Document:

Exhibit 10.1

    
      

    

    EXHIBIT
      10.1

    

     

    

     

    

    

     CO-OPERATIVE
      DEVELOPMENT & SUPPLY AGREEMENT

     

    This
      Co-operative Development & Supply Agreement ("Agreement") is hereby entered
      into between:

    

    Sequiam
      Biometrics, Inc.

    300
      Sunport Lane 

    Orlando,
      Florida 32809 

    ("Sequiam
      Biometrics")

     

    and

     

    Kwikset
      Corporation 

    19701
      DaVinci

    Lake
      Forrest, CA 92610

    (“Kwikset")

    

    (each
      a
“Party” and collectively the “Parties”)

    

    The
      effective date of this Agreement shall be
      SEPTEMBER 13,
      2005
      (the "Effective Date").

    

    In
      consideration of the mutual covenants and promises contained herein, and for
      other good and valuable consideration, the Parties agree as
      follows:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    BACKGROUND

    Purpose:
      

    

    The
      purpose of this document is to set forth the agreements and deliverables of
      a
      business relationship between Kwikset and Sequiam Biometrics in respect to
      the
      development, marketing and sales of biometric enabled security door hardware
      and
      systems.

    

    Scope:

    

    This
      agreement relates to two distinct and separate programs for the development,
      marketing and sales of biometric enabled security door hardware and systems.
      

    

    BIOLOCK
      -
      The Biolock program will be a biometric enabled residential deadbolt built
      on
      the foundation of Kwikset’s current Powerbolt keypad access
      product.

    

    BIOSYSTEM
      - The Biosystem program will be a biometric enabled system which will provide
      for central enrollment and monitoring with distributed access control suitable
      for applications including but not restricted to multifamily dwellings,
      commercial buildings, and assisted living environments.

    

    

    ARTICLE
      I
      - BIOLOCK PROJECT

    

    
      	
              1.1

            	
              Development 

            

    

    

    Kwikset
      and Sequiam Biometrics * develop a biometric
      enabled residential deadbolt,
      which
      incorporates such changes in design made pursuant to the terms of this Agreement
      as will ensure, to the extent practicable, that the developed deadbolt is
      commercially acceptable to Kwikset. The biometric
      enabled residential deadbolt to
      be
      developed ("BIOLOCK") is described in the preliminary specification
      (“SPECIFICATION”) attached hereto as Appendix "A" and made a part hereof. The
      respective responsibilities of the Parties with regard to the development of
      the
      BIOLOCK shall be as follows:

    

    
      	 	
              (a)

            	
              The
                development platform for BIOLOCK shall be the current Kwikset
                *.

            

    

    

    
      	 	
              (b)

            	
              Kwikset
                shall be responsible for * of the grade 1 deadbolt and
                latch.

            

    

    

    ___________________

    *
      The
      information omitted is confidential and has been filed separately with the
      Securities and Exchange Commission pursuant to Rule 406 of the Securities Act
      of
      1933, as amended. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    
      	 	
              (c)

            	
              Kwikset
                shall be responsible for * of the deadbolt surround which will be
                the
                mechanical support for the biometric
                sensor.

            

    

    

    
      	 	
              (d)

            	
              Kwikset
                shall be responsible for * subject to revision
                control.

            

    

    

    
      	 	
              (e)

            	
              Kwikset
                and Sequiam Biometrics * cabling, packaging of the new mother board,
                and
                functional design of the user
                display/interface.

            

    

    

    
      	 	
              (f)

            	
              Sequiam
                Biometrics shall be responsible for development of the *
                board.

            

    

    

    
      	 	
              (g)

            	
              Sequiam
                Biometrics shall be responsible for all * for the current * mother
                board.

            

    

    

    The
      tradenames for BIOLOCK marketed by Sequiam Biometrics will be owned by Sequiam
      Biometrics. The tradenames for BIOLOCK marketed by Kwikset will be owned by
      Kwikset. 

    

    1.3        
       Testing
      - The
      Parties’ respective responsibilities with regard to the testing of the BIOLOCK
      shall be as follows: 

    

    
      	 	
              (a)

            	
              Kwikset
                will be responsible for the mechanical test plan and execution.
                

            

    

    

    
      	 	
              (b)

            	
              Sequiam
                Biometrics will be responsible for the electronic test plan and
                execution.

            

    

    

    
      	 	
              (c)

            	
              Kwikset
                and
                Sequiam Biometrics shall be jointly responsible for the integration
                test
                plan and execution.

            

    

    

    1.4         
       Tooling/Capital
      -
      Kwikset’s responsibilities with regard to tooling and capital shall be as
      follows:

    

    
      	 	
              (a)

            	
              To
                provide the capital *.

            

    

    

    
      	 	
              (b)

            	
              To
                support the * test equipment.

            

    

    

    1.5         
       Production
      -
The
      Parties’ respective responsibilities with regard to the production of the
      BIOLOCK shall be as follows:

    

    
      	 	
              (a)

            	
              Sequiam
                Biometrics shall be responsible for * and connecters from domestic
                sources
                for initial production.

            

    

    

    
      	 	
              (b)

            	
              Kwikset
                shall source the above components listed in Section 1.5(a) above
                from the
                lowest cost provider if the BIOLOCK enters high volume production,
                i.e.,
                entry into mass market retail (e.g.,
                *).

            

    

     

    
      ___________________

    

    *
      The
      information omitted is confidential and has been filed separately with the
      Securities and Exchange Commission pursuant to Rule 406 of the Securities Act
      of
      1933, as amended. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              Kwikset
                shall perform final assembly, test and pack at an appropriate facility
                as
                determined by Kwikset.

            

    

    

    1.6         
       Sales
      -
The
      Parties’ respective responsibilities with regard to sales of the BIOLOCK shall
      be as follows:

    

    
      	 	
              (a)

            	
              Initial
                sales (first six (6) months after completion of the first production
                available BIOLOCK) will be by Sequiam Biometrics, under its brand
                to
                satisfy current orders.

            

    

    

    
      	 	
              (b)

            	
              Sequiam
                Biometrics agrees to * jointly participate in market research with
                respect
                to customer satisfaction.

            

    

    

    
      	 	
              (c)

            	
              Sequiam
                Biometrics agrees to establish and maintain a toll free number for
                customer service for the BIOLOCK sold under the Sequiam Biometrics
                brand.

            

    

    

    
      	 	
              (d)

            	
              Sequiam
                Biometrics agrees to advise Kwikset of any sales to * prior to shipment
                of
                BIOLOCKS.

            

    

    

    
      	 	
              (e)

            	
              During
                the foregoing six (6) month period referenced in Section 1.6(a) above,
                Kwikset will evaluate field product performance to determine if product
                modifications are appropriate.

