Document:

Assumption
Agreement

    

    ASSUMPTION AGREEMENT (this “Agreement”), dated as
of December 31, 2010, among Vinyl Products, Inc., a Nevada corporation (“VPI”), and Garabed
Khatchoyan and Gordon Knott (together, the “VFC
Buyers”).

    

    WHEREAS, VPI and Brackin O’Connor LLC
(the “Company”)
are parties to that certain Equity Exchange Agreement, dated December 31, 2010
(the “Equity Exchange
Agreement”); and

    

    WHEREAS,
pursuant to that certain Stock Purchase Agreement, dated December 31, 2010,
among VPI and the VFC Buyers, the VFC Buyers have agreed to assume certain
liabilities of VPI;

    

    NOW, THEREFORE, in consideration of the
foregoing and the agreements herein contained, VPI and the VFC Buyers agree as
follows:

    

    1.  The VFC Buyers, jointly
and severally, assume and agree to pay, perform and discharge promptly and fully
when due any and all of the liabilities of VPI arising from or relating to
periods prior to the date hereof, other than liabilities of the Company (the
“Assumed
Liabilities”). Notwithstanding the foregoing sentence, all filings with
the Securities and Exchange Commission after December 31, 2010 (“Post-Closing
Filings”), and any audits that may be required in connection with such
Post-Closing Filings, shall be the financial responsibility of VPI, and all
expenses associated with Post-Closing Filings and any audits related thereto
shall be excluded from the definition of Assumed
Liabilities.  Post-Closing Filings shall include (i) ongoing periodic
reports, proxy statements and current reports in the regular course, and (ii)
all filings that may be required in connection with the Equity Exchange
Agreement and the related transactions.

     

    2.    The VFC
Buyers, jointly and severally, agree to indemnify and hold harmless VPI and its
officers, directors, stockholders, employees and agents against any and all
losses, liabilities, damages, and expenses whatsoever (which shall include for
all purposes, but not be limited to, reasonable counsel fees and any and all
expenses whatsoever incurred in investigating, preparing, or defending against
any litigation, commenced or threatened, or any claim whatsoever, and any and
all amounts paid in settlement of any claim or litigation) as and when incurred
arising out of, based upon, or in connection with (i) any breach of any
representation, warranty, covenant, or agreement of VPI contained in the Equity
Exchange Agreement or (ii) any Assumed Liability.   The
indemnification obligations under this Agreement shall terminate as of December
31, 2011, and shall be capped at $75,000 in the aggregate.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    3.  This Agreement may be
executed in any number of counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.  It shall be governed by and construed in accordance with
the laws of the State of Nevada, without giving effect to conflict of
laws.  Any action, suit, or proceeding arising out of, based on, or in
connection with this Agreement or the transactions contemplated hereby may be
brought in Orange County, California and each party covenants and agrees not to
assert, by way of motion, as a defense, or otherwise, in any such action, suit,
or proceeding, any claim that it or he is not subject personally to the
jurisdiction of such court, that its or his property is exempt or immune from
attachment or execution, that the action, suit, or proceeding is brought in an
inconvenient forum, that the venue of the action, suit, or proceeding is
improper, or that this Agreement or the subject matter hereof may not be
enforced in or by such court.

    

          IN
WITNESS WHEREOF, the parties have duly executed this Agreement as of the date
first written above.

      

    
      
        
          
            
              	
                      Vinyl
      Products, Inc.

                    	 
	 
      	 
	
                       

                    	 
	
                      By:

                    	 
	 
      	 
	
                      Garabed
      Khatchoyan

                    	 
	 
      	 
	
                       

                    	 
	 
      	 
	
                      Gordon
      Knott

                    	 
	 
      	 
	
                       
      

                    	 

            

          

        

      

    

     

    
      
         

      

      
        2Promissory
Note

     

    Principal
Amount:  $62,500

    

    Issue
Date:  December 31, 2010

    

    1.    Obligation.  For
value received, the undersigned (the "Issuer"), promises to pay to the order of
The Vinyl Fence Company, Inc. (“Holder”), 2210 S. Ritchey Street, Santa Ana, CA
92705,  the amount of Sixty-Two  Thousand Five Hundred
Dollars ($62,500) on March 31, 2011 (the “Due Date”).

