Document:

Exhibit 10.5

[LOGO]
                   AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION

                                STANDARD SUBLEASE
                                  MULTI-TENANT

1.       Basic Provisions ("Basic Provisions").

         1.1 Parties: This Sublease ("Sublease"), dated for reference purposes
only May 28, 2002, is made by and between The Singing Machine Co., Inc., A
Florida Corporation ("Sublessor") and Busung America Corp., a California
Corporation ("Sublessee"), (collectively the "Parties", or individually a
"Party").

         1.2(a) Premises: That certain portion of the Project (as defined
below), known as 967 East Sandhill Avenue, Carson, California 90246, consisting
of approximately 22,950 square feet ("Premises"). The Premises are located at:
967 East Sandhill Avenue, in the City of Carson, County of Los Angeles, State of
California, with zip code 90746. In addition to Lessee's rights to use and
occupy the Premises as hereinafter specified, Lessee shall have nonexclusive
rights to the Common Areas (as defined below) as hereinafter specified, but
shall not have any rights to the roof, the exterior walls, or the utility
raceways of the building containing the Premises ("Building") or to any other
buildings in the Project. The Premises, the Building, the Common Areas, the land
upon which they are located, along with all other buildings and improvements
thereon, are herein collectively referred to as the "Project."

         1.2(b) Parking: 30 unreserved and -0- reserved vehicle parking spaces.

         1.3 Term: 1 years and 8 months commencing June 1, 2002 ("Commencement
Date") and ending January 31, 2004 ("Expiration Date").

         1.4 Early Possession: ("Early Possession Date").

         1.5 Base Rent: $12,393.00 per month ("Base Rent"), payable on the first
(1st) day of each month commencing June 1, 2002.

[ ]      If this box is checked, there are provisions in this Lease for the
Base Rent to be adjusted.

         1.6 Lessee's Share of Operating Expenses: fifty percent (50%)
("Lessee's Share").

         1.7 Base Rent and Other Monies Paid Upon Execution:

                  (a) Base Rent: $12,393.00 for the period July 2002.

                  (b) Security Deposit: $24,786.00 ("Security Deposit").

                  (c) Other: $            for                .

                  (d) Total Due Upon Execution of this Lease: $37,179.00.

         1.8 Agreed Use: warehousing and distribution of restaurant equipment,
primarily refrigerators.

         1.9 Real Estate Brokers:

         (a) Representation: The following real estate brokers (the "Brokers")
and brokerage relationships exist in this transaction (check applicable boxes):

[X]      Lee & Associates Los Angeles South Bay, Inc. represents Sublessor
exclusively ("Lessor's Broker");

         [X] Coldwell Banker Commercial, JM Properties represents Subleasee
exclusively ("Lessee's Broker"); or

[ ]      ______________ represents both Sublessor and Sublessee ("Dual Agency").

         (b) Payment to Brokers: Upon execution and delivery of this Sublease by
both Parties, Sublessor shall pay to the Brokers the brokerage fee agreed to in
a separate written agreement (or if there is no such agreement, the sum of % of
the total Base Rent for the brokerage services rendered by the Brokers).

         1.10 Guarantor. The obligations of the Subleassee under this Sublease
shall be guaranteed by ("Guarantor").

         1.11 Attachments. Attached hereto are the following, all of which
constitute a part of this Sublease:

[ ]      An Addendum consisting of Paragraphs       through      :

[ ]      a plot plan depicting the Premises and/or Project;

[ ]      a current set of the Rules and Regulations;

[ ]      a Work Letter;

[ ]      a copy of the Master Lease;

[ ]      other (specify):

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2.       Premises.

         2.1 Letting. Sublessor hereby subleasses to Sublessee, and Sublessee
hereby subleases from Sublessor, the Premises, for the term, at the rental, and
upon all of the terms, covenants and conditions set forth in this Sublease.
Unless otherwise provided herein, any statement of size set forth in this
Sublease, or that may have been used in calculating Rent, is an approximation
which the Parties agree is reasonable and any payments based thereon are not
subject to revision whether or not the actual size is more or less. Note:
Subleassee is advised to verify the actual size prior to executing this
Sublease.

         2.2 Condition. Sublessor shall deliver the Premises to Sublessee broom
clean and free of debris on the Commencement Date or the Early Possession Date,
whichever first occurs ("Start Date"), and warrants that the existing
electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air
conditioning systems ("HVAC"), and any items which the Lessor is obligated to
construct pursuant to the Work Letter attached hereto, if any, other than those
constructed by Lessee, shall be in good operating condition on said date. If a
noncompliance with such warranty exists as of the Start Date, or if one of such
systems or elements should malfunction or fail within the appropriate warranty
period, Sublessor shall, as Sublessor's sole obligation with respect to such
matter, except as otherwise provided in this Sublease, promptly after receipt of
written notice from Subleassee setting forth with specificity the nature and
extent of such noncompliance, malfunction or failure, rectify same at
Sublessor's expense. The warranty periods shall be as follows: (i) 6 months as
to the HVAC systems, and (ii) 30 days as to the remaining systems and other
elements. If Sublessee does not give Sublessor the required notice within the
appropriate warranty period, correction of any such noncompliance, malfunction
or failure shall be the obligation of Sublessee at Sublessee's sole cost and
expense.

         2.3 Compliance. Sublessor warrants that any improvements, alterations
or utility installations made or installed by or on behalf of Sublessor to or on
the Premises comply with all applicable covenants or restrictions of record and
applicable building codes, regulations and ordinances ("Applicable
Requirements") in effect on the date that they were made or installed. Sublessor
makes no warranty as to the use to which Sublessee will put the Premises or to
modifications which may be required by the Americans with Disabilities Act or
any similar laws as a result of Sublessee's use. NOTE: Sublessee is responsible
for determining whether or not the zoning and other applicable Requirements are
appropriate for Sublessee's intended use, and acknowledges that past uses of the
Premises may no longer be allowed. If the Premises do not comply with said
warranty, Sublessor shall, except as otherwise provided, promptly after receipt
of written notice from Sublessee setting forth with specificity the nature and
extent of such noncompliance, rectify the same.

         2.4 Acknowledgements. Sublessee acknowledges that: (a) it has been
advised by Sublessor and/or Brokers to satisfy itself with respect to the
condition of the Premises (including but not limited to the electrical, HVAC and
fire sprinkler systems, security, environmental respects, and compliance with
Applicable Requirements and the Americans with Disabilities Act, and their
suitability for Sublessee's intended use, (b) Sublessee has made such
investigation as it deems necessary with reference to such matters and assumes
all responsibility therefor as the same relate to its occupancy of the Premises,
and (c) neither Sublessor, Sublessor's agents, nor Brokers have made any oral or
written representations or warranties with respect to said matters other than as
set forth in this Sublease. In addition, Sublessor acknowledges that: (i)
Brokers have made no representations, promises or warranties concerning
Sublessee's ability to honor the Sublease or suitability to occupy the Premises,
and (iii) it is Sublessor's sole responsibility to investigate the financial
capability and/or suitability of all proposed tenants.

         2.5 Americans with Disabilities Act. In the event that as a result of
Sublessee's use, or intended use, of the Premises the Americans with
Disabilities Act or any similar law requires modifications or the construction
or installation of improvements in or to the Premises, Building, Project and/or
Common Areas, the Parties agree that such modifications, construction or
improvements shall be made at: [ ] Sublessor's expense [ ] Sublessee's expense.

         2.6 Vehicle Parking. Sublessee shall be entitled to use the number of
Unreserved Parking Spaces and Reserved Parking Spaces specified in Paragraph
1.2(b) on those portions of the Common Areas designated from time to time for
parking. Sublessee shall not use more parking spaces than said number. Said
parking spaces shall be used for parking by vehicles no larger than full size
passenger automobiles or pickup trucks, herein called "Permitted Size Vehicles."
Sublessor may regulate the loading and unloading of vehicles by adopting Rules
and Regulations as provided in Paragraph 2.9. No vehicles other than Permitted
Size Vehicles may be parked in the Common Area without the prior written
permission of Sublessor.

                  (a) Sublessee shall not permit or allow any vehicles that
belong to or are controlled by Sublessee or Sublessee's employees, suppliers,
shippers, customers, contractors or invitees to be loaded, unloaded, or parked
in areas other than those designated by Sublessor and such activities.

                  (b) Sublessee shall not service or store any vehicles in the
Common Areas.

                  (c) If Sublessee permits or allows any of the prohibited
activities described in this Paragraph 2.6, then Sublessor shall have the right,
without notice, in addition to such other rights and remedies that it may have,
to remove or tow away the vehicle involved and charge the cost to Sublessee,
which cost shall be immediately payable upon demand by Sublessor.

