This is an amulet that contains the purified essence of the Baiowulf. The container is, unsurprisingly, shaped like the face of Scott Baio. The faces of Ronald and Grimace are reflected in its beady little eyes.
 

The Baiowulf, the creature one fights to get the Talisman, is a pun on the literary classic Beowulf combined with the rather unfortunate actor Scott Baio. The 2005 film Cursed, is a horror film about werewolves which features Scott Baio as himself..