Document:

EXHIBIT
10.19

AMENDMENT NO. 2

TO

LOAN AND SECURITY
AGREEMENT

This Amendment No.
2 (this “Amendment”) to that certain Loan and Security Agreement, dated
November 19, 1997, as amended by that certain Amendment, dated February 12,
2002 (as so amended, the “Original Agreement”), is made, effective the 20th day
of July, 2005, by and among K-Tel International (USA), Inc., Dominion
Entertainment, Inc., K-Tel Consumer Products, Inc., K-Tel TV, Inc., K-Tel
Video, Inc. (collectively, the “Borrowers”) and K-5 Leisure Products, Inc. (the
“Lender”).

RECITALS

WHEREAS, the
Lender is the assignee of that certain $10,000,000 credit facility between the
Borrowers and Foothill Capital Corporation (“Foothill”) and that certain
Promissory Note from the Borrowers to Foothill, dated November 19, 1997 (the “Note”),
pursuant to that certain Assignment and Acceptance, dated February 27, 2001, by
and among Foothill, the Lender, the Borrowers and certain other parties
thereto; and

WHEREAS, the
Lender and the Borrowers desire to amend the Original Agreement;

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Borrowers and the Lender agree as follows:

1.             Defined Terms.

Defined terms used
in this Amendment and not otherwise defined herein shall have the meanings
ascribed to them in the Original Agreement.

2.             Amendment.

Section 3.4 of the
Original Agreement is hereby amended to read in its entirety as follows:

3.4          Term; Automatic Renewal.  This Agreement shall
continue in full force and effect for a term ending on July 20, 2008.  The foregoing notwithstanding, the Lender
shall have the right to terminate this Agreement upon the continuation of an
Event of Default.

3.             Authorization.

Each of the
Borrowers hereby authorizes the Lender to file, electronically or otherwise,
financing statements under the Uniform Commercial Code in all jurisdictions in
which such filings are appropriate or necessary to continue the security
interest granted pursuant to or in connection with the Original Agreement,
including without limitation the Copyright Security Agreement and the
Intellectual Property Security Agreement. 
The Borrowers hereby confirm that the Loan and Security Agreement, as
amended hereby, is secured by the Copyright Security Agreement, the
Intellectual Property Agreement, and those certain Security Agreement executed
by each Borrower in connection with the Loan and Security Agreement.

4.             Borrowers’ Warranties.

Each Borrower
represents and warrants that (1) each representation, warranty and covenant
made by each of them in the Original Agreement is true and correct on the date
hereof, with the same effect as if made on such date (other than as set forth
on Exhibit A hereto); and (2) as of the effective date of this Agreement, it is
not in default under the Agreement, nor has any event occurred which, with
notice or lapse of time, would result in such a default, except for such
defaults as have been waived by the Lender.

5.             Incorporation of Terms.

Except as
specifically set forth in this Amendment No. 2, all of the terms and conditions
of the Original Agreement and the Note, and all documents related thereto,
shall remain in full force and effect.

 

6.             No Waiver, etc.

The Borrowers
acknowledge that no provision of this Amendment shall be construed to be a
waiver by the Lender of any rights or remedies that the Lender may have due to
the occurrence of any default under the Original Agreement or the Note that may
have occurred heretofore or which may occur hereafter.  The Borrowers hereby represent and warrant
that they have no defenses or rights of set-off against the Lender.

7.             Confirmation of Guaranty.

The Borrowers, and
certain other affiliated companies of the Borrowers (collectively, the “Guarantors”),
are also parties to that certain Guaranty, dated September 27, 1999.  Each of the Guarantors hereby acknowledges
and agrees that such Guaranty remains in full force and effect, notwithstanding
this Amendment, the extension of the term of the Original Agreement, any delay
in executing this Amendment, or any other matter which would, but for this
Confirmation, release a Guarantor from its obligations under the Guaranty.

IN WITNESS
WHEREOF, this Amendment has been executed to be effective as of the day and
year first above written.

	
   

  	
  DOMINION ENTERTAINMENT, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip Kives

  	
   

  
	
   

  	
   

  	
  Its: President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  K-TEL CONSUMER
  PRODUCTS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip Kives

  	
   

  
	
   

  	
   

  	
  Its: President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K-TEL TV, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip Kives

  	
   

  
	
   

  	
   

  	
  Its: President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K-TEL VIDEO,
  INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip Kives

  	
   

  
	
   

  	
   

  	
  Its: President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K-TEL
  ENTERTAINMENT, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip Kives

  	
   

  
	
   

  	
   

  	
  Its: President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K-TEL
  INTERNATIONAL (USA), INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip Kives

  	
   

  
	
   

  	
   

  	
  Its: President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K-5 LEISURE
  PRODUCTS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip Kives

  	
   

  
	
   

  	
   

  	
  Its: President

  	
   

  

 

	
  Agreed to and Accepted for

  	
   

  	
   

  
	
  Purposes of
  Section 7:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  K-TEL ONLINE,
  INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Philip Kives

  	
   

  	
   

  
	
   

  	
  Its: President

  	
   

  	
   

  

 

 

 

	
  K-TEL ENTERTAINMENT (UK)
  LTD.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Philip Kives

  	
   

  	
   

  
	
   

  	
  Its: President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  K-TEL
  ENTERTAINMENT (CAN) INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Philip Kives

  	
   

  	
   

  
	
   

  	
  Its: President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  K-TEL DIRECT,
  INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Philip Kives

  	
   

  	
   

  
	
   

  	
  Its: PresidentEXHIBIT
10.20

AMENDMENT NO. 2

TO

CREDIT AGREEMENT
AND NOTE

This Amendment No.
2 (this “Amendment”) to that certain Credit Agreement, dated September 27,
1999, as amended by that certain Amendment, dated February 12, 2002 (as so
amended, the “Original Agreement”) and to that certain Promissory Note, in the
principal amount of $8,000,000, dated September 27,1999 (the “Note”), is made,
effective the 20th day of July, 2005, by and between K-Tel International, Inc
(the “Borrower”) and K-5 Leisure Products, Inc. (the “Lender”).