            

    

    

    
      	 	
              (f)

            	
              Kwikset
                intends to offer the BIOLOCK to its customers for listing in retail
                or new
                construction if performance is deemed by Kwikset to be
                satisfactory.

            

    

    

    
      	 	
              (g)

            	
              If
                listings are obtained Kwikset may sell BIOLOCK under any or all of
                its
                brand names.

            

    

    

    1.7         
       Financial

    

    
      	 	
              (a)

            	
              Kwikset
                agrees to sell, and Sequiam Biometrics agrees to purchase, the initial
                six
                (6) months of production of BIOLOCK for Kwikset’s total cost therefore,
                calculated in accordance with generally accepted accounting principles
                (“GAAP”) for cost of goods sold and general and administrative costs, *.
                

            

    

    

    
      	 	
              (b)

            	
              If
                Kwikset introduces BIOLOCK under its brands or chooses to not introduce
                BIOLOCK under its brands but is willing, in either case, to supply
                Sequiam
                Biometrics further BIOLOCKS, the price will be escalated to current
                fleet
                average margins. 

            

    

    

    ___________________

    *
      The
      information omitted is confidential and has been filed separately with the
      Securities and Exchange Commission pursuant to Rule 406 of the Securities Act
      of
      1933, as amended. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              If
                Kwikset introduces BIOLOCK under its brands the Parties agree that
                Kwikset
                shall pay Sequiam Biometrics * of the operating income earned by
                Kwikset,
                calculated in accordance with GAAP, from the sale of Kwikset branded
                BIOLOCKS for * from the date of the first such
                sales.

            

    

    

    ARTICLE
      II - BIOSYSTEM PROJECT

    

    2.1           Market
      Research
      -
      Kwikset shall undertake market research to determine the opportunity for and
      priority of attractive market segments for BIOSYSTEM. The market research shall
      be conducted in a manner as reasonably determined by Kwikset and shall focus
      on
      facilitators and inhibitors to the adoption of BIOSYSTEM. Market research output
      shall describe the viability of the BIOSYSTEM concept and functionality which
      will lead to a final system specification.

    

    2.2         
       Development
      - The
      respective responsibilities of the Parties with regard to the development of
      the
      BIOSYSTEM shall be as follows: 

    

    
      	 	
              (a)

            	
              Kwikset
                shall develop all * including, but not limited to, residence doors,
                access
                gates and parking garage access.

            

    

    

    
      	 	
              (b)

            	
              Kwikset
                shall provide * interface for the biometric
                sensors.

            

    

    

    
      	 	
              (c)

            	
              Sequiam
                Biometrics shall provide *.

            

    

    

    
      	 	
              (d)

            	
              Sequiam
                Biometrics shall provide the design interface *
                technology.

            

    

    

    
      	 	
              (e)

            	
              Sequiam
                Biometrics shall provide * design.

            

    

    

    
      	 	
              (f)

            	
              The
                Parties shall jointly develop the software to facilitate features
                and
                functions identified by market
                research.

            

    

    

    
      	 	
              (g)

            	
              Sequiam
                Biometrics agrees to support the development by providing all agreed
                upon
                * through the beta test phase.

            

    

    

    2.3           Testing
      - The
      Parties shall have joint
      responsibility for development of tests to certify the BIOSYSTEM as acceptable
      to all approval bodies, including, but not limited to, UL, BHMA and the
      FCC. 

    

    2.4         
       Tooling/Capital
      -
      Kwikset shall
      be
      responsible for * associated with BIOSYSTEM.

    

    2.5           Production
      -
      Kwikset shall
      be
      responsible for production of BIOSYSTEM whether from current operations or
      sourced. 

    

    
      ___________________

    

    *
      The
      information omitted is confidential and has been filed separately with the
      Securities and Exchange Commission pursuant to Rule 406 of the Securities Act
      of
      1933, as amended. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    2.6           Sales
      and Marketing
      -
Kwikset
      shall
      be
      responsible for all sales and marketing of BIOSYSTEM. 

    

    2.7         
       Royalty
      -
      In
      consideration of Sequiam Biometrics’s contributions to the development and
      implementation of BIOSYSTEM, Kwikset agrees to pay Sequiam Biometrics * by
      the
      Parties after the completion of applicable market research, specification
      generation, and agreement of accountability for deliverables from each of the
      Parties. 

    

    ARTICLE
      III -- INVENTIONS

    

    3.1        
         Ownership
      of Improvements.
      Any
      improvements arising from development work on BIOLOCK and BIOSYSTEM shall be
      owned as set forth in this Article III. 

    

    3.2          
      Definition
      -
“Invention,” as used herein, means any invention, whether product, process or
      equipment, technical information, data, computer program, improvement, design,
      copyrightable work, or know-how, whether or not patentable, which relates to
      biometric
      enabled residential deadbolts or biometric enabled systems which
      (a)
      are conceived or first reduced to practice by Sequiam Biometrics and/or Kwikset
      during the term or in anticipation of this Agreement, or (b) results from work
      done pursuant to this Agreement. 

    

    3.3           Kwikset
      Improvements
      -
      Inventions solely
      conceived by Kwikset or relating to the industrial design and/or the mechanical
      features shall be solely owned by Kwikset (“Kwikset Improvements”). Kwikset
      shall grant Sequiam Biometrics a non-exclusive, royalty-free license in any
      patented Kwikset Improvements related to BIOLOCK and/or BIOSYSTEM.

    

    3.4           Sequiam
      Biometrics Improvements
      -
      Inventions solely conceived by Sequiam Biometrics and not relating to industrial
      design shall be solely owned by Sequiam Biometrics (“Sequiam Biometrics
      Improvements”). Sequiam Biometrics shall grant Kwikset a
      non-exclusive, royalty-free
      license
      in any patented Sequiam Biometrics Improvements related to BIOLOCK
      and/or BIOSYSTEM.

    

    3.5          
       Joint
      Improvements
      -
      Inventions that are jointly conceived by Sequiam Biometrics and Kwikset and
      not
      relating to industrial design shall be solely owned by Kwikset (“Joint
      Improvements”). Kwikset shall grant Sequiam Biometrics a non-exclusive,
      royalty-free license to any patented Joint Improvements related to BIOLOCK
      and/or BIOSYSTEM. 

