Document:

THIS
      NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      ANY STATE SECURITIES LAWS. THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
      OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO
      THIS
      NOTE UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION
      OF
      COUNSEL REASONABLY SATISFACTORY TO RONCO CORPORATION THAT SUCH REGISTRATION
      IS
      NOT REQUIRED.

     

    SECURED
      NON-CONVERTIBLE TERM NOTE

     

     

    FOR
      VALUE
      RECEIVED, each of RONCO CORPORATION, a Delaware corporation (the “Parent”),
      and
      the other companies listed on Exhibit
      A
      attached
      hereto (such other companies together with the Parent, each a “Company”
and
      collectively, the “Companies”),
      jointly and severally, promises to pay to LAURUS MASTER FUND, LTD., c/o M&C
      Corporate Services Limited, P.O. Box 309 GT, Ugland House, South Church Street,
      George Town, Grand Cayman, Cayman Islands, Fax: 345-949-8080 (the “Holder”)
      or its
      registered assigns or successors in interest, the sum of Four Million Dollars
      ($4,000,000), together with any accrued and unpaid interest hereon, on October
      18, 2008 (the “Maturity
      Date”)
      if not
      sooner paid.

     

    Capitalized
      terms used herein without definition shall have the meanings ascribed to such
      terms in the Security and Purchase Agreement among the Companies and the Holder
      dated as of the date hereof (as amended, modified and/or supplemented from
      time
      to time, the “Security
      Agreement”).

     

    The
      following terms shall apply to this Secured Non-Convertible Term Note (this
      “Note”):

     

    ARTICLE
      I

    CONTRACT
      RATE

     

    1.1  Contract
      Rate.
      Subject
      to Sections 4.2 and 5.10, interest payable on the outstanding principal amount
      of this Note (the “Principal
      Amount”)
      shall
      accrue at a rate per annum equal to the “prime rate” published in The
      Wall Street Journal
      from
      time to time (the “Prime
      Rate”),
      plus
      two percent (2.0%) (the “Contract
      Rate”).
      The
      Contract Rate shall be increased or decreased as the case may be for each
      increase or decrease in the Prime Rate in an amount equal to such increase
      or
      decrease in the Prime Rate; each change to be effective as of the day of the
      change in the Prime Rate. The Contract Rate shall not at any time be less than
      eight percent (8.0%). Interest shall be (i) calculated on the basis of a 360
      day
      year, and (ii) payable monthly, in arrears, commencing on November 1, 2006
      on
      the first business day of each consecutive calendar month thereafter through
      and
      including the Maturity Date and on the Maturity Date, whether by acceleration
      or
      otherwise.

     

    1.2  Contract
      Rate Payments.
      The
      Contract Rate shall be calculated on the last business day of each calendar
      month hereafter (other than for increases or decreases in the Prime Rate which
      shall be calculated and become effective in accordance with the terms of Section
      1.1) until the Maturity Date (each a “Determination
      Date”).

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    1.3  Principal
      Payments.
      Amortizing payments of the aggregate principal amount outstanding under this
      Note at any time (the “Principal
      Amount”)
      shall
      be made by the Company on January 1, 2007 and on the first business day of
      each
      succeeding month thereafter through and including the Maturity Date (each,
      an
“Amortization
      Date”).
      Commencing on the first Amortization Date, the Company shall make monthly
      payments to the Holder on each Amortization Date, each such payment in the
      amount of $121,212.12 together with any accrued and unpaid interest on such
      portion of the Principal Amount plus any and all other unpaid amounts which
      are
      then owing under this Note, the Security Agreement and/or any other Ancillary
      Agreement (collectively, the “Monthly
      Amount”).
      Any
      outstanding Principal Amount together with any accrued and unpaid interest
      and
      any and all other unpaid amounts which are then owing by the Company to the
      Holder under this Note, the Security Agreement and/or any other Ancillary
      Agreement shall be due and payable on the Maturity Date. 

     

    ARTICLE
      II

    LOANS;
      PAYMENTS UNDER THIS NOTE

     

    2.1  Loans.
      All
      Loans evidenced by this Note shall be made in accordance with the terms and
      provisions of the Security Agreement.

