Just sign it and forget it

November 16, 2005

Who knew that Ron Popeil’s catchy tagline for his Showtime Rotisserie & BBQ would apply to his financial dealings as well? According to this S-1/A, back in June, Popeil sold his Ronco business to a venture capitalist’s shell company for $40.2 million. [EDIT: I forgot to include the $13.1 million note receivable, so the total amount Popeil received in the deal was about $53.3 million.] The shell company then changed its name to Ronco Corporation and is now trading over-the-counter under the ticker RNCP.OB. However, Popeil will still be heavily involved in the Company’s future. In an exhibit buried in the Company’s tardy 10-K, Popeil signed a three-year consulting deal in which he’ll get paid $500,000 a year for consulting services, plus personal appearance fees as follows:

$10,000 per calendar day for appearances on Nationally Broadcast Television Programs. Such calculation will also include $10,000 per calendar day for travel to and from such Nationally Broadcast Television Programs.

$10,000 per calendar day for appearances at Lead National Retailers. Such calculation will also include $10,000 per calendar day for travel to and from such Lead National Retailers.

$50,000 for each infomercial Consultant participates in the production of (without residuals).

$50,000 per calendar day for appearances at “investor road shows,” the Gourmet Show and the Housewares Show. Such calculation will also include $50,000 per calendar day for travel to and from such appearances.

For Popeil, sounds as though generating income will be as easy as cooking with his rotisserie.

Posted in: Disclosures, Financial, M&A

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