     

    
      ___________________

    

    *
      The
      information omitted is confidential and has been filed separately with the
      Securities and Exchange Commission pursuant to Rule 406 of the Securities Act
      of
      1933, as amended. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    3.6         
       Assignment
      and Filing
      -
      Sequiam Biometrics shall, upon request by Kwikset, assign all right, title
      and
      interest in the Joint Improvements and all proprietary rights therefore to
      Kwikset. Sequiam Biometrics's owners, employees and consultants will sign all
      applications for patents, copyrights, and other proprietary rights in the U.S.
      and foreign countries. All attorney's fees and government costs relating to
      said
      patents, copyrights or other proprietary rights shall be paid by Kwikset.
      Kwikset shall have the sole discretion to decide whether to file or prosecute
      any patent application, or to otherwise obtain, maintain, or enforce proprietary
      rights for the Joint Improvements.

    

    ARTICLE
      IV -- EXCLUSIVITY

    

    4.1         
       Kwikset
      -
      Kwikset agrees to form no business relationship during the term of this
      Agreement with any biometric technology provider other than Sequiam Biometrics,
      contingent upon satisfactory annual technology and business performance reviews
      by Kwikset of Sequiam Biometrics. Annual technology reviews will require Sequiam
      Biometrics to demonstrate its technology performance is comparable or superior
      to their competition in delivering performance specified in the engineering
      specification at the most competitive cost.

    

    4.2           Sequiam
      Biometrics agrees to enter into no business relationships with any person or
      entity which competes with Kwikset or its parents, subsidiaries or affiliates
      in
      the fields of use described in this Agreement for a period of five (5) years
      from the Effective Date of this Agreement if agreed upon timelines,
      product/system performance and cost targets are achieved. 

    

    ARTICLE
      V
      - CONFIDENTIALITY

    

    5.1         
       Definition
      -
      INFORMATION, as used herein, means any business or technical information,
      including without limitation any drawing, disclosure, design, data, report,
      calculation, computer programs, model, component part, patent application,
      or
      the like of the disclosing party which the receiving party develops, learns,
      or
      gains access to during the course of and as a result of work performed pursuant
      to the terms of this Agreement, excluding any information or object: (a) which
      is publicly known as of the Effective Date, (b) which becomes publicly available
      subsequent to the Effective Date through no fault of the receiving party, (c)
      which is known or possessed by the receiving party before receipt from the
      disclosing party or developed by Sequiam Biometrics for Kwikset pursuant to
      this
      Agreement, (d) which is disclosed at any time to the receiving party by a third
      party not under binder of confidentiality to the disclosing party,
      or (e)
      becomes subject to legal process or applicable law that requires disclosure
      of
      any INFORMATION, in which case the party subject to such legal process shall
      notify the other party of such required disclosure as promptly as possible
      (and
      prior to disclosure, if permissible) and shall take all actions as may be
      reasonably necessary to keep the INFORMATION confidential, including all actions
      that such party takes to preserve the confidentiality of its own
      INFORMATION.
      INFORMATION shall also include the
      existence and/or subject matter of this Agreement and relationship between
      the
      Parties.

    

    5.2         
       Confidentiality
      - Each
      Party will maintain in confidence all INFORMATION disclosed to it by the other
      Party and will not use or disclose the INFORMATION to a third party (a) except
      in connection with the performance of its obligations hereunder or when
      necessary to contract for services needed to perform this Agreement, (b) except
      pursuant to a license granted under this Agreement, or (c) unless authorized
      in
      writing by the disclosing party. The obligations of non-disclosure and non-use
      under this Agreement shall not apply to any information unless, if tangible,
      such INFORMATION is labeled or tagged "CONFIDENTIAL" at the time of disclosure,
      or if intangible, is noted as Confidential at the time of disclosure and reduced
      to a writing labeled "CONFIDENTIAL" and sent to the receiving party within
      fifteen (15) days of its disclosure to the receiving party by the disclosing
      party.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    5.3         
       Confidentiality
      Term
      - All
      obligations of the Parties pursuant to Section 5.2 above shall survive any
      early
      termination of this Agreement and shall expire five (5) years from the effective
      date of such termination.

    

    ARTICLE
      VI --TERM AND TERMINATION

    

    6.1         
       Term
      - This
      Agreement shall commence on the Effective Date and continue for a period of
      five
      (5) years.
      Such
period
      may be extended as necessary by approval of both Parties.

    

    6.2        
        Termination
      -
      This
      Agreement may be terminated by either Party so long as they provide written
      notice of termination to the other Party. Said termination will become effective
      in thirty (30) days. This Agreement may alternatively be terminated as permitted
      hereunder.

    

    6.3           Termination
      for Insolvency
      - This
      Agreement may be terminated by a Party without penalty immediately upon giving
      notice, if proceedings under any bankruptcy, insolvency or similar legislation
      are instituted by or against the non-terminating Party, or the non-terminating
      Party makes an assignment for the benefit of creditors, or a receiver is
      appointed for all or a substantial part of the non-terminating Party’s
      assets.

    

    6.4         
       Effect
      of Termination.
      Neither
      the expiration nor termination of this Agreement shall relieve either Party
      of
      its obligation to make any and all payments that have come due under this
      Agreement prior to the date of termination, nor shall it relieve either Party
      of
      obligations incurred prior to termination, which by their nature or term survive
      termination. 

    

    ARTICLE
      VII

    MISCELLANEOUS

    

    7.1         
       Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Maryland, without regard to its conflicts of law principles.

    

    7.2         
       Assignability.
      Neither
      Party may assign its rights or obligations hereunder without the prior written
      consent of the other Party hereto, except that Kwikset may assign this Agreement
      to an affiliate without the prior written consent of Sequiam Biometrics.

    

    7.3           Entire
      Agreement; Modification.
      This
      Agreement together with any Exhibits attached hereto and incorporated by
      reference herein sets forth the entire agreement between the Parties relating
      to
      the subject matter hereunder and any representation, promise, agreement or
      condition therewith not incorporated herein shall not be binding upon either
      Party. No change, modification, extension or renewal of this Agreement shall
      be
      binding unless made in writing and signed by authorized representatives of
      both
      Parties.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    7.4.        
       Public
      Announcement.
      The
      Parties shall not disclose, advertise or publish the terms and conditions of
      this Agreement without the prior written consent of the other Party. Each Party
      shall consult with the other Party before issuing any press releases or other
      public statements regarding the existence or nature of this Agreement, or
      regarding the Parties’ execution, performance or benefit hereunder.

    

    7.5         
       Nature
      of Relationship.
      For the
      purposes of this Agreement, the Parties are deemed to be independent
      contractors. It is expressly agreed that this Agreement and the relationship
      between the Parties hereby established do not constitute a partnership, joint
      venture, agency or contract of employment. No Party shall have the authority
      to
      make any statements, representations or commitments of any kind, or to take
      any
      action, which shall be binding on the other, except as authorized in writing
      by
      the party to be bound. No Party shall bind nor attempt to bind the other to
      any
      contract or to the performance of any obligation, nor represent to third parties
      that it has any right to enter into any obligation on the other’s
      behalf.