         2.7 Common Areas - Definition. The term "Common Areas" is defined as
all areas and facilities outside the Premises and within the exterior boundary
line of the Project and interior utility raceways and installations within the
Premises that are provided and designated by the Sublessor from time to time for
the general nonexclusive use of Sublessor, Sublessee and other tenants of the
Project and their respective employees, suppliers, shippers, customers,
contractors and invitees, including parking areas, loading and unloading areas,
trash areas, roadways, walkways, driveways and landscaped areas.

         2.8 Common Areas - Sublessee's Rights. Sublessor grants to Sublessee,
for the benefit of Sublessee and its employees, suppliers, shippers,
contractors, customers and invitees, during the term of this Sublease, the
nonexclusive right to use, in common with others entitled to such use, the
Common Areas as they exist from time to time, subject to any rights, powers, and
privileges reserved by Sublessor under the terms hereof or under the terms of
any rules and regulations or restrictions governing the use of the Project.
Under no circumstances shall the right herein granted to use the Common Areas be
deemed to include the right to store any property, temporarily or permanently.
In the Common Areas. Any such storage shall be permitted only by the prior
written consent of Sublessor or Sublessor's designated agent, which consent may
be revoked at any time. In the event that any unauthorized storage shall occur
then Sublessor shall have the right, without notice, in addition to such other
rights and remedies that it may have, to remove the property and charge the cost
to Sublessee, which cost shall be immediately payable upon demand by Sublessor.

         2.9 Common Areas - rules and Regulations. Sublessor or such other
person(s) as Sublessor may appoint shall have the exclusive control and
management of the Common Areas and shall have the right from time to time, to
establish, modify, amend and enforce reasonable rules and regulations ("Rules
and Regulations") for the management, safety, care, and cleanliness of the
grounds, the parking and unloading of vehicles and the preservation of good
order, as well as for the convenience of other occupants or tenants of the
Building and the Project and their invitees. Sublessee agrees to abide by and
conform to all such Rules and Regulations, and to cause its employees,
suppliers, shippers, customers, contractors and invitees to so abide and
conform. Sublessor shall not be responsible to Sublessee for the noncompliance
with said Rules and Regulations by other tenants of the Project.

         2.10 Common Areas - Changes. Sublessor shall have the right, in
Sublessor's sole discretion, from timeto time:

                  (a) To make changes to the Common Areas, including, without
limitation changes in the location, size, shape and number of driveways,
entrances, parking spaces, parking areas, loading and unloading areas, ingress,
egress, direction of traffic, landscaped areas, walkways and utility raceways;

                  (b) To close temporarily any of the Common Areas for
maintenance purposes so long as reasonable access to the Premises remains
available:

                  (c) To add additional buildings and improvements to the Common
Areas;

                  (d) To use the Common Areas while engaged in making additional
improvements, repairs or alterations to the Project; and

                  (e) To do and perform such other acts and make such other
changes in, to or with respect to the Common Areas and Project as Sublessor may,
in the exercise of sound business judgment, deem to be appropriate.

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3.       Possession.

         3.1 Early Possession- If Sublessee totally or partially occupies the
Premises prior to the Commencement Date, the obligation to pay Base Rent shall
be abated for the period of such early possession. All other terms of this
Sublease (Including but not limited to the obligations to pay Sublessee's Share
of Common Area Operating Expenses, Real Property Taxes and insurance premiums
and to maintain the Premises) shall, however. be in effect during such period.
Any such early possession shall not affect the Expiration Date.

         3.2 Delay in Commencement. Sublessor agrees to use its best
commercially reasonable efforts to deliver possession of the Premises by the
Commencement Date. If, despite said efforts, Sublessor is unable to deliver
possession as agreed, the rights and obligations of Sublessor and Sublessee
shall be as set forth in Paragraph 3.3 of the Master Lease (as modified by
Paragraph 7.3 of this Sublease).

         3.4 Sublessee Compliance. Sublessor shall not be required to tender
possession of the Premises to Sublessee until Sublessee complies with its
obligation to provide evidence of insurance. Pending delivery of such evidence,
Sublessee shall be required to perform all of its obligations under this
Sublease from and after the Start Date, including the payment of Rent,
notwithstanding Sublessors election to withhold possession pending receipt of
such evidence of insurance. Further, if Sublessee Is required to perform any
other conditions prior to or concurrent with the Start Date, the Start Date
shall occur but Sublessor may elect to withhold possession until such conditions
are satisfied.

4.       Rent and Other Charges.

         4.1 Rent Defined. All monetary obligations of Sublessee to Sublessor
under the terms of this Sublease (except for the Security Deposit) are deemed to
be rent ("Rent"). Rent shall be payable in lawful money of the United States to
Sublessor at the address stated herein or to such other persons or at such other
places as Sublessor may designate in writing.

         4.2 Common Area Operating Expenses. Sublessee shall pay during the
term hereof, in addition to the Base Rent, Sublessee's Share of all Common Area
Operating Expenses, as hereinafter defined, during each calendar year of the
term of this Sublease, in accordance with the following provisions:

                  (a) "Common Area Operating Expenses" are defined, for purposes
of this Sublease, as all costs incurred by Sublessor relating to the operation
of the Project, including, but not limited to, the following:

                           (i) The operation, repair and maintenance, in neat,
clean. good order and condition, but not the replacement (see subparagraph (e)),
of the following:

                                    (aa) The Common Areas and Common Area
improvements, including parking areas, loading and unloading areas, trash areas,
roadways, parkways, walkways, driveways, landscaped areas, bumpers, irrigation
systems, Common area lighting facilities, fences and gates, elevators, roofs,
and roof drainage systems.

                                    (bb) Exterior signs and any tenant
directories.

                                    (cc) Any fire sprinkler systems.

                           (ii) The cost of water, gas, electricity and
telephone to service the Common Areas and any utilities not separately metered.

                           (iii) Trash disposal, pest control services, property
management, security services, and the costs of any environmental inspections.

                           (iv) Reserves set aside for maintenance and repair of
Common Areas.

                           (v) Real Property Taxes.

                           (vi) Insurance premiums.

                           (vii) Any deductible portion of an insured loss
concerning the Building or the Common Areas,

                  (b) The inclusion of the improvements, facilities and services
set forth in Subparagraph 4.2(a) shall not be deemed to impose an obligation
upon Sublessor to either have said improvements or facilities or to provide
those services unless Sublessor already provides the services, or Sublessor has
agreed elsewhere in this Sublease to provide the same or some of them.

                  (c) Sublessee's Share of Common Area Operating Expenses shall
be payable by Sublessee within 10 days after a reasonably detailed statement of
actual expenses is presented to Sublessee. At Sublessor's option, however, an
amount may be estimated by Sublessor from time to time of Sublessee's Share of
annual Common Area Operating Expenses and the same shall be payable monthly or
quarterly, as Sublessor shall designate, during each 12 month period of the
Sublease term, on the same day as the Base Rent is due hereunder. Sublessor
shall deliver to Sublessee within 60 days after the expiration of each calendar
year a reasonably detailed statement showing Sublessee's Share of the actual
Common Area Operating Expenses incurred during the preceding year. If
Sublessee's payments under this Paragraph 4.2(c) during the preceding year
exceed Sublessee's Share as indicated on such statement, Sublessor shall credit
the amount of such overpayment against Sublessee's Share of Common Area
Operating Expenses next becoming due, If Sublessee's payments under this
Paragraph 4.2(c) during the preceding year were less than Sublessee's Share as
indicated on such statement, Sublessee shall pay to Sublessor the amount of the
deficiency within 10 days after delivery by Sublessor to Sublessee of the
statement.

         4.3 Utilities. Sublessee shall pay for all water, gas, heat, light,
power, telephone, trash disposal and other utilities and services supplied to
the Premises, together with any taxes thereon. Notwithstanding the provisions of
Paragraph 4.2, if at any time in Sublessor's sole judgment, Sublessor determines
that Sublessee is using a disproportionate amount of water, electricity or other
commonly metered utilities, or that Sublessee is generating such a large volume
of trash as to require an increase in the size of the dumpster and/or an
increase in the number of times per month that the dumpster is emptied, then
Sublessor may increase Sublessee's Base Rent by an amount equal to such
increased costs.

5.       Security Deposit. The rights and obligations of Sublessor and Sublessee
as to said Security Deposit shall be as set forth in Paragraph 5 of the Master
Lease (as modified by Paragraph 7.3 of this Sublease).

6.       Agreed Use. The Premises shall be used and occupied only for
warehousing and distribution of restaurant equipment, primarily refrigerator,and
related legal uses in office and for no other purpose.