     

    2.2  Intentionally
      Omitted.

     

    2.3  Optional
      Redemption in Cash.
      The
      Companies will have the option of prepaying this Note (“Optional
      Redemption”)
      by
      paying to the Holder a sum of money equal to one hundred fifteen percent (115%)
      of the principal amount of this Note then outstanding together with accrued
      but
      unpaid interest thereon and any and all other sums due, accrued or payable
      to
      the Holder arising under this Note, the Security Agreement, or any other
      Ancillary Agreement (the “Redemption
      Amount”)
      outstanding on the Redemption Payment Date (as defined below). The Company
      shall
      deliver to the Holder a written notice of redemption (the “Notice
      of Redemption”)
      specifying the date for such Optional Redemption (the “Redemption
      Payment Date”),
      which
      date shall be no later than ten (10) days after the date of the Notice of
      Redemption (the “Redemption
      Period”).
      On
      the Redemption Payment Date, the Redemption Amount (plus any additional interest
      and fees accruing on the Notes during the Redemption Period) must be irrevocably
      paid in full in immediately available funds to the Holder. In the event the
      Companies fail to pay the Redemption Amount on the Redemption Payment Date,
      then
      such Redemption Notice shall be null and void.

     

    ARTICLE
      III

    [INTENTIONALLY
      OMITTED]

     

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    ARTICLE
      IV

    EVENTS
      OF DEFAULT AND DEFAULT RELATED PROVISIONS

     

    4.1  Events
      of Default.
      The
      occurrence of an Event of Default under the Security Agreement shall constitute
      an event of default (“Event
      of Default”)
      hereunder. 

     

    4.2  Default
      Interest.
      Following the occurrence and during the continuance of an Event of Default,
      the
      Companies shall, upon written notice from the Holder of such Event of Default,
      jointly and severally, pay additional interest on the outstanding principal
      balance of this Note in an amount equal to one-half of one percent (0.5%) per
      month, and all outstanding Obligations, including unpaid interest, shall
      continue to accrue interest at such additional interest rate from the date
      of
      notice of such Event of Default until the date such Event of Default is cured
      or
      waived. 

     

    ARTICLE
      V

    MISCELLANEOUS

     

    5.1  Issuance
      of New Note.
      Upon
      any partial payment of this Note, a new Note containing the same date and
      provisions of this Note shall, at the request of the Holder, be issued by the
      Companies to the Holder for the principal balance of this Note and interest
      which shall not have been paid.

     

    5.2  Cumulative
      Remedies.
      The
      remedies under this Note shall be cumulative.

     

    5.3  Failure
      or Indulgence Not Waiver.
      No
      failure or delay on the part of the Holder hereof in the exercise of any power,
      right or privilege hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise of any such power, right or privilege preclude other
      or further exercise thereof or of any other right, power or privilege. All
      rights and remedies existing hereunder are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

     

    5.4  Notices.
      Any
      notice herein required or permitted to be given shall be in writing and shall
      be
      deemed effective: (a) upon personal delivery to the party notified, (b) when
      sent by confirmed telex or facsimile if sent during normal business hours of
      the
      recipient, if not, then on the next business day, (c) five days after having
      been sent by registered or certified mail, return receipt requested, postage
      prepaid, or (d) one day after deposit with a nationally recognized overnight
      courier, specifying next day delivery, with written verification of receipt.
      All
      communications shall be sent to the respective Company at the address provided
      for such Company in the Security Agreement executed in connection herewith,
      and
      to the Holder at the address provided in the Security Agreement for such Holder,
      with a copy to John E. Tucker, Esq., 825 Third Avenue, 14th
      Floor,
      New York, New York 10022, facsimile number (212) 541-4434, or at such other
      address as the respective Company or the Holder may designate by ten days
      advance written notice to the other parties hereto. 

     

    5.5  Amendment
      Provision.
      The
      term “Note” and all references thereto, as used throughout this instrument,
      shall mean this instrument as originally executed, or if later amended or
      supplemented, then as so amended or supplemented, and any successor instrument
      as such successor instrument may be amended or supplemented.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    5.6  Assignability.
      This
      Note shall be binding upon each Company and its successors and assigns, and
      shall inure to the benefit of the Holder and its successors and assigns, and
      may
      be assigned by the Holder in accordance with the requirements of the Security
      Agreement. No Company may assign any of its obligations under this Note without
      the prior written consent of the Holder, any such purported assignment without
      such consent being null and void.