    

    7.6.        
       Partial
      Invalidity.
      If and
      to the extent that any court of competent jurisdiction or arbitrator holds
      any
      provision (or part thereof) of this Agreement to be invalid, illegal, or
      unenforceable, that provision shall, if possible, be construed as though more
      narrowly drawn, if a narrower construction would avoid such invalidity,
      illegality, or unenforceability or, if that is not possible, such provision
      (or
      part thereof) shall be severed, and the remaining provisions of this Agreement
      shall remain in effect.

    

    7.7         
       Waiver.
      Failure
      of either Party to enforce any provision of this Agreement shall not be deemed
      a
      waiver of future enforcement of that or of any other provision.

    

    7.8        
        Counterparts.
      This
      Agreement and any related amendments or other documents or instruments between
      or among the Parties may be executed in multiple counterparts, each of which
      shall be deemed an original, and all of which together shall constitute one
      and
      the same instrument.

     

    7.9      
           Notice.
      Any
      notice required or permitted hereunder must be in writing and be either (i)
      personally delivered; (ii) delivered by courier, overnight delivery, facsimile
      or similar means providing for proof of service; or (iii) sent by mail, postage
      prepaid (which shall be registered or certified mail, return receipt requested);
      properly addressed to the Party entitled to receive such notice or communication
      at the address for such Party set forth below or at such other address as the
      intended recipient shall have previously designated by written notice to the
      sender. Notice shall be effective on the date that it is delivered or, if mailed
      as provided above, three (3) days after the date of mailing.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    WITH
      INTENT TO BE BOUND, the Parties have executed this Agreement on the dates
      indicated below.

    

    
      	
              Kwikset

            	
              Sequiam
                Biometrics:

            
	
              KWIKSET
                CORPORATION

              A
                BLACK & DECKER HHI COMPANY

            	
              SEQUIAM
                BIOMETRICS, INC.

              A
                SEQUIAM COMPANY

            
	
              By: 

              

            	
              By:

              

            
	
              Title:
                VP
                R&D, ENGR. BDHHI

            	
              Title:
                CHIEF
                EXECUTIVE OFFICER

            
	 	 
	
              Dated: SEPTEMBER
                13, 2005

            	
              Dated: SEPTEMBER
                12, 2005

            
	 	 
	
              Address:
                19701 Da Vinci

            	
              Address: 300
                Sunport Lane

            
	                  Lake
              Forest, CA 92610	                 
              Orlando, FL 32809

    

     

     

    10EXHIBIT 10.8

                        NEW PRODUCT DEVELOPMENT AGREEMENT

            This New Product Development Agreement (this "Agreement") is made
and entered into as of June 30, 2005, by and among Ronald M. Popeil ("Popeil" or
"Party"), Alan L. Backus ("Backus" or "Party") and Ronco Marketing Corporation,
a Delaware corporation ("Company" or "Party" and together with Popeil and
Backus, the "Parties").

            Reference is made to that certain Asset Purchase Agreement, dated
December 10, 2004, by and among Company, Ronco Inventions, LLC, Popeil
Inventions, Inc., RP Productions, Inc., RMP Family Trust and Popeil (the "Asset
Purchase Agreement").

            This Agreement is entered into in connection with the Asset Purchase
Agreement. The purpose of this Agreement is to set forth the terms and
conditions pursuant to which Company may acquire certain rights in and to
certain consumer products to be conceived, created, designed and developed by
Popeil.

            In consideration of the mutual covenants and undertakings set forth
in this Agreement and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

      1. Development of New Products. As used in this Agreement, the term "New
Product" means any consumer product conceived, created, designed and developed
by Popeil and Backus during the Term (as defined below), to the extent Popeil
owns and controls the rights to such products, as well as the product designs,
prototypes, tooling and a completed commercial or infomercial for such New
Product. Subject to the terms and conditions of this Agreement, Popeil and
Backus may, in their sole and absolute discretion, but shall in no event be
obligated to, conceive, create, design and develop New Products during the Term.
Notwithstanding anything to the contrary set forth in this Agreement, "New
Products" shall not include any products or works (including without limitation,
books, interviews, articles and other publications, motion pictures (including,
without limitation, the motion picture tentatively entitled "Salesman of the
Century"), television programs (including, without limitation, cooking shows on
which Popeil appears and/or reality based or fictional productions, but not
including home shopping or infomercial-type programs the principal purpose of
which is to obtain and fulfill sales orders), videos, video games and gaming
devices, CDs and DVDs) that are (i) autobiographical in nature, or (ii)
derivative of or the result of any product or work described in (i) above,
and/or (iii) derivative of or the result of any promotion by Popeil of himself
(e.g., derivative of or the result of an appearance by Popeil on a talk show)
(the products and/or works described in (i), (ii), and (iii) above are
hereinafter collectively referred to as "Exempted Works"). Popeil shall have the
exclusive right, in his sole and absolute discretion, to conceive, create,
design, develop, market, promote (including, without limitation, through
personal appearances) and/or sell Exempted Works, and Popeil shall have no duty
of any kind or nature to notify Company, to account to Company or to pay Company
any sums or other consideration with respect to Exempted Works or with respect
to services he may render in connection with Exempted Works.

<PAGE>

      A. New Product Development. For the purposes of this Agreement, all New
      Products shall be developed, if at all, at Popeil's sole cost and expense.
      A New Product shall be deemed appropriate for submission to Company in
      accordance with the terms and conditions of this Agreement, at such time,
      if ever, as the New Product has been conceived, created and designed and a
      working prototype of the New Product (a "Prototype") has been produced.

      B. Third Parties. Popeil may, in his sole and absolute discretion,
      contract with and/or engage the services of such persons and/or entities
      as he sees fit for purposes of conceiving, creating, designing, developing
      and/or completing New Products under this Agreement.

      C. Allocation of Time. As between Popeil and Company, Popeil shall
      determine, in his sole and absolute discretion, the amount of time (if
      any) he and Backus will devote to the conception, creation, design,
      development and completion of New Products, and Popeil shall not be
      required to spend any minimum number of hours per day, week, month or year
      conceiving, creating, designing, developing or completing New Products. In
      such regard, Popeil makes no representation or warranty as to the number
      of New Products that may be conceived, created, designed, developed or
      completed by him during the Term, it being understood that Popeil and
      Backus may choose not to conceive, create, design, develop or complete any
      New Products during the Term.

      D. Creative Controls. As between Popeil and Company, Popeil shall have all
      creative controls over New Products, and over all packaging, advertising,
      naming and promotion therefor, including, without limitation, all creative
      controls over all stages of New Product conception, creation, design,
      development and completion.

