Document:

EXHIBIT 10.3

                        SEPARATION AND RELEASE AGREEMENT

            THIS SEPARATION AND RELEASE AGREEMENT (the "Agreement") is entered
into on April 30, 2003 by and between John Klecha (the "Employee") and The
Singing Machine Company, Inc., a Delaware corporation (the "Company").

                                   WITNESSETH:

         WHEREAS, the Employee was employed by the Company as its Chief
Operating Officer and President pursuant to an employment agreement dated June
1, 2000 (the "Employment Agreement");

         WHEREAS, the Company and the Employee have mutually decided that the
Employee will resign and receive compensation pursuant to the terms and
conditions contained herein;

         WHEREAS, the parties hereto desire to put to rest and settle all
controversies between them related to or arising out of Employee's employment
with, and resignation from, the Company and the facts and circumstances
underlying the same, and to settle and compromise any and all claims and
differences between them, of any sort, origin or description in order to avoid
the costs and uncertainties inherent in possible future litigation.

         NOW, THEREFORE, Employee and the Company, intending to be legally bound
hereby and in consideration of the promises contained herein, do hereby agree as
follows:

         1. RESIGNATION. The Employee agrees to resign as (i) the Company's
President, Chief Operating Officer, Treasurer, Secretary and from any other
officer positions that he holds with the Company and (ii) a director and from
any other positions that he holds with International SMC (HK) Ltd., the
Company's Hong Kong subsidiary, effective as of the end of the business day on
Friday, May 2, 2003 (the "Resignation Date"). The Employee acknowledges and
agrees that after the Resignation Date, he will not have the authority to
represent or bind the Company or its subsidiaries as an officer.

         2. TERMINATION OF EMPLOYMENT AGREEMENT AND OPTIONS.

         2.1 Employee acknowledges and agrees that this Agreement shall serve to
terminate his Employment Agreement and that this Agreement sets forth all the
compensation that is payable to him, effective as of the date of this Agreement.
The Employee will continue to receive regular salary and auto allowance payments
pursuant to the Company's normal payroll practices through May 31, 2003, the
date on which the Employee's Employment Agreement would have expired, had it not
been terminated prior to such date, as described in this Agreement.

                                       1
<PAGE>

         2.2 The Employee agrees that he will have until December 31, 2003, to
exercise any vested options ("Vested Options") that have been granted to him by
the Company during the term of his employment with the Company. The Employee
acknowledge and agrees that the only Vested Options that he owns as of the date
of this Agreement are as follows: options to purchase 270,000 shares of the
Company's common stock at an exercise price of $2.04 per share, options to
purchase 15,000 shares of the Company's common stock at an exercise price of
$4.23 per share and options to purchase 24,000 shares of the Company's common
stock at an exercise price of $14.30 per share. The Employee agrees that any of
the Vested Options, listed in this Section 2.2, which the Employee has not
exercised by August 31, 2003 will be deemed to be cancelled, null and void at
the end of the business day on August 31, 2003.

         2.3 The Company and the Employee acknowledge the termination of the
Employment Agreement and the survival and incorporation by reference herein of
the provisions, terms and conditions set forth in Sections 12, 13, 15, 25 and
26. The Employee also agrees that he will comply with the restrictive covenants
contained in Section 12 of the Employment Agreement for a period of four (4)
months after his Resignation Date and agrees to the enforcement provisions
contained in Section 12(d) of the Employment Agreement., except employment with
Hopper Memcorp will be excepted from this requirement.

         3.         SEVERANCE PAYMENTS.

         3.1 SEVERANCE PAYMENT. In consideration of the covenants set forth
herein, the Company agrees to pay the Employee a severance payment equal to
approximately $168,217.52, in the aggregate, which is comprised of (i) salary
and auto allowance payments made through May 31, 2003, as described in Section
2.1 of this Agreement, (ii) four weeks of accrued vacation time, (iii) four
months of the Employee's salary and automobile allowance payments and (iv) seven
months of COBRA reimbursement payments. All amounts stated in this Agreement are
prior to any deduction for applicable withholding taxes and other amounts that
are required to be withheld or deducted by federal and Florida law.

         During the period between the Resignation Date and May 31, 2003, the
Company will continue to provide the Employee with his salary and auto allowance
payments. The Company will provide the Employee with a check for his four weeks
of accrued vacation time on May 31, 2003. The severance payments for items (iii)
and four months of item (iv) will be paid to the Employee in accordance with the
normal payroll practices of the Company in eight (8) installments beginning on
June 7, 2003 and ending on September 13, 2003. During the period between
September 13, 2003 and ending on January 3, 2004, the Company will provide the
Employee with COBRA reimbursement payments equal to approximately $2,418.50. The
Company will make payments over this three month period in accordance with the
normal payroll practices of the Company beginning on September 13, 2003 and
ending on January 3, 2004.