     

    5.7  Cost
      of Collection.
      In case
      of any Event of Default under this Note, the Companies shall, jointly and
      severally, pay the Holder’s reasonable costs of collection, including reasonable
      attorneys’ fees.

     

    5.8  Governing
      Law, Jurisdiction and Waiver of Jury Trial.

     

    (a)  THIS
      NOTE
      SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS
      OF
      THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
      LAW.

     

    (b)  EACH
      COMPANY HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED
      IN
      THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION
      TO
      HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN ANY COMPANY, ON THE ONE HAND,
      AND THE HOLDER, ON THE OTHER HAND, PERTAINING TO THIS NOTE, THE SECURITY
      AGREEMENT OR ANY OF THE OTHER ANCILLARY AGREEMENTS OR TO ANY MATTER ARISING
      OUT
      OF OR RELATED TO THIS NOTE, THE SECURITY AGREEMENT OR ANY OF THE OTHER ANCILLARY
      AGREEMENTS; PROVIDED,
      THAT
      EACH COMPANY ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE
      HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF NEW YORK;
      AND FURTHER PROVIDED,
      THAT
      NOTHING IN THIS NOTE SHALL BE DEEMED OR OPERATE TO PRECLUDE THE HOLDER FROM
      BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT
      THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
      OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE
      HOLDER. EACH COMPANY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
      JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH COMPANY
      HEREBY WAIVES ANY OBJECTION THAT IT MAY HAVE BASED UPON LACK OF PERSONAL
      JURISDICTION, IMPROPER VENUE OR FORUM
      NON CONVENIENS.
      EACH
      COMPANY HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER
      PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH
      SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED
      MAIL
      ADDRESSED TO THE COMPANY AT THE ADDRESS SET FORTH IN THE SECURITY AGREEMENT
      AND
      THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE COMPANY’S
      ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER
      POSTAGE PREPAID.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (c)  EACH
      COMPANY DESIRES THAT ITS DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH
      APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS
      OF
      THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH COMPANY HERETO WAIVES ALL RIGHTS
      TO
      TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
      WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE HOLDER, AND/OR
      ANY
      COMPANY ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE
      RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS NOTE, THE SECURITY
      AGREEMENT, ANY OTHER ANCILLARY AGREEMENT OR THE TRANSACTIONS RELATED HERETO
      OR
      THERETO.

     

    5.9  Severability.
      In the
      event that any provision of this Note is invalid or unenforceable under any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform with such statute or rule of law. Any such provision which
      may prove invalid or unenforceable under any law shall not affect the validity
      or enforceability of any other provision of this Note.

     

    5.10  Maximum
      Payments.
      Nothing
      contained herein shall be deemed to establish or require the payment of a rate
      of interest or other charges in excess of the maximum permitted by applicable
      law. In the event that the rate of interest required to be paid or other charges
      hereunder exceed the maximum rate permitted by such law, any payments in excess
      of such maximum rate shall be credited against amounts owed by the Companies
      to
      the Holder and thus refunded to the Companies.

     

    5.11  Security
      Interest.
      The
      Holder has been granted a security interest (i) in certain assets of the
      Companies as more fully described in the Security Agreement and (ii) pursuant
      to
      the Stock Pledge Agreement dated as of the date hereof.

     

    5.12  Construction.
      Each
      party acknowledges that its legal counsel participated in the preparation of
      this Note and, therefore, stipulates that the rule of construction that
      ambiguities are to be resolved against the drafting party shall not be applied
      in the interpretation of this Note to favor any party against the
      other.

     

    5.13  Registered
      Obligation.
      This
      Note is intended to be a registered obligation within the meaning of Treasury
      Regulation Section 1.871-14(c)(1)(i) and the Companies (or their agent) shall
      register this Note (and thereafter shall maintain such registration) as to
      both
      principal and any stated interest. Notwithstanding any document, instrument
      or
      agreement relating to this Note to the contrary, transfer of this Note (or
      the
      right to any payments of principal or stated interest thereunder) may only
      be
      effected by (i) surrender of this Note and either the reissuance by the
      Companies of this Note to the new holder or the issuance by the Company of
      a new
      instrument to the new holder, or (ii) transfer through a book entry system
      maintained by the Company (or its agent), within the meaning of Treasury
      Regulation Section 1.871-14(c)(1)(i)(B).

