The Toy Exterminator is the 11th item from the 3rd catalog, Snooty Foodie, therefore making it the 71st item in the whole series. It is also the 3rd item that you have to send to Sugar Plumps. It seems to be a purple, creature wearing green goggles with a stitch running along its 'center'. It holds a "pipe" with gray and black stripes, a style that Kyle Gabler uses in said pipes.
When held, the item makes strange noises. When burned, it will shoot a large stream of fire from its pipe. The shape of the fire is reminiscent of other items that do the same. If the stream of fire is directed at the face in the fireplace, it will glow redder as a result. This foreshadows a later part of the game (which is a major spoiler).
Warning. Spoilers ahead.
It is also in the final End Combo:
Note that the face easter egg is a foreshadowing to what happens when the combo is done.