Document:

INTELLECTUAL
      PROPERTY SECURITY AGREEMENT

     

    THIS
      INTELLECTUAL PROPERTY SECURITY AGREEMENT (the “Agreement”),
      dated
      as of October 18, 2006, is made by RONCO MARKETING CORPORATION, a Delaware
      corporation (“Grantor”),
      in
      favor of LAURUS MASTER FUND, LTD. (“Laurus”).

     

    WHEREAS,
      pursuant to that certain Security and Purchase Agreement dated as of the date
      hereof by and between Grantor, certain other Companies (as defined in the
      Security and Purchase Agreement) party thereto and Laurus (as from time to
      time
      amended, restated, supplemented or otherwise modified, the “Security
      Agreement”),
      Laurus has agreed to provide financial accommodations to the
      Companies;

     

    WHEREAS,
      Laurus is willing to enter into the Security Agreement, but only upon the
      condition, among others, that Grantor shall have executed and delivered to
      Laurus this Agreement;

     

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants herein
      contained and for other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, Grantor hereby agrees as
      follows:

     

    Section
      1.  DEFINED
      TERMS.
      

     

    
      (a)   
        When used herein the following terms shall have the following
        meanings:

    

     

    “Copyrights”
means
      all copyrights arising under the laws of the United States, any other country
      or
      any political subdivision thereof, whether registered or unregistered and
      whether published or unpublished, all registrations and recordings thereof,
      and
      all applications in connection therewith, including all registrations,
      recordings and applications in the United States Copyright Office, and the
      right
      to obtain all renewals of any of the foregoing.

     

    “Copyright
      Licenses”
means
      all written agreements naming any Grantor as licensor or licensee, granting
      any
      right under any Copyright, including the grant of rights to manufacture,
      distribute, exploit and sell materials derived from any Copyright.

     

    “General
      Intangibles”
shall
      have the meaning provided thereto in Section 9-102 of the UCC, as amended,
      restated or otherwise modified from time to time.

     

    “Obligations”
shall
      have the meaning provided thereto in the Security Agreement.

     

    “Patents”
means
      (a) all letters patent of the United States, any other country or any political
      subdivision thereof, and all reissues and extensions of such letters patent,
      (b)
      all applications for letters patent of the United States or any other country
      and all divisions, continuations and continuations-in-part thereof, and (c)
      all
      rights to obtain any reissues or extensions of the foregoing.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Patent
      Licenses”
means
      all agreements, whether written or oral, providing for the grant by or to any
      Grantor of any right to manufacture, use or sell any invention covered in whole
      or in part by a Patent.

     

    “Trademarks”
means
      (a) all trademarks, trade names, corporate names, business names, fictitious
      business names, trade styles, services marks, logos and other source or business
      identifiers, and all goodwill associated therewith, now existing or hereafter
      adopted or acquired, all registrations and recordings thereof, and all
      applications in connection therewith, whether in the United States Patent and
      Trademark Office or in any similar office or agency of the United States, any
      State thereof or any other country or political subdivision thereof, or
      otherwise, and all common-law rights thereto, and (b) the right to obtain all
      renewals thereof.

     

    “Trademark
      Licenses”
means,
      collectively, each agreement, whether written or oral, providing for the grant
      by or to any Grantor of any right to use any Trademark.

     

    “UCC”
shall
      mean the Uniform Commercial Code as adopted in Delaware.

     

    “USPTO”
shall
      mean the United States Patent and Trademark Office.

     

    (b)   
      All capitalized terms used but not otherwise defined herein have the meanings
      given to them in the Security Agreement.

     

    Section
      2.  GRANT
      OF SECURITY INTEREST IN INTELLECTUAL PROPERTY COLLATERAL.
      To
      secure the complete and timely payment of all the Obligations of the Grantor
      now
      or hereafter existing from time to time, Grantor hereby grants to Laurus
      a security
      interest in all of Grantor’s right, title and interest in, to and under the
      following, whether presently existing or hereafter created or acquired
      (collectively, the “IP
      Collateral”):

     

    (a)  
      all of its Patents and Patent Licenses to which it is a party including but
      not
      limited to those referred to on Schedule
      I
      hereto;

     

    (b)  
      all of its Trademarks and Trademark Licenses to which it is a party including
      but not limited to those referred to on Schedule
      II
      hereto;

     

    (c)  
      all of its Copyrights and Copyright Licenses to which it is a party including
      but not limited to those referred to on Schedule
      III
      hereto;

     

    (d)  
      all reissues, continuations or extensions of the foregoing; 

     

    (e)  
      all goodwill of Grantor’s business connected with the use of, and symbolized by,
      each Patent, each Patent License, each Trademark, each Trademark License, each
      Copyright and each Copyright License; and

     

    (f)  
      all products and proceeds of the foregoing, including, without limitation,
      any
      claim by Grantor against third parties for past, present or future (i)
      infringement or dilution of any Patent or Patent licensed under any Patent
      License, (ii) injury to the goodwill associated with any Patent or any Patent
      licensed under any Patent License, (iii) infringement or dilution of any
      Trademark or Trademark licensed under any Trademark License, (iv) injury to
      the
      goodwill associated with any Trademark or any Trademark licensed under any
      Trademark License, (v) infringement or dilution of any Copyright or Copyright
      licensed under any Copyright License, and (vi) injury to the goodwill associated
      with any Copyright or any Copyright licensed under any Copyright
      License.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Notwithstanding
      any reference to the United States and the IP Collateral in the United States,
      it is expressly understood that this Agreement and the Security Agreement
      executed between the Grantor and Laurus apply to and incorporate any and all
      Intellectual Property (as defined in Annex A of the Security Agreement) to
      which
      Grantor is a party in any and all countries.

     

    Section
      3.  REPRESENTATIONS
      AND WARRANTIES.
      Grantor
      represents and warrants that Grantor does not own any Patent, Trademark or
      Copyright registered with the USPTO or United States Copyright Office except
      as
      set forth in Schedule
      I,
      Schedule
      II
      and
Schedule
      III,
      respectively, hereto.  Grantor’s
      Patents, Trademarks and Copyrights
      listed
      on Schedules
      I,
      II
      and
III, are
      valid
      and enforceable, are solely owned by Grantor and there is no claim that the
      use
      of any of them violates the rights of any third person. This Agreement is
      effective to create a valid and continuing lien on and perfected security
      interest in favor of Laurus in all of Grantor’s Patents, Trademarks and
      Copyrights listed
      on
Schedules
      I,
      II
      and
III
      and such
      perfected security interests are enforceable as such as against any and all
      creditors of, and purchasers from, Grantor. Upon filing of this Agreement with
      the USPTO and the United States Copyright Office, and the filing of appropriate
      financing statements, all action necessary or desirable to protect and perfect
      Laurus’ lien on each of Grantor’s Patents, Trademarks and Copyrights listed on
Schedules
      I,
      II
      and
III
      shall
      have been duly taken.

     

    Section
      4.  COVENANTS.
      Grantor
      covenants and agrees with Laurus that from and after the date of this
      Agreement:

     

    (a) Grantor
      shall promptly
      notify
      Laurus if it knows or
      has
      reason to know that
      any
      application or registration relating to any Patent, Trademark or Copyright
      listed
      on
      Schedule I, II or III may
      become abandoned or dedicated, or of any adverse determination or development
      (including the institution of, or any such determination or development in,
      any
      proceeding in the USPTO, the United States Copyright Office or any court)
      regarding Grantor’s ownership of any Patent, Trademark or Copyright 
      listed
      on Schedule I, II or III,
      its
      right to register the same, or to keep and maintain the same.

     

    (b) In
      no
      event shall Grantor, either directly or through any agent, employee, licensee
      or
      designee, file an application for the registration of any Patent, Trademark
      or
      Copyright with the USPTO, the United States Copyright Office or any similar
      office or agency without giving Laurus prior written notice thereof, and, upon
      request of Laurus, Grantor shall execute and deliver a supplement hereto (in
      form and substance satisfactory to Laurus) to evidence Laurus’ lien on such
      Patent, Trademark or Copyright, and the General Intangibles of Grantor relating
      thereto or represented thereby.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c) Grantor
      shall take all actions necessary or
      reasonably
      requested by Laurus to maintain and pursue each application, to obtain the
      relevant registration and to maintain the registration of each of the Patents
      or
      Trademarks listed on Schedule I or II,
      including the filing of applications for renewal, affidavits of use, affidavits
      of noncontestability and opposition and interference and cancellation
      proceedings.

     

    (d) In
      the
      event that any of the IP Collateral is infringed upon, or misappropriated or
      diluted by a third party, Grantor shall notify Laurus promptly after Grantor
      learns thereof. Grantor shall, unless it shall reasonably determine that such
      IP
      Collateral is not material to the conduct of its business or operations,
      promptly sue for infringement, misappropriation or dilution, and if Grantor
      determines that it is cost effective, seek to recover any and all damages for
      such infringement, misappropriation or dilution, and take such other actions
      as
      Laurus, in its reasonable discretion, shall deem appropriate under the
      circumstances to protect such IP Collateral. 

     

    Section
      5.  SECURITY
      AGREEMENT.
      The
      security interests granted pursuant to this Agreement are granted in conjunction
      with the security interests granted to Laurus by Grantor pursuant to the
      Security Agreement. Grantor hereby acknowledges and affirms that the rights
      and
      remedies of Laurus with respect to the security interest in the IP Collateral
      made and granted hereby are more fully set forth in the Security
      Agreement,
      the
      terms and provisions of which are incorporated by reference herein as if fully
      set forth herein.

     

    Section
      6.  REINSTATEMENT.
      This
      Agreement shall remain in full force and effect and continue to be effective
      should any petition be filed by or against Grantor for liquidation or
      reorganization, should Grantor become insolvent or make an assignment for the
      benefit of any creditor or creditors or should a receiver or trustee be
      appointed for all or any significant part of Grantor’s assets, and shall
      continue to be effective or be reinstated, as the case may be, if at any time
      payment and performance of the Obligations, or any part thereof, is, pursuant
      to
      applicable law, rescinded or reduced in amount, or must otherwise be restored
      or
      returned by any obligee of the Obligations, whether as a “voidable preference,”
“fraudulent conveyance,” or otherwise, all as though such payment or performance
      had not been made. In the event that any payment, or any part thereof, is
      rescinded, reduced, restored or returned, the Obligations shall be reinstated
      and deemed reduced only by such amount paid and not so rescinded, reduced,
      restored or returned.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SECTION
      7.  INDEMNIFICATION.
      (A)
      Grantor assumes all responsibility and liability arising from its use of the
      Patents, Trademarks and/or Copyrights and
      Grantor hereby indemnifies and holds Laurus harmless from and against any claim,
      suit, loss, damage or expense (including reasonable attorneys’ fees) arising out
      of Grantor’s operations of its business from the use of the Patents, Trademarks
      and/or Copyright.
      (B) In
      any suit, proceeding or action permitted to be brought by Laurus under the
      Security Agreement and brought by Laurus under any Patent License, Trademark
      License or Copyright License for any sum owing thereunder, or to enforce any
      provisions of such license, Grantor will indemnify and hold Laurus harmless
      from
      and against all expense, loss or damage suffered by reason of any defense,
      set
      off, counterclaim, recoupment or reduction or liability whatsoever of the
      obligee thereunder, arising out of a breach by Grantor of any obligation
      thereunder or arising out of any other agreement, indebtedness or liability
      at
      any time owing to or in favor of such obligee or its successors from Grantor,
      and all such obligations of Grantor shall be and remain enforceable against
      and
      only against Grantor and shall not be enforceable against Laurus.