      2. Right of First Refusal. Subject to the terms and conditions of this
Agreement, Company shall have a right of first refusal, exercisable in
accordance with the terms of Paragraph 2.A below, to acquire any and all New
Products submitted to Company by Popeil under this Agreement. The "Term" of this
Agreement and the right of first refusal shall commence upon the Closing Date
(as such term is defined in the Asset Purchase Agreement) and shall expire upon
the date that is three (3) years from the Closing Date, it being understood and
agreed, however, that, notwithstanding anything to the contrary in this
Agreement, Popeil shall in no event be required to submit a New Product that has
not reached the prototype phase prior to expiration of the Term or earlier
termination of this Agreement. The Term shall be subject to extension, if at
all, only by the mutual agreement in writing of the parties.

      A. Submission/Negotiation Process. During the Term, Popeil shall submit
      all Prototypes to Company for consideration by Company, promptly following
      completion of the Prototype. Submissions of Prototypes shall consist of a
      written notification from Popeil, alerting Company that a Prototype has
      been completed (a "Prototype Notice"), along with the Prototype and such
      items as shall be reasonably necessary for Company to evaluate the
      Prototype. Except with respect to the Turkey Fryer, the terms of which are
      addressed in Paragraph 2.F below, if Company decides to acquire such New

                                       2
<PAGE>

      Product, the acquisition price (the "Acquisition Price") of such New
      Product and the terms of such acquisition (e.g., whether the acquisition
      will include the conveyance or license of any intellectual property
      associated with the New Product described in the Prototype Notice) shall
      then be negotiated between the parties in good faith for a period (the
      "Negotiation Period") mutually agreed upon by the parties, but no longer
      than 30 days following the delivery of the Company's written response. The
      Acquisition Price will include, but will not be limited to, the cost of
      any New Product designs, prototypes, tooling, completion costs related to
      the completion of the New Product described in Paragraph 2. C below and
      any completed commercial or infomercial related to such New Product.

      B. First Refusal. In the event that Company and Popeil do not reach
      agreement regarding the Acquisition Price of a New Product within the
      Negotiation Period, Popeil must put his last best offer to Company in
      writing and deliver such offer to Company. Popeil shall not, during the
      Term after the Negotiation Period, conclude transactions with any third
      party with respect to the New Product on economic terms, taken together in
      the aggregate, more than ten percent (10%) less favorable to Popeil than
      the last terms reasonably offered by Popeil in writing to Company during
      the Negotiation Period unless Popeil first offers the New Product to
      Company in writing on such terms and Company does not within ten (10) days
      after its receipt of such notice, notify Popeil in writing that it wishes
      to acquire the New Product in accordance with the terms offered to such
      third party by Popeil. If Company doesn't give such an acceptance notice
      within the aforesaid 10-days, Popeil will be able proceed with the third
      party.

      C. New Product Completion or Abandonment. If Company desires to acquire a
      New Product as to which it has received a Prototype Notice and Company and
      Popeil reach an agreement regarding the Acquisition Price during the
      Negotiation Period, Popeil shall resume developing the New Product and
      shall, upon completion, deliver the finished New Product to Company.
      Notwithstanding the foregoing, if, at any point during the completion
      process (i.e., after agreement on the Acquisition Price and prior to
      completion and delivery of the New Product to Company), Popeil determines,
      in his good faith business judgment, that the New Product is not and will
      not be marketable or fit for sale, Popeil may abandon such New Product
      with no further obligation to Company in connection with such New Product.
      Upon abandonment, Popeil shall promptly deliver notice of such abandonment
      to Company.

      D. Election by Company Not to Acquire New Product. With respect to each
      New Product as to which Company has received a Prototype Notice, if (i)
      Company elects not to acquire such New Product; or (ii) Company and Popeil
      do not reach agreement regarding the Acquisition Price of such New Product
      within the Negotiation Period, then, in accordance with the terms and
      conditions of this Agreement and subject to the terms of Paragraph 2.B
      above:

            (i) Popeil shall have no further obligation to Company whatsoever
with respect to the New Product, Company shall have no rights of any kind or
nature in or to the New Product, and Popeil may thereafter use or dispose of the

                                       3
<PAGE>

New Product as he sees fit in his sole and absolute discretion; provided,
however, that, notwithstanding anything to the contrary contained herein, Popeil
shall have no right to license or otherwise exploit any New Product that is a
derivative product to any existing consumer product to which Popeil owns and
controls the rights in the following five product-line categories: Rotisseries,
Pasta Makers, Pocket Fisherman, GLH- Hair Loss Products, Food Dehydrators (the
"5 Product Line Categories"). Without limiting the foregoing, with respect to
New Products that are not derivative products that fall within the 5 Product
Line Categories, Popeil may thereafter (w) manufacture, merchandise and market
the New Product himself or through any third party; (x) engage in discussions
with any third party with respect to the New Product; and/or (y) complete and
conclude transactions with any third party with respect to the New Product.
Popeil may not, however, act as a spokesman for such New Products in
commercials, infomercials and/or other marketing endeavors.

                  (ii) With the exception of the 5 Product Line Categories
identified in paragraph 2.C.(i) above, the Company shall grant Popeil a
worldwide, perpetual, royalty-free license to use, in connection with the
non-acquired New Product, any and all patents conveyed to Company pursuant to or
in connection with the Asset Purchase Agreement. Such license shall be
irrevocable and on terms and conditions no more restrictive or burdensome on the
licensee than the absolute minimum required by law, if any.

                  (iii) For New Products not acquired by Company neither
Popeil's name nor likeness nor any material identifying Popeil can be used on
the packaging of the product or on the product itself. However, unless Company
has paid Popeil $100,000 as of the effective date of this Agreement,
notwithstanding the foregoing sentence, on each such New Product not acquired by
Company hereunder Popeil may place a badge no larger than a silver dollar, which
can bear the legend "created by Ron Popeil" and/or "invented by Ron Popeil". If
Company has not exercised its option hereunder to prevent the use of the "silver
dollar badge", then for each such New Product not acquired by Company, Company
hereby grants to Popeil in connection with such product a world-wide, perpetual,
royalty-free license to use or exercise the "silver dollar" exception on such
New Products not acquired by Company, so long as such products are of a quality
that are comparable to Company's products.