RECITALS

WHEREAS, the
Lender and the Borrower desire to amend the Original Agreement and the Note;

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Borrower and the Lender agree as follows:

1.             Defined Terms.

Defined terms used
in this Amendment and not otherwise defined herein shall have the meanings
ascribed to them in the Original Agreement.

2.             Amendment of Original Agreement.

Section 1.10 of
the Original Agreement is hereby amended by replacing “July 20, 2005” with “July
20, 2008.”

3.             Amendment of Note.

The Note is herby
amended by extending the maturity date to July 20, 2008.

4.             Authorization.

The Borrower
hereby authorizes the Lender to file, electronically or otherwise, financing
statements under the Uniform Commercial Code in all jurisdictions in which such
filings are appropriate or necessary to continue the security interest granted
pursuant to or in connection with the Original Agreement, including without
limitation the Security Agreement and the Stock Security Agreement.  The Borrower hereby confirms that the
Original Agreement and the Note, each as amended hereby, are secured by the
Security Agreement and the Stock Security Agreement.

4.             Borrower’s Warranties.

The Borrower
represents and warrants that (1) each representation, warranty and covenant
made by it in the Original Agreement is true and correct on the date hereof,
with the same effect as if made on such date (other than as set forth on
Exhibit A hereto); and (2) as of the effective date of this Amendment, it is
not in default under the Original Agreement, nor has any event occurred which,
with notice or lapse of time, would result in such a default, except for such
defaults as have been waived by the Lender.

5.             Incorporation of Terms.

Except as
specifically set forth in this Amendment No. 2, all of the terms and conditions
of the Original Agreement and the Note, and all documents related thereto,
shall remain in full force and effect.

6.             No Waiver, etc.

The Borrower
acknowledges that no provision of this Amendment shall be construed to be a
waiver by the Lender of any rights or remedies that the Lender may have due to
the occurrence of any default under the Agreement or the Note that may have
occurred heretofore or which may occur hereafter.  The Borrower hereby represents and warrants
that it has no defenses or rights of set-off against the Lender.

 

7.             Confirmation of Guaranty.

Certain affiliated
companies of the Borrower (collectively, the “Guarantors”), are parties to that
certain Guaranty, dated September 27, 1999. 
Each of the Guarantors hereby acknowledges and agrees that such Guaranty
remains in full force and effect, notwithstanding this Amendment, the extension
of the term of the Original Agreement, any delay in executing this Amendment,
or any other matter which would, but for this Confirmation, release a Guarantor
from its obligations under the Guaranty.

IN WITNESS
WHEREOF, this Amendment has been executed to be effective as of the day and
year first above written.

	
   

  	
  K-TEL INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Philip Kives

  	
   

  
	
   

  	
   

  
	
   

  	
  K-R LEISURE
  PRODUCTS, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Philip Kives

  	
   

  

 

	
  Agreed to and Accepted for

  
	
  Purposes of
  Section 7:

  
	
   

  
	
  DOMINION
  ENTERTAINMENT, INC.

  
	
   

  
	
  By

  	
  /s/ Philip Kives

  	
   

  	
   

  
	
   

  	
  Its: President

  	
   

  	
   

  
	
   

  
	
   

  
	
  K-TEL CONSUMER
  PRODUCTS, INC.

  
	
   

  
	
  By

  	
  /s/ Philip Kives

  	
   

  	
   

  
	
   

  	
  Its: President

  	
   

  	
   

  
	
   

  
	
  K-TEL TV, INC.

  
	
   

  
	
  By

  	
  /s/ Philip Kives

  	
   

  	
   

  
	
   

  	
  Its: President

  	
   

  	
   

  
	
   

  
	
  K-TEL VIDEO,
  INC.

  
	
   

  
	
  By

  	
  /s/ Philip Kives

  	
   

  	
   

  
	
   

  	
  Its: President

  	
   

  	
   

  
	
   

  
	
  K-TEL
  ENTERTAINMENT, INC.

  
	
   

  
	
  By

  	
  /s/ Philip Kives

  	
   

  	
   

  
	
   

  	
  Its: President

  	
   

  	
   

  
	
   

  
	
  K-TEL ONLINE,
  INC.

  
	
   

  
	
  By

  	
  /s/ Philip Kives

  	
   

  	
   

  
	
   

  	
  Its: President

  	
   

  	
   

  
	
   

  
	
  K-TEL
  ENTERTAINMENT (UK) LTD.

  
	
   

  
	
  By

  	
  /s/ Philip Kives

  	
   

  	
   

  
	
   

  	
  Its: President

  	
   

  	
   

  

 

 

 

	
  K-TEL ENTERTAINMENT (CAN)
  INC.

  
	
   

  
	
  By

  	
  /s/ Philip Kives

  	
   

  	
   

  
	
   

  	
  Its: President

  	
   

  	
   

  
	
  K-TEL DIRECT,
  INC.

  
	
   

  
	
  By

  	
  /s/ Philip Kives

  	
   

  	
   

  
	
   

  	
  Its: President

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