     

    Section
      8.  NOTICES.
      Whenever it is provided herein that any notice, demand, request, consent,
      approval, declaration or other communication shall or may be given to or served
      upon any of the parties by any other party, or whenever any of the parties
      desires to give and serve upon any other party any communication with respect
      to
      this Agreement, each such notice, demand, request, consent, approval,
      declaration or other communication shall be in writing and shall be given in
      the
      manner, and deemed received, as provided for in the Security
      Agreement.

     

    Section
      9.  TERMINATION
      OF THIS AGREEMENT.
      Subject
      to Section
      6
      hereof,
      this Agreement shall terminate upon payment in full of
      all
      Obligations and irrevocable termination of the Security Agreement.

     

     

    
 

     

    [Signature
      Page to Follow]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, Grantor has caused this Intellectual Property Security
      Agreement to be executed and delivered by its duly authorized officer as of
      the
      date first set forth above. 

     

    

    
      	 	
              RONCO
                MARKETING CORPORATION

               

              By:
                /s/
                Paul
                Kabashima                           
                

              Name: 
                Paul
                Kabaashima                        
                

              Title:   
                Interim
                President                        
                

            

    

    

     

    ACCEPTED
      and 

    ACKNOWLEDGED
      by:

     

    LAURUS
      MASTER FUND, LTD.

     

    By:
      unintelligible                                          
      

    Name:
      unintelligible                                   
 

    Title:
      DirectorLETTER
      AGREEMENT

    

    October
      18, 2006

    

    

    Ronald
      M.
      Popeil

    RMP
      Family Trust

    Ronco
      Inventions, LLC

    Popeil
      Inventions, Inc.

    RP
      Productions, Inc.

    1672
      Waynecrest Drive 

    Beverly
      Hills, CA 90210

    

    Ladies
      and Gentlemen:

    

    Ronco
      Corporation,
      a
      Delaware corporation (“Ronco”) and
      Ronco
      Marketing Corporation, a Delaware corporation and
      wholly owned subsidiary of Ronco (“RMC”
and
      together with Ronco, the “Company”),
      are,
      substantially concurrently herewith, entering into a Security and Purchase
      Agreement (the “Laurus
      Loan Agreement”)
      with
      Laurus Master Fund, Ltd., a Cayman Islands company (“Laurus”),
      pursuant to which Laurus will make certain advances to the Company (the
“Laurus
      Loan”).
      A
      condition to the closing of the Laurus Loan is that each of Ronald M. Popeil
      (“Popeil”),
      the
      RMP Family Trust, an Illinois irrevocable trust, Gina Wallman and Martin Lescht
      as co-Trustees (“RMP”),
      Ronco
      Inventions, LLC, a California limited liability company (“Ronco
      Inventions”),
      Popeil Inventions, Inc., a Nevada corporation (“Popeil
      Inventions”)
      and RP
      Productions, Inc., a Nevada corporation (“RP,”
and
      collectively with Popeil, RMP, Ronco Inventions, Popeil Inventions and RP,
      the
“Lenders”)
      enter
      into the Subordination Agreement in substantially the form attached hereto
      as
Exhibit
      A
      with
      Laurus Master Fund, Ltd. (the “Laurus
      Subordination Agreement”),
      and
      the Limited Subordination Agreement in substantially the form attached hereto
      as
Exhibit
      B with
      Sanders Morris Harris Inc., a Texas corporation (“SMH”),
      individually and on behalf of the “lenders” (as defined in the Letter Loan
      Agreement dated June 9, 2006, among Ronco, SMH and these “lenders”)(the
“SMH
      Limited Subordination Agreement”).
      

    

     

      In
      connection with the Company’s purchase of the Ronco business, RMC issued
      promissory notes in the aggregate original principal amount of $16.3 million
      to
      Ronco Inventions and Popeil Inventions. Pursuant and subject to the terms of
      the
      Asset Purchase Agreement dated December 10, 2004 among RMC and the Lenders,
      as
      amended or supplemented (the “Asset
      Purchase Agreement”),
      the
      principal amount of these promissory notes was to be adjusted following the
      closing of the Company’s purchase of the Ronco business. 

     

    

    Subject
      to the terms of this Letter Agreement (this “Agreement”),
      the
      Company and each of the Lenders hereby agree as follows:

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    1.
       Effectiveness.
      The
      Company and the Lenders agree that this Agreement shall only become effective
      upon the closing of the Laurus Loan (the “Laurus
      Closing”),
      in
      which case it shall be deemed effective immediately prior to the “Closing
      Date”
      (as
      defined in the Laurus Loan Agreement) of the Laurus Loan. The Company and the
      Lenders further agree that the provisions hereof shall supersede and replace
      any
      contrary provisions of the Asset Purchase Agreement, the Notes (as defined
      herein) and any other document or agreement entered into among them in
      connection therewith. Other than as set forth in this Agreement, none of the
      Lenders shall be deemed to have waived, amended, modified or changed any
      provision of the Asset Purchase Agreement, or its respective rights thereunder,
      the Notes or any other document or agreement entered into in connection with
      the
      Asset Purchase Agreement, as a result of its acceptance of any of the payments
      called for hereunder, including, but not limited to, such Lender’s right to
      dispute the amounts paid in accordance with the provisions of Section 1.7(D)
      of
      the Asset Purchase Agreement.

    

    2. Laurus
      Subordination Agreement and SMH Limited Subordination Agreement.
      Each of
      the Lenders agrees to enter into the Laurus Subordination Agreement and the
      SMH
      Limited Subordination Agreement as of the date hereof. Notwithstanding the
      foregoing, the Laurus Subordination Agreement and the SMH Limited Subordination
      Agreement shall have no force or effect until immediately prior to the Closing
      Date. If any of the Company, Laurus or the Lenders elect to deliver their
      respective signature pages to this Agreement, the Laurus Subordination Agreement
      or the SMH Limited Subordination Agreement to counsel for the Company to be
      held
      in escrow pending the Laurus Closing, it is expressly agreed that any of them
      may withdraw their respective signature pages from escrow at any time prior
      to
      the Laurus Closing for any reason in which event this Agreement will be of
      no
      force or effect.

    

    3. Turkey
      Fryer.
      

    

    (a) The
      Company hereby agrees and confirms that it has no rights or interest whatsoever
      in or to, or any right to acquire, the Turkey Fryer (as defined in the New
      Product Development Agreement dated June 30, 2005 by and between Ronald M.
      Popeil and RMC (the “New
      Product Development Agreement”))
      and
      agrees that is not entitled to any compensation or other consideration in
      respect of the Turkey Fryer or its confirmation and agreement as expressed
      in
      this Paragraph 3(a). For the avoidance of doubt, the parties agree that, as
      used
      in this Paragraph 3, the term “Turkey Fryer” shall include the turkey fryer
      product developed by Ronald M. Popeil and Alan L. Backus as previously shown
      to
      the Company and/or its representatives, in all of its variations and versions,
      and together with any pertinent intellectual property and related accessories
      or
      products, and any similar or derivative products, intellectual property and/or
      accessories heretofore or hereafter developed, created or conceived by or under
      the direction of Ronald M. Popeil and/or Alan L. Backus. In addition, Lenders
      confirm that the Company has no obligation to acquire the Turkey Fryer and
      no
      liability to any of Lenders in connection with the Turkey Fryer. 

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Lenders
      further confirm that, to their knowledge, no Event of Default (as defined in
      the
      New Product Development Agreement) has occurred under the New Product
      Development Agreement during the Pre-Agreement Period (as hereafter defined)
      excluding matters that might be construed to constitute an Event of Default,
      the
      resolution of which is addressed by this Agreement. The Company confirms that,
      to its knowledge, no matters that in its judgment constitute an Event of Default
      by the Company have occurred under the New Product Development Agreement
      excluding matters that might be construed to constitute an Event of Default,
      the
      resolution of which is addressed by this Agreement. 

    

    (b) RMC
      hereby grants Ronald M. Popeil a world-wide, perpetual, transferable
      royalty-free license to use his name and likeness on the packaging of the Turkey
      Fryer, on the Turkey Fryer itself and in connection with the manufacturing,
      marketing and sale of the Turkey Fryer. 

    

    4. Consulting
      Fee.
      Subject
      to the terms of the Consulting Agreement dated June 30, 2005 between RMC and
      Popeil (the “Consulting
      Agreement”),
      RMC
      agrees that the Compensation (as defined in the Consulting Agreement) received
      by Popeil pursuant to Section 2(a)(i) of the Consulting Agreement shall be
      increased, so that RMC shall pay to Popeil, commencing on the date hereof,
      an
      additional $3,000 per week (the “Additional
      Payments”)
      until
      all obligations of Ronco and/or RMC under the Notes (as hereafter defined)
      have
      been paid in full. This obligation to make the Additional Payments shall
      continue until the Notes have been paid in full even if the term of the
      Consulting Agreement has expired before such time. Lenders confirm that, to
      their knowledge, no default has occurred under the Consulting Agreement during
      the Pre-Agreement Period (as hereafter defined) excluding matters that might
      be
      construed to constitute a default, the resolution of which is addressed by
      this
      Agreement. The Company confirms that, to its knowledge, no matters that in
      its
      judgment constitute a default by the Company have occurred under the Consulting
      Agreement excluding matters that might be construed to constitute a default,
      the
      resolution of which is addressed by this Agreement. 

     

    5. Final
      Combined NCOAV.
      

    

    (a) Pursuant
      to the terms of the Asset Purchase Agreement, the Company and the Lenders agree
      that the final Combined NCOAV (as defined in the Asset Purchase Agreement)
      is
      $13,158,180. RMC and the Lenders each waive any Objections (as defined in the
      Asset Purchase Agreement) under Section 1.6(D) and Section 1.6(E) of the Asset
      Purchase Agreement to the final Combined NCOAV or the related Adjusted
      Determination (as defined in the Asset Purchase Agreement). Lenders confirm
      that, to their knowledge, no default has occurred under the Asset Purchase
      Agreement during the Pre-Agreement Period (as hereafter defined) excluding
      matters that might be construed to constitute a default, the resolution of
      which
      is addressed by this Agreement. The Company confirms that, to its knowledge,
      no
      matters that in its judgment constitute a default by the Company have occurred
      under the Asset Purchase Agreement excluding matters that might be construed
      to
      constitute a default, the resolution of which is addressed by this Agreement.
      

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (b) RMC
      and
      the Lenders further agree that the principal amount of the Purchase Money
      Promissory Note issued to Popeil Inventions on June 30, 2005 (the “Popeil
      Inventions Note”)
      shall
      be adjusted pursuant to Section 1.6 of the Asset Purchase Agreement, so that
      the
      Adjusted Principal Amount (as defined in the Popeil Inventions Note) shall
      be
      $12,558,180 as of the Closing (as defined in the Asset Purchase Agreement).
      RMC
      and the Lenders further acknowledge and agree that the amount outstanding under
      the Popeil Inventions Note as of the date hereof may be greater or less than
      the
      Adjusted Principal Amount, reflecting accrued interest since the Closing Date
      and other amounts becoming due since such date, as well as payments made by
      RMC
      under the Popeil Inventions Note since the Closing Date. Lenders
      confirm that, to their knowledge, no Event of Default (as defined in the Popeil
      Inventions Note) has occurred under the Popeil Inventions Note during the
      Pre-Agreement Period (as hereafter defined) excluding matters that might be
      construed to constitute an Event of Default, the resolution of which is
      addressed by this Agreement. The Company confirms that, to its knowledge, no
      matters that in its judgment constitute an Event of Default by the Company
      have
      occurred under the Popeil Inventions Note excluding matters that might be
      construed to constitute an Event of Default, the resolution of which is
      addressed by this Agreement.  