                                       2
<PAGE>

         3.2. BENEFITS. The Company will provide the Employee with information
regarding any benefits which may be converted to individual coverage and/or
coverage which includes his spouse in accordance with Consolidated Omnibus
Budget Reconciliation Act (COBRA) regulations. Employee acknowledges and agrees
that he will not be entitled to any perquisites, benefits or other compensation
whatsoever after the Resignation Date, except as described in this Agreement.

         4. WAIVER AND RELEASE. For good and valuable consideration, the receipt
and sufficiency of which is acknowledged by the Employee, including the payments
to the Employee as described in Section 3, Employee hereby agrees that
regardless of who assumes his duties, his separation of employment from the
Company was not due in any way to age or any other type of discrimination or any
wrongful act of the Company, and Employee and his Releasors do hereby
voluntarily and fully release and forever discharge the Company, together with
its past and current predecessors, successors, shareholders, officers,
directors, employees, attorneys, trustees, insurers, representatives,
contractors, representatives, related organizations and affiliates
(collectively, the "Released Parties"), jointly and individually, from any and
all claims, demands, debts, causes of action, claims for relief, and damages, of
whatever kind or nature, known or unknown, developed or undeveloped, which
Employee had, now has or may hereinafter have from the beginning of the world to
the date of these presents, including, without limitation, all claims and all
rights which the Employee may have under Title VII of the Civil Rights Act of
1964; the Equal Employment Opportunity Act of 1972; the Civil Rights Act of
1991; the Age Discrimination and Employment Act of 1967; the Employee Retirement
Security Act 42 U.S.C. ss. 1981; the Older Workers' Benefit Protection Act; the
Americans with Disabilities Act; the Family Medical Leave Act of 1993; the Equal
Pay Act; the Fair Labor Standards Act; the Broward County Equal Opportunity
Ordinance; and any and all other federal and state statutes which regulate
employment; and the laws of contracts, tort and other subjects.

         5. RELEASED PARTIES AND NO ADMISSION OF LIABILITY. For purposes of
paragraph 4, "Releasors" shall mean, collectively, the spouse of the Employee
and the Employee's dependents, heirs, executors administrators and assigns, past
and present and each of them and their trustees, directors, officers, agents,
attorneys, insurers, employees, stockholders, representatives, successors,
assigns and all persons acting by, through, under or in connection with them,
past and present. Execution of this Agreement and payment of the payments
specified in paragraph 3 of this Agreement does not constitute an admission by
any Released Party of any violation of any civil rights or other employment
discrimination statute, or any other legal statute, provision, regulation,
ordinance, order or action under common law. Rather, this Agreement expresses
the intention of the parties to resolve all issues and other claims related to
or arising out of Employee's employment by the Company without the time and
expense of litigation.

            6. GOVERNING LAW. The law of the State of Florida shall govern the
validity of this Agreement, the construction of its terms and the interpretation
of the rights and duties of the parties. This Agreement constitutes the entire
agreement and understanding between the Employee and the Company regarding the
Employee's resignation from

                                       3
<PAGE>

employment with the Company. This Agreement totally replaces and supersedes any
and all prior agreements, arrangements, representations and understandings
between the Employee and the Company, including but not limited to the
Employment Agreement and agreements in which the Employee was granted options to
purchase the Company's common stock, except for certain sections of the
Employment Agreement which have been incorporated herein by reference. Any
agreement to amend or modify the terms and conditions of this Agreement must be
in writing and executed by the parties hereto. This Agreement may be
specifically enforced in judicial proceedings and may be used as evidence in a
subsequent proceeding in which a breach is alleged. Headings are for convenience
only and should not be used in interpreting this Agreement.

         7. CONFIDENTIALITY. The Employee agrees that he will keep confidential
all information regarding the Company, its business operations and this
Agreement, including, but not limited to, information about pricing, customers,
current and former employees and will not disclose such information to anyone
unless (i) such information is published and becomes public knowledge (other
than through or by the Employee on his behalf), (ii) required by legal process
in formal legal proceeding or (iii) to the extent necessary to report income to
the appropriate taxing authorities.