      E. Suspension of Right of First Refusal. At such time as (i) there is an
      Event of Default under the Notes and (ii) the amount available to draw
      down under the standby letter of credit contemplated under Section 6.9 of
      the Asset Purchase Agreement is insufficient to cure such payment default,
      the right of first refusal under this Agreement shall be suspended until
      such time as there is no longer an Event of Default under the Notes. For
      purposes of clarity, if, during the suspension period, a product that
      would otherwise be subject to the right of first refusal hereunder is sold
      to a third party such product will not thereafter be subject to the right
      of first refusal or otherwise made available to Company after the
      suspension is lifted. For purposes of this Agreement, the term "Event of
      Default" has the meaning ascribed to such term under the Notes. For
      purposes of this Agreement, the term "Notes" means those purchase money
      promissory notes issued by Company to Ronco Inventions, LLC, Popeil
      Inventions, Inc. and RP Productions in connection with the Asset Purchase
      Agreement.

                                       4
<PAGE>

      F. Turkey Fryer Agreement. If Popeil delivers a Prototype Notice to
      Company with respect to a Turkey Fryer, then the following terms shall
      apply.

            (i) Turkey Fryer Acquisition Price. The Acquisition Price for the
Turkey Fryer will be:

                  (a) an up front fee of $3,000,000 (to be paid to Popeil and/or
his designee(s)) (the "Up Front Fee");

                  (b) a $5.50 per manufactured unit quality service payment to
be paid to Popeil (which Up Front Fee is not to be applied against the per unit
quality service payment) in perpetuity; provided, however, that at such time, if
ever, that the combined amount of the Up Front Fee and the aggregate monies paid
to Popeil from such unit quality service payments equal $10,000,000 (the
"Royalty Cap"), Company shall have no further obligation to make such unit
quality service payment to Popeil. For purposes of this Agreement, a Turkey
Fryer unit is deemed "manufactured" no later than five (5) business days after
such product is made available for Company or any of Company's Affiliates or
designees to take immediate possession. The term "Affiliate" has the same
meaning as is ascribed to such term in Asset Purchase Agreement

                  (c) all reasonably documented costs for the patent and
trademark filings, tooling and infomercials related to the Turkey Fryer; and

                  (d) any direct out of pocket expenses incurred by either
Popeil or Backus in connection with the development of the Turkey Fryer.

            (ii) Turkey Fryer Intellectual Property. All intellectual property
related to the Turkey Fryer will remain owned by Popeil until the Notes,
including any accrued and unpaid interest, are paid in full. Notwithstanding the
foregoing, Popeil will grant an exclusive, worldwide license to use, sell,
manufacture, distribute, market and sub-license the Turkey Fryer. Provided the
license has not been previously terminated in accordance with provisions in the
Paragraph 7 below, after the Notes have been paid in full, all intellectual
property related to the Turkey Fryer shall be immediately and automatically
transferred to Company, for no additional payments to Popeil (except for any
legal fees or filing fees Popeil may incur in documenting and recording the
conveyance, transfer or assignment). Popeil and Backus agree that once assigned,
they will use commercially reasonable efforts (but at no cost to Popeil or
Backus) to cooperate with Company to enable Company to obtain, sustain, enforce
and enjoy to the fullest extent all right, title and interest herein conveyed to
the Turkey Fryer in any country. Such cooperation by Popeil and Backus shall
include but is not limited to the production of pertinent facts and documents,
execution of petitions, oaths, specifications, declarations or other papers, and
other assistance, all to the extent (a) reasonably requested by Company and (b)
required for Company to enjoy such rights; but specifically excludes (1) any
travel outside of a 25 mile radius of such person's primary residence, unless
consented to by the person being asked to travel and all of the expenses in
connection with such travel shall be promptly reimbursed by Company and (2) any
promotional appearances or services, endorsements or expenditure of significant
time or effort.

                                       5
<PAGE>

      3. Approvals and Controls. Popeil shall have creative control and an
absolute right of prior approval over the design, script, content and/or final
edited version of any program, commercial, infomercial, press release,
advertising and/or packaging in connection with any New Product acquired by
Company hereunder.

      4. Indemnity / Insurance.

      A. Popeil represents and warrants that, to the best of his reasonable
      knowledge, he has the right to enter into this Agreement and to grant the
      rights he has granted elsewhere in this Agreement, and that there are no
      contractual obligations preventing the fulfillment by him of this
      Agreement. Popeil hereby agrees to defend, indemnify and hold Company
      harmless from and against any and all demands, claims, losses,
      liabilities, judgments and damages (and costs and expenses, including
      reasonable outside attorneys' fees) (collectively, "Claims"), but
      excluding any special, consequential or punitive damages, which may be
      obtained against, imposed upon, or suffered by Company by reason of any
      breach by Popeil of any of his representations and warranties contained in
      this Paragraph 4. A of this Agreement or any covenants or agreements by
      Popeil contained in this Agreement. The foregoing duty of indemnification
      shall survive any termination of this Agreement. Notwithstanding the
      foregoing or anything to the contrary contained in this Agreement, Popeil
      makes no representation or warranty of any kind or nature regarding New
      Products (including the Turkey Fryer), including but not limited to,
      representations and warranties related to merchantability, fitness or any
      particular purpose or functionality, and Popeil shall in no event be
      responsible for any breach or default of this Agreement caused by any
      third party.

      B. Company represents and warrants that it has the right to enter into
      this Agreement and to grant the rights it has granted elsewhere in this
      Agreement, and that there are no contractual obligations preventing the
      fulfillment by it of this Agreement. Company hereby agrees to defend,
      indemnify and hold Popeil, and any person or entity affiliated with Popeil
      that participates or assists in conceiving, creating, designing,
      developing and/or completing any New Product, harmless from and against
      any and all Claims (including third-party Claims) which may be obtained
      against, imposed upon, or suffered by Popeil, or any person or entity
      affiliated with Popeil that participates or assists in conceiving,
      creating, designing, developing and/or completing any New Product, by
      reason of (i) the use or content of any New Product(s) acquired by Company
      pursuant to this Agreement, or any sales, marketing, advertising or
      promotion of or for New Product(s) acquired by Company pursuant to this
      Agreement, or (ii) any breach by Company of any of its representations,
      warranties, covenants or agreements contained in this Agreement. The
      foregoing duty of indemnification shall survive the expiration or earlier

                                       6
<PAGE>

      termination of this Agreement. For so long as any New Products are sold by
      or on behalf of Company (or by any affiliate, subsidiary, or other person
      or entity on its behalf), Company shall include Popeil, Backus and any
      other person or entity affiliated with Popeil that participates or assists
      in completing a New Product, as named insureds under Company's product,
      general liability and errors and omissions insurance policies (with
      combined limits of not less than Ten Million Dollars (US$10,000,000)), all
      of which policies shall be issued by reputable insurers with top A.M. Best
      (or substantially equivalent) ratings, and shall provide Popeil with
      certificates of insurance evidencing this coverage prior to any use of any
      New Products, or any marketing, advertising or promotion of or for any New
      Products.