    

    (c) RMC
      and
      the Lenders further agree that the principal amount of the Purchase Money
      Promissory Note issued to Ronco Inventions on June 30, 2005 (the “Ronco
      Inventions Note”)
      shall
      be adjusted pursuant to Section 1.6 of the Asset Purchase Agreement, so that
      the
      Adjusted Principal Amount (as defined in the Ronco Inventions Note) shall be
      $600,000 as of the Closing (as defined in the Asset Purchase Agreement). RMC
      and
      the Lenders further acknowledge and agree that the amount outstanding under
      the
      Ronco Inventions Note as of the date hereof may be greater or less than the
      Adjusted Principal Amount, reflecting accrued interest since the Closing Date
      and other amounts becoming due since such date, as well as payments made by
      RMC
      under the Ronco Inventions Note since the Closing Date. Lenders confirm that,
      to
      their knowledge, no Event of Default (as defined in the Ronco Inventions Note)
      has occurred under the Ronco Inventions Note during the Pre-Agreement Period
      (as
      hereafter defined) excluding matters that might be construed to constitute
      an
      Event of Default, the resolution of which is addressed by this Agreement. The
      Company confirms that, to its knowledge, no matters that in its judgment
      constitute an Event of Default by the Company have occurred under the Ronco
      Inventions Note excluding matters that might be construed to constitute an
      Event
      of Default, the resolution of which is addressed by this Agreement.

    

    6.
      Amendments
      to Asset Purchase Agreement.
      

    

    (a) RMC
      and
      the Lenders agree that Section 1.7(A) of the Asset Purchase Agreement shall
      be
      amended and restated in its entirety to read as follows (with such Section
      1.7(A) as so amended replacing the corresponding excerpted Section attached
      as
      Exhibit A to each of the Notes):

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “(A)
      For
      so long as any amounts remain outstanding under the Notes, Purchaser shall
      make
      per unit quality control payments ("QC Payments") earned by Sellers for each
      product as set forth below in this Section 1.7, regardless of whether or how
      such products are ultimately distributed (e.g., whether through retail sales,
      distribution of product samples, direct sales and/or web site sales, among
      other
      distribution methods). The QC Payments shall be made to the Sellers' Designee,
      who shall distribute such payments on a pro rata basis as set forth on Schedule
      1.5(A) to the applicable Sellers for application to amounts outstanding under
      the Notes in accordance with such Notes. The Sellers will earn the QC Payments
      set forth on the QC Payment Schedule each time a unit of one of the products
      listed on the QC Payment Schedule below is manufactured. For purposes of
      determining the QC Payments earned pursuant to this Section 1.7, a product
      will
      be deemed to be manufactured no later than five (5) business days after such
      product is made available for Purchaser or any of Purchaser's Affiliates or
      designees to take immediate possession. Purchaser will make all QC Payments
      hereunder on a monthly basis in arrears on or before the twenty-fifth
      (25th)
      day of
      each calendar month as such QC Payments are earned for the preceding calendar
      month. All QC Payments shall be non-refundable. None of the Sellers shall be
      deemed to have waived, amended, modified or changed any provision of this
      Agreement, or its respective rights hereunder, the Notes or any other document
      or agreement entered into in connection with this Agreement, as a result of
      its
      acceptance of any of the payments called for in this Section 1.7(A), including,
      but not limited to, such Seller's right to dispute the amounts paid under this
      Section 1.7(A) in accordance with the provisions of Section 1.7(D).”

    

    (b) Section
      1.7(B) of the Asset Purchase Agreement is hereby amended in its entirety to
      read
      as follows (with such Section 1.7(B) as so amended replacing the corresponding
      excerpted Section attached as Exhibit A to each of the Notes):

    

    “(B) Purchaser
      shall provide the Sellers’ Designee, as representative for the Sellers, with a
      monthly report detailing the number of each of the products listed below that
      are manufactured (as such term is used above) during the immediately preceding
      month. Each such report shall be accompanied by all relevant supporting
      documentation, including, without limitation, the purchase orders and shipping
      documents relating to the products manufactured for the applicable month. Each
      such report shall be delivered to the Sellers’ Designee not later than
      concurrently with the payment to be delivered to the Sellers’ Designee pursuant
      to Section 1.7(A) above for the month to which the report
      pertains.”

    

    (c) Section
      1.7(D) of the Asset Purchase Agreement is hereby amended in its entirety to
      read
      as follows (with such Section 1.7(D) as so amended replacing the corresponding
      excerpted Section attached as Exhibit A to each of the Notes):

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “(D) Purchaser’s
      records that relate to the subject matter of this Section
      1.7
      may be
      examined from time to time by any Seller or its representatives, as many times
      as Seller elects in its discretion, during reasonable business hours. Sellers
      shall give Purchaser not less than seven (7) days’ prior notice of each request,
      or substantially related requests, to examine Purchaser’s records pursuant
      hereto. Purchaser will provide reasonable cooperation and assistance to Sellers
      in connection with any such examination as reasonable requested by Sellers.
      Sellers shall also be permitted to contact Purchaser’s manufacturers directly
      for the sole purpose of verifying Purchaser’s QC Payment obligations, and
      Purchaser shall, upon request of any Seller, authorize and direct its
      manufacturers to provide information to Sellers as they may reasonable request
      for purposes of such verification. Sellers shall provide Purchaser with timely
      written notification of any such direct communications with any such
      manufacturers of Purchaser. Seller shall retain any information that it learns
      as a result of such examination of Purchaser in confidence and shall not
      disclose such information to any third parties (except Seller’s representatives
      whom Seller shall inform of this confidentiality obligation) or use such
      information for any purpose except for the purpose of verifying Purchaser’s QC
      Payment obligations and in connection with the arbitral or judicial resolution
      of any issue arising between Sellers and Purchaser. Seller shall be liable
      for
      any breach of this provision by its representatives. If any such examination
      reveals that Purchaser owes Sellers additional QC Payments, Purchaser shall:
      (a)
      immediately pay the Sellers’ Designee for distribution to Sellers on a pro rata
      basis such delinquent amounts, which payments shall be applied by the applicable
      Sellers against outstanding amounts owed to such Sellers under their respective
      Notes in accordance with such Notes; and (b) pay to the Sellers’ Designee for
      distribution to Sellers interest on the overdue amounts calculated at a rate
      equal to the lesser of 10% per annum or the maximum rate allowed by applicable
      Legal Rules, which payments shall also be applied against outstanding amounts
      owed to such Sellers under such Notes in accordance therewith. Notwithstanding
      anything herein to the contrary, (i) if the actual aggregate amount of QC
      Payments made by Purchaser to Sellers for any monthly period are less than
      ninety percent (90%) of those amounts owed for the period, Purchaser shall
      pay
      to the Sellers’ Designee, upon demand therefor, for distribution to Sellers on a
      pro rata basis an amount equal to the out-of-pocket costs of the relevant
      examination incurred by Sellers. Notwithstanding the foregoing, Purchaser shall
      have the right to dispute the results of Sellers’ examination pursuant to the
      procedures set forth in Section
      11.10.”

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (d)  Sections
      6.10(B), (C), (D) and (E) of the Asset Purchase Agreement are hereby
      respectively amended in their entirety to read as follows: 

    

    “(B) R.
      Popeil
      (or his permitted designee) shall be entitled to receive as an appearance fee
      an
      amount equal to 50% of the Gross Profits (as defined in this Section
      6.10(B))
      from
      sales (“Promoted
      Sales”)
      of any
      products promoted by R. Popeil (or such permitted designee) through personal
      appearances made pursuant to this Section
      6.10
      where
      such sales occur within sixty (60) days after R. Popeil’s (or his permitted
      designee’s) personal appearance, including, without limitation, with respect to
      such products promoted on the QVC Shopping Network, from direct sales of such
      products on the QVC Shopping Network and from sales of such products on QVC’s
      website and/or through QVC retail stores; provided, that sales of products
      promoted by a spokesperson or spokespersons other than R. Popeil or his
      permitted designees, which sales occur during the time that such spokesperson
      or
      spokespersons are “on the air,” shall not, to the extent that such sales result
      in an obligation of the QVC Shopping Network or Purchaser to pay such
      spokesperson or spokespersons other than R. Popeil or his designees a unit
      sales
      commission or payment (and such commission or payment is paid), be counted
      as
      sales for which R. Popeil or his designees is entitled to receive fees pursuant
      to this Section
      6.10.
      As used
      herein, “Gross Profits” means gross sales less landed cost of goods sold
      less, if applicable, direct costs associated with personal appearances
      (including transportation and lodging costs and any costs of food or other
      products used in such appearances, all of which shall be reimbursed to R. Popeil
      or his permitted designees upon request therefor, but excluding any amounts
      paid
      to R. Popeil as an appearance fee, all of which shall be reimbursed to R. Popeil
      or his permitted designees upon request therefor, but excluding any amounts
      paid
      to R. Popeil as an appearance fee pursuant to this Section 6.10(B)) less any
      commissions payable to Coordinated Strategic Alliances in connection with the
      applicable personal appearance. For the avoidance of doubt, it is agreed and
      understood that (i) Gross Profits shall not be reduced by or otherwise reflect
      any allocation of overhead or general or administrative expenses of any kind
      and
      (ii) R. Popeil’s entitlement to Gross Profits pursuant to this Section 6.10(B)
      is independent of his right (or that of his designees or transferees) to receive
      revenues or profits from the sale of products promoted by R. Popeil or any
      of
      his designees or transferees other than on behalf of or at the request of
      Purchaser or RIM (whether with respect to products that Purchaser has declined
      to acquire pursuant to the Product Development Agreement, products the rights
      to
      which have been acquired by R. Popeil pursuant to the Product Development
      Agreement upon an event of default under the Notes, or otherwise). For the
      purpose of clarification, nothing herein shall obligate the Company to make
      payments of Gross Profits to R. Popeil or his permitted designee based on
      Promoted Sales made during the personal appearances of Ronda Pierson on the
      QVC
      Shopping Network prior to the date of this Agreement.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (C) In
      addition to the above-described appearance fee, R. Popeil shall be entitled
      to
      receive the remaining 50% of the Gross Profits from Promoted Sales until such
      payments (i.e., the payments pursuant to this Section 6.10(C)) total $400,000
      in
      the aggregate (such amount, the “Estimated Interest Differential”). Thereafter,
      Purchaser or RIM, as applicable, shall be entitled to receive the remaining
      50%
      of Gross Profits (i.e., the other 50% of Gross Profits not payable to R. Popeil
      pursuant to Section 6.10(B) above) from Promoted Sales.

    

    (D) Purchaser,
      or RIM, as applicable, shall make all payments to R. Popeil or his designee(s),
      as applicable, due pursuant to this Section 6.10 not later than the fifteenth
      (15th)
      calendar day following Purchaser’s or RIM’s receipt of payment for the
      applicable products from Promoted Sales. Each such payment shall be accompanied
      by a detailed statement setting forth Purchaser’s or RIM’s calculation of the
      applicable Gross Profits and the payment due to R. Popeil or his designee(s).
      Purchaser or RIM, as applicable, shall prepare and maintain for a period of
      at
      least three (3) years after the due date for the payment to which the records
      relate accurate, complete and reasonably detailed records in order to
      substantiate the amounts payable under this Section 6.10.

    

    (E) Purchaser’s
      records that relate to the subject matter of this Section 6.10 may be examined
      from time to time in Los Angeles, California, on at least seven (7) days’ prior
      notice and during normal business hours by R. Popeil or his representatives.
      If
      any such examination reveals that Purchaser owes R. Popeil or his designee(s)
      additional amounts under this Section 6.10, Purchaser shall (a) immediately
      pay
      R. Popeil or his designee(s) such delinquent amounts; and (b) pay to R. Popeil
      or his designee(s) interest on the overdue amounts calculated at a rate equal
      to
      the lesser of 10% per annum or the maximum rate allowed by applicable Legal
      Rules. Notwithstanding anything herein to the contrary, if the actual aggregate
      amounts paid by Purchaser or RIM to R. Popeil or his designee(s) over any period
      of three consecutive months (without duplication) are less than ninety percent
      (90%) of those amounts owed for such period, Purchaser shall pay to R. Popeil,
      upon demand therefor, an amount equal to the actual and documented costs
      incurred by R. Popeil or his designee(s) in connection with such examination.
      Notwithstanding the foregoing, Purchaser shall have the right to dispute the
      results of the examination by R. Popeil or his representatives pursuant to
      the
      procedures set forth in Section
      11.10.”
      