7.       Master Lease.

         7.1 Sublessor is the lessee of the Premises by virtue of a lease,
hereinafter the "Master Lease", wherein Marcel George and Joanne Marie George,
Trustees of Marcel George Family Trusts of September 2, 1982 is the
lessor,hereinafter the "Master Lessor".

         7.2 This Sublease is and shall be at all times subject and subordinate
to the Master Lease.

         7.3 The terms, conditions and respective obligations of Sublessor and
Subleasee to each other under this Sublease shall be the terms and conditions of
the Master Lease except for those provisions of the Master Lease which are
directly contradicted by this Sublease in which event the terms of this Sublease
document shall control over the Master Lease. Therefore, for the purposes of
this Sublease, wherever in the Master Lease the word "Lessor" is used it shall
be deemed to mean the Sublessor herein and wherever in the Master Lease the word
'Lessee" is used it shall be deemed to mean the Subleasee herein.

         7.4 During the term of this Sublease and for all periods subsequent for
oblibations which have arisen prior to the termination of this Sublease,
Subleasee does hereby expressly assume and agree to perform and comply with, for
the benefit of Subleassor and Master Lessor, each and every obligation of
Sublessor under the Master Lease except for the following paragraphs which are
excluded therefrom:

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         7.5 The obligations that Sublessee has assumed under paragraph 7.4
hereof are hereinafter referred to as the "Sublessee's Assumed Obligations". The
obligations that sublessee has not assumed under paragraph 7.4 hereof are
hereinafter referred to as the "Sublessor's Remaining Obligations".

         7.6 Sublessee shall hold Sublessor free and harmless from all
liability, judgments, costs, damages, claims or demands, including reasonable
attorneys fees, arising out of Sublessee's failure to comply with or perform
Sublessee's Assumed Obligations.

         7.7 Sublessor agrees to maintain the Master Lease during the entire
term of this Sublease, subject, however, to any earlier termination of the
Master Lease without the fault of the Sublessor, and to comply with or perform
Sublessor's Remaining Obligations and to hold Sublesses free and harmless from
all liability, judgments, costs, damages, claims or demands arising out of
Sublessor's failure to comply with or perform Sublessor's Remaining Obligations.

         7.8 Sublessor represents to Sublessee that the Master Lease is in full
force and effect and that no default exists on the part of any Party to the
Master Lease.

         8. Assignment of Sublease and Default.

         8.1 Sublessor hereby assigns and transfers to Master Lessor the
Sublessor's interest in this Sublease, subject however to the provisions of
Paragraph 8.2 hereof,

         8.2 Master Lessor, by executing this document, agrees that until a
Default shall occur in the performance of Sublessor's Obligations under the
Master Lease, that Sublessor may receive, collect and enjoy the Rent accruing
under this Sublease. However, if Sublessor shall Default in the performance of
its obligations to Master Lessor then Master Lessor may, at its option, receive
and collect, directly from Sublessee, all Rent owing and to be owed under this
Sublease. Master Lessor shall not, by reason of this assignment of the Sublease
nor by reason of the collection of the Rent from the Sublessee, be deemed liable
to Sublessee for any failure of the Sublessor to perform and comply with
Sublessor's Remaining Obligations.

         8.3 Sublessor hereby irrevocably authorizes and directs Sublessee upon
receipt of any written notice from the Master Lessor stating that a Default
exists in the performance of Sublessor's obligations under the Master Lease, to
pay to Master Lessor the Rent due and to become due under the Sublease.
Sublessor agrees that Sublessee shall have the right to rely upon any such
statement and request from Master Lessor, and that Sublessee shall pay such Rent
to Master Lessor without any obligation or right to inquire as to whether such
Default exists and notwithstanding any notice from or claim from Sublessor to
the contrary and Sublessor shall have no right or claim against Sublessee for
any such Rent so paid by Sublessee.

         8.4 No changes or modifications shall be made to this Sublease without
the consent of Master Lessor.

         9. Consent of Master Lessor.

         9.1 In the event that the Master Lease requires that Sublessor obtain
the consent of Master Lessor to any subletting by Sublessor then, this Sublease
shall not be effective unless, within 10 days of the date hereof, Master Lessor
signs this Sublease thereby giving its consent to this Subletting.

         9.2 In the event that the obligations of the Sublessor under the Master
Lease have been guaranteed by third parties then neither this Sublease, nor the
Master Lessor's consent, shall be effective unless, within 10 days of the date
hereof, said guarantors sign this Sublease thereby giving their consent to this
Sublease.

         9.3 In the event that Master Lessor does give such consent then:

                  (a) Such consent shall not release Sublessor of its
obligations or alter the primary liability of Sublessor to pay the Rent and
perform and comply with all of the obligations of Sublessor to be performed
under the Master Lease.

                  (b) The acceptance of Rent by Master Lessor from Sublessee or
any one else liable under the Master Lease shall not be deemed a waiver by
Master Lessor of any provisions of the Master Lease.

                  (c) The consent to this Sublease shall not constitute a
consent to any subsequent subletting or assignment.

                  (d) In the event of any Default of Sublessor under the Master
Lease, Master Lessor may proceed directly against: Sublessor, any guarantors or
any one else liable under the Master Lease or this Sublease without first
exhausting Master Lessor's remedies against any other person or entity liable
thereon to Master Lessor.

                  (e) Master Lessor may consent to subsequent sublettings and
assignments of the Master Lease or this Sublease or any amendments or
modifications thereto without notifying Sublessor or any one else liable under
the Master Lease and without obtaining their consent and such action shall not
relieve such persons from liability,

                  (f) In the event that Sublessor shall Default in its
obligations under the Master Lease, then Master Lessor, at its option and
without being obligated to do so, may require Sublessee to attorn to Master
Lessor in which event Master Lessor shall undertake the obligations of Sublessor
under this Sublease from the time of the exercise of said option to termination
of this Sublease but Master Lessor shall not be liable for any prepaid Rent nor
any Security Deposit paid by Sublessee, nor shall Master Lessor be liable for
any other Defaults of the Sublessor under the Sublease.

         9.4 The signatures of the Master Lessor and any Guarantors of Sublessor
at the end of this document shall constitute their consent to the terms of this
Sublease.

         9.5 Master Lessor acknowledges that, to the best of Master Lessor's
knowledge, no Default presently exists under the Maser Lease of obligations to
be performed by Sublessor and that the Master Lease is in full force and effect.

         9.6 In the event that Sublessor Defaults under its obligations to be
performed under the Master Lease by Sublessor, Master Lessor agrees to deliver
to Sublessee a copy of any such notice of default. Sublessee shall have the
right to cure any Default of Sublessor described in any notice of default within
ten days after service of such notice of default on Sublessee. If such Default
is cured by Sublessee then Sublessee shall have the right of reimbursement and
offset from and against Sublessor.

10.      Additional Brokers Commissions.

         10.1 Sublessor agrees that if Sublessee exercises any option or right
of first refusal as granted by Sublessor herein, or any option or right
substantially similar thereto, either to extend the term of this Sublease, to
renew this Sublease, to purchase the Premises, or to lease or purchase adjacent
property which Sublessor may own or in which Sublessor has an interest, then
Sublessor shall pay to Broker a fee in accordance with the schedule of Broker in
effect at the time of the execution of this Sublease. Notwithstanding the
foregoing, Sublessor's obligation under this Paragraph is limited to a
transaction in which Sublessor is acting as a Sublessor, lessor or seller.

         10.2 Master Lessor agrees that if Sublessee shall exercise any option
or right of first refusal granted to Sublessee by Master Lessor in connection
with this Sublease, or any option or right substantially similar thereto, either
to extend or renew the Master Lease, to purchase the Premises or any part
thereof, or to lease or purchase adjacent property which Master Lessor may own
or in which Master Lessor has an interest, or if Broker is the procuring cause
of any other lease or sale entered into between Sublessee and Master Lessor
pertaining to the Premises, any part thereof, or any adjacent property which
Master Lessor owns or in which it has an interest, then as to any of said
transactions, Master Lessor shall pay to Broker a fee, in cash, in accordance
with the schedule of Broker in effect at the time of the execution of this
Sublease.

         10.3 Any fee due from Sublessor or Master Lessor hereunder shall be due
and payable upon the exercise of any option to extend or renew, upon the
execution of any new lease, or, in the event of a purchase, at the close of
escrow.

         10.4 Any transferee of Sublessor's interest in this Sublease, or of
Master Lessor's interest in the Master Lease, by accepting an assignment
thereof, shall be deemed to have assumed the respective obligations of Sublessor
or Master Lessor under this Paragraph 10. Broker shall be deemed to be a
third-party beneficiary of this paragraph 10.