      5. Confidentiality. Company agrees that, prior to submission to Company of
any Prototype hereunder, Company shall execute a customary
confidentiality/nondisclosure agreement, pursuant to which Company shall agree
to keep all aspects of the prototype confidential and not to reverse engineer or
otherwise attempt to utilize information obtained through the submission process
set forth above, unless and until Popeil and Company reach an agreement
regarding the Acquisition Price of the New Product in question and Company
purchases such New Product.

      6. Termination. Unless the Parties mutually agree to extend the Term of
this Agreement, this Agreement will terminate on the third anniversary of the
Closing Date.

      7. Remedies Upon Event of Default Under the Notes. At such time as there
is a suspension of the right of first refusal as provided in Paragraph 2.E
above, Popeil will have all of the following rights (for purposes of clarity,
the exercise of any one right in this Paragraph 7 will not preclude the exercise
of any of the other rights provided in this Paragraph 7); provided, however,
that with respect to Paragraph 7.B below such remedy will only be available if
the amount borrowed from the Purchase Money Lender (as defined in the Asset
Purchase Agreement) who, as of the closing of the Asset Purchase Agreement, has
the senior secured position on the marks to Popeil's name and likeness, has (as
of the time of the suspension of the right of first refusal hereunder) either
been repaid or refinanced:

      A. Option to Terminate Intellectual Property Licenses and/or Reversion of
      Intellectual Property.

            (i) Popeil will have the option to terminate the license(s) for the
intellectual property to any New Product(s), including the Turkey Fryer,
acquired by Company hereunder (to the extent there are any licenses); provided,
that if Popeil elects to terminate such license(s), Company will immediately
cease any manufacturing or distribution of the applicable New Product and Popeil
will either grant Company a limited license to liquidate any of Company's then
existing inventory of such New Products or Popeil will buy such inventory at
Company's cost therefor. For the avoidance of doubt, Popeil may elect to
terminate the licenses with respect to the patents and any other intellectual
property on any or all New Products acquired by Company hereunder.

            (ii) Popeil will also have the option to have any intellectual
property conveyed, transferred or assigned to Company with respect to any New
Product(s) acquired by Company hereunder (except for Popeil's name and likeness
and associated trademarks, which were conveyed to Company pursuant to the Asset
Purchase Agreement and are subject to the Trademark Co-Existence Agreement by
and between Company and Popeil, dated of even date herewith) immediately

                                       7
<PAGE>

conveyed to Popeil, at no cost to Popeil (except for any legal fees or filing
fees Popeil may incur in documenting and recording the conveyance, transfer or
assignment).

                  (iii) At Popeil's election, Company will agree to cease
producing New Product(s) acquired by Company hereunder and return all materials
related to such product delivered to Company by or on behalf of Popeil.

      B. Non-Exclusive License of Popeil's Name and Likeness. At Popeil's
      election, Company will grant to Popeil a non-exclusive license (at no cost
      to Popeil) to use Popeil's name and likeness in connection with the
      manufacturing, marketing and sale of (i) the specific New Products as to
      which Popeil exercised his rights in paragraph 7.A above and (ii) any
      other products developed by Popeil that were not theretofore or thereafter
      acquired by Company, for whatever reason.

      C. Option to Acquire Materials and Rights Related to the New Products
      Described in Paragraph 7.A above. As to any New Product for which Popeil
      exercised his rights described in Paragraph 7.A above, Popeil will
      separately have the option to:

                  (i) purchase all of the tooling, dyes and other production
materials and equipment owned by Company that are related to such New Product;

                  (ii) (via an appropriate assignment) have assigned to Popeil
all licenses, leases and contracts held by Company for tooling, dyes and other
production materials and equipment held by Company related to such New Product,
and

                  (iii) purchase all rights in and to any advertising materials
related to such New Product, whether or not complete (including, for example,
infomercials), including, but not limited to, any intellectual property embodied
therein and tangible assets related thereto (such as any digital or tape masters
of any infomercials).

            For the avoidance of doubt, Popeil's rights and remedies under this
Paragraph 7 shall subsist and remain in full force and effect with respect to
the Turkey Fryer regardless of whether Company has met the Royalty Cap noted in
Paragraph 2.F. above.

            D. Acquisition Amount.

                  (i) For each New Product as to which Popeil exercises his
option in Paragraph 7.C above, Popeil shall pay Company for all documented
direct expenses incurred by Company for (i) the development and manufacturing of
the tooling, dyes and other production materials and equipment used to
manufacture the product, (ii) filing fees and prosecution fees incurred by
Company with respect to the registration of the intellectual property for the
New Product with governmental authorities, (iii) the development and production
of any advertising Popeil elects to acquire under Paragraph 7.C above for the
New Product and (iv) any one-time up front fees paid to either Popeil or Backus
in connection with the acquisition of the applicable New Product(s),
collectively which amount (the "Acquisition Amount") shall be paid to Company's
and Ronco IP Management Inc.'s, a Delaware corporation ("RIM") and an Affiliate
of Company, secured lender(s) up to the amount (not to exceed the Acquisition
Amount) required by such lender(s) to be prepaid against outstanding amounts due

                                       8
<PAGE>

to such lender(s) as a condition to such lender(s) consent to the remedies
provided hereunder upon an Event of Default under the Notes, with the balance,
if any, payable to Company. Alternatively, and notwithstanding the foregoing,
Popeil may elect to pay Company's secured lender(s) the amount required by such
lender(s) to be prepaid against the outstanding amounts due to such lender(s) in
lieu of electing to acquire the tooling, etc. as described above, in which case
the amount so paid by Popeil will be added to the outstanding principal amount
due under the Notes (but which added amount will bear interest at the maximum
rate allowed under applicable law).

                  (ii) Notwithstanding anything in the foregoing Paragraph
7.D(i) to the contrary, the Acquisition Amount will not include (1) any
royalties/quality control payments paid to either Popeil or Backus in connection
with the acquisition of the product, (2) any fees paid to either Popeil or
Backus pursuant to the terms of their respective consulting agreements, (3) any
payments made to any of the sellers under the Asset Purchase Agreement (the
"Sellers") or Backus either under or in connection with the Asset Purchase
Agreement or the Notes issued pursuant to the Asset Purchase Agreement, (4) any
fees or expenses incurred by Company or any of its Affiliates, or any of its or
its Affiliates officers, directors, employees or agents in connection with
negotiating any of the Asset Purchase Agreement or the transaction documents
related thereto (including but not limited to the New Product Development
Agreement), (5) any fees or expenses incurred by Company or any of its
Affiliates, or any of its or its Affiliates officers, directors, employees or
agents in connection with documenting and/or recording the transfer of the
assets described in this Paragraph 7 upon the exercise of Popeil's options
therein, or (6) any fees, royalties or other payments made by Company or its
Affiliates to any of Popeil, Backus or any of the Sellers not otherwise
described herein.