    

    (e) RMC
      and
      the Lenders agree that Sections 4.11 and 7.3 (H) of the Asset Purchase Agreement
      shall be deleted. 

    

    (f) RMC
      and
      the Lenders agree that QC Payments made by RMC in respect of products
      manufactured for marketing and sale through retail distribution channels since
      June 30, 2005, shall be applied to amounts outstanding under the Ronco
      Inventions Note and the Popeil Inventions Note.

    

    (g) Section
      11.10 of the Asset Purchase Agreement shall be amended in its entirety to read
      as follows:

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    “11.10.
      Dispute Resolution.
      Any
      dispute arising out of or relating to this Agreement, or any Exhibit or Schedule
      hereto or any other agreement, instrument or certificate delivered pursuant
      to
      this Agreement, or the breach, termination or validity hereof or thereof,
      including any dispute based in whole or in part on tort or other non-contractual
      principles of law, or relating to or arising out of the transactions
      contemplated by this Agreement or any other agreement, instrument or certificate
      delivered pursuant to this Agreement, shall be resolved in the following
      manner:

     

    (A)  Any
      Party
      may give written notice to the other Parties of any dispute which has arisen.
      Any other Party may give notice within five (5) Business Days of receipt of
      the
      first notice of any additional dispute(s), all to the end that the Parties
      may
      be reasonably aware of the matters in dispute.

     

    (B)  All
      disputes shall be fully and finally resolved by binding arbitration conducted
      in
      Los Angeles, California. The arbitration shall be administered by Judicial
      Arbitration and Mediation Services (“JAMS”)
      in its
      Los Angeles County office. The arbitrator shall be a retired superior court
      judge of the State of California affiliated with JAMS and shall be selected
      as
      follows. The parties will request that JAMS provide a list of available
      arbitrators satisfying the requirements of the immediately preceding sentence.
      Each side to the dispute will confidentially rank in descending order of
      desirability (from most desirable to least desirable) each person on such list.
      The person on such list with the highest composite ranking by both sides will
      be
      selected as the arbitrator. The arbitration hearing on the merits of the dispute
      will be conducted within 45 days of the selection of the arbitrator, and the
      ruling of the arbitrator on the dispute shall be rendered within 30 days
      thereafter, unless good cause is shown as to why such ruling must be delayed
      beyond such time (in which case the ruling shall be rendered as soon as
      practicable following the selection of the arbitrator). Any action brought
      to
      enforce the provisions of this Section 11.10 shall be brought in the Los Angeles
      County Superior Court. Judgment upon the award rendered by the arbitrator may
      be
      entered in any court having jurisdiction thereof. The arbitrator shall not
      have
      any power to alter, amend, modify or change any of the terms of this Agreement
      nor to grant any remedy which is either prohibited by the terms of this
      Agreement or not available in a court of law. Costs and reasonable attorneys’
fees shall be awarded to the defendant in any arbitration pursuant hereto,
      in
      any action brought to enforce the provisions of this Section 11.10, and in
      any
      other arbitral or judicial action to which the Sellers and Purchaser are parties
      that arises out of or relates to this Agreement, or any Exhibit or Schedule
      hereto or any other agreement, instrument or certificate delivered pursuant
      to
      this Agreement, unless the plaintiff is the prevailing party in such
      arbitration, enforcement action or other proceeding. If the prevailing party
      in
      such arbitration, enforcement action or other proceeding is the plaintiff,
      each
      Party shall bear its own costs and attorneys’ fees. Nothing in this Section
      11.10 shall preclude either party from bringing a court action seeking an order
      for or with respect to a writ of attachment, constructive trust or other
      provisional remedy or an equitable remedy such as injunctive relief, specific
      performance or any other equitable remedy that may be applicable under the
      circumstances.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (C)  The
      dispute resolution proceedings contemplated by this provision shall be as
      confidential and private as permitted by law. To that end, the Parties shall not
      disclose the existence, content or results of any claims hereunder or
      proceedings conducted in accordance with this provision, and materials submitted
      in connection with such proceedings shall not be admissible in any other
      proceeding; provided,
      however,
      that
      this confidentiality provision shall not prevent a petition to vacate or enforce
      an arbitral award, shall not prevent the Purchaser from filing this document
      with the Securities and Exchange Commission if in the good faith judgment of
      Purchaser’s counsel such document is required to be filed, and shall not bar
      disclosures required by law. The Parties agree that any decision or award
      resulting from proceedings in accordance with this dispute resolution provision
      shall have no preclusive effect in any other matter involving third
      parties.”

     

    (h) The
      Company’s statement of unpaid QC Payments due to the Lenders pursuant to the
      Asset Purchase Agreement (and giving effect to the amendments herein) for the
      period of June 30, 2005 through July 31, 2006 is $1,427,301.40 as set forth
      on
Exhibit
      C
      hereto,
      and $1,250,000.00 of such unpaid amount shall be paid by RMC in immediately
      available funds to the Lenders on the Closing Date. RMC shall pay an additional
      amount of $400,000.00 to the Lenders within thirty (30) days of the Closing
      Date, which amount reflects the parties’ current good faith estimate of the
      remaining unpaid QC Payment obligations owed to the Lenders for the period
      from
      June 30, 2005 through the Closing Date (i.e.,
      after
      giving effect to the $1,250,000 to be paid to the Lenders on the Closing Date).
      The full amount of the unpaid QC Payments due to the Lenders for the period
      from
      June 30, 2005 through the Closing Date (the “Pre-Agreement
      Period”)
      shall
      be subject to confirmation by the parties based on the relevant documentation.
      Notwithstanding the foregoing, unless the Lenders have otherwise agreed in
      writing, RMC shall make the $400,000 payment described above regardless of
      whether the actual amount of the unpaid QC Payments for the Pre-Agreement Period
      has then been confirmed and agreed by the parties, it being understood and
      agreed that if the actual aggregate amount due for such period is (x) less
      than
      $1,650,000, then the amount of the overpayment for such period shall be retained
      by the Lenders and applied to any QC Payment obligations of the Company arising
      after the Pre-Agreement Period or (y) greater than $1,650,000, then the amount
      of the underpayment for such period shall be paid to the Lenders not later
      than
      three (3) days after the amount of such underpayment has been agreed to by
      the
      parties or determined pursuant to the dispute resolution procedures set forth
      in
      the Asset Purchase Agreement. 

    

    7. Effect
      of Default/Acceleration of Indebtedness.
      The
      Company and the Lenders agree that if an “Event of Default” (as defined in the
      Popeil Inventions Note or the Ronco Inventions Note, which are together referred
      to as the “Notes”)
      should
      occur under the Notes, the applicable Lender shall be permitted to accelerate
      and immediately declare as due and payable all amounts due to such Lender under
      the applicable Note in accordance with the provisions thereof. Notwithstanding
      such declaration, the Lender shall only be permitted to take action to collect
      such amounts if so permitted by the Laurus Subordination Agreement and the
      SMH
      Limited Subordination Agreement. 

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    8. Personal
      Appearances on Direct Response Television.
      Section
      6.10 of the Asset Purchase Agreement requires the Company to make certain
      payments to Popeil or his permitted designee if Popeil or his permitted designee
      makes certain personal appearances on direct response television, including
      the
      QVC Shopping Network. The Company’s statement of amounts owing to Popeil at
      present is $79,091.56 (the “Estimated
      Outstanding QVC Amounts”),
      which
      amount shall be subject to verification by Popeil pursuant to the Asset Purchase
      Agreement.
      For
      purposes of verifying the amount due, the Parties shall apply the methodology
      for computing Promoted Sales, as set forth in Section 6.10(B) of the Asset
      Purchase Agreement as amended by this Agreement. The Company shall pay Popeil
      the Estimated Outstanding QVC Amounts within thirty (30) days of the date hereof
      regardless of whether the parties have confirmed and agree that such amount
      is
      the amount owed to Popeil pursuant to the Asset Purchase Agreement, it being
      understood and agreed that if the actual amount due to Popeil is (x) less than
      the Estimated Outstanding QVC Amounts, Popeil shall, within three (3) business
      days following the final determination of (or agreement by the parties
      regarding) the actual amount due to Popeil, refund to the Company the amount
      by
      which the Estimated Outstanding QVC Amounts exceeds the actual amount due to
      Popeil or (y) greater than the Estimated Outstanding QVC Amounts, then the
      Company shall, within three (3) business days following the final determination
      of (or agreement by the parties regarding) the actual amount due to Popeil,
      pay
      Popeil the amount by which the actual amount due to Popeil exceeds the Estimated
      Outstanding QVC Amounts. 

    

    9. O’Melveny
      & Myers Fees and Expenses. 
      Within
      thirty (30) days after the Laurus Closing, the Company shall reimburse Lenders
      the amount of $44,703.50, which Lenders paid to O’Melveny & Myers for
      services rendered to Lenders through July 31, 2006 with respect to the Laurus
      Subordination Agreement. The Company shall also reimburse Lenders, within thirty
      (30) days after receipt of the invoice, for any additional amounts paid for
      reasonable legal fees related to the Laurus Subordination Agreement and SMH
      Limited Subordination Agreement incurred after such date. 

    

    10. Warrant.
      Within
      thirty (30) days after the date hereof, the Company shall issue Lenders a
      warrant to purchase 200,000 shares of Company’s common stock. Such warrant shall
      have a term of five (5) years and an exercise price, payable in cash, equal
      to
      the average bid price for the Company’s common stock, as quoted on the OTC
      Bulletin Board, for the 30 trading days immediately prior to the Laurus Closing.
      The warrant shall also contain such other terms as the Company, in its
      reasonable discretion, shall determine are reasonable and customary. The Lenders
      agree to provide customary investment representations in connection with the
      issuance of the warrant. The Company shall use its commercially reasonable
      efforts to include the shares underlying such warrant in its registration
      statement that has already been filed with the Securities and Exchange
      Commission (“SEC”) and to use its commercially reasonable efforts to cause such
      registration statement to be declared effective as soon as possible. If the
      Company is unable to include the shares underlying the warrant in such existing
      registration statement, the Company shall include such shares in the next
      registration statement it files with the SEC, the terms of which permit the
      Company to include shares of the Lender. The Company shall also use its
      commercially reasonable efforts to qualify the shares of common stock underlying
      the warrant for sale in the State of California.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    11. Name
      Change of Certain Lender Entities. The
      Company is not allowed to use the legal name of “Ronco Corporation” in
      California because of the existence of an entity named “Ronco Inc.” previously
      registered in California that is owned or controlled by one or more of the
      Lenders. Ronco currently conducts business under the name of “Fi-Tek VII” in
      California. Fi-Tek VII (the predecessor to Ronco) desires to amend its
      qualification to do business in the State of California to reflect the name
      Ronco Corporation.  Lenders agree to promptly change the name of “Ronco
      Inc.” to a name that does not conflict with the name “Ronco
      Corporation.”