         8. KNOWING AND VOLUNTARY SETTLEMENT. IN EXECUTING THIS AGREEMENT,
EMPLOYEE HEREBY REPRESENTS THAT HE HAS BEEN AFFORDED A REASONABLE OPPORTUNITY TO
CONSIDER THIS AGREEMENT; THAT HE HAS COMPLETELY AND CAREFULLY READ THIS
AGREEMENT; THAT HE HAS BEEN ADVISED BY THE COMPANY TO CONSULT WITH AN ATTORNEY
OF HIS OWN CHOICE PRIOR TO EXECUTING THIS AGREEMENT, AND RELIED ON THE LEGAL
ADVICE OF HIS ATTORNEY; THAT HE HAD THE OPPORTUNITY TO HAVE AN ATTORNEY EXPLAIN
TO HIM THE TERMS OF THIS AGREEMENT; THAT HE KNOWS AND UNDERSTANDS THE CONTENTS
OF THIS AGREEMENT; THAT THE TERMS OF THIS AGREEMENT ARE TOTALLY SATISFACTORY TO
AND FULLY UNDERSTOOD AND VOLUNTARILY ACCEPTED BY HIM. THE EMPLOYEE ALSO AGREES
THAT HE HAS BEEN PROVIDED WITH AT LEAST TWENTY-ONE (21) DAYS TO CONSIDER THIS
AGREEMENT AND VOLUNTARILY AGREES TO BE BOUND BY IT, AND THAT HE UNDERSTANDS THAT
HE MAY REVOKE THIS AGREEMENT WITHIN SEVEN DAYS AFTER ITS EXECUTION AND THAT THIS
AGREEMENT WILL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE EXPIRATION OF SEVEN
DAYS AFTER ITS EXECUTION.

         9. EFFECT OF SETTLEMENT AND INTERPRETATION. The Company and Employee
intend this Agreement to be legally binding upon and inure to the benefit of
each of them and their respective heirs, administrators, executors, successors
and assigns. The language of this Agreement shall be construed as a whole,
according to its fair meaning and intent and not strictly for or against any
party hereto, regardless of who drafted or was principally responsible for
drafting this Agreement. The recitals contained at the beginning of this
Agreement are expressly made a part of this Agreement.

                                       4
<PAGE>

         10. ARBITRATION, SEVERABILITY AND JURY WAIVER. The arbitration clause
contained in Section 15 of the Employment Agreement is expressly incorporated
herein by reference and shall govern any dispute, controversy or claim arising
under, our of, in connection with, or in relation to this Agreement, or the
breach, termination, validity or enforceability of any provision of this
Agreement. Should any provision of this Agreement be declared illegal or
unenforceable by any court of competent jurisdiction and cannot be modified to
be enforceable, including the general release language, such provision shall
immediately become null and void, leaving the remainder of the Agreement in fall
force and effect. However, if any portion of the general release language is
ruled to be unenforceable for any reason, Employee shall return the
consideration paid to him pursuant to paragraph 3 of this Agreement to the
Company. The Company and the Employee each knowingly, intentionally, and
irrevocably waive any and all rights to a jury trial for any litigation or legal
proceeding in any way relating to or arising out of this Agreement or the
Employment Agreement.

         IN WITNESS WHEREOF, the aforesaid parties have hereunto set their hands
and seals as of the day below written.

/s/ John Klecha
---------------
John Klecha
Executed on April 30, 2003

The Singing Machine Company, Inc.

/s/ Edward Steele
-----------------
Edward Steele
Chief Executive Officer

Executed on April 30, 2003

                                       5EXHIBIT 10.6

                              EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT ("Agreement") effective as of May 2, 2003 by and between
THE SINGING MACHINE COMPANY INC. a Delaware corporation with its principal
offices at 6601 Lyons Road, Coconut Creek, FL 33073 (the "Company") and Mr. Yi
Ping Chan whose residence address is 10 Belfran Road, Flat 1B, Kowloon, Hong
Kong (the "Employee").

The Company and the Employee hereby agree as follows with respect to the
Employee's relationship with the Company.

1. RELATIONSHIP TERM:

The Company shall retain the Employee and the Employee shall be retained by the
Company, on the terms and conditions hereinafter set forth, as an Employee for a
period (the "Employment Period") commencing on April 1, 2003 (the Commencement
Date), and ending on March 31, 2006 (the "Termination Date"), unless terminated
sooner pursuant to the provisions hereof. Such period of employment shall be
automatically extended for two -year term unless either the Company or the
Employee notifies the other in writing at least sixty (60) days prior to the end
of the then current term that it or she does not intend to renew such
employment, in which case such employment will expire at the end of the then
current term. During the entire term of this Agreement, the Employee shall be
the Company's Chief Operating Officer

2. EFFORTS ON COMPANY'S BEHALF:

The Employee shall devote all of his time and his best efforts, skills and
attention to the business and affairs of the Company, shall serve the Company
faithfully and competently and shall at all times act in the Company's best
interest. The services to be rendered by Employee during the term hereof shall
be as Chief Operating Officer, subject at all times to the direction and control
of the Chief Executive Officer. Nothing herein shall be construed to prevent
Employee from investing in or participating in the management of companies or
other entities, which do not compete with the Company or from serving on the
board of directors of any other company.