     

    [Balance
      of page intentionally left blank; signature page follows]

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      each
      Company has caused this Secured Non-Convertible Term Note to be signed in its
      name effective as of this 18 day of October 2006.

     

    

    
      	
              WITNESS:

            	
              RONCO
                CORPORATION

            
	 	 
	
              unintelligible                                  
                

            	
              By:
                /s/ Paul
                Kabashima                                          
                

            
	 	
              Name:
                Paul Kabashima

            
	 	
              Title:
                Interim President

            
	 	 
	 	 
	
              WITNESS:

            	
              RONCO
                MARKETING CORPORATION

            
	 	 
	
              unintelligible                                 
                

            	
              By:
                /s/ Paul
                Kabashima                                         
                

            
	 	
              Name:
                Paul Kabashima

            
	 	
              Title:
                Interim President

            

    

     

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

     

    EXHIBIT
      A

     

     

    OTHER
      COMPANIES

     

    

     

    Ronco
      Marketing, Corporation, a Delaware corporation

     

    

     

    
      
         

      

      
        7THIS
      NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      ANY STATE SECURITIES LAWS. THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
      OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO
      THIS
      NOTE UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION
      OF
      COUNSEL REASONABLY SATISFACTORY TO RONCO CORPORATION THAT SUCH REGISTRATION
      IS
      NOT REQUIRED.

     

    SECURED
      NON-CONVERTIBLE REVOLVING NOTE

     

    FOR
      VALUE
      RECEIVED, each of RONCO CORPORATION, a Delaware corporation (the “Parent”),
      and
      the other companies listed on Exhibit
      A
      attached
      hereto (such other companies together with the Parent, each a “Company”
and
      collectively, the “Companies”),
      jointly and severally, promises to pay to LAURUS MASTER FUND, LTD., c/o M&C
      Corporate Services Limited, P.O. Box 309 GT, Ugland House, South Church Street,
      George Town, Grand Cayman, Cayman Islands, Fax: 345-949-8080 (the “Holder”)
      or its
      registered assigns or successors in interest, the sum of Eleven Million Dollars
      ($11,000,000), or, if different, the aggregate principal amount of all Loans
      (as
      defined in the Security Agreement referred to below) as may be outstanding
      from
      time to time, together with any accrued and unpaid interest hereon, on October
      18, 2008 (the “Maturity
      Date”)
      if not
      sooner indefeasibly paid in full.

     

    Capitalized
      terms used herein without definition shall have the meanings ascribed to such
      terms in the Security and Purchase Agreement among the Companies and the Holder
      dated as of the date hereof (as amended, modified and/or supplemented from
      time
      to time, the “Security
      Agreement”).

     

    The
      following terms shall apply to this Secured Non-Convertible Revolving Note
      (this
“Note”):

     

    ARTICLE
      I

    CONTRACT
      RATE 

     

    1.1  Contract
      Rate.
      Subject
      to Sections 3.2 and 4.9, interest payable on the outstanding principal amount
      of
      this Note (the “Principal
      Amount”)
      shall
      accrue at a rate per annum equal to the “prime rate” published in The
      Wall Street Journal
      from
      time to time (the “Prime
      Rate”),
      plus
      one percent (1.0%) (the “Contract
      Rate”).
      The
      Contract Rate shall be increased or decreased as the case may be for each
      increase or decrease in the Prime Rate in an amount equal to such increase
      or
      decrease in the Prime Rate; each change to be effective as of the day of the
      change in the Prime Rate. The Contract Rate shall not at any time be less than
      eight percent (8.0%). Interest shall be (i) calculated on the basis of a 360
      day
      year, and (ii) payable monthly, in arrears, commencing on November 1, 2006
      on
      the first business day of each consecutive calendar month thereafter through
      and
      including the Maturity Date, and on the Maturity Date, whether by acceleration
      or otherwise.