    

    12. Potential
      Reimbursement of Certain Payments.
      Following the June 30, 2005 closing of the Asset Purchase Agreement, the Company
      mistakenly paid many bills on behalf of Lenders and the predecessor entities
      without the authority of the Lenders to do so. Popeil will review these
      disbursements on a case by case basis, at his convenience, and determine what
      amounts, if any, he will reimburse the Company. The determination of these
      reimbursement amounts will be made solely on the basis of Popeil’s good faith
      business judgment. The reimbursement, if any, may be made as a reduction, at
      maturity, of any amounts owing under the Popeil Inventions Note or the Ronco
      Inventions Note.

    

    13. Purchase
      Orders and Shipping Documents.
      Within
      fourteen (14) days after the Laurus Closing, the Company shall provide Lenders
      with copies of purchase orders and shipping documents with respect to all
      products manufactured by the Company between June 30, 2005 and July 31,
      2006.

    

    14. Certain
      Limitations on Use of “No Default” Representations.
      In the
      event litigation is brought by or on behalf of the Company, any investor in
      the
      Company, any creditor of the Company other than Laurus, or by SMH, against
      Lenders, the representations made by Lenders in Paragraphs 3(a), 4, 5(a), 5(b)
      and 5(c) hereof to the effect that, to their knowledge they are not aware of
      any
      defaults or Events of Default by the Company under certain agreements, would
      be
      inoperative and in all events would not bar, estop or be evidence against any
      defense, offset or counterclaim brought or alleged by the Lenders in such
      proceeding of any nature.  

    

    15. No
      Present Intention to Initiate Legal Action.
      The
      Company has no present intention of any kind to initiate any litigation,
      arbitration or other proceedings whatsoever against or involving the Lenders
      or
      any of them. 

    

    16. Filing
      of Agreement and SMH Limited Subordination Agreement with SEC.
      Promptly
      following the Laurus Closing, the Company shall file this Agreement and the
      SMH
      Limited Subordination Agreement with the Securities and Exchange Commission
      as
“material contracts.” 

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    17. Miscellaneous.

     

    (a) Waiver
      and Amendment. 
      Neither this Agreement nor any term hereof may be amended, waived, discharged
      or
      terminated other than by a written instrument referencing this Agreement and
      signed by each of the parties hereto. 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.

     

    (b) 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. 

     

    (c) 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. 

     

    (d) Interpretation. 
      Nothing in this Agreement shall be interpreted or construed as creating,
      expressly or by implication, a partnership, joint venture, agency relationship
      or employment relationship between the parties or any of their respective
      officers, directors, agents, employees or representatives.

     

    (e) Successors
      and Assigns. 
      This Agreement shall not be assigned or assignable by any party without the
      prior written consent of the other parties, which consent shall not be
      unreasonably withheld. This Agreement shall inure to the benefit of, and be
      binding upon, the successors, assigns, heirs, executors and administrators
      of
      the parties.

     

    (f) Governing
      Law. 
      This Agreement shall be governed by and construed in accordance with the
      internal laws of the State of California, without regard to principles of
      conflict of laws.

     

    
      
        (g)
          Entire
          Understanding. 
          This
          Agreement, including the exhibits attached hereto and the documents referred
          to
          herein, constitute the full and entire understanding and agreement among
          the
          parties with regard to the subjects hereof and thereof. No party shall
          be liable
          or bound to any other party in any manner with regard to the subjects hereof
          or
          thereof by any warranties, representations or covenants except as specifically
          set forth herein or therein.

      

    

    

    (h) Authority.
      Each
      party has full authority for the execution and delivery and performance of
      the
      Agreement.

     

    (i) Representation
      by Counsel.
      Each
      party represents and agrees with the other, that it has been represented by
      independent counsel of its own choosing, that it has had the full right and
      opportunity to consult with such counsel that it availed itself of this right
      and opportunity, that such party or its authorized officers have carefully
      read
      and fully understand this Agreement in its entirety that each is fully aware
      of
      the contents thereof and its meaning, intent and legal effect, and that such
      party or its authorized officer is competent to execute this Agreement and
      has
      executed this Agreement free from coercion, duress or undue
      influence.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (j)
       Telecopy
      Execution and Delivery. 
A
      facsimile, telecopy or other reproduction of this Agreement may be executed
      by
      one or more parties hereto and delivered by such party by facsimile or any
      similar electronic transmission device pursuant to which the signature of or
      on
      behalf of such party can be seen. Such execution and delivery shall be
      considered valid, binding and effective for all purposes. At the request of
      any
      party hereto, all parties hereto agree to execute and deliver an original of
      this Agreement as well as any facsimile, telecopy or other reproduction
      hereof.

     

    (k)
       Dispute
      Resolution.  Any
      dispute arising out of or relating to this Agreement, or any Exhibit hereto
      or
      any other agreement or certificate delivered pursuant to this Agreement, or
      the
      breach, termination or validity hereof or thereof, including any dispute based
      in whole or in part on tort or other non-contractual principles of law, or
      relating to or arising out of the transactions contemplated by this Agreement
      or
      any other agreement, instrument or certificate delivered pursuant to this
      Agreement, shall be resolved in the following manner:

    

    (i)
      Any
      party may give written notice to the other parties of any dispute which has
      arisen. Any other party may give notice within five (5) business days of receipt
      of the first notice of any additional dispute(s), all to the end that the
      parties may be reasonably aware of the matters in dispute.

    

    (ii)
      All
      disputes shall be fully and finally resolved by binding arbitration conducted
      in
      Los Angeles, California. The arbitration shall be administered by Judicial
      Arbitration and Mediation Services ("JAMS") in its Los Angeles County office.
      The arbitrator shall be a retired superior court judge of the State of
      California affiliated with JAMS and shall be selected as follows. The parties
      will request that JAMS provide a list of available arbitrators satisfying the
      requirements of the immediately preceding sentence. Each side to the dispute
      will confidentially rank in descending order of desirability (from most
      desirable to least desirable) each person on such list. The person on such
      list
      with the highest composite ranking by both sides will be selected as the
      arbitrator. The arbitration hearing on the merits of the dispute will be
      conducted within 45 days of the selection of the arbitrator, and the ruling
      of
      the arbitrator on the dispute shall be rendered within 30 days thereafter,
      unless good cause is shown as to why such ruling must be delayed beyond such
      time (in which case the ruling shall be rendered as soon as practicable
      following the selection of the arbitrator). Any action brought to enforce the
      provisions of this Paragraph 17(k) shall be brought in the Los Angeles County
      Superior Court. Judgment upon the award rendered by the arbitrator may be
      entered in any court having jurisdiction thereof. The arbitrator shall not
      have
      any power to alter, amend, modify or change any of the terms of this Agreement
      nor to grant any remedy which is either prohibited by the terms of this
      Agreement or not available in a court of law. Costs and reasonable attorneys’
fees shall be awarded to the defendant in any arbitration pursuant hereto,
      in
      any action brought to enforce the provisions of this Section 17(k), and in
      any
      other arbitral or judicial action to which the Sellers and Purchaser are parties
      that arises out of or relates to this Agreement, or any Exhibit or Schedule
      hereto or any other agreement, instrument or certificate delivered pursuant
      to
      this Agreement, unless the plaintiff is the prevailing party in such
      arbitration, enforcement action or other proceeding. If the prevailing party
      in
      such arbitration, enforcement action or other proceeding is the plaintiff,
      each
      Party shall bear its own costs and attorneys’ fees. Nothing in this Paragraph
      17(k) shall preclude either party from bringing a court action seeking an order
      for or with respect to a writ of attachment, constructive trust or other
      provisional remedy or an equitable remedy such as injunctive relief, specific
      performance or any other equitable remedy that may be applicable under the
      circumstances.

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (iii)
      The
      dispute resolution proceedings contemplated by this provision shall be as
      confidential and private as permitted by law. To that end, the parties shall
      not
      disclose the existence, content or results of any claims hereunder or
      proceedings conducted in accordance with this provision, and materials submitted
      in connection with such proceedings shall not be admissible in any other
      proceeding; provided, however, that this confidentiality provision shall not
      prevent a petition to vacate or enforce an arbitral award, shall not prevent
      the
      Company from filing this document with the Securities and Exchange Commission
      if
      in the good faith judgment of the Company’s counsel such document is required to
      be filed, and shall not bar disclosures required by law. The parties agree
      that
      any decision or award resulting from proceedings in accordance with this dispute
      resolution provision shall have no preclusive effect in any other matter
      involving third parties.

     

    (l)
       Specific
      Performance. 
      Each of the parties hereto acknowledges and agrees that the other parties 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 parties shall be entitled to an injunction or injunctions 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.

    

    (m)
       Notices.
      All
      notices, requests, demands and other communications under this Agreement shall
      be in writing addressed to the respective parties at the addresses stated below
      or to such other changed addresses the parties may have fixed by notice as
      provided herein and shall be deemed to have been delivered upon receipt:

     

     

    
      	
              (i)

            	
              If
                to Ronco or RMC: 

            
	 	 
	 	 	
              Ronco
                Corporation or Ronco Marketing Corporation (as applicable)
                

            
	 	 	
              61
                Moreland Road 

            
	 	 	
              Simi
                Valley, CA 93065-1662 

            
	 	 	
              Attention:
                President and Chief Executive Officer 

            
	 	 	
              Facsimile:
                (805) 433-1033 

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      	
              (ii)

            	 	
              If
                to the Lenders: 

            
	 	 	
              Ronald
                M. Popeil 

            
	 	 	
              1672
                Waynecrest Drive 

            
	 	 	
              Beverly
                Hills, CA 90210 

            
	 	 	
              Facsimile:
                (310) 273-4483

            

    

    

    

    (n)
      Severability.
      In the
      event that any provision or any part of any provision of this Agreement shall
      be
      void or unenforceable for any reason whatsoever, then such provision shall
      be
      stricken and of no force and effect and the parties to this Agreement shall
      use
      their respective best efforts to replace such stricken provision with a
      comparable valid provision that best achieves the overall intentions of the
      parties with respect to this Agreement. The remaining provisions of this
      Agreement shall continue in full force and effect, and to the extent required,
      shall be modified to preserve their validity.

    

     

    

    

    (The
      remainder of this page is left intentionally blank.)

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    Very
      truly yours,

    

    RONCO
      CORPORATION

    a
      Delaware corporation

    

    

    /s/
      Paul
      Kabashima                                                           

    Paul
      M.
      Kabashima

    Interim
      President and Interim Chief Executive Officer

    

    

    RONCO
      MARKETING CORPORATION

    a
      Delaware corporation

    

    

    /s/
      Paul
      Kabashima                                                         

    Paul
      M.
      Kabashima

    President
      and Chief Executive Officer

     

    

    

    

    

    

    

    [Signatures
      Continued on Next Page]

     

    
 

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    ACKNOWLEDGED
      AND AGREED BY:

    

    RONCO
      INVENTIONS, LLC

    a
      California limited liability company

     

    By:
      /s/
      Gina
      Wallman                               

     

    Name:
      Gina
      Wallman                               

     

    Title:
      Corporate
      Secretary                      

    

    

    POPEL
      INVENTIONS, INC.

    a
      Nevada corporation

     

    By:
      /s/
      Gina
      Wallman                              

     

    Name:
      Gina
      Wallman                              

     

    Title:
      Corporate
      Secretary                     

    

    

    

    RP
      PRODUCTIONS, INC.

    a
      Nevada corporation

     

    By:
      /s/
      Gina
      Wallman                            

     

    Name:
      Gina
      Wallman                            

     

    Title:
      Corporate
      Secretary                    

    

    

    RMP
      FAMILY TRUST

    an
      Illinois irrevocable Trust

     

    By:
      /s/
      Gina
      Wallman                            

     

    Name:
      Gina
      Wallman                            

     

    Title:
      Co-Trustee                                   
      

    

    

    RONALD
      M. POPEIL

    an
      individual

    

     

    /s/
      Ronald M.
      Popeil                              

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
      A

    

    LAURUS
      SUBORDINATION AGREEMENT

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

      
        

        SUBORDINATION
          AGREEMENT

        

        This
          Subordination Agreement (this “Agreement”) is entered into as of the ____ day of
          October, 2006, by and among Ronald M. Popeil (“Popeil”), the RMP Family Trust,
          an Illinois irrevocable trust (“RMP”), Ronco Inventions, LLC, a California
          limited liability company (“Ronco Inventions”), Popeil Inventions, Inc., a
          Nevada corporation (“Popeil Inventions”) and RP Productions, Inc., a Nevada
          corporation (“RP,”” and, collectively with Popeil, RMP, Ronco Inventions and
          Popeil Inventions, the “Subordinated Lenders” and each, a “Subordinated
          Lender”), and Laurus Master Fund, Ltd. (the “Senior Lender”). Unless otherwise
          defined herein, capitalized terms used herein shall have the meaning provided
          such terms in the Security Agreement referred to below.