3. COMPENSATION PACKAGE:

(a)  The Company shall pay to the Employee, and the Employee agrees to accept,
     base salary of two hundred and fifty thousand dollars ($250,000) per year,
     payable in accordance with normal payroll policies of the Company and shall
     be subject to all usual and customary payroll deductions including all
     applicable withholding taxes.
(b)  The Employee's annual base salary increase over the prior year's base
     salary each year during the term hereof should be the sold discretion of
     the Company's Board of Directors based on Company and the Employee's
     performance.

                                       1
<PAGE>

4. BONUS/BENEFITS COMPENSATION:

(a)  The Employee shall be entitled to receive a bonus (the "profit Bonus") for
     each fiscal year of the Company ("Fiscal year") during the employment
     period based at the discretion of the Company's Board of Directors.
(b)  Employee's Bonus shall be at the sole discretion of the Company's Board of
     Directors based on Company and the Employee's performance.
(c)  In consideration of Employee's services hereunder, the employee has been
     granted the option to purchase 150,000 shares of common stock of the
     Company to be vested 1/3 each over the next three years (1/3 by December
     31, 2003, 1/3 by December 31, 2004 and 1/3 by December 31, 2005) in
     accordance with the terms of stock option agreement to be executed between
     the Company and Employee after the effective date of this agreement.
(d)  The Company shall pay up to $ 40,000 for all the moving related expenses to
     move and relocate the Employee and his families from Hong Kong to Florida
     and upon termination of this contract, the Company shall pay up to $ 40,000
     for all the moving related expenses to move and relocate the Employee and
     his families from Florida to Hong Kong or another destination of the
     Employee's choice.
(e)  The Company shall pay to the employee a car allowance of $ 500 per month
     and car maintenance.

5. BENEFIT PLANS:

(a)  The Employee shall be entitled to participation in all Company-sponsored
     benefit plans in accordance with terms, conditions and costs with usual or
     customary Company policy.
(b)  In the event that the Company purchases insurance on the life of Employee,
     Employee shall be entitled to purchase said policy from the Company in the
     event of his termination, pursuant to the terms hereof, for an amount equal
     to the cash surrender value thereof.

6. BUSINESS EXPENSES:

The Employee shall be reimbursed for all usual and customary expenses incurred
on behalf of the Company, in accordance with Company practices and procedures;
provided that each such expense is of a nature qualifying it as a proper
deduction on the Federal income tax returns of the Company, exclusive of any
limitation rules as a business expense of the Company and not as compensation to
Employee, and Employee furnishes the Company with adequate documentary evidence
to substantiate such expenses.

7. VACATION:
Employee shall be entitled to a paid vacation of three weeks per each year of
this Agreement. Such vacation time allowance shall cumulatively accrue, and any
unused vacation time for each year can be used in the following year. The
Company shall make all reasonable efforts to enable Employee to use his vacation
leave each year. Employee shall also be entitled to all paid holidays made
generally available by the Company to its employees.

                                       2
<PAGE>

8. DEATH OR DISABILITY:

(a)  Notwithstanding anything to the contrary contained in Paragraph 1 above if,
     during the term hereof, the Employee suffers a disability (as defined
     below) the Company shall, subject to the provisions of Paragraph 8 (c)
     hereof, continue to pay Employee the compensation provided in Paragraph 3
     hereof during the period of his disability; provided, however, that, in the
     event Employee is disabled for a continuous period of ninety (90)
     consecutive days or for shorter periods aggregating ninety (90) days in any
     twelve-month period that the Employee is incapable of substantially
     fulfilling the duties set forth in Section 2 or hereafter assigned to him
     by the Chief Executive Officer or Board of Directors because of physical,
     mental or emotional incapacity resulting from injury, sickness or disease
     as determined by an independent physician agreed upon by both the Company
     and the Employee, the Company may, at its election, terminate this
     Agreement. In the event of such termination, the Company, shall continue to
     be obligated to pay Employee his compensation earned up to the date of
     termination.
(b)  As used in this Agreement, the term "disability" shall mean the substantial
     inability of Employee to perform his duties under this Agreement as
     determined by an independent physician agreed upon by both the Company and
     the Employee.
(c)  In the event that employment ceases prior to the end of a calendar month as
     a result of his death or disability or in the event of a termination
     described in Paragraph 10 below, the Company shall pay Employee or his
     legal representatives, as the case may be, in addition to any other amounts
     payable by the Company hereunder, a lump cash sum which shall in no event
     be less than the salary plus any bonus to which Employee would have been
     entitled, had he continued to be affiliated with the Company until the end
     of the calendar month during which his affiliation terminates.