    

    2.    Payments.  All
payments under this Promissory Note will be in lawful money of the United States
and in same day or immediately available funds.  Whenever any payment
due under this Promissory Note falls due on a day other than a business day,
such payment will be made on the next succeeding business day, and such
extension of time will be included in the computation of interest.  If
any amounts required to be paid by the Issuer under this Promissory Note remain
unpaid after such amounts are due, the Issuer will pay interest on the combined,
outstanding balance of such amounts from the date due until those amounts are
paid in full at a per month rate equal to 1%.  The Issuer may prepay
all or any portion of the indebtedness due under this Promissory Note without
penalty.

    

    3.    Security
Interest.    As collateral security for the full,
prompt, complete and final payment and performance when due (whether at stated
maturity, by acceleration or otherwise) of all obligations under this Promissory
Note, the Issuer hereby assigns, conveys, mortgages, pledges, hypothecates and
transfers to Holder, and hereby grants to Holder, a security interest in all of
the Issuer’s right, title and interest in, to and under the collateral described
on Schedule A hereto.

    

    4.    Issuer Right to Withhold
and  Offset .   This Promissory Note is being
issued pursuant to the terms of the Stock Purchase Agreement, dated December 31,
2010, among the Issuer, Garabed Khatchoyan and Gordon Knott (the “Purchase
Agreement”).  Holder acknowledges and agrees that Issuer shall have
the right (a) to withhold from payments due hereunder the aggregate amounts of
any indemnification claims then pending or unresolved against the Holder under
the Purchase Agreement or the Assumption Agreement entered into in connection
herewith and (b) to off-set against payments due hereunder the aggregate amounts
of any such indemnification claims resolved in favor of the Issuer; provided,
that any withholdings or off-sets under clauses (a) or (b) of this sentence may
be made only with respect to indemnification claims that are made in writing
prior to March 31, 2010.

    

    5.    Notices.  All
notices, requests, demands, consents, instructions or other communications under
this Promissory Note will be duly given or made if sent in writing, by Email or
by facsimile, and will be deemed to have been duly given or made upon the
transmittal of notices, requests, demands, consents, instructions or other
communications by telecopy, or on the date received if deposited by mail,
postage prepaid, in the case of Holder - at the address first set forth above,
and in the case of the Issuer - at the address set forth below, as such
addresses may be changed from time to time by notice to each
other.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    6.    Governing Law;
Waiver.  The validity, construction and performance of this
Agreement will be governed by the substantive laws of the State of Nevada,
excluding that body of law pertaining to conflicts of law.

    

    IN WITNESS WHEREOF, the Issuer
has caused this Promissory Note to be executed as of the date and year first
above written.

    

    
      
        
          
            	
                    Borrower:

                  	 
      	
                    Address:

                  
	 
      	 
      	 
      
	
                    Vinyl
      Products, Inc.

                  	 
      	
                    30950
      Rancho Viejo Road, Suite 120

                  
	 
      	 
      	
                    San
      Juan Capistrano, California 92675

                  
	 
      	 
      	 
      	 
      
	
                    By: 

                  	 
      	 
      	 
      
	
                    Name:

                  	 
      	 
      
	
                    Title:

                  	 
      	 
      
	 
      	 
      	 
      
	
                    Co-Signed
      by:

                  	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                    Address:

                  
	 
      	 
      	 
      
	
                    Brackin
      O’Connor LLC

                  	 
      	
                    c/o
      Vinyl Products, Inc.

                  
	 
      	 
      	
                    30950
      Rancho Viejo Road, Suite 120

                  
	 
      	 
      	
                    San
      Juan Capistrano, California 92675

                  
	 
      	 
      	 
      	 
      
	
                    By: 

                  	 
      	 
      	 
      
	
                    Name:
      Doug Brackin

                  	 
      	 
      
	
                    Title:  Manager

                  	 
      	 
      

          

        

      

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Schedule
A

     

    2009 Ford
truck, Econoline wagon vin# 1FBNE31L09DA22396

    