        

        BACKGROUND

        

        WHEREAS,
          it is a condition to the Senior Lender’s making an investment in RONCO
          Corporation, a Delaware corporation and certain of its subsidiaries pursuant
          to,
          and in accordance with, (i) that certain Security and Purchase Agreement
          dated
          as of the date hereof by and between the Ronco Corporation certain of its
          subsidiaries and Laurus (as amended, modified or supplemented from time
          to time
          in accordance with this Agreement, the "Security Agreement") and (ii) the
          Ancillary Agreements referred to in the Security Agreement that the Subordinated
          Lenders enter into this Agreement.

        

        WHEREAS,
          the Subordinated Lenders have made or will make loans to the
          Company.

        

        NOW,
          THEREFORE, each Subordinated Lender and the Senior Lender agree as
          follows:

        

        TERMS

        

        1. All
          Obligations of any Company and/or any of its Subsidiaries to the Senior
          Lender
          under the Security Agreement whether direct or indirect, absolute or contingent
          or now or hereafter existing, or due or to become due are referred to as
“Senior
          Liabilities”. Any and all loans made by the Subordinated Lenders to any Company
          and/or any of its Subsidiaries, together with all other obligations (whether
          monetary or otherwise) of any Company and/or any of its Subsidiaries to
          any
          Subordinated Lender (in each case, including any interest, fees or penalties
          related thereto), including but not limited to the agreements described
          on
Exhibit
          A
          hereto,
          howsoever created, arising or evidenced, whether direct or indirect, absolute
          or
          contingent or now or hereafter existing, or due or to become due are referred
          to
          as “Junior Liabilities”. It is expressly understood and agreed that the term
“Senior Liabilities”, as used in this Agreement, shall include, without
          limitation, any and all interest, fees and penalties accruing on any of the
          Senior Liabilities after the commencement of any proceedings referred to
          in
          paragraph 4 of this Agreement, notwithstanding any provision or rule of
          law
          which might restrict the rights of the Senior Lender, as against any Company,
          its Subsidiaries or anyone else, to collect such interest, fees or penalties,
          as
          the case may be. It is further expressly understood and agreed that the
          term
“Junior Liabilities”, as used in this Agreement, shall not include any
          obligation on the part of Ronco Corporation, a Delaware corporation (“Ronco”) or
          Ronco Marketing Corporation, a Delaware corporation (“RMC”) to acquire the
          Turkey Fryer (as defined in the New Product Development Agreement dated
          June 30,
          2005 by and between Ronald M. Popeil and RMC (the “Turkey Fryer”)).

        

        
          
             

          

          
             

            
              

            

          

          
             

          

           

        

        2. Except
          as
          expressly otherwise provided in this Agreement or as the Senior Lender
          may
          otherwise expressly consent in writing, the payment of the Junior Liabilities
          shall be postponed and subordinated in right of payment and priority to
          the
          payment in full of all Senior Liabilities. Furthermore, and except as expressly
          otherwise provided in this Agreement or as the Senior Lender may otherwise
          expressly consent in writing, whether directly or indirectly, no payments
          or
          other distributions whatsoever in respect of any Junior Liabilities shall
          be
          made (whether at stated maturity, by acceleration or otherwise), nor shall
          any
          property or assets of any Company or any of its Subsidiaries be applied
          to the
          purchase or other acquisition or retirement of any Junior Liability until
          such
          time as the Senior Liabilities have been indefeasibly paid in full.
          Notwithstanding anything to the contrary contained in this Paragraph 2
          or
          elsewhere in this Agreement, any Company and its Subsidiaries may make
          payment
          for regularly scheduled principal, interest or other obligations, as the
          case
          may be, to the Subordinated Lenders with respect to the Junior Liabilities,
          so
          long as (i) no Event of Default (as defined in the Security Agreement or
          any
          Ancillary Agreement) has occurred and is continuing at the time of any
          such
          payment and (ii) the amount of such regularly scheduled principal payments
          and
          the rate of interest, in each case, with respect to the Junior Liabilities
          is
          not increased from that in effect on the date hereof.

        

        3. Each
          Subordinated Lender hereby subordinates all claims, security interests,
          and any
          other rights or remedies of any kind or nature whatsoever it may have against,
          or with respect to, any of the assets of any Company and/or any of its
          Subsidiaries (the “Subordinated Lender Liens”), to the security interests
          granted by any Company and/or any of its Subsidiaries to the Senior Lender
          in
          respect of the Senior Liabilities. The Senior Lender shall not owe any
          duty to
          any Subordinated Lender as a result of or in connection with any Subordinated
          Lender Liens, including without limitation any marshalling of assets or
          protection of the rights or interests of any Subordinated Lender. The Senior
          Lender shall have the exclusive right to manage, perform and enforce the
          underlying terms of the Security Agreement, the Ancillary Agreements and
          each
          other document, instrument and agreement executed from time to time in
          connection therewith (collectively, the “Security Agreements”) relating to the
          assets of any Company and its Subsidiaries and to exercise and enforce
          its
          rights according to its discretion. Each Subordinated Lender waives all
          rights
          to affect the method or challenge the appropriateness of any action taken
          by the
          Senior Lender in connection with the Senior Lender’s enforcement of its rights
          under the Security Agreements. Only the Senior Lender shall have the right
          to
          restrict or permit, approve or disapprove the sale, transfer or other
          disposition of the assets of any Company or any of its Subsidiaries. As
          between
          the Senior Lender and each Subordinated Lender, the terms of this Agreement
          shall govern even if all or part of the Senior Lender’s liens are avoided,
          disallowed, set aside or otherwise invalidated. Notwithstanding the foregoing,
          it is expressly understood and agreed that this Paragraph 3 shall not apply
          to
          Ronald M. Popeil’s use of his name and likeness on the packaging of the Turkey
          Fryer, on the Turkey Fryer itself and in the direct marketing of the Turkey
          Fryer. Senior Lender specifically acknowledges that neither Company nor
          any of
          its Subsidiaries shall have any interest in the Turkey Fryer.

        

        
          
             

          

          
            -2-

            
              

            

          

          
             

          

           

        

        4. In
          the
          event of any dissolution, winding up, liquidation, readjustment, reorganization
          or other similar proceedings relating to any Company and/or any of its
          Subsidiaries or to its creditors, as such, or to its property (whether
          voluntary
          or involuntary, partial or complete, and whether in bankruptcy, insolvency
          or
          receivership, or upon an assignment for the benefit of creditors, or any
          other
          marshalling of the assets and liabilities of any Company and/or any of
          its
          Subsidiaries, or any sale of all or substantially all of the assets of
          any
          Company and/or any of its Subsidiaries, or otherwise), the Senior Liabilities
          shall first be paid in full before any Subordinated Lender shall be entitled
          to
          receive and to retain any payment, distribution, other rights or benefits
          in
          respect of any Junior Liability. In order to enable the Senior Lender to
          enforce
          its rights hereunder in any such action or proceeding, the Senior Lender
          is
          hereby irrevocably authorized and empowered in its discretion as attorney
          in
          fact for each Subordinated Lender to make and present for and on behalf
          of such
          Subordinated Lender such proofs of claims against any Company and/or its
          Subsidiaries as Laurus may deem expedient or proper and to vote such proofs
          of
          claims in any such proceeding and to receive and collect any and all dividends
          or other payments or disbursements made thereon in whatever form the same
          may be
          paid or issued and to apply same on account of any the Senior Liabilities.
          In
          the event, prior to indefeasible payment in full of the Senior Liabilities,
          any
          Subordinated Lender shall receive any payment in respect of the Junior
          Liabilities and/or in connection with the enforcement of such Subordinated
          Lender’s rights and remedies against any Company and/or any of its Subsidiaries,
          whether arising in connection with the Junior Liabilities or otherwise,
          then
          such Subordinated Lender shall forthwith deliver, or cause to be delivered,
          the
          same to the Senior Lender in precisely the form held by such Subordinated
          Lender
          (except for any necessary endorsement) and until so delivered the same
          shall be
          held in trust by such Subordinated Lender as the property of the Senior
          Lender.

        

        5. Each
          Subordinated Lender will mark its/his books and records so as to clearly
          indicate that its/his respective Junior Liabilities are subordinated in
          accordance with the terms of this Agreement. Each Subordinated Lender will
          execute such further documents or instruments and take such further action
          as
          the Senior Lender may reasonably request from time to time to carry out
          the
          intent of this Agreement.

        

        6. Each
          Subordinated Lender hereby waives all diligence in collection or protection
          of
          or realization upon the Senior Liabilities or any security for the Senior
          Liabilities.

        

        
          
             

          

          
            -3-

            
              

            

          

          
             

          

           

        

        7. Until
          such time as the Senior Liabilities have been indefeasibly paid in full,
          no
          Subordinated Lender will without the prior written consent of the Senior
          Lender:
          (a) attempt to enforce or collect any Junior Liability or any rights in
          respect
          of any Junior Liability or any other rights or remedies of any kind or
          nature
          whatsoever against any Company and/or any of its Subsidiaries whether in
          respect
          of the Junior Liabilities or otherwise; unless, in each case (i) an event
          of
          default shall have occurred and be continuing under any one or more agreements
          between and among such Subordinated Lender, any Company and/or any of its
          Subsidiaries which would entitle such Subordinated Lender to take such
          action (a
“Subordinated Lender Default”), (ii) such Subordinated Lender shall have
          provided Senior Lender written notice of the occurrence of such Subordinated
          Lender Default, (iii) such Subordinated Lender shall have provided Senior
          Lender
          at least thirty (30) days prior written notice of its intention to take
          any such
          action and (iv) a period of at least one hundred and eighty (180) days
          shall
          have elapsed after the occurrence of the breach or non-performance giving
          rise
          to the Subordinated Lender Default; or (b) commence, or join with any other
          creditor in commencing, any bankruptcy, reorganization or insolvency proceedings
          with respect to any Company and/or any of its Subsidiaries. Notwithstanding
          the
          foregoing, it is expressly understood and agreed that this Paragraph 7
          shall not
          apply to Ronald M. Popeil’s use of his name and likeness on the packaging of the
          Turkey Fryer, on the Turkey Fryer itself and in the direct marketing of
          the
          Turkey Fryer. For the purpose of clarification, and notwithstanding any
          contrary
          provision herein, if any Company and/or any of its Subsidiaries fails to
          fully
          and timely perform any of its obligations to any one or more Subordinate
          Lenders, such Subordinate Lender(s) shall be permitted, without delay,
          to notify
          such Company and/or its Subsidiaries of such failure to perform and, after
          any
          applicable cure periods, to notify such Company and/or its Subsidiaries
          of the
          occurrence of any event of default arising by virtue of such
          non-performance.