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11.      Representations and Indemnities of Broker Relationships. The Parties
each represent and warrant to the other that he has had no dealings with any
person, firm, broker or finder (other than the Brokers, if any) in connection
with this Sublease, and that no one other than said named Brokers is entitled to
any commission or finder's fee in connection herewith. Sublessee and Sublessor
do each hereby agree to indemnify, protect, defend and hold the other harmless
from and against liability for compensation or charges which may be claimed by
any such unnamed broker, finder or other similar party by reason of any dealings
or actions of the indemnifying Party, including any costs, expenses, attorneys'
fees reasonably incurred with respect thereto.

12.      Attorney's fees. If any Party or Broker brings an action or proceeding
involving the Premises whether founded in contract or equity, or to declare
rights hereunder, the Prevailing Party (as hereafter defined) in any such
proceeding, action, or appeal thereon, shall be entitled to reasonable
attorneys' fees. Such fees may be awarded in the same suit or recovered in a
separate suit, whether or not such action or proceeding is pursued to decision
or judgment. The term, "Prevailing Party" shall include, without limitation, a
Party or Broker who substantially obtains or defeats the relief sought, as the
case may be, whether by compromise, settlement, Judgment, or the abandonment by
the other Party or Broker of its claim or defense, The attorneys' fees award
shall not be computed in accordance with any court fee schedule, but shall be
such as to fully reimburse all attorneys' fees reasonably incurred. In addition,
Sublessor shall be entitled to attorneys' fees, costs and expenses incurred in
the preparation and service of notices of Default and consultations in
connection therewith, whether or not a legal action is subsequently commenced in
connection with such Default or resulting Breach ($200 is a reasonable minimum
per occurrence for such services and consultation).

13.      No Prior or Other Agreements; Broker Disclaimer. This Sublease contains
all agreements between the Parties with respect to any matter mentioned herein,
and no other prior or contemporaneous agreement or understanding shall be
effective. Sublessor and Sublessee each represents and warrants to the Brokers
that it has made, and is relying solely upon, its own Investigation as to the
nature, quality, character and financial responsibility of the other Party to
this Sublease and as to the use, nature, quality and character of the Premises.
Brokers have no responsibility with respect thereto or with respect to any
default or breach hereof by either Party. The liability (including court costs
and attorneys' fees), of any Broker with respect to negotiation, execution,
delivery or performance by either Sublessor or Sublessee under this Sublease or
any amendment or modification hereto shall be limited to an amount up to the fee
received by such Broker pursuant to this Sublease; provided, however, that the
foregoing limitation on each Broker's liability shall not be applicable to any
gross negligence or willful misconduct of such Broker.

13.      (A) Condition of the Premises. Sublessor and Sublessee agree that the
premises is leased in an "as is - where is" condition as of the commencement
date, except however, the Sublessor agrees to repair areas of damaged drywall
throughout the warehouse within the first (lst) twenty-one (21) days of the
lease term and Subleasee is responsible for maintaining and/or reconditioning
those areas at Lease termination. Sublessor is responsible for all other
maintenance and repair pursuant to the terms of the Master Lease and the
Sublease.

ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN
INDUSTRIAL REAL ESTATE ASSOCIATION OR BY ANY REAL ESTATE BROKER AS TO THE LEGAL
SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS SUBLEASE OR THE
TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:

1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS SUBLEASE.

2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE
PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE
PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PROPERTY, THE STRUCTURAL
INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY
OF THE PREMISES FOR SUBLESSEE'S INTENDED USE.

WARNING IF THE SUBJECT PROPERTY IS LOCATED IN A STATE OTHER THAN CALIFORNIA,
CERTAIN PROVISIONS OF THE SUBLEASE MAY NEED TO BE REVISED TO COMPLY WITH THE
LAWS OF THE STATE IN WHICH THE PROPERTY IS LOCATED.

Executed at: (time) 11:50 am
on: (date) 6/7/02

By SUBLESSOR:
The Singing Machine Co., Inc., A Florida Corporation

By: /s/ April J. Green
Name Printed: Aprill J Green
Title: CFO

By:
Name Printed:
Title:
Address: 6601 Lyons Road, Blvd A-7
Coconut Creek, FL 33073
Telephone/Facsimile: (954) 596-1000/(954) 596-2000
Federal ID No.

Executed at: (time) 1:30 pm
on: (date) 5-30-02

By SUBLESSEE:
Busung America Corp., A California Corporation

By: /s/ Yong Ho Less
Name Printed: Yong Ho Lee
Title: President

By:
Name Printed:
Title:
Address:
Telephone/Facsimile:
Federal ID No.

Page 5 of 6
REVISED

YHL
Initials

                                  Page 5 of 6
                                    REVISED
<PAGE>

BROKER:

Lee & Associates Los Angeles South Bay, Inc.
Attn: D. Jerry Evans
Title: President
Address: 1411 West 190th Street, Suite 450
Gardenia, CA 90248
Telephone/Facsimile: (310) 768-8800/(310) 768-8978
Federal ID No.

Consent to the above Sublease is hereby given.

Executed at: 12:30 P.M.
On: 6-04-02

By MASTER LESSOR:

Marcel George and Joanne Marie George,
Trustees of Marcel George Family Trusts of
September 2, 1982

By: /s/ Arthur Beach
Name Printed: Arthur Beach
Title: [ILLEGIBLE]

By:
Name Printed:
Title:
Address:
Telephone/Facsimile: (310) 472-3552
Federal ID No.

BROKER:

Coldwell Banker Commercial, JM Properties
Attn: Andrew Kim
Title:
Address: 1125 West 190th Street, Suite 250
Gardena, CA 90248
Telephone/Facsimile: (310) 767-5600/(310) 767-5601
Federal ID No.

Executed At:
on:

By GUARANTORS(S):

By:
Name Printed:
Address:

By:
Name Printed:
Address:

                                                                             YHL
                                                                        Initials

                                  Page 6 of 6
                                    REVISEDExhibit 10.6

HARBOUR
CITY

Your Reference:

Our Reference:        011 EST 11/6.1216                          12th June 2002

                      International SMC (HK) Ltd.
                      Suite 1210, Ocean Centre,
                      Harbour City,
                      5 Canton Road, Kowloon

                      Attn: Ms. M. Alicia Haskamp
                      ---------------------------

Dear Ms. Haskamp,

                            Final Measurement of Area
                            Suite 1216, Ocean Centre
                            ------------------------

         We are pleased to confirm that, pursuant to the "The Premises Schedule"
of your Letter of Offer, the final measurement of the subject premises is 794
sq. ft. Accordingly the monthly rent, air- conditioning charge and service
charge will be calculated on this measurement.

         Thank you for your attention.

                                                Yours sincerely,
                                                For and on behalf of
                                                HARBOUR CITY MANAGEMENT LIMITED

                                                Shirley Lai
                                                Tenant Services Manager

SL/JC/cl

HARBOUR CITY MANAGEMENT LIMITED
--------------------------------------------------------------------------------

<PAGE>

                            OCEAN CENTRE - 12TH FLOOR

                                   FLOOR PLAN

                                [GRAPHIC OMITTED]

                                   Suite 1216

<PAGE>

                                                               Yours Truthfully,

                                                        ------------------------
                                                        For and on behalf of

Signature

Name in block letter:      For and on behalf of
                           INTERNATIONAL SMC (HK) LIMITED

Position                   /s/ M. A. Haskamp
                           -----------------
                           Director/Authorized Signatory

                           Ms. M.A. Haskamp
                           Managing direction
                           11/6/2002

                                   ACCEPTANCE
                                   ----------

         We, HARRIMAN LEASING LIMITED, as Leasing Agent for the Landlord HEREBY
accept the foregoing offer.

         Dated

Signed by   Doreen Y. F. Lee
for and on behalf of                            For and on behalf of
HARRIMAN LEASING LIMITED                        HARRIMAN LEASING LIMITED
as Leasing Agent for the
Landlord in the presence of:                    /s/  [Illegible]
                                                -----------------------------
                                                 Director & General Manager
         /s/ Illegible

                     THE SUPPLEMENTARY INFORMATION SCHEDULE
                     --------------------------------------

(Please PRINT the following information):

1.       Full name of the person (or persons) (a partnership) or company to be
         shown as Tenant in the Lease/Tenancy Agreement:

2.       Address, which in the case of a company should be the REGISTERED OFFICE
         ADDRESS:

3.       Name and Address of Solicitors:

4.       Bankers' Name and Address:

5.       Business Registration No.

6.       Approximate date of establishment in Hong Kong:

7.       General nature of business/profession:

8.       If Company, authorized capital: paid-up capital:

9.       Where a subsidiary company, name and address of parent company:

10.      Where a partnership, number and name of partners:

11.      Name of previous/current landlord.

12.      Other relevant background information in support of this Offer:

13.      Contact Person and Telephone No.:

<PAGE>

                              THE PREMISES SCHEDULE
                              ---------------------

1.       The Landlord means the registered owner of the said Lot, Wharf
         {ILLEGIBLE} Limited, (including where the context so admits its
         successors and assigns) acting by its duly authorized agent, Marriman
         Leasing Limited.

