as of the Exercise Date.

         6.       Transfer of this Warrant.

                  The Holder may sell, transfer, assign, pledge or otherwise
dispose of this Warrant, in whole or in part, as long as such sale or other
disposition is made pursuant to an effective registration statement or an
exemption from the registration requirements of the Securities Act. Upon such
transfer or other disposition, the Holder shall deliver this Warrant to the
Company together with a written notice to the Company, substantially in the form
of the Transfer Notice attached hereto as Exhibit B (the "Transfer Notice"),
indicating the person or persons to whom this Warrant shall be transferred and,
if less than all of this Warrant is transferred, the number of Warrant Shares to
be covered by the part of this Warrant to be transferred to each such person.
Within three (3) business days of receiving a Transfer Notice and the original
of this Warrant, the Company shall deliver to the each transferee designated by
the Holder a Warrant or Warrants of like tenor and terms for the appropriate
number of Warrant Shares and, if less than all this Warrant is transferred,
shall deliver to the Holder a Warrant for the remaining number of Warrant
Shares.

         7.       Benefits of this Warrant.

                  This Warrant shall be for the sole and exclusive benefit of
the Holder of this Warrant and nothing in this Warrant shall be construed to
confer upon any person other than the Holder of this Warrant any legal or
equitable right, remedy or claim hereunder.

         8.       Loss, Theft, Destruction or Mutilation  of Warrant.

                  Upon receipt by the Company of evidence of the loss, theft,
destruction or mutilation of this Warrant, and (in the case of loss, theft or
destruction) of indemnity reasonably satisfactory to the Company, and upon
surrender of this Warrant, if mutilated, the Company shall execute and deliver a
new Warrant of like tenor and date.

         9.       Notice or Demands.

                  Any notice, demand or request required or permitted to be
given by the Company or the Holder pursuant to the terms of this Warrant shall
be in writing and shall be deemed delivered (i) when delivered personally or by
verifiable facsimile transmission, unless such delivery is made on a day that is
not a business day, in which case such delivery will be deemed to be made on the
next succeeding business day, (ii) on the next business day after timely
delivery to an overnight courier and (iii) on the business day actually received
if deposited in the U.S. mail (certified or registered mail, return receipt
requested, postage prepaid), addressed as follows:

                                       9
<PAGE>

                  If to the Company:

                  The Singing Machine Company, Inc.
                  6601 Lyons Road, Building A-7
                  Coconut Creek, FL 33073
                  Attn: Yi Ping Chan
                  Tel: (954) 596-1000
                  Fax: (954) 596-2000

                  with a copy (not constituting notice) to:

                  Sichenzia Ross Friedman Ference LLP
                  1065 Avenue of the Americas
                  New York, NY 10018
                  Attention: Darrin M. Ocasio, Esq.
                  Tel:  (212) 930-9700
                  Fax: (212) 930-9725

                  If to Holder:

                  At the address set forth below Holder's signature on the
                  Securities Purchase Agreement.

                  with a copy (not constituting notice) to:

                  Handal & Associates
                  1200 Third Avenue, Suite 1321
                  San Diego, CA 92101-4111
                  Attn:  Anton Handal, Esq.
                  Tel:  (619) 544-6400
                  Fax:  (619) 696-0323

         10. Attorney's Fees. In the event any litigation, arbitration,
mediation, or other proceeding ("Proceeding") is initiated by any party(ies)
against any other party(ies) to enforce, interpret or otherwise obtain judicial
or quasi-judicial relief in connection with this Agreement, the prevailing
party(ies) in such Proceeding shall be entitled to recover from the unsuccessful
party(ies) all costs, expenses, actual attorney's and expert witness fees,
relating to or arising out of: (i) such Proceeding (whether or not such
Proceeding proceeds to judgment), and (ii) any post-judgment or post-award
proceeding including, without limitation, one to enforce any judgment or award
resulting from any such Proceeding. Any such judgment or award shall contain a
specific provision for the recovery of all such subsequently incurred costs,
expenses, actual attorney and expert witness fees.

         11.      Applicable Law.

                  This Warrant is issued under and shall for all purposes be
governed by and construed in accordance with the laws of the State of New York
applicable to contracts made and to be performed entirely within the State of
New York.