        

        8. The
          Senior Lender may, from time to time, at its sole discretion and without
          notice
          to any Subordinated Lender, take any or all of the following actions: (a)
          retain
          or obtain a security interest in any property to secure any of the Senior
          Liabilities; (b) retain or obtain the primary or secondary obligation of
          any
          other obligor or obligors with respect to any of the Senior Liabilities;
          (c)
          extend or renew for one or more periods (whether or not longer than the
          original
          period), alter, increase or exchange any of the Senior Liabilities, or
          release
          or compromise any obligation of any nature of any obligor with respect
          to any of
          the Senior Liabilities; and (d) release its security interest in, or surrender,
          release or permit any substitution or exchange for, all or any part of
          any
          property securing any of the Senior Liabilities, or extend or renew for
          one or
          more periods (whether or not longer than the original period) or release,
          compromise, alter or exchange any obligations of any nature of any obligor
          with
          respect to any such property. Notwithstanding the foregoing, it is expressly
          understood and agreed that this Paragraph 8 shall not apply to Ronald M.
          Popeil’s use of his name and likeness on the packaging of the Turkey Fryer, on
          the Turkey Fryer itself and in the direct marketing of the Turkey
          Fryer.

        

        
          
             

          

          
            -4-

            
              

            

          

          
             

          

           

        

        9. The
          Senior Lender may, from time to time, whether before or after any discontinuance
          of this Agreement, without notice to any Subordinated Lender, assign or
          transfer
          any or all of the Senior Liabilities or any interest in the Senior Liabilities;
          and, notwithstanding any such assignment or transfer or any subsequent
          assignment or transfer of the Senior Liabilities, such Senior Liabilities
          shall
          be and remain Senior Liabilities for the purposes of this Agreement, and
          every
          immediate and successive assignee or transferee of any of the Senior Liabilities
          or of any interest in the Senior Liabilities shall, to the extent of the
          interest of such assignee or transferee in the Senior Liabilities, be entitled
          to the benefits of this Agreement to the same extent as if such assignee
          or
          transferee were the Senior Lender, as applicable; provided, however, that,
          unless the Senior Lender shall otherwise consent in writing, the Senior
          Lender
          shall have an unimpaired right, prior and superior to that of any such
          assignee
          or transferee, to enforce this Agreement, for the benefit of the Senior
          Lender,
          as to those of the Senior Liabilities which the Senior Lender has not assigned
          or transferred.

        

        10. The
          Senior Lender shall not be prejudiced in its rights under this Agreement
          by any
          act or failure to act of any Subordinated Lender, or any noncompliance
          of any
          Subordinated Lender with any agreement or obligation, regardless of any
          knowledge thereof which the Senior Lender may have or with which the Senior
          Lender may be charged; and no action of the Senior Lender permitted under
          this
          Agreement shall in any way affect or impair the rights of the Senior Lender
          and
          the obligations of any Subordinated Lender under this Agreement.

        

        11. No
          delay
          on the part of the Senior Lender in the exercise of any right or remedy
          shall
          operate as a waiver of such right or remedy, and no single or partial exercise
          by the Senior Lender of any right or remedy shall preclude other or further
          exercise of such right or remedy or the exercise of any other right or
          remedy;
          nor shall any modification or waiver of any of the provisions of this Agreement
          be binding upon the Senior Lender except as expressly set forth in a writing
          duly signed and delivered on behalf of the Senior Lender. For the purposes
          of
          this Agreement, Senior Liabilities shall have the meaning set forth in
          Section 1
          above, notwithstanding any right or power of any Subordinated Lender or
          anyone
          else to assert any claim or defense as to the invalidity or unenforceability
          of
          any such obligation, and no such claim or defense shall affect or impair
          the
          agreements and obligations of any Subordinated Lender under this
          Agreement.

        

        12. This
          Agreement shall continue in full force and effect after the filing of any
          petition (“Petition”)
          by or
          against any Company and/or any of its Subsidiaries under the United States
          Bankruptcy Code (the “Code”)
          and
          all converted or succeeding cases in respect thereof. All references herein
          to
          any Company and/or Subsidiary shall be deemed to apply to any Company and
          such
          Subsidiary as debtor-in-possession and to a trustee for any Company and/or
          such
          Subsidiary. If any Company or any of its Subsidiaries shall become subject
          to a
          proceeding under the Code, and if the Senior Lender shall desire to permit
          the
          use of cash collateral or to provide post-Petition financing from the Senior
          Lender to any Company or any such Subsidiary under the Code, each Subordinated
          Lender agrees as follows: (1) adequate notice to such Subordinated Lender
          shall
          be deemed to have been provided for such consent or post-Petition financing
          if
          such Subordinated Lender receives notice thereof three (3) business days
          (or
          such shorter notice as is given to the Senior Lender) prior to the earlier
          of
          (a) any hearing on a request to approve such post-petition financing or
          (b) the
          date of entry of an order approving same and (2) no objection will be raised
          by
          any Subordinated Lender to any such use of cash collateral or such post-Petition
          financing from the Senior Lender.

        

        
          
             

          

          
            -5-

            
              

            

          

          
             

          

           

        

        13. This
          Agreement shall be binding upon each Subordinated Lender and upon the heirs,
          legal representatives, successors and assigns of each Subordinated Lender
          and
          the successors and assigns of any Subordinated Lender.

        

        14. This
          Agreement shall be construed in accordance with and governed by the laws
          of New
          York without regard to conflict of laws provisions. Wherever possible each
          provision of this Agreement shall be interpreted in such manner as to be
          effective and valid under applicable law, but if any provision of this
          Agreement
          shall be prohibited by or invalid under such law, such provision shall
          be
          ineffective to the extent of such prohibition or invalidity, without
          invalidating the remainder of such provision or the remaining provisions
          of this
          Agreement.

        

        [signature
          page follows]

        
           

          
             

          

          
            -6-

            
              

            

          

          
             

          

        

        

        IN
          WITNESS WHEREOF, this Agreement has been made and delivered this __ day
          of
          October, 2006.

        

        
          	 	
                  RONCO
                    INVENTIONS, LLC,

                  a
                    California limited liability company

                  

                  By:
                    ________________________________

                  Name:
                    ______________________________

                  Title:
                    _______________________________

                  

                  

                  
POPEIL
                    INVENTIONS, INC.

                  a
                    Nevada corporation 

                  

                  By:
                    ________________________________

                  
                    Name:
                      ______________________________

                    Title:
                      _______________________________
    

                  

                  

                  

                  RP
                    PRODUCTIONS, INC.

                  a
                    Nevada corporation

                  

                  By:
                    ________________________________

                  
                    Name:
                      ______________________________

                    Title:
                      _______________________________

                  

                

        

        

        
          
             

          

          
            -7-

            
              

            

          

          
             

          

        

        

        
          	 	
                  RMP
                    FAMILY TRUST, an Illinois irrevocable trust

                  

                   

                  
                    By:
                      ________________________________

                    
                      Name:
                        ______________________________

                      Title:
                        _______________________________

                    

                  

                  

                  

                  ____________________________________

                  RONALD
                    M. POPEIL 

                  

                  

                  

                  LAURUS
                    MASTER FUND, LTD.

                  

                  By:
                    _______________________________ 

                  Name:

                  Title:

                

        

        
           

Acknowledged
          and Agreed to by:

        

        RONCO
          CORPORATION

        

        By:________________________

        Name:
          Paul Kabashima

        Title:
          Interim President and Interim Chief Executive Officer

        

        

        RONCO
          MARKETING CORP.

        

        By:________________________

        Name:
          Paul Kabashima

        Title:
          Interim President and Interim Chief Executive Officer

        

        
          
             

          

          
            -8-

            
              

            

          

          
             

          

        

         

        EXHIBIT
          A

        

        
          	 	
                  ·

                	
                  Asset
                    Purchase Agreement dated December 10, 2004 among Ronco Marketing
                    Corporation, Ronco Inventions, LLC, Popeil Inventions, Inc.,
                    RP
                    Productions, Inc., RMP Family Trust and Ronald M.
                    Popeil;

                

        

        

        
          	 	
                  ·

                	
                  Addendum
                    to APA dated December 10, 2004 among Ronco Marketing Corporation,
                    Ronald
                    M. Popeil, Ronco Inventions, LLC and Popeil Inventions,
                    Inc;

                

        

        

        
          	 	
                  ·

                	
                  Amendment
                    and Agreement dated June 16, 2005 among Ronco Marketing Corporation,
                    Ronco
                    Inventions, LLC, Popeil Inventions, Inc., RP Productions, Inc.,
                    RMP Family
                    Trust, Ronald M. Popeil, Adams, Swartz & Landau LLP and Brian R.
                    Adams;

                

        

        

        
          	 	
                  ·

                	
                  Assignment
                    and Assumption Agreement dated June 28, 2005 between Ronco Inc.
                    and Ronco
                    Marketing Corporation;

                

        

        

        
          	 	
                  ·

                	
                  Second
                    Amendment and Agreement dated June 29, 2005 among Ronco Marketing
                    Corporation, Ronco Inventions, LLC, Popeil Inventions, Inc.,
                    RP
                    Productions, Inc., RMP Family Trust, Ronald M. Popeil, Adams,
                    Swartz &
                    Landau LLP and Brian R. Adams;

                

        

        

        
          	 	
                  ·

                	
                  Promissory
                    Note dated June 30, 2005 between Ronco Marketing Corporation
                    and Popeil
                    Inventions, Inc;

                

        

        

        
          	 	
                  ·

                	
                  Promissory
                    Note dated June 30, 2005 between Ronco Marketing Corporation
                    and Ronco
                    Inventions, LLC;

                

        

        

        
          	 	
                  ·

                	
                  Consulting
                    and Advisory Services Agreement dated June 30, 2005 between Ronco
                    Marketing Corporation and Ronald M.
                    Popeil;

                

        

        

        
          	 	
                  ·

                	
                  Amendment
                    No. 1 to Consulting and Advisory Services Agreement between Ronco
                    Marketing Corporation and Ronald M.
                    Popeil;

                

        

        

        
          	 	
                  ·

                	
                  Trademark
                    Co-Existence Agreement dated June 30, 2005 between Ronco Marketing
                    Corporation and Ronald M. Popeil;

                

        

        

        
          	 	
                  ·

                	
                  New
                    Product Development Agreement dated June 30, 2005 by and among
                    Ronald M.
                    Popeil, Alan L. Backus and Ronco Marketing
                    Corporation;

                

        

        

        
          	 	
                  ·

                	
                  Transition
                    Services Agreement dated June 30, 2005 among Ronco Inventions,
                    LLC, Popeil
                    Inventions, Inc., RP Productions, Inc. and Ronco Marketing
                    Corporation;

                

        

        

        
          	 	
                  ·

                	
                  Assignment
                    and Assumption Agreement dated June 30, 2005 among Ronco Inventions,
                    LLC,
                    Popeil Inventions, Inc., RP Productions, Inc., Ronald M. Popeil
                    and Ronco
                    Marketing Corporation.

                

        

      

    

    
       

       

      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

    

    EXHIBIT
      B

    

    SMH
      LIMITED SUBORDINATION AGREEMENT

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      

      LIMITED
        SUBORDINATION AGREEMENT

      

      Limited
        Subordination Agreement (this “Agreement”)
        dated
        October __, 2006, among RONCO CORPORATION, a Delaware corporation, and RONCO
        MARKETING CORPORATION, a California corporation (together, “Borrower”);
        RONCO
        INVENTIONS, LLC, a California limited liability company, POPEIL INVENTIONS,
        INC., a Nevada corporation, RP PRODUCTIONS, INC., a Nevada corporation, RMP
        FAMILY TRUST, an Illinois irrevocable trust, and RONALD M. POPEIL, a resident
        of
        California (individually and collectively, if more than one, “Subordinate
        Lender”);
        and
        SANDERS MORRIS HARRIS INC., a Texas corporation (“SMH”),
        individually and on behalf of the Lenders (as defined in the Letter Loan
        Agreement dated June 9, 2006, among the Borrower, SMH, and the Lenders)
        (“Lender”).