2.       Premises:
         Suites 1216, 12th Floor, Ocean Centre, Harbor City Kowloon (as shown on
         the floor plan attached hereto and thereon [ILLEGIBLE] pink).

3.       Approximate Area: 750 sq. ft. gross (subject to final measurement to be
         conducted by the Landlord)

4.       Use of Premises: Restricted to Commercial Offices Use Only. For this
         avoidance of doubt it is hereby declared and confirmed that no private
         sales, sample sales, clearance sales or any similar sales or any
         activities related thereto including but without limiting to
         distribution of circulars or erection or posting up or may revises or
         any [ILLEGIBLE] of any kind may be allowed in any circumstances.

5.       Term of Lease/Tenancy: Three (3) Years from the Commencement Date

6.       Commencement Date: 1st June, 2002 or such other date as specified by
         the Landlord by notice in writing which date shall be within 3 days of
         completion of the Building Finishes as referred to in Clause 2.1 of
         this Offer, whichever date is the later.

7.       Rent and Other Charges:

         (a)(1)   Rent: The rent shall be:

         (i)      From The 1st month to The 36th month HK$ 15.00 per sq ft gross
                  per month;

         and all payable monthly in advance.

         (a)(2)   Market Rental: The Market Rental referred to in paragraph
                  7(a)(1) above shall be determined for the appropriate period
                  or periods in question in accordance with the provisions of
                  Section XI of the Lease/Tenancy Agreement.

         (b)      Air-Conditioning Charges: HK$ 2.70 per sq ft gross per month
                  payable monthly in advance, subject to increase either before
                  or after the Commencement Date. The air-conditioning charge
                  will commence to be payable on and from the date the
                  Landlord's Managing Agent at our request commences the supply
                  or air-conditioning service, but no in any case later than the
                  expiry of the Rent-Free Period.

         (c)      Service Charge: HK$ 1.90 per sq ft gross per month payable
                  monthly in advance, subject to increase either before or after
                  the Commencement Date. The service charge will commence to be
                  payable on and from the Commencement Date.

         (d)      Government Ratios: Estimated at HK$ 562.50 per month.

         (e)      Utility Charges: We shall be responsible for all charges for
                  the supply of gas, water, telephone and electricity including
                  electricity consumed by the air-conditioning unit(s),
                  apparatus and equipment serving the Premises and all deposits
                  to the utility companies.

8.       Rent-Free Period: Rent will commence to be payable 61 days after the
         Commencement date. The service charge, air-conditioning charge, utility
         charges and government rates shall be payable by us during such period.

9.       Deposit: HK$ 45.787.50 representing 3 months' rent (at the highest rate
         specified in paragraph 7(a) above), government rates, air-conditioning
         charge and service charge.

10.      Decoration Deposit: HK$ 5,000.00 payable prior to the commencement of
         the fitout work upon demand to ensure due compliance of instructions
         and directions by our contractors in accordance with Clause 5.2 of this
         Offer. This deposit is refundable by the Managing Agent to us upon
         completion of our [ILLEGIBLE] work after deducting any cost of loss or
         damage incurred including cost of remedy insofar as it is practically
         possible so to do.

11.      Submission of Plans: Immediate after the Landlord's acceptance of this
         Offer.

12.      Facilitation Fee: HK$ 2.00 per sq ft gross representing the costs
         incurred by the Landlord in providing services including consumption of
         temporary electricity to the Premises and removal of construction
         debris from a central collection point during the period of fitting out
         payable upon signing of this Offer.

<PAGE>

5.       TENANT'S WORK
         -------------

         5.1      All approved work (other than that to be carried out by the
                  Landlord's nominated contractors as referred to in Clause 4.1
                  of this Offer) may be carried out by our own contractor (who
                  shall in any event be required to be approved by the Landlord)
                  and we shall be responsible for enduring that these
                  contractors co-operate fully with the Landlord, its servants,
                  agents, workman and contractors and is carrying out their work
                  in such a manner as to avoid any delay to or interference with
                  the Landlord or third parties.

         5.2      We shall ensure that such contractors comply with all
                  instructions and directions (including hours of work) given by
                  the Landlord's representative and/or its Managing Agent and/or
                  the building manager and that our contractors shall remove
                  daily all trash, rubbish and surplus building materials
                  resulting from the work.

         5.3      We shall be responsible for effecting adequate public
                  liability and consumers' all risks insurance and furnishing to
                  the Landlord's representative before the commencement of any
                  work in or to the Premises such evidence as the Landlord may
                  require that the insurance is in place.

6.       LEGAL TENANCY AGREEMENT PREPARATION
         -----------------------------------

         6.1      The Offer is accepted, we agree to execute a lease/tenancy
                  agreement (the "Lease/Tenancy Agreement") in duplicate in the
                  standard form which is sent with this offer and in the
                  attached Schedule(s).

         6.2      We also undertake to pay one half of the stamp duty and
                  registration fee (if any) on this Offer and on the
                  Lease/Tenancy Agreement and its counterpart and to return both
                  copies of the agreement duly executed within 14 days of
                  presentation [ILLEGIBLE] in any event before the Commencement
                  Date specified in paragraph 6 of the Premises Schedule.

7.       SIGNS
         -----

         7.1      We understand that the Landlord will provide at our cost one
                  sign (according to the Landlord's standard design and
                  specifications) to be fixed at some appropriate point(s) in
                  the building for the display of our name and such other
                  particulars as the Landlord may at its discretion approve.

         7.2      We acknowledge and agree that the installation work in respect
                  or such aforesaid sign shall be carried out by the Landlord's
                  nominated contractor at our cost.

8.       CHANGE OF NUMBERING OR NAME OF DEVELOPMENT
         ------------------------------------------

         8.1      We acknowledge that the Landlord reserves the right at any
                  time and from time to time to change the numbering of the
                  Premises (or any part thereof) or the name of the
                  Building/Development (or any part thereof) that the Premises
                  form part as it shall in its absolute discretion [ILLEGIBLE]
                  upon giving to us no less than 3 months' prior notice in
                  writing and the Landlord shall not be liable to us for any
                  loss, damage, claims, costs or expenses resulting therefrom or
                  in connection therewith.

9.       DEPOSIT
         -------

         9.1      We enclose a cheque in your favour as agent of the Landlord in
                  the sum specified in paragraph 9 of the Premises Schedule as a
                  deposit.

         9.2      We acknowledge that in case there shall have been any increase
                  in the air-conditioning charge and/or service charge imposed
                  by the Landlord prior to the Commencement Date, the deposit
                  will be increased accordingly and we undertake to pay such
                  increase forthwith upon demand. We further acknowledge that we
                  shall not be entitled to possession of the Premises until we
                  have paid the whole of the deposit including any increase
                  pursuant to this Clause but that the [ILLEGIBLE]..

         9.3      We acknowledge that if after this Offer has been accepted we
                  fail to execute agreement in accordance with Clause 6 of this
                  Offer or fail to comply with any of the terms and conditions
                  herein the Landlord shall be entitled to its absolute
                  discretion to forfeit the deposit and determine the agreement
                  constituted by your acceptance of this Offer (the "Agreement")
                  by giving notice to us. Nothing herein contained however shall
                  prevent the Landlord from exercising its right to enforce
                  specific performance of the Agreement or claiming against us
                  for damages for breach of the Agreement.

         9.4      We understand that you are at liberty to cash this cheque
                  immediately pending the Landlord's consideration of this Offer
                  and such action on your part shall not be deemed to be an
                  acceptance thereof. Should this Offer not be accepted, the
                  deposit will be returned to us (without interest or other
                  compensation).

         9.5      We understand upon execution of the [ILLEGIBLE] Agreement the
                  deposit will be set against the deposit payable under Section
                  IX of the Lease/Tenancy Agreement.

10.      LANDLORD'S APPROVAL
         -------------------

         10.1     We acknowledge that whatever the consent or approval of the
                  Landlord's required, the same may be given or withheld or
                  given subject to conditions, at the Landlord in its sole
                  discretion may determine.

11.      LANDLORD'S AGENTS
         -----------------

         11.1     We acknowledge that Harriman Leasing Limited acts as Leasing
                  Agent of the Landlord, and has authority to accept/reject this
                  Offer on behalf of the Landlord and that Harbour City
                  Management Limited acts as Managing Agent of the Landlord and
                  has authority to represent and bind the Landlord in all
                  [ILLEGIBLE] in connection with this Offer and if this Offer
                  herein is accepted, in all matters missing from or in
                  connection with the tenancy of the premises.