                                       10
<PAGE>

         12.      Amendments.

                  No amendment, modification or other change to, or waiver of
any provision of, this Warrant may be made unless such amendment, modification
or change is set forth in writing and is signed by the Company and the Holder.

         13.      Entire Agreement.

         This Warrant, the Securities Purchase Agreement and the Registration
Rights Agreement, and the schedules and exhibits hereto and thereto, constitute
the entire agreement among the parties hereto with respect to the subject matter
hereof and thereof. There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein and therein. This
Warrant, the Securities Purchase Agreement and the Registration Rights Agreement
supersede all prior agreements and understandings among the parties hereto with
respect to the subject matter hereof and thereof.

         14.      Headings.

         The headings in this Warrant are for convenience of reference only and
shall not limit or otherwise affect the meaning hereof.

                           [Signature Page to Follow]

<PAGE>

         IN WITNESS WHEREOF, the Company has duly executed and delivered this
Warrant as of the Issue Date.

                                             THE SINGING MACHINE COMPANY, INC.

                                             By: /s/ Yi Ping Chan
                                                 -------------------------------
                                                 Yi Ping Chan
                                                 Interim Chief Executive Officer

<PAGE>

                              EXHIBIT A to WARRANT

                                 EXERCISE NOTICE

         The undersigned Holder hereby irrevocably exercises the right to
purchase of the shares of Common Stock ("Warrant Shares") of The Singing Machine
Company, Inc. evidenced by the attached Warrant (the "Warrant").

         The Holder elects to make payment of the full Exercise Price for such
shares at the price per share provided for in such Warrant, which is
$___________. Such payment takes the form of (check applicable box or boxes):

________          $__________ in lawful money of the United States; and/or

________          the cancellation of such portion of the attached Warrant as is
                  exercisable for a total of _______ shares of Common Stock
                  (using a Market Price of $_______ per share for purposes of
                  this calculation); and/or

________          the cancellation of such number of shares of Common Stock as
                  is necessary, in accordance with the formula set forth in
                  Section 1(c), to exercise this Warrant with respect to the
                  maximum number of shares of Common Stock purchasable pursuant
                  to the cashless exercise procedure set forth in Section 1(c).

Date: ______________________

-----------------------------------
     Name of Registered Holder

By:  _______________________________
     Name:
     Title:

<PAGE>

                              EXHIBIT B to WARRANT

                                 TRANSFER NOTICE

FOR VALUE RECEIVED, the undersigned Holder of the attached Warrant hereby sells,
assigns and transfers unto the person or persons named below the right to
purchase shares of the Common Stock of The Singing Machine Company, Inc.
evidenced by the attached Warrant.

Date: ______________________

-----------------------------------
     Name of Registered Holder

By:  _______________________________
     Name:
     Title:

Transferee Name and Address:

----------------------------

----------------------------

----------------------------

<PAGE>

                                   Schedule 1

                        Outstanding Options and Warrants

<TABLE>
<CAPTION>
Private Warrants                                              Issued      Vested     Expiration
                                                             --------     --------   ----------
<S>                                     <C>       <C>        <C>          <C>         <C>
   Roth Capital Partners LLP            4.025     103,896    9/8/2003     9/8/2003    9/7/2006
   Omicron Master Trust                 4.025     285,714    9/8/2003     9/8/2003    9/7/2006
   SF Capital Partners, Ltd.            4.025      57,143    9/8/2003     9/8/2003    9/7/2006
   Bristol Investment Fund, Ltd.        4.025      34,286    9/8/2003     9/8/2003    9/7/2006
   Ascend Offshore Fund, Ltd.           4.025      54,629    9/8/2003     9/8/2003    9/7/2006
   Ascend Partners LP                   4.025       6,651    9/8/2003     9/8/2003    9/7/2006
   Ascend Partners Sapient LP           4.025      18,720    9/8/2003     9/8/2003    9/7/2006
                                                      -
   Omicron Master Trust                  1.52      18,750    2/9/2004     2/9/2004    9/7/2006
   SF Capital Partners, Ltd.             1.52       3,750    2/9/2004     2/9/2004    9/7/2006
   Bristol Investment Fund, Ltd.         1.52       2,250    2/9/2004     2/9/2004    9/7/2006
   Ascend Offshore Fund, Ltd.            1.52       3,585    2/9/2004     2/9/2004    9/7/2006
   Ascend Partners LP                    1.52         437    2/9/2004     2/9/2004    9/7/2006
   Ascend Partners Sapient LP            1.52       1,229    2/9/2004     2/9/2004    9/7/2006
                                                  -------
Unexercised Warrants                              591,040
                                                  =======
</TABLE>

