AGREEMENT



     AGREEMENT, dated as of September 7, 2000, between Salton, Inc., a

Delaware corporation (the "Company"), and Sam Perlmutter, an individual

("Perlmutter").



                                   WITNESSETH



     WHEREAS, the Company and Sam Perlmutter are parties to an agreement (the

"Perlmutter Agreement") dated July 1, 1999 pursuant to which the Company

purchased from Perlmutter stock and other property; and



     WHEREAS, under the Agreement, Perlmutter has the right to receive four

annual cash installments of $1,375,000 each on the first, second, third and

fourth anniversary of the closing of the transactions contemplated by the

Perlmutter Agreement (the "Future Consideration"); and



     WHEREAS, the parties desire to, among other things, amend the terms of the

Future Consideration to provide for the payment to Perlmutter on the date hereof

of shares of common stock, $.01 par value per share, of the Company (the "Common

Stock") valued at $1,375,000 in lieu of the first annual $1,375,000 cash

installment of the balance of the Purchase Price payable pursuant to Section

4(a)(ii) of the Perlmutter Agreement;



     NOW, THEREFORE, in consideration of the premises and the mutual covenants

contained herein, the parties hereto agree as follows:



     1.   Amendment.



               (a) Notwithstanding Section 4(a)(ii) of the Perlmutter Agreement,

     the parties hereto agree that, in lieu of the second installment of the

     balance of the Purchase Price payable pursuant to Section 4(a)(ii) of the

     Perlmutter Agreement, the Company shall issue to Perlmutter on the date

     hereof 37,543 shares of Common Stock:



               (b) Except as specifically set forth in this Agreement, the terms

     and provisions of the Perlmutter Agreement and the agreements contemplated

     thereby (including, without limitation, the Trademark Security Agreement)

     shall continue in full force and effect.



     2.   Representations and Warranties of the Company. The Company hereby

represents and warrants to Perlmutter as follows:



               (a) Organization and Standing of the Company. The Company is a

     corporation duly incorporated, validly existing and in good standing under

     the laws of the State of Delaware.



               (b) Authority. The Company has the requisite corporate power and

     authority to enter into this Agreement and to carry out its obligations

     hereunder. The execution, delivery and performance of this Agreement by the

     Company have been duly and validly authorized by all requisite corporate

     proceedings on the part of the Company and do not require the approval or

     consent of any stockholders of the





{PAGE}   2



     Company. This Agreement has been duly executed and delivered by the Company

     and is (assuming the due authorization, execution and delivery by

     Perlmutter) a valid and binding agreement of the Company, enforceable

     against it in accordance with its terms, except as such enforceability may

     be limited by bankruptcy and insolvency laws and by other laws affecting

     the rights of creditors generally or by the availability of equitable

     remedies and except as rights of indemnity or contribution may be limited

     by federal or state securities or other laws or the public policy

     underlying such laws.



               (c) Status of Shares. The Shares (as defined below) have been (or

     will be) duly authorized by all necessary corporate action on the part of

     the Company (no consent or approval of stockholders being required by law,

     the Certificate of Incorporation of the Company, as amended and restated,

     or its By-laws). The Shares, when delivered pursuant to this Agreement,

     will be validly issued and outstanding, fully paid and nonassessable and

     free and clear of any liens (other than those imposed by the securities

     laws), and the issuance of such Shares is not and will not be subject to

     preemptive or similar rights of any other stockholder of the Company. For

     purposes of this Agreement, "Shares" shall mean the shares of Common Stock

     issued to Perlmutter pursuant to this Agreement, and any additional shares

     of Common Stock issued to Perlmutter in accordance with Section 4(e) of

     this Agreement.



     3.   Representations and Warranties of Perlmutter. Perlmutter hereby

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