12.      PRIVACY ORDINANCE NOTICE AND CONSENT
         ------------------------------------

         12.1     The Landlord shall be entitled to supply to any company within
                  the Landlord's group of companies and also to any company
                  which is the ultimate holding company or the Landlord as the
                  Landlord may determine such information or personal data is
                  respect of us for marketing purposes, including the exchange
                  of non-financial information with selected business partners
                  without our further consent being obtained. "Group of
                  companies" and "holding company" shall have the meanings
                  attributed thereto in the companies Ordinance Cap 22 of the
                  Laws of Hong Kong Special Administrative Region.

13.      BANK REFERENCE
         ---------------

         13.1     We enclose a Bank's Reference in support of this Offer.

14.      SUPPLEMENTARY INFORMATION
         -------------------------

         14.1     We have completed the Supplementary Information Schedule as
                  requested by the Landlord.

15.      ADDITIONAL CONDITIONS
         ---------------------

         15.1     We acknowledge that the terms, conditions and provisions set
                  out in the Additional Conditions Schedule attached to this
                  Offer (if any) shall apply and be incorporated in this Offer.

16.      IRREVOCABLE OFFER
         -----------------

         16.1     This Offer shall be irrevocable.

17.      ACCEPTANCE
         ----------

         17.1     To indicate the Landlord's acceptance of this Offer, please
                  sign the Acceptance endorsed at the foot of this Offer.

<PAGE>

To: HARRIMAN LEASING LIMITED
Suite 1611, 16th Floor
Ocean Centre
Harbour City
Kowloon

From: International SMC (HK) Limited
L1 Unit 6
Mirror Tower
61 Mody Road
Kowloon

Dear Sirs,

                       LETTER OF OFFER FOR OFFICE PREMISES
                       -----------------------------------

1.       OFFER
         -----

         1.1      We offer to lease the premises identified in the attached
                  Premises Schedule (the "Premises") from your principal, the
                  registered owner of the Premises (the "Landlord"), on the
                  terms and conditions and subject to payment of the rent and
                  other charges fees and amounts as set out in this letter or
                  offer (this "Offer") and in the Schedule(s).

2.       BUILDING FINISHES
         -----------------

         2.1      We understand that the Landlord's obligations are limited to
                  making the premises available to us with the following:

                  (1)      Concrete floor with cement said screeding;

                  (2)      Standard and emulsion paint painted walls and
                           columns;

                  (3)      Suspended ceiling with acoustic tiles and standard
                           light fittings without wiring in a standard layout;

                  (4)      Standard entrance door;

                  (5)      Automatic smoke detectors and sprinkler system in a
                           standard layout;

                  (6)      Air-conditioning system; and

                  (7)      Electricity supply terminated at a plug-in unit or
                           barber chamber, as the ease may be, in the meter
                           room.

         2.2      We shall undertake and be responsible at our cost for:

                  (1)      all air-conditioning duct work, floor finish,
                           clerical work (including [ILLEGIBLE] of light and
                           power circuits) light-fittings, transfer of air duct
                           to our suspended ceilings, and security, fire
                           services (including sprinklers, infra-red detectors
                           and/or smoke detectors) and air-conditioning unit
                           (on/or control system serving the Premises:

                  (2)      Any other installation, adjustment, modification and
                           alteration of the provisions and fixtures and
                           fittings in the Premises, if approved by the
                           Landlord.

                  2.3      Any other items including any additional fixtures or
                           fittings and interior decoration which we may require
                           will likewise be for our account.

3.       APPROVAL OF INTERNAL LAYOUT
         ---------------------------

         3.1      Within the period specified in paragraph 11 of the Premises
                  Schedule, we shall submit to the Landlord for approval layout
                  plans in respect to the Premises together with detailed design
                  drawings and specifications for the design and construction of
                  all proposed interior work installations and listings.

         3.2      We acknowledge and agree that:

                  (1)      under no circumstances may work be commenced until
                           the full approval of the Landlord in writing has been
                           obtained:

                  (2)      no delays, whether in submitting or resubmitting our
                           proposals and plans or in the Landlord approving the
                           same or otherwise will entitle us to any [ILLEGIBLE]
                           of the rent-free period granted hereunder or to any
                           claim for compensation or otherwise:

                  (3)      the term of [ILLEGIBLE] may commence even though any
                           of the plans, drawings and specifications have not
                           been fully approved or any [ILLEGIBLE] work has not
                           been commenced.

         3.3      We agree to pay upon submission of our initial internal layout
                  plans a Floor Handling Fee to the Landlord or its managing
                  agent at the rate of HK$3.50 per sq. ft. based on the area of
                  the Premises as specified in paragraph 3 of the Premises
                  Schedule for:

                  (1)      voting our initial internal layout plans; and

                  (2)      where such plans include or necessitate work which is
                           required hereunder to be carried out by the
                           Landlord's nominated contractors, handling and
                           co-ordinating the carrying on of such work.

4.       ALTERATION WORK BY NOMINATED CONTRACTORS
         ----------------------------------------

         4.1      We acknowledge that to enable the electrical,
                  air-conditioning, plumbing, drainage, sprinkler, security,
                  building automation and the direction alarm systems in the
                  building to be effectively co- ordinated and controlled all
                  work required by us within the Premises affecting these
                  services and facilities shall be designed and supervised by a
                  professional electrical and Mechanical consultant employed by
                  us, and carried out at our cost by the Landlord's nominated
                  contractors for which purpose we undertake to engage the
                  appropriate contractor nominated by the Landlord for the
                  category of work in question and to pay the nominated
                  contractors' charges for the work as follows:

                  (1)      50% of the [ILLEGIBLE] sum for each category of work
                           and the Landlord's charges at the same time as
                           returning the signed statement of cost(s)

                  (2)      progress payment(s) (if any) as stipulated by the
                           Landlord in the estimate upon presentation of
                           invoices; and

                  (3)      the final account for each category of work and the
                           balance of the Landlord's charges (if any) upon
                           presentation of the relevant invoices.

         4.2      We acknowledge that since the appropriate nominated
                  contractors shall be engaged by us, the Landlord shall
                  notwithstanding the nomination not have any liability to us
                  for or in respect of any set deed matter or thing arising out
                  of or in connection with the engagement of any such contractor
                  or contractors or any work done or omitted to be done by them
                  or any of them pursuant to such engagement.

         4.3      We further agree that in respect of any subsequent [ILLEGIBLE]
                  work in or to the Premises, a handling fee shall be payable to
                  the Landlord in accordance with Section III Clause 7 of the
                  [ILLEGIBLE] Agreement sent with this Offer.

<PAGE>

HARBOUR
CITY

Your Reference:

Our Reference:        011 EST 11/6.1210                          16th April 2002

                      International SMC (HK) Ltd.
                      Suite 1210, Ocean Centre,
                      Harbour City,
                      5 Canton Road, Kowloon

                      Attn: Ms. M. Alicia Haskamp

Dear Ms. Haskamp,

                            Final Measurement of Area
                            Suite 1210, Ocean Centre
                            ------------------------

         We are pleased to confirm that, pursuant to the "The Premises Schedule"
of your Letter of Offer, the final measurement of the subject premises is 3,579
sq. ft. Accordingly the monthly rent, air-conditioning charge and service charge
will be calculated on this measurement.

         Thank you for your attention.

                                                 Yours sincerely,
                                                 For and on behalf of
                                                 HARBOUR CITY MANAGEMENT LIMITED

                                                 Shirley Lai
                                                 Tenant Services Manager

SL/JC/cl

<PAGE>

                            OCEAN CENTRE - 12TH FLOOR

                                   FLOOR PLAN

                                [GRAPHIC OMITTED]

                                   Suite #1210

<PAGE>

                                                  Yours Truthfully,
                                                   International SMC (HK) LTD

                                                  /s/ M. S. Haskamp
                                                  ------------------------
                                                  Director/Authorized Signatory
                                                  For and on behalf of

Signature                  /s/ M. A. Haskamp
                           -----------------
Name in block letters:     Ms. M. A. Haskamp

Position:                  Managing Director

Company Chop:              For and on behalf of
                           INTERNATIONAL SMC (HK) LIMITED

Dated:
                           --------------------------------
                           Director/Authorized Signatory

                                   ACCEPTANCE
                                   ----------

         We, HARRIMAN LEASING LIMITED, as Leasing Agent for the Landlord HEREBY
accept the foregoing offer.