Option: Employee stock options as of February 21, 2006: 1,289,560 sharesThis promissory  note has not been registered  under the Securities Act of 1933,
as amended,  or registered or qualified under  applicable state securities laws.
Graphite  Technology  Group, Inc. is not required to give effect to any transfer
of this promissory note unless (1) there is an effective  registration statement
under  the  Securities  Act  with  respect  to this  promissory  note  and  this
promissory note is registered or qualified  under  applicable  state  securities
laws, or (2) the holder of the promissory  note provides to Graphite  Technology
Group, Inc. an opinion of counsel reasonably  acceptable to Graphite  Technology
Group,  Inc. to the effect that the transfer  may be made  without  registration
under the Securities Act and applicable state securities laws.

                              12 % PROMISSORY NOTE

$750,000                                                       December 26, 2005

      For value received, GRAPHITE TECHNOLOGY GROUP, INC., a Delaware
corporation ("Graphite"), hereby promises to pay to the order of BPK Resources,
Inc. (the "Holder") the amount of Seven Hundred and Fifty Thousand Dollars
($750,000) in accordance with the following terms:

      1. Payment of Amount Owed; Security. Graphite shall pay the Holder the
principal amount of this note and all accrued interest on or before March 31,
2006. This note shall be secured by all of the assets held by Graphite, as
evidenced by that certain Security Agreement by and between Graphite and Holder
dated the date hereof;

      2. Payment of Interest. Interest will accrue on the unpaid principal
amount of this note at an annual rate of 12%. Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

      3. Stock Options. In the event Graphite determines not to further pursue
the proposed business combination with the Holder, the Holder shall have the
option to purchase for $750,000 at any time prior to December 31, 2008 such
number of shares of Graphite's common stock as shall equal ten percent (10%) of
Graphite's then outstanding common stock calculated on a fully diluted basis
(including all outstanding options, warrants and other securities or rights
convertible or exchangeable into the common stock) as evidenced by that certain
Option Agreement by and between Graphite and Holder dated the date hereof. The
number of shares of stock of Graphite covered by this option, the option price
and other relevant provisions shall be appropriately adjusted in the event of a
stock dividend, recapitalization, forward stock split, reverse stock split or
other similar corporate transaction in order to prevent dilution or enlargement
of benefits intended to be made available hereby. In case Graphite issues any
shares of its common stock between the date hereof and the date of the exercise
of such option, or issues any option, warrant, convertible security or other
right to purchase or acquire its securities between the date hereof and the date
of the exercise of the option, then the option to purchase provided for in this
paragraph 3 shall be adjusted downward in price and upward in amount, on a
"full-ratchet" basis, based on the price of the securities so issued.