     

    1.2  Contract
      Rate Payments.
      The
      Contract Rate shall be calculated on the last business day of each calendar
      month hereafter (other than for increases or decreases in the Prime Rate which
      shall be calculated and become effective in accordance with the terms of Section
      1.1) until the Maturity Date (each a “Determination
      Date”).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
      II

    [INTENTIONALLY
      OMITTED]

     

    ARTICLE
      III

    EVENTS
      OF DEFAULT AND DEFAULT RELATED PROVISIONS

     

    3.1  Events
      of Default.
      The
      occurrence of an Event of Default under the Security Agreement shall constitute
      an event of default (“Event
      of Default”)
      hereunder. 

     

    3.2  Default
      Interest.
      Following the occurrence and during the continuance of an Event of Default,
      the
      Companies shall, upon written notice from the Holder of such Event of Default,
      jointly and severally, pay additional interest on the outstanding principal
      balance of this Note in an amount equal to one-half of one percent (0.5%) per
      month, and all outstanding Obligations, including unpaid interest, shall
      continue to accrue interest at such additional interest rate from the date
      of
      notice of such Event of Default until the date such Event of Default is cured
      or
      waived.

     

    ARTICLE
      IV

    MISCELLANEOUS

     

    4.1  Cumulative
      Remedies.
      The
      remedies under this Note shall be cumulative.

     

    4.2  Failure
      or Indulgence Not Waiver.
      No
      failure or delay on the part of the Holder hereof in the exercise of any power,
      right or privilege hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise of any such power, right or privilege preclude other
      or further exercise thereof or of any other right, power or privilege. All
      rights and remedies existing hereunder are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

     

    4.3  Notices.
      Any
      notice herein required or permitted to be given shall be in writing and shall
      be
      deemed effective given (a) upon personal delivery to the party notified, (b)
      when sent by confirmed telex or facsimile if sent during normal business hours
      of the recipient, if not, then on the next business day, (c) five days after
      having been sent by registered or certified mail, return receipt requested,
      postage prepaid, or (d) one day after deposit with a nationally recognized
      overnight courier, specifying next day delivery, with written verification
      of
      receipt. All communications shall be sent to the respective Company at the
      address provided for such Company in the Security Agreement executed in
      connection herewith, and to the Holder at the address provided in the Security
      Agreement for the Holder, with a copy to John E. Tucker, Esq., 825 Third Avenue,
      14th
      Floor,
      New York, New York 10022, facsimile number (212) 541-4434, or at such other
      address as the respective Company or the Holder may designate by ten days
      advance written notice to the other parties hereto. A Notice of Conversion
      shall
      be deemed given when made to the Parent pursuant to the Purchase
      Agreement.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    4.4  Amendment
      Provision.
      The
      term “Note” and all references thereto, as used throughout this instrument,
      shall mean this instrument as originally executed, or if later amended or
      supplemented, then as so amended or supplemented, and any successor instrument
      as such successor instrument may be amended or supplemented.

     

    4.5  Assignability.
      This
      Note shall be binding upon each Company and its successors and assigns, and
      shall inure to the benefit of the Holder and its successors and assigns, and
      may
      be assigned by the Holder in accordance with the requirements of the Security
      Agreement. No Company may assign any of its obligations under this Note without
      the prior written consent of the Holder, any such purported assignment without
      such consent being null and void.

     

    4.6  Cost
      of Collection.
      In case
      of any Event of Default under this Note, the Companies shall, jointly and
      severally, pay the Holder the Holder’s reasonable costs of collection, including
      reasonable attorneys’ fees.

     

    4.7  Governing
      Law, Jurisdiction and Waiver of Jury Trial.

     

    (a)  THIS
      NOTE
      SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS
      OF
      THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
      LAW.

     