         Dated

Signed by   Doreen Y. F. Lee
for and on behalf of                                For and on behalf of
HARRIMAN LEASING LIMITED                            Harriman LEASING LIMITED
as Leasing Agent for the
Landlord in the presence of:                        /s/  [illegible]
                                                         -----------
                                                    Director & General Manager

/s/ Yvonne Y. F. Lau
Yvonne Y. F. Lau

                     THE SUPPLEMENTARY INFORMATION SCHEDULE
                     --------------------------------------

(Please PRINT the following information):

1.       Full name of the person (or persons) (a partnership) or company to be
         shown as Tenant in the Lease/Tenancy Agreement:

                           International SMC (HK) Ltd.

2.       Address, which in the case of a company should be the REGISTERED OFFICE
         ADDRESS:

         Unit 6, L1, Mirror Tower, 61 Mody Road, TST East, Kowloon

3.       Name and Address of Solicitors:
         T. S. Tong & Co., Wing Lung Building, 9th Floor, 45 Des Voeux Road,
         Central, Hong Kong (Mr. Iu Ting Kwok)

4.       Bankers' Name and Address:
         HSBC, Rm 1006-1012, Cheung Sha Wan Plaza, Tower 2, 833 Cheung Sha Wan
         Road, Kowloon (Mr. Eric W. P. Lee)

5.       Business Registration No.
         18350489-000-07-01-8

6.       Approximate date of establishment in Hong Kong:
         26-Jul-1994

7.       General nature of business/profession:
         Trading

8.       If Company, authorized capital: $10,000
                        paid-up capital: $100

9.       Where a subsidiary company, name and address of parent company:
         100% owned subsidiary of The Singing Machine Co., Inc., 5501 Lyons
         Road, Bldg A-7, Coconut Creek, FL 33073, U.S.A. (A public listed
         company in the American Stock Exchange.)

10.      Where a partnership, number and name of partners:
         NIL

11.      Name of previous/current landlord.
         Koon Wah Mirror Holdings Ltd.

12.      Other relevant background information in support of this Offer:

13.      Contact Person and Telephone No.:
         Miss Dora Lee at 3107-7997 or Miss Michelle Ho at 3107-7992
           (Operations Manager)                 (Finance Manager)

<PAGE>

                              THE PREMISES SCHEDULE
                              ---------------------

1.       The Landlord means the registered owner of the said Lot, Wharf
         {ILLEGIBLE} Limited, (including where the context so admits its
         successors and assigns) acting by its duly authorized agent, Harriman
         Leasing Limited.

2.       Premises:
         Suites 1210, 12th Floor, Ocean Centre, Harbour City Kowloon (as shown
         on the floor plan attached hereto and thereon colored pink).

3.       Approximate Area: 3,535 sq. ft. gross (subject to final measurement to
         be conducted by the Landlord)

4.       Use of Premises: Restricted to Commercial Offices Use Only. For this
         avoidance of doubt it is hereby declared and confirmed that no private
         sales, sample sales, clearance sales or any similar sales or any
         activities related thereto including but without limiting to
         distribution of circulars or erection or posting up or may revises or
         any [ILLEGIBLE] of any kind may be allowed in any circumstances.

5.       Term of Lease/Tenancy: Three (3) Years from the Commencement Date

6.       Commencement Date: 1st May, 2002 or such other date as specified by the
         Landlord by notice in writing which date shall be within 3 days of
         completion of the Building Finishes as referred to in Clause 2.1 of
         this Offer, whichever date is the later.

7.       Rent and Other Charges:

         (a)(1)   Rent: The rent shall be:

                  (i)      From The 1st month to The 36th month HK$ 17.00 per sq
                           ft gross per month; and all payable monthly in
                           advance.

         (a)(2)   Market Rental: The Market Rental referred to in paragraph
                  7(a)(1) above shall be determined for the appropriate period
                  or periods in question in accordance with the provisions of
                  Section XI of the Lease/Tenancy Agreement.

         (b)      Air-Conditioning Charges: HK$ 2.70 per sq ft gross per month
                  payable monthly in advance, subject to increase either before
                  or after the Commencement Date. The air-conditioning charge
                  will commence to be payable on and from the date the
                  Landlord's Managing Agent at our request commences the supply
                  or air-conditioning service, but no in any case later than the
                  expiry of the Rent-Free Period.

         (c)      Service Charge: HK$ 1.90 per sq ft gross per month payable
                  monthly in advance, subject to increase either before or after
                  the Commencement Date. The service charge will commence to be

         payable on and from the Commencement Date.

         (d)      Government Ratios: Estimated at HK$ 3,005.00 per month.

         (e)      Utility Charges: We shall be responsible for all charges for
                  the supply of gas, water, telephone and electricity including
                  electricity consumed by the air-conditioning unit(s),
                  apparatus and equipment serving the Premises and all deposits
                  to the utility companies.

8.       Rent-Free Period: Rent will commence to be payable 87 days after the
         Commencement date. The service charge, air-conditioning charge, utility
         charges and government rates shall be payable by us during such period.

9.       Deposit: HK$ 238.083.00 representing 3 months' rent (at the highest
         rate specified in paragraph 7(a) above), government rates,
         air-conditioning charge and service charge.

10.      Decoration Deposit: HK$ 5,000.00 payable prior to the commencement of
         the fitout work upon demand to ensure due compliance of instructions
         and directions by our contractors in accordance with Clause 5.2 of this
         Offer. This deposit is refundable by the Managing Agent to us upon
         completion of our [ILLEGIBLE] work after deducting any cost of loss or
         damage incurred including cost of remedy insofar as it is practically
         possible so to do.

11.      Submission of Plans: Immediate after the Landlord's acceptance of this
         Offer.

12.      Facilitation Fee: HK$ 2.00 per sq ft gross representing the costs
         incurred by the Landlord in providing services including consumption of
         temporary electricity to the Premises and removal of construction
         debris from a central collection point during the period of fitting out
         payable upon signing of this Offer.

<PAGE>

5.       TENANT'S WORK
         --------------

         5.1      All approved work (other than that to be carried out by the
                  Landlord's nominated contractors as referred to in Clause 4.1
                  of this Offer) may be carried out by our own contractor (who
                  shall in any event be required to be approved by the Landlord)
                  and we shall be responsible for enduring that these
                  contractors co-operate fully with the Landlord, its servants,
                  agents, workman and contractors and is carrying out their work
                  in such a manner as to avoid any delay to or interference with
                  the Landlord or third parties.

         5.2      We shall ensure that such contractors comply with all
                  instructions and directions (including hours of work) given by
                  the Landlord's representative and/or its Managing Agent and/or
                  the building manager and that our contractors shall remove
                  daily all trash, rubbish and surplus building materials
                  resulting from the work.

         5.3      We shall be responsible for effecting adequate public
                  liability and consumers' all risks insurance and furnishing to
                  the Landlord's representative before the commencement of any
                  work in or to the Premises such evidence as the Landlord may
                  require that the insurance is in place.

6.       LEGAL TENANCY AGREEMENT PREPARATION
         -----------------------------------

         6.1      The Offer is accepted, we agree to execute a lease/tenancy
                  agreement (the "Lease/Tenancy Agreement") in duplicate in the
                  standard [ILLEGIBLE] and in the attached Schedule(s).

         6.2      We also undertake to pay one half of the stamp duty and
                  registration fee (if any) on this Offer and on the
                  Lease/Tenancy Agreement and its counterpart and to return both
                  copies of the agreement duly executed within 14 days of
                  presentation [ILLEGIBLE] in any event before the Commencement
                  Date specified in paragraph 6 of the Premises Schedule.

7.       SIGNS
         -----

         7.1      We understand that the Landlord will provide at our cost one
                  sign (according to the Landlord's standard design and
                  specifications) to be fixed at some appropriate point(s) in
                  the building for the display of our name and such other
                  particulars as the Landlord may at its discretion approve.

         7.2      We acknowledge and agree that the installation work in respect
                  or such aforesaid sign shall be carried out by the Landlord's
                  nominated contractor at our cost.

8.       CHANGE OF NUMBERING OR NAME OF DEVELOPMENT
         ------------------------------------------

         8.1      We acknowledge that the Landlord reserves the right at any
                  time and from time to time to change the numbering of the
                  Premises (or any part thereof) or the name of the
                  Building/Development (or any part thereof) that the Premises
                  form part as it shall in its absolute discretion [ILLEGIBLE]
                  upon giving to us no less than 3 months' prior notice in
                  writing and the Landlord shall not be liable to us for any
                  loss, damage, claims, costs or expenses resulting therefrom or
                  in connection therewith.

9.       DEPOSIT
         -------

         9.1      We enclose a cheque in your favour as agent of the Landlord in
                  the sum specified in paragraph 9 of the Premises Schedule as a
                  deposit.