<PAGE>

      4. Representations and Negative Covenants. Graphite represents and
warrants to Holder that: (i) it has duly obtained all authorizations, consents,
rulings, approvals, licenses, franchises, permits and certificates by or of all
third parties to any existing agreements or instruments by which Graphite or any
of the properties or assets of Graphite is or may be bound, which are required
for the execution, delivery and performance of this Note, the Security
Agreement, or Option Agreement, and the consummation of the transactions
contemplated hereby or thereby, as applicable, and of or by all governmental
authorities and non-governmental administrative or regulatory agencies having
jurisdiction over Graphite, its assets or properties, this Note, the Security
Agreement or Option Agreement, the Pledged Collateral (as that term is defined
in the Pledge Agreement), which are required for the execution, delivery and
performance of this Note, the Security Agreement or Option Agreement and the
consummation of the transactions contemplated hereby or thereby, as applicable;
and (ii) neither the execution and delivery of this Note, the Security Agreement
or Option Agreement by Graphite nor the performance by Graphite of its
obligations hereunder or thereunder as applicable, will: (A) conflict with
Graphites's certificate of incorporation or bylaws; (B) violate any statute,
law, ordinance, rule or regulation, applicable to Graphite or any of the
properties or assets of Graphite; or (C) violate, breach, be in conflict with or
constitute a default (or an event which, with notice or lapse of time or both,
would constitute a default) under, or permit the termination of any provision
of, or result in the termination of, the acceleration of the maturity of, or the
acceleration of the performance of any obligation of Graphite, or result in the
creation or imposition of any lien upon any properties, assets or business of
Graphite under, any contract or any order, judgment or decree to which Graphite
is a party or by which it or any of its assets or properties is bound or
encumbered. Until the full outstanding principal amount and all accrued interest
due hereunder is paid in full, Graphite will not, without the prior written
consent of the Holder, merge with, or sell substantially all its assets to, any
individual or entity other than the Holder, sell any material amount of its
assets to any individual or entity, issue any shares of its capital stock or
options, warrants or other securities convertible or exchangeable into shares of
its capital stock, declare or pay any dividend, incur any debt other than trade
debt incurred in the ordinary course of business and consistent with past
practice or the contemplated $625,000 Commonwealth of Pennsylvania DCED
financing, or increase any salaries or bonuses payable to any of its officers or
key employees.

      5. Method of Payment. Graphite shall pay amounts due under this note by
wire transfer of immediately available funds to an account designated by the
Holder in a written notice to Graphite. All payments must be in such currency as
is then legal tender for payment of public and private debts in the United
States of America. All amounts paid will be applied first to accrued, unpaid
interest on this note and the balance, if any, will be applied to reducing the
principal amount of this note.

      6. Prepayment. Graphite may prepay this note in whole or in part at any
time without premium or penalty.

      7. Events of Default.

            The occurrence of one or more of the following events (an "Event of
Default") will cause Graphite to be in default under this note:

                  Graphite fails to timely make the payment due under section 1.
of this note or breaches any other obligation contained in this note;

                  Graphite breaches any of its negative covenants set forth in
section 4 of this note; or

<PAGE>

                  there occurs an Event of Insolvency (as hereinafter defined).

            As used in this note, an "Event of Insolvency" means any of the
following:

                  the initiation by Graphite of proceedings under the United
States Bankruptcy Code, or any other applicable U.S. federal or state law or any
applicable foreign law seeking an order for relief;

                  the consent of Graphite to the institution of bankruptcy or
insolvency proceedings against it;

                  the filing by Graphite of a petition seeking reorganization or
release under the Federal Bankruptcy Reform Act or any other applicable U.S.
federal or state law or applicable foreign law, or the consent by Graphite to
the filing of any such petition or to the appointment of a receiver, liquidator,
assignee, trustee, sequestrator (or other similar official) of Graphite or of
any substantial part of the property of Graphite;

                  the making by Graphite of an assignment for the benefit of
creditors; and

                  the entry of a decree or order by a court having jurisdiction
adjudging Graphite bankrupt or insolvent, or approving as properly filed a
petition seeking reorganization, arrangement, adjustment or composition of or in
respect of Graphite under the U.S. Bankruptcy Code or any other applicable U.S.
federal or state law or any applicable foreign law, or appointing a receiver,
liquidator, assignee, trustee, sequestrator (or other similar official) of
Graphite or of any substantial part of the property of Graphite, or ordering the
winding up or liquidation of the affairs of Graphite, and (A) Graphite consents
to that decree or order or (B) that decree or order remains unstayed and in
effect for more than 60 consecutive days.

      8. Acceleration. Upon occurrence of an Event of Default, the Holder may,
in the Holder's sole discretion, by notice to Graphite declare the entire unpaid
principal amount of this note, all interest accrued and unpaid thereon, and all
other amounts payable hereunder to be forthwith due and payable, whereupon this
note and all such other amounts will become immediately due and payable.