    (b)  EACH
      COMPANY HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED
      IN
      THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION
      TO
      HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN ANY COMPANY, ON THE ONE HAND,
      AND THE HOLDER, ON THE OTHER HAND, PERTAINING TO THIS NOTE, THE SECURITY
      AGREEMENT OR ANY OF THE OTHER ANCILLARY AGREEMENTS OR TO ANY MATTER ARISING
      OUT
      OF OR RELATED TO THIS NOTE, THE SECURITY AGREEMENT OR ANY OF THE OTHER ANCILLARY
      AGREEMENTS PROVIDED,
      THAT
      EACH COMPANY ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE
      HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF NEW YORK;
      AND FURTHER PROVIDED,
      THAT
      NOTHING IN THIS NOTE SHALL BE DEEMED OR OPERATE TO PRECLUDE THE HOLDER FROM
      BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT
      THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
      OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE
      HOLDER. EACH COMPANY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
      JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH COMPANY
      HEREBY WAIVES ANY OBJECTION THAT IT MAY HAVE BASED UPON LACK OF PERSONAL
      JURISDICTION, IMPROPER VENUE OR FORUM
      NON CONVENIENS.
      EACH
      COMPANY HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER
      PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH
      SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED
      MAIL
      ADDRESSED TO THE COMPANY AT THE ADDRESS SET FORTH IN THE SECURITY AGREEMENT
      AND
      THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE COMPANY’S
      ACTUAL RECEIPT THEREOF OR FIVE BUSINESS (5) DAYS AFTER DEPOSIT IN THE U.S.
      MAILS, PROPER POSTAGE PREPAID

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (c)  EACH
      COMPANY DESIRES THAT ITS DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH
      APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS
      OF
      THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH COMPANY HERETO WAIVES ALL RIGHTS
      TO
      TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
      WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE HOLDER, AND/OR
      ANY
      COMPANY ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE
      RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS NOTE, THE SECURITY
      AGREEMENT, ANY OTHER ANCILLARY AGREEMENT OR THE TRANSACTIONS RELATED HERETO
      OR
      THERETO.

     

    4.8  Severability.
      In the
      event that any provision of this Note is invalid or unenforceable under any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform with such statute or rule of law. Any such provision which
      may prove invalid or unenforceable under any law shall not affect the validity
      or enforceability of any other provision of this Note.

     

    4.9  Maximum
      Payments.
      Nothing
      contained herein shall be deemed to establish or require the payment of a rate
      of interest or other charges in excess of the maximum permitted by applicable
      law. In the event that the rate of interest required to be paid or other charges
      hereunder exceed the maximum rate permitted by such law, any payments in excess
      of such maximum rate shall be credited against amounts owed by the Companies
      to
      the Holder and thus refunded to the Companies.

     

    4.10  Security
      Interest.
      The
      Holder has been granted a security interest (i) in certain assets of the
      Companies as more fully described in the Security Agreement and (ii) pursuant
      to
      the Stock Pledge Agreement dated as of the date hereof.

     

    4.11  Construction.
      Each
      party acknowledges that its legal counsel participated in the preparation of
      this Note and, therefore, stipulates that the rule of construction that
      ambiguities are to be resolved against the drafting party shall not be applied
      in the interpretation of this Note to favor any party against the
      other.

     

    4.12  Registered
      Obligation.
      This
      Note is intended to be a registered obligation within the meaning of Treasury
      Regulation Section 1.871-14(c)(1)(i) and the Companies (or their agent) shall
      register the Note (and thereafter shall maintain such registration) as to both
      principal and any stated interest. Notwithstanding any document, instrument
      or
      agreement relating to this Note to the contrary, transfer of this Note (or
      the
      right to any payments of principal or stated interest thereunder) may only
      be
      effected by (i) surrender of this Note and either the reissuance by the Company
      of this Note to the new holder or the issuance by the Company of a new
      instrument to the new holder, or (ii) transfer through a book entry system
      maintained by the Company (or its agent), within the meaning of Treasury
      Regulation Section 1.871-14(c)(1)(i)(B).

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      each
      Company has caused this Secured Non-Convertible Revolving Note to be signed
      in
      its name effective as of this 18 day of October 2006.

     

     

    
      	
              WITNESS:

            	
              RONCO
                CORPORATION

            
	 	 
	
              unintelligible                                
                

            	
              By:
                /s/ Paul
                Kabashima                                       
                

            
	 	
              Name:
                Paul Kabashima

            
	 	
              Title:
                Interim President 

            
	 	 
	 	 
	
              WITNESS:

            	
              RONCO
                MARKETING CORPORATION

            
	 	 
	
              unintelligible                                
                

            	
              By:
                /s/ Paul
                Kabashima                                      
                

            
	 	
              Name:
                Paul Kabashima

            
	 	
              Title:
                Interim President

            

    

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    EXHIBIT
      A

     

     

    OTHER
      COMPANIES

     

    

     

    

     

    Ronco
      Marketing Corporation, a Delaware corporation

     

     

     

    
      
         

      

      
        6

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