         9.2      We acknowledge that in case there shall have been any increase
                  in the air-conditioning charge and/or service charge imposed
                  by the Landlord prior to the Commencement Date, the deposit
                  will be increased accordingly and we undertake to pay such
                  increase forthwith upon demand. We further acknowledge that we
                  shall not be entitled to [ILLEGIBLE] of the Premises until we
                  have paid the whole of the deposit including any increase
                  pursuant to this Clause but that the [ILLEGIBLE]..

         9.3      We acknowledge that if after this Offer has been accepted we
                  [ILLEGIBLE] agreement in accordance with Clause 6 of this
                  Offer or fail to comply with any of the terms and conditions
                  herein [ILLEGIBLE] Landlord shall be entitled to its absolute
                  discretion to forfeit the deposit and determine the agreement
                  constituted by your acceptance of this Offer (the "Agreement")
                  by giving notice to us. Nothing herein contained however shall
                  prevent the Landlord from exercising its right to enforce
                  specific performance of the Agreement or claiming against us
                  for damages for breach of the Agreement.

         9.4      We understand that you are at liberty to cash this cheque
                  immediately pending the Landlord's consideration of this Offer
                  and such action on your part shall not be deemed to be an
                  acceptance thereof. Should this Offer not be accepted, the
                  deposit will be returned to us (without interest or other
                  compensation).

         9.5      We understand upon execution of the [ILLEGIBLE] Agreement the
                  deposit will be set against the deposit payable under Section
                  IX of the Lease/Tenancy Agreement.

10.      LANDLORD'S APPROVAL
         -------------------

         10.1     We acknowledge that whatever the consent or approval of the
                  Landlord's required, the same may be given or withheld or
                  given subject to conditions, at the Landlord in its sole
                  discretion may determine.

11.      LANDLORD'S AGENTS
         -----------------

         11.1     We acknowledge that Harriman Leasing Limited acts as Leasing
                  Agent of the Landlord, and has authority to accept/reject this
                  Offer on behalf of the Landlord and that Harbour City
                  Management Limited acts as Managing Agent of the Landlord and
                  has authority to represent and bind the Landlord in all
                  [ILLEGIBLE] in connection with this Offer and if this Offer
                  herein is accepted, in all matters missing from or in
                  connection with the [ILLEGIBLE].

12.      PRIVACY ORDINANCE NOTICE AND CONSENT
         ------------------------------------

         12.1     The Landlord shall be entitled to supply to any company within
                  the Landlord's group of companies and also to any company
                  which is the ultimate holding company or the Landlord as the
                  Landlord may determine such information or personal data is
                  respect of us for marketing purposes, including the exchange
                  of non-financial information with selected business partners
                  without our further consent being obtained. "Group of
                  companies" and "holding company" shall have the meanings
                  attributed thereto in the companies Ordinance Cap 22 of the
                  Laws of Hong Kong Special Administrative Region.

13.      BANK REFERENCE
         --------------

         13.1     We enclose a Bank's Reference in support of this Offer.

14.      SUPPLEMENTARY INFORMATION
         -------------------------

         14.1     We have completed the Supplementary Information Schedule as
                  requested by the Landlord.

15.      ADDITIONAL CONDITIONS
         ---------------------

         15.1     We acknowledge that the terms, conditions and provisions set
                  out in the Additional Conditions Schedule attached to this
                  Offer (if any) shall apply and be incorporated in this Offer.

16.      IRREVOCABLE OFFER
         -----------------

         16.1     This Offer shall be irrevocable.

17.      ACCEPTANCE
         ----------

         17.1     To indicate the Landlord's acceptance of this Offer, please
                  sign the Acceptance endorsed at the foot of this Offer.

<PAGE>

To: HARRIMAN LEASING LIMITED
Suite 1611, 16th Floor
Ocean Centre
Harbour City
Kowloon

From: International SMC (HK) Limited
L1 Unit 6
Mirror Tower
61 Mody Road
Kowloon

Dear Sirs,

                       LETTER OF OFFER FOR OFFICE PREMISES
                       -----------------------------------

1.       OFFER
         -----

         1.1      We offer to lease the premises identified in the attached
                  Premises Schedule (the "Premises") from your principal, the
                  registered owner of the Premises (the "Landlord"), on the
                  terms and conditions and subject to payment of the rent and
                  other charges fees and amounts as set out in this letter or
                  offer (this "Offer") and in the Schedule(s).

2.       BUILDING FINISHES
         -----------------

         2.1      We understand that the Landlord's obligations are limited to
                  making the premises available to us with the following:

                  (1)      Concrete floor with cement said screeding;

                  (2)      Standard and emulsion paint painted walls and
                           columns;

                  (3)      Suspended ceiling with acoustic tiles and standard
                           light fittings without wiring in a standard layout;

                  (4)      Standard entrance door;

                  (5)      Automatic smoke detectors and sprinkler system in a
                           standard layout;

                  (6)      Air-conditioning system; and

                  (7)      Electricity supply terminated at a plug-in unit or
                           barber chamber, as the ease may be, in the meter
                           room.

         2.2      We shall undertake and be responsible at our cost for:

                  (1)      all air-conditioning duct work, floor finish,
                           clerical work (including [ILLEGIBLE] of light and
                           power circuits) light-fittings, transfer of air duct
                           to our suspended ceilings, and security, fire
                           services (including sprinklers, infra-red detectors
                           and/or smoke detectors) and air-conditioning unit
                           (on/or control system serving the Premises:

                  (2)      Any other installation, adjustment, modification and
                           alteration of the provisions and fixtures and
                           fittings in the Premises, if approved by the
                           Landlord.

         2.3      Any other items including any additional fixtures or fittings
                  and interior decoration which we may require will likewise be
                  for our account.

3.       APPROVAL OF INTERNAL LAYOUT
         ---------------------------

         3.1      Within the period specified in paragraph 11 of the Premises
                  Schedule, we shall submit to the Landlord for approval layout
                  plans in respect to the Premises together with detailed design
                  drawings and specifications for the design and construction of
                  all proposed interior work installations and listings.

         3.2      We acknowledge and agree that:

                  (1)      under no circumstances may work be commenced until
                           the full approval of the Landlord in writing has been
                           obtained:

                  (2)      no delays, whether in submitting or resubmitting our
                           proposals and plans or in the Landlord approving the
                           same or otherwise will entitle us to any [ILLEGIBLE]
                           of the rent-free period granted hereunder or to any
                           claim for compensation or otherwise:

                  (3)      the term of [ILLEGIBLE] may commence even though any
                           of the plans, drawings and specifications have not
                           been fully approved or any [ILLEGIBLE] work has not
                           been commenced.

         3.3      We agree to pay upon submission of our initial internal layout
                  plans a Floor Handling Fee to the Landlord or its managing
                  agent at the rate of HK$3.50 per sq. ft. based on the area of
                  the Premises as specified in paragraph 3 of the Premises
                  Schedule for:

                  (1)      voting our initial internal layout plans; and

                  (2)      where such plans include or necessitate work which is
                           required hereunder to be carried out by the
                           Landlord's nominated contractors, handling and
                           co-ordinating the carrying on of such work.

4.       ALTERATION WORK BY NOMINATED CONTRACTORS
         ----------------------------------------

         4.1      We acknowledge that to enable the electrical,
                  air-conditioning, plumbing, drainage, sprinkler, security,
                  building automation and the direction alarm systems in the
                  building to be effectively co- ordinated and controlled all
                  work required by us within the Premises affecting these
                  services and facilities shall be designed and supervised by a
                  professional electrical and Mechanical consultant employed by
                  us, and carried out at our cost by the Landlord's nominated
                  contractors for which purpose we undertake to engage the
                  appropriate contractor nominated by the Landlord for the
                  category of work in question and to pay the nominated
                  contractors' charges for the work as follows:

                  (1)      50% of the [ILLEGIBLE] sum for each category of work
                           and the Landlord's charges at the same time as
                           returning the signed statement of cost(s)

                  (2)      progress payment(s) (if any) as stipulated by the
                           Landlord in the estimate upon presentation of
                           invoices; and

                  (3)      the final account for each category of work and the
                           balance of the Landlord's charges (if any) upon
                           presentation of the relevant invoices.

         4.2      We acknowledge that since the appropriate nominated
                  contractors shall be engaged by us, the Landlord shall
                  notwithstanding the nomination not have any liability to us
                  for or in respect of any set deed matter or thing arising out
                  of or in connection with the engagement of any such contractor
                  or contractors or any work done or omitted to be done by them
                  or any of them pursuant to such engagement.

         4.3      We further agree that in respect of any subsequent [ILLEGIBLE]
                  work in or to the Premises, a handling fee shall be payable to
                  the Landlord in accordance with Section III Clause 7 of the
                  [ILLEGIBLE] Agreement sent with this Offer.

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