      9. Expenses. Graphite shall pay all reasonable expenses incurred by the
Holder in connection with collection and enforcement of this note, including
without limitation reasonable attorneys' fees and costs.

      10. Waiver of Presentment. Graphite hereby waives presentment, notice of
demand for payment, protest, notice of dishonor, and any other notice of any
kind with respect to this note.

      11. Waiver of Rights. Neither delay on the part of the Holder in
exercising any of the Holder's rights nor any partial or single exercise of any
of those rights constitutes a waiver thereof or of any other right, and no
waiver on the part of the Holder of any of the Holder's rights constitutes a
waiver of any other right.

      12. Amendment. This note may only be amended, waived, discharged, or
terminated by an instrument in writing signed by the party against which
enforcement of the amendment, waiver, discharge, or termination is sought.

      13. Successors and Assigns. This note is binding on Graphite and its
successors and assigns, and inures to the benefit of the Holder and the Holder's
heirs, executors, successors, and assigns.

<PAGE>

      14. Governing Law. The laws of the Commonwealth of Pennsylvania, without
giving effect to principles of conflict of laws, govern all matters arising
under this note, including without limitation all tort claims.

      15. THE FOLLOWING PARAGRAPH SETS FORTH A WARRANT OF AUTHORITY FOR AN
ATTORNEY TO CONFESS JUDGMENT AGAINST GRAPHITE. IN GRANTING THIS WARRANT OF
AUTHORITY TO CONFESS JUDGMENT AGAINST GRAPHITE, GRAPHITE HEREBY KNOWINGLY,
INTENTIONALLY AND VOLUNTARILY, AND ON THE ADVICE OF SEPARATE COUNSEL OF
GRAPHITE, UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS GRAPHITE HAS OR MAY HAVE TO
PRIOR NOTICE, EXCEPT AS OTHERWISE PROVIDED HEREIN, AND AN OPPORTUNITY FOR
HEARING UNDER THE RESPECTIVE CONSTITUTIONS AND LAWS OF THE UNITED STATES AND THE
COMMONWEALTH OF PENNSYLVANIA.

      GRAPHITE IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE
PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR
ELSEWHERE, TO APPEAR FOR GRAPHITE AT ANY TIME AFTER DEFAULT UNDER THIS NOTE IN
ANY ACTION BROUGHT AGAINST GRAPHITE ON THIS NOTE AT THE SUIT OF HOLDER, AS OF
SUCH TERM, AND IN THAT ACTION TO CONFESS OR ENTER JUDGMENT AGAINST GRAPHITE FOR
THE ENTIRE UNPAID PRINCIPAL OF THIS NOTE AND ALL OTHER SUMS PAID BY HOLDER TO OR
ON BEHALF OF GRAPHITE PURSUANT TO THE TERMS OF THIS NOTE, AND ALL INTEREST
ACCRUED ON THOSE AMOUNTS, TOGETHER WITH COSTS OF SUIT, ATTORNEYS' COMMISSION FOR
COLLECTION OF FIVE PERCENT (5%) OF THE TOTAL AMOUNT THEN DUE BY GRAPHITE TO
HOLDER, TOGETHER WITH INTEREST ON ANY JUDGMENT OBTAINED BY HOLDER AT THE RATE OF
INTEREST SPECIFIED IN THE NOTE AFTER DEFAULT, INCLUDING INTEREST AT THAT RATE
FROM AND AFTER ANY SHERIFF'S OR JUDICIAL SALE UNTIL ACTUAL PAYMENT IS MADE TO
HOLDER OF THE FULL AMOUNT DUE HOLDER; AND FOR SO DOING THIS NOTE OR A COPY OF
THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE A SUFFICIENT WARRANT. THE AUTHORITY
GRANTED IN THIS NOTE TO CONFESS JUDGMENT SHALL NOT BE EXHAUSTED BY ANY EXERCISE
OF IT BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN
FULL OF ALL AMOUNTS DUE UNDER THIS NOTE.

      Graphite is executing this note on the date stated at the top of this
note.

                                               GRAPHITE TECHNOLOGY GROUP, INC.

                                               By: /s/ James E. Olive
                                                  ------------------------------
                                                        James E. Olive
                                                        President

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