      

      RECITALS

      

      A. Borrower
        is now or may in the future become indebted to Subordinate Lender (any and
        all
        existing and future indebtedness of Borrower to Subordinate Lender, the
“Subordinate
        Debt”).

      

      B. Lender
        is
        a party to an Intercreditor and Subordination Agreement of even date herewith
        (the “Laurus-SMH
        Subordination Agreement”)
        with
        Laurus Master Fund, Ltd., a Cayman Islands company (“Senior
        Lender”),
        pursuant to which Lender has agreed to subordinate the Priority Debt (as
        hereinafter defined) to the Senior Liabilities (as defined in the Laurus-SMH
        Subordination Agreement) as provided in Laurus-SMH Subordination
        Agreement.

      

      C. Subordinate
        Lender is a party to a Subordination Agreement of even date herewith (the
        “Laurus-Popeil
        Subordination Agreement”)
        with
        the Senior Lender, pursuant to which the Subordinate Lender has agreed to
        subordinate the Subordinate Debt to the Senior Liabilities (as defined in
        the
        Laurus-SMH Subordination Agreement) as provided in the Laurus-Popeil
        Subordination Agreement.

      

      D. To
        induce
        Lender to grant financial assistance to Borrower by way of new credit or
        advances or otherwise Borrower and Subordinate Lender hereby agree to certain
        terms of subordination as set forth herein.

      

      E. Subordinate
        Lender has a direct financial interest in Borrower and will be benefited
        by
        Lender’s granting such financial assistance to Borrower.

      

      F. The
        parties have entered into this Agreement in order to set forth the terms
        of the
        subordination required by Lender. 

      

      AGREEMENTS

      

      1. Limited
        Subordination.
        The
        Subordinate Debt is and shall be subordinated and junior in right of payment
        to
        all existing and future indebtedness of Borrower to Lender, including, without
        limitation, principal, interest accrued and to accrue thereon, and costs
        and
        attorneys’ fees associated therewith (the “Priority
        Debt”),
        to the
        extent that Borrower receives and disburses the proceeds of Policy No. 81
        070
        567 issued by the John Hancock Life Insurance Company on the life of Ronald
        M.
        Popeil and any supplementary contracts issued in connection therewith (the
        “Policy”),
        but
        only to the extent of such proceeds. Such agreed subordination shall be without
        prejudice to Lender’s right to assert that any and all obligations of Borrower
        on the Subordinate Debt are also subordinate to the Priority Debt pursuant
        to
        applicable law and without prejudice to Subordinate Lender’s right to challenge
        such assertion.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      2. Payments
        to Subordinate Lender. So
        long
        as Borrower is not in default under any of the documents evidencing, securing,
        or otherwise governing the Priority Debt (collectively, the “Loan
        Documents”),
        nothing herein shall prohibit Subordinate Lender from receiving and accepting
        payments on the Subordinate Debt. However, in the event of a default by Borrower
        under any of the Loan Documents, including, without limitation, any breach
        of
        the various financial covenants set forth therein, Borrower shall not make
        any
        payment upon any portion of the Subordinate Debt with the proceeds of the
        Policy.

      

      3. Turnover
        of Payments.
        In the
        event of a default by Borrower under the Loan Documents and following notice
        of
        such default to Subordinate Lender, Lender shall have the right to compel
        Subordinate Lender to turnover to Lender any payments made to Subordinate
        Lender
        following notice of such default by or on behalf of Borrower on the Subordinate
        Debt with the proceeds of the Policy until the Priority Debt has been paid
        in
        full. Borrower agrees to provide notice to Subordinate Lender when any payment
        to Subordinate Lender represents proceeds from the Policy. Provision of such
        notice is not a condition to Lender’s right to compel turnover of funds required
        to be turned over to it pursuant to this Paragraph 3.

      

      4. Insolvency
        or Liquidation Proceedings. In
        connection with any insolvency or liquidation proceedings relating to Borrower
        or the Priority Debt, this Agreement shall remain in full force and effect
        and
        Lender. The parties hereto shall not file any proofs of claim, objections,
        pleadings, or other papers, or take any other actions, that are or would
        be
        inconsistent with the system of priorities set forth in this
        Agreement.

      

      5. Laurus
        Subordination Agreement.  This
        Agreement is intended to set forth limited subordination rights as between
        Lender and Subordinate Lender with respect to the Priority Debt and the
        Subordinate Debt and is subject to the subordination of both the Priority
        Debt
        and the Subordinate Debt to the Senior Liabilities as defined and set forth
        in
        each of the Laurus-SMH Subordination Agreement and the Laurus-Popeil
        Subordination Agreement.

      

      6. Continuing
        Agreement.
        This
        Agreement shall in all respects be a continuing agreement, and this Agreement
        and the agreements and obligations of the parties hereto shall remain in
        full
        force and effect until the Priority Debt has been paid in full.

      

      7 Assignment.
        This
        Agreement shall extend to and bind the respective heirs, personal
        representatives, successors and assigns of the parties hereto, and the covenants
        of Borrower and Subordinate Lender set forth herein respecting subordination
        shall extend to, include, and be enforceable by any transferee or endorsee
        to
        whom Lender may transfer all or any portion of the Priority Debt.

      

      8 Governing
        Law. This
        Agreement shall be governed by the laws of the State of Texas, without regard
        to
        that state’s choice of law rules, and Borrower and Subordinate Lender consent to
        the jurisdiction of the courts of the State of Texas.

      

      9. Lender
        Discretion.
        Nothing
        in this Agreement shall be construed as requiring Lender to grant any financial
        assistance to Borrower or as limiting or precluding Lender from the exercise
        of
        Lender’s independent judgment and discretion in connection with Lender’s
        financial arrangements with Borrower.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      10. WAIVER
        OF JURY TRIAL THE
        PARTIES HERETO HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, THE
        RIGHT
        TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER IN
        CONTRACT, TORT, OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT,
        OR TO ANY ACTS OR OMISSIONS OF LENDER IN CONNECTION THEREWITH.

      

      11. No
        Rights to Turkey Fryer.
        Lender
        acknowledges that it has no interest in the “Turkey Fryer,” as defined in the
        New Product Development Agreement dated June 30, 2005 by and between Ronald
        M.
        Popeil and Ronco Marketing Corporation, a Delaware corporation (“RMC”).

      

      12. No
        Present Intention to Initiate Legal Action.
        Lender
        has no present intention of any kind to initiate any litigation, arbitration,
        or
        other proceedings whatsoever against or involving Subordinate Lender or any
        of
        them.

      

      13. Arbitration;
        Attorneys’ Fees.
        Lender
        agrees that it will, and it will cause SMH’s subsidiaries, affiliates,
        directors, officers, shareholders and employees to, arbitrate any dispute
        or
        controversy of any kind or nature that it or any of them has or may have
        with or
        involving any Subordinate Lender that relates to this Agreement or to the
        transactions contemplated hereby, solely and exclusively in the manner
        prescribed by Section 11.10 of the Asset Purchase Agreement dated December
        10,
        2004, as amended or supplemented, among RMC and Subordinate Lender, it being
        understood and agreed that, with respect to any such dispute, Lender shall
        be
        bound by and observe the terms of such Section 11.10. Without limiting the
        foregoing, Lender agrees that the defendant in any such dispute shall be
        awarded
        costs and attorneys’ fees as provided by such Section 11.10, unless the
        plaintiff is the prevailing party in such dispute. If the prevailing party
        in
        such dispute is the plaintiff, each party shall bear its own costs and
        attorneys’ fees.

      

      In
        Witness Whereof,
        the
        parties have executed this Agreement as of the day and year first above
        written.

      

      

      [Signatures
        on Next Page]

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

      
        	
                BORROWER

                RONCO
                  CORPORATION,

                a
                  Delaware corporation 

                 

                 

                By  
                  ____________________________________

                _________________________________

                Its
                  ____________________________

                 

                 

                RONCO
                  MARKETING CORPORATION,

                A
                  Delaware corporation

                 

                
                  By  
                    ____________________________________

                  _________________________________

                  Its
                    ____________________________

                

                

                

                 

                LENDER:

                 

                SANDERS
                  MORRIS HARRIS INC,

                a
                  Texas corporation, individually and on behalf

                of
                  the Lenders

                 

                
                  By  
                    ____________________________________

                  _________________________________

                  Its
                    ____________________________

                

              	
                SUBORDINATE
                  LENDER:

                 

                RONCO
                  INVENTIONS, LLC,

                a
                  California limited liability company

                 

                
                  By  
                    ____________________________________

                  _________________________________

                  Its
                    ____________________________

                

                 

                 

                RONCO
                  INVENTIONS, INC.

                a
                  Nevada corporation 

                 

                
                  By  
                    ____________________________________

                  _________________________________

                  Its
                    ____________________________

                

                 

                

                

                RP
                  PRODUCTIONS, INC.

                a
                  Nevada corporation, 

                 

                
                  By  
                    ____________________________________

                  _________________________________

                  Its
                    ____________________________

                

                 

                

                

                RMP
                  FAMILY TRUST, an Illinois irrevocable trust 

                 

                
                  By  
                    ____________________________________

                  _________________________________

                  Its
                    ____________________________

                

                 

                 

                ____________________________________

                RONALD
                  M. POPEIL

              

      

    

    
       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

       

    

    EXHIBIT
      C

    

    CALCULATION
      OF RETAIL AND INTERNATIONAL QC PAYMENTS

    JUNE
      30, 2005 - JULY 31, 2006

    

    

    
      	
              Month

            	 	 	
              QC
                Amount Earned 

            	 
	
              July,
                2005

            	 	
              $

            	
              236,024.00

            	 
	
              August,
                2005

            	 	 	
              490,582.00

            	 
	
              September,
                2005

            	 	 	
              556,800.25

            	 
	
              Oct.
                1 -16, 2005

            	 	 	
              313,238.00
                

            	 
	
              Oct.
                17 - 31,2005

            	 	 	
              247,865.00

            	 
	
              November,
                2005

            	 	 	
              48,312.00

            	 
	
              December,
                2005

            	 	 	
              111,213.00

            	 
	
              January,
                2006

            	 	 	
              126,840.00

            	 
	
              February,
                2006

            	 	 	
              55,040.00

            	 
	
              March,
                2006

            	 	 	
              59,652.00

            	 
	
              April,
                2006

            	 	 	
              109,350.50

            	 
	
              May,
                2006

            	 	 	
              9,280.00
                

            	 
	
              June,
                2006

            	 	 	
              125,874.00

            	 
	
              July,
                2006

            	 	 	
              173,618.50

            	 
	
              Total
                QC Payments Earned 7/1/2005 - 7/31/2006

            	 	
              $

            	
              2,663,689.25

            	 
	 	 	 	 	 
	
              Less
                Payments Made By Ronco:

            
	
              8/24/2005

            	 	 	
              261,296.00
                

            	 
	
              9/12/2005

            	 	 	
              455,459.00
                

            	 
	
              9/15/2005

            	 	 	
              0.00
                

            	 
	
              10/20/2005

            	 	 	
              150,000.00
                

            	 
	
              10/28/2005

            	 	 	
              150,000.00
                

            	 
	
              11/4/2005

            	 	 	
              197,000.00
                

            	 
	
              11/15/2005

            	 	 	
              22,632.85
                

            	 
	
              Total
                QC Payments made by Ronco 7/1/2005 - 7/31/2006

            	 	
              $

            	
              1,236,387.85

            	 
	 	 	 	 	 
	
              QC
                Payments Owing through 7/31/2006

            	 	
              $

            	
              1,427,301.40

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]