      8. Successors and Assigns. This Agreement may not be assigned, directly or
indirectly, by Company without the prior written consent of Popeil, or by Popeil
without the prior written consent of Company; provided, however, that Popeil may
assign this Agreement or any part of this Agreement for estate planning purposes
(e.g., to a trust or by will) or by operation of law, and Popeil may assign his
right to receive payments under this Agreement to any person or entity in his
sole and absolute discretion. Notwithstanding the foregoing, Company may assign
all its rights and delegate all its obligations as part of a merger,
reorganization or sale of all or substantially all its assets. Except as set
forth above, this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective executors, administrators, heirs,
successors, and permitted assigns, as the case may be.

      9. Arbitration; Attorney's Fees and Costs. Any dispute arising out of or
relating to this Agreement shall be resolved in accordance with the procedures
set forth in Section 11.10 of the Asset Purchase Agreement, which section shall
be incorporated herein by reference. In the event of any arbitration or other
action for the breach of this Agreement or misrepresentation by any party, the
prevailing party in such arbitration or other action shall be entitled, in
addition to all other relief, to reasonable attorneys' and experts' fees
relating to such arbitration or other action, including attorneys' and experts'
fees incurred in any proceeding to compel arbitration. The non-prevailing party
shall be responsible for all costs of the arbitration or litigation, including
but not limited to, the arbitration fees, court reporter fees, etc.

                                       9
<PAGE>

      10. Specific Performance. Each of the Parties hereto acknowledges and
agrees that the other Party hereto would be damaged irreparably in the event any
of the covenants or agreements provided in this Agreement is not performed in
accordance with its specific terms or otherwise is breached. Accordingly, each
of the Parties agrees that the other Party shall be entitled to an injunction or
injunctions, without any requirement for the posting of a bond, to prevent
breaches of such covenant or agreement and to enforce specifically this
Agreement and the terms and provisions hereof in any action instituted in any
court of the United States or any state thereof having jurisdiction over the
Parties and the matter.

      11. Governing Law. This Agreement shall be governed and construed in
accordance with the laws of the State of California applicable to contracts
entered into and fully performed therein.

      12. Notices. All notices, requests, demands and other communication under
this Agreement shall be deemed to have been sufficiently given either when
delivered by hand, first class mail (postage pre-paid, return receipt
requested), private courier service or facsimile addressed to either party.
Notices shall be effective only when addressed as follows (or as otherwise
designated by proper notice under this Agreement):

                  Company:                    Ronco Marketing Corporation
                                              Attention:  Richard Allen
                                              21344 Superior Street
                                              Chatsworth, CA 91311
                                              Phone:  (818) 775-4602
                                              Fax:  (800) 434-5134

                                With a copy to:

                                              Gilbert Azafrani, Esq.
                                              21344 Superior Street
                                              Chatsworth, CA 91311
                                              Phone:  (818) 775-4602
                                              Fax:  (818) 775-1386

                  Popeil:            Ronald M. Popeil
                                              1672 Waynecrest Drive
                                              Beverly Hills, CA 90210
                                              Phone:  (310) 273-4411
                                              Fax:  (310) 273-4483

                                With a copy to:

                                              Adams, Swartz & Landau L.L.P.
                                              18321 Ventura Boulevard, Suite 920
                                              Tarzana, CA 91356
                                              Phone:  (818) 705-4300
                                              Fax:  (818) 705-4259

                                       10
<PAGE>

      13. Severability. The provisions of this Agreement are intended to be
interpreted and construed in a manner so as to make such provisions valid,
binding and enforceable. In the event that any provision of this Agreement is
determined to be partially or wholly invalid, illegal or unenforceable, then
such provision shall be deemed to be modified or restricted to the extent
necessary to make such provision valid, binding and enforceable, or, if such
provision cannot be modified or restricted in a manner so as to make such
provision valid, binding and enforceable, then such provision shall be deemed to
be excised from this Agreement and the validity, binding effect and
enforceability of the remaining provisions of this Agreement shall not be
affected or impaired in any manner.

      14. Independent Contractor. Popeil's relationship to Company is one of an
independent contractor, and nothing contained in this Agreement shall be
construed to create any partnership, joint venture, principal/agent
relationship, employer/employee relationship, or any other fiduciary
relationship between the parties hereto. The parties expressly disclaim the
existence of any third party beneficiaries to this Agreement, except for Backus
and any other person or entity affiliated with Popeil that participates or
assists in conceiving, creating, designing, developing and/or completing any New
Product and who would benefit from the indemnification provisions of Paragraph
4.B above.

      15. Entire Agreement. This Agreement and the Asset Purchase Agreement
(including the recitals, schedules and exhibits hereto and thereto) and the
other agreements and instruments, the execution and delivery of which are
provided for herein and therein (collectively, the "Operative Agreements"),
constitute the entire agreement and understanding of the Parties with respect to
the subject matter hereof, and terminate and supersede any and all prior
agreements, arrangements and understandings, both oral and written, among the
Parties concerning the subject matter hereof. Without limiting the foregoing, it
is hereby acknowledged and agreed that neither Popeil nor Company is making any
representations or warranties of any kind whatsoever except for those
representations and warranties expressly set forth in this Agreement and/or the
Operative Agreements.

      16. Waiver and Amendment. No waiver, amendment, modification or change of
any provision of this Agreement shall be effective unless and until made in
writing and signed by Popeil and duly authorized officer of Company. No waiver,
forbearance or failure by any Party of its right to enforce any provision of
this Agreement shall constitute a waiver or estoppel of such Party's right to
enforce any other provision of this Agreement or a continuing waiver by such
Party of compliance with any provision.

      17. Headings. The headings herein are for convenience only, do not
constitute a part of this Agreement, and shall not be deemed to limit or affect
any of the provisions hereof

      18. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be original, but all of which
together shall constitute one and the same instrument.

                                       11
<PAGE>

                            [Signature Page Follows]

                                       12
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first written above.

                                       RONCO MARKETING CORPORATION

                                       By: /s/ Karl Douglas
                                           ---------------------------------
                                       Name: Karl Douglas
                                            --------------------------------
                                       Its: president
                                            --------------------------------

                                       /s/ Ronald M. Popeil
                                       --------------------------------
                                       RONALD M. POPEIL

                                       --------------------------------
                                       ALAN L. BACKUS

                                       13

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