9. CHANGE OF CONTROL:

(a)  For the purposes of this Agreement, a "Change of Control" shall be deemed
     to have taken place if:
(i)      any person, including a "group" as defined in Section 13(d) (3) of the
         Securities Exchange Act of 1934, as amended, becomes the owner or
         beneficial owner of Company securities, after the date of this
         Agreement, having 50% or more of the combined voting power of the then
         outstanding securities of the Company that may be case for the election
         of directors of the Company (other than as a result of an issuance of
         securities initiated by the Company, or open market purchases approved
         by the Board, as long as the majority of the Board approving the
         purchases is the majority at the time the purchases are made, or
(ii)     the persons who were directors of the Company before such transactions
         shall cease to constitute a majority of the Board of the Company, or
         any successor to the Company, as the direct or indirect result of, or
         in connection with, any cash tender or exchange offer, merger or other
         business combination, sales of assets or contested election, or any
         combination of the foregoing transactions.

(b)  The Company and the Employee hereby agree that, if Employee is affiliated
     with the Company on the date on which a Change of Control occurs (the
     "Change of Control Date") the Company (or, if Employee is affiliated with
     subsidiary) the subsidiary will continue to retain Employee and Employee
     will remain affiliated with the Company (or subsidiary), for the period
     commencing on the Change of Control Date and ending on the first
     anniversary of such a date, to exercise such authority and perform such

                                       3
<PAGE>

     Employee duties as are commensurate with the authority being exercised and
     duties being performed by the Employee immediately prior to the Change of
     Control Date.

(c)  During the remaining term hereof after the Change of Control Date, the
     Company (or subsidiary) will
(i)      continue to pay Employee a salary at not less than the level applicable
         to Employee on the Change of Control Date.
(ii)     Pay Employee Bonuses in amounts not less in amount than those paid
         during twelve month period preceding the Change of Control Date, and
(iii)    Continue employee benefit programs as to Employee at levels in effect
         on the Change of Control Date (but subject to such reductions as may be
         required to maintain such plans in compliance with applicable federal
         law regulating employee benefit programs).

(d)  If during the remaining term hereof after the Change of Control Date
(i)      Employee's employment is terminated by the Company (or subsidiary), or
(ii)     There shall have occurred a material reduction in Employee's
         compensation or employment related benefits, or a material change in
         Employee's status, working conditions, management responsibilities or
         titles, and Employee voluntarily terminates his relationship; with the
         company within sixty (60) days of any such occurrence, or the last in a
         series of occurrences, then Employee shall be entitled to receive,
         subject to the provisions of subparagraphs (e) and (f) below, a lump
         sum payment equal to 100% of Employee's "base period income" as
         determined under (f) below. Such amount will be paid to Employee within
         thirty (30) business days after his termination of affiliation with the
         Company.

(e)  If during the remaining term hereof after the Change of Control Date
(i)      Employee, at his option, can voluntarily terminate his relationship;
         with the company within sixty (60) days of any such occurrence, or the
         last in a series of occurrences, then Employee shall be entitled to
         receive, subject to the provisions of subparagraphs (f) and (g) below,
         a lump sum payment equal to 100% of Employee's "base period income" as
         determined under (f) below. Such amount will be paid to Employee within
         thirty (30) business days after his termination of affiliation with the
         Company.
(ii)     This Clause has precedent over the Clauses 9 (c) and (d) should there
         be multiple events.

(f)  The Employee's "base period income" shall be his base salary and annual
     incentive bonuses paid or payable to his during or with respect to the
     twelve month period preceding the date of his termination of affiliation.

(g)  The amounts payable to Employee under any other compensation arrangement
     maintained by the Company (or a subsidiary) which became payable after
     payment of the lump sum provided for in (a), upon or as a result of the
     exercise by Employee of rights which are contingent on a Change of Control
     (and would be considered a "parachute payment" under International Revenue
     Code ss. 280G and regulations thereunder), shall be increased by an
     additional amount representing a gross-up of
     any federal income tax liability arising from an excess parachute
     payment or otherwise.

                                       4
<PAGE>

(h)  All the options granted to Employee shall be vest immediately upon any type
     of termination of employment resulted from the Change of Control.

10.  TERMINATION:

(a)  Termination Without Cause:
The Company may terminate this Agreement without cause at anytime upon written
notice to the Employee, whereupon this Agreement shall terminate on the date
specified therein. The Company shall pay the Employee a severance amount equal
to twelve months of Employee's Base Salary and Bonus (the "Severance Amount"),
payable in full within thirty (30) days from the date specified therein
(hereinafter, the "Severance Payout Period") and shall be subject to all usual
and customary payroll deductions, including applicable withholding taxes.

At the same time, all the options granted to Employee shall be vested
immediately upon termination without causes.

(b) Termination for Cause:
The Company may immediately terminate this Agreement at any time during the
Employment Period for "cause". In such an event of termination, the Company
shall be obligated only to continue to pay to Employee his Base Salary earned up
to the effective date of termination. "Cause" for purposes hereof shall mean a
breach of any of the provisions of this Agreement by Employee, unsatisfactory
performance of Employee's duties hereunder as reasonably determined by the
Company's Board of Directors, wilful misconduct or neglect of duties, conviction
of any criminal offence involving a felony, gross negligence, malfeasance or a
crime of moral turpitude.

(c) Continuing Effect:
Notwithstanding any termination of the Employee as provided in this Section 10
or otherwise, the provisions of Section 12 and 13 shall remain in full force and
effect and shall be binding on the Employee and his legal representatives,
successors and assigns.

11.  CONSOLIDATION, MERGER OR SALE OF ASSETS:

Nothing in this Agreement shall preclude the Company from consolidating or
merging into or with, or transferring all or substantially all of its assets to,
another corporation, which assumes this Agreement, and all obligations of the
Company hereunder, in writing. Upon such consolidation, merger, or transfer of
assets and assumption, the term "the Company" as used herein, shall mean such
other corporation and this Agreement shall continue in full force and effect.

                                       5
<PAGE>

12.  RESTRICTIVE COVENANTS:

(a)  The Employee acknowledges that his services and responsibilities are unique
     in character and are of particular significance to the Company, that the
     Company is a competitive business and that the Employee's continued and
     exclusive service to the Company under this Agreement is of a high degree
     of importance to the Company. Therefore, during the Employment Period and
     for the applicable periods specified below (each, the "Noncompete Period"),
     the Employee shall not, directly or indirectly, as owner, partner, joint
     venture, Employee, Broker, Corporate Officer, Agent, Principal, Licensor,
     Shareholder unless as owner of no more than five percent (5%) of the issued
     and outstanding capital stock of such entity if such stock is traded on a
     major securities exchange, or in any other his capacity whatsoever, engage
     in or have any connection with any business which is competitive with the
     Company, and which operates anywhere in the world on the effective date of
     termination of this Agreement. (Lawyer to revise:
     the following is not re-enforceable)

         Reason for Termination             Non-compete Period
         ----------------------             ------------------

         Termination without cause                1 year
         Termination for cause                    2 years

      For the purposes of this Agreement, a business will be deemed to be
      competitive with the Company if it is an importer/re-seller of Karaoke
      hardware and/or software specialising in the United States mass merchant
      marketplace.

(b)  In addition to the restrictions set forth in Section 12(a), during the
     Noncompete period, the Employee shall not:

i.       directly or indirectly, by initiating contact or otherwise, induce
         influence, combine or conspire with, or attempt to induce, influence,
         combine or conspire with, any of the officers, employees or agents of
         the Company to terminate his, her or its employment or relationship
         with or to compete against the company; or
ii.      directly or indirectly, by initiating contact or otherwise, divert or
         attempt to divert any or all of any customers' or suppliers' business
         with the Company.

(c)  If, in any judicial proceedings, a court shall refuse to enforce any of the
     covenants included in this Section 12 due to extent, geographic scope or
     duration thereof, or otherwise, then such unenforceable covenant shall be
     amended to relate to such lesser extent, geographic scope or duration and
     this Section 12 shall be enforceable, as amended. In the event the Company
     should bring any legal action or other proceeding against Employee for
     enforcement of this Agreement, the calculation of the Noncompete Period
     shall not include the period of time commencing with the filing of legal
     action or other proceeding to enforce this Agreement through the date of
     final judgement or final resolution, including all appeals, if any of such
     legal action or other proceeding unless the Company is receiving the
     practical benefits of this Section 12 during such time. The existence of
     any claim or cause of action by the Employee against the Company predicated
     on this Agreement or otherwise shall not constitute a defence to the
     enforcement by the Company of these covenants.

(d)  The Employee has carefully considered the nature and extent of the
     restrictions upon the Employee and the rights and remedies conferred upon
     the Company under this Section 12, and the Employee hereby acknowledges
     that the restrictions on his activity as contained herein are reasonably
     required for the Company's protection,

                                       6
<PAGE>

     would not operate as a bar to the Employee's sole means of support, are
     fully required to protect the legitimate interests of the Company, do
     not confer a benefit on the Company disproportionate to the detriment
     to the Employee and are material inducements to the Company to enter
     into this Agreement. The Employee hereby agrees that in the event of a
     violation by his of any of the provisions of this Agreement, the
     Company will be entitled to institute and prosecute proceedings at law
     or in equity to obtain damages with respect to such violation or to
     enforce the specific performance of this Agreement by the Employee or
     to enjoin the Employee from engaging in any activity in violation
     hereof.

13.  TREATMENT AND OWNERSHIP OF CONFIDENTIAL INFORMATION:

The Employee acknowledges that during his employment he will learn and will have
access to Confidential Information regarding the Company. For purposes of this
Agreement, the term "Confidential" acquires or develops or has made use of,
acquires or develops or has made use of, acquires or develops or has made use
of, acquired or developed in whole or in part in connection with Employee's
employment with the Company (whether before or after the date of this
Agreement), including any financial data, client names and addresses, employee
data, discoveries, processes, formulas, inventions, know-how, techniques and any
other materials or information related to the business or activities of the
Company which are not generally known to others engaged in similar businesses or
activities. The Employee acknowledges that such Confidential Information as is
acquired and used by the Company or its affiliates is a special, valuable and
unique asset. The Employee will not, except in connection with and as required
by his performance of his duties under this Agreement, for any reason use for
his own benefit, or the benefit of any person or entity with which she may be
associated, or disclose any such Confidential Information to any person, firm,
corporation, association or other entity for any reason or purpose whatsoever
without the prior written consent of the Company's Board of Directors, unless
such Confidential Information previously shall be and shall remain the exclusive
property of the Company. The Employee agrees to promptly disclose to the Company
all Confidential Information developed in whole or in part by the Employee
within the scope of this Agreement and to assign to the Company any right,
title, or interest the Employee may have in such Confidential Information. The
Employee agrees to turn over to the Company all physical manifestations of the
Confidential Information in his possession or under his control at the request
of the Company.

14.  EMPLOYEE REPRESENTATIONS AND WARRANTIES:

The Employee represents and warrants that he is not a party to, or bound by, any
other his employment agreements. The Employee further represents and warrants to
the Company that he is free of known physical and mental disabilities that
would, with or without reasonable accommodations that would create an undue
hardship for the Company, impair his performance hereunder and he is fully
empowered to enter and perform his obligations under this Agreement. Without
limiting the generality of the foregoing, the Employee represents and warrants
that he is under no restrictive covenants to any person or entity that will be
violated by his entering into and performing this Agreement.

                                       7
<PAGE>

15.  ARBITRATION:

Except as provided in sections 12 and 25 hereof, any dispute, controversy or
claim arising under, out of, in connection with, or in relation to this
Agreement, or the breach, termination, validity or enforceability of any
provision of this Agreement, will be settled arbitrator (the "Arbitrator")
chosen according to the rules of the American Arbitration Association's National
Rules for Resolution of Employment Disputes, with the additional proviso that
all steps necessary to insure the confidentiality of the proceedings will be
added to the basic rules. Unless otherwise mutually agreed upon by the parties,
the arbitration hearings shall be held in the Broward County, Florida. The
parties hereby agree that the Arbitrator has full power and authority to hear
and determine the controversy and make and award in writing in the form of a
reasoned judicial opinion. The parties hereby stipulate in advance that the
award is binding and final. The parties hereto also agree that judgement upon
the arbitration award may be entered in any federal or state court having
jurisdiction thereof. Each party is responsible for their own legal fees and
out-of-pocket expenses.

16.  BINDING EFFECT:

Except as herein otherwise provided, this Agreement shall insure to the benefit
of and shall be binding upon the parties hereto, their personal representatives,
successors, heirs and assigns.

17.  SEVER ABILITY:

Invalidity or unenforceability of any provisions hereof shall in no way affect
the validity or enforceability of any other provisions.

18.  TERMINOLOGY:

All personal pronouns used in this Agreement, whether used in the masculine,
feminine or neuter gender, shall include all other genders; the singular shall
include the plural and vice versa. Titles of Paragraphs are for convenience
only, and neither limit nor amplify the provisions of the Agreement itself.

19.  GOVERNING LAW:

This Agreement shall be governed and construed in accordance with the laws of
the State of Florida.

20.  ENTIRE AGREEMENT:

This Agreement contains the entire understanding between the parties and may not
be changed or modified except by an Agreement in writing signed by all the
parties.

21.  NOTICE:

Any notice required or permitted to be delivered hereunder shall be deemed to be
delivered when deposited in the United States mail, postage prepaid, registered
or certified mail, return receipt requested, addressed to the parties at the
addresses first stated herein, or to such other address as either party hereto
shall from time to time designate to the other party by notice in writing as
provided herein.

                                       8
<PAGE>

22.  NO PUBLICITY:

The Employee agrees that she will not engage in any conduct that is injurious to
the Company's reputation and interests, including, but not limited to, publicly
disparaging (or inducing or encouraging others to publicly disparage) the
Company or any of the Company's directors, officers, employees or agent.

23.  CO-OPERATION:

Employee agrees to co-operate fully with the Company by providing information to
the Company and its representatives, agents or advisors regarding any business
matters with which the Employee may become involved with during the terms of
this Agreement and to co-operate fully in the event of any litigation or legal,
administrative or regulatory proceeding by providing information, including but
not limited to, providing truthful testimony at any legal, administrative or
regulatory proceeding, regarding any facts or information of which Employee has
knowledge and/or any business matters of which Employee has or had knowledge.
The Company is acknowledged that the Employee is currently a director, general
partner and a major shareholder of MaxValue Capital Ltd. which is a Hong Kong
legal entity engaging in investment and consulting services. Employee is in the
process of transferring or winding down his duties at MaxValue Capital Ltd. but
is expected to be remained as director and shareholder of MaxValue Capital Ltd
during the term of his Employment Agreement. The time will be minimal which does
not impact the Employee's primary obligation to the Company. The Employee was a
consultant on behalf of MaxValue Capital Ltd. to the Company prior to this
Employment Agreement.

24.  ASSIGN ABILITY:

The rights and obligations of the Company under this Agreement shall insure the
benefit of and be binding upon the successors and assigns of the Company,
provided that such successor or assign shall acquire all or substantially all of
the assets and business of the Company and, further provided that any such
assignment shall not release the Company from its obligations to the Employee
hereunder. The employee's rights and obligations hereunder may not be assigned
or alienated without the prior written consent of the Company and any attempt to
do so by the Employee will be void.

25.  ATTORNEY'S FEES:

If any legal action or other proceeding is brought by the Company for the
enforcement of Section 12 of this Agreement, or because of an alleged dispute,
breach, default or misrepresentation by the Employee in connection with any
provision of this Agreement, the Company or the Employee in such legal action or
other proceeding, shall be responsible for its own attorneys' fees, sales and
use taxes, court costs and other expenses incurred in that action or proceeding.

                                       9
<PAGE>

If any legal action or other proceeding is brought by any party against the
Company and/ or the Employee, the Company shall be responsible for the
Employee's fees, sales and use taxes, court costs and other expenses incurred in
that action or proceeding and at the same time indemnify the Employee from any
loss.

26.  INJUNCTIVE RELIEF:

The Employee acknowledges and agrees that in the event Employee violates any
term, covenant or provision of Section 12 of this Agreement, the Company will
suffer irreparable harm for which the Company will have no adequate remedy at
law. The Employee agrees that the Company shall be entitled to injunctive relief
for any breach or violation of Section 12 of this Agreement, including but not
limited to the issuance of an ex-parte preliminary injunction, in addition to
and not in limitation of any and all other remedies available to the Company at
law or in equity.

27.  NO OFFSETS:

The existence of any claim or cause of action of the Employee against the
Company, whether predicated on this Agreement or otherwise, shall not constitute
a defence to the enforcement by the Company of this Agreement.

28.  EMPLOYEE ACKNOWLEDGEMENT:

The Employee acknowledges and agrees that Employee has read and understands the
terms set forth in this Agreement and has been given a reasonable opportunity to
consult with an attorney prior to execution of this Agreement.

29.  OTHER INSTRUMENTS:

The parties hereby covenant and agree that they will execute such other and
further instruments and documents as are or may become necessary or convenient
to effectuate and carry out the terms of this Agreement.

30.  COUNTERPARTS:

This Agreement may be executed in any number of counterparts and each such
counterpart shall for all purposes be deemed an original.

31.  ASSIGN ABILITY:

This Agreement shall not be assigned by either party, except with the written
consent of the other.

                                       10
<PAGE>

IN WITNESS WHEREOF, this Agreement has been duly signed by the Employee and on
behalf of the Company on the day and year first above written.

THE SINGING MACHINE COMPANY INC.

/s/ Edward Steele
------------------------------
By: Edward Steele
      Chief Executive Officer

EMPLOYEE

/s/ Yi Ping Chan
------------------------------
Yi Ping Chan

WITNESS

/s/ Alicia Haskamp
-------------------------------
Alicia Haskamp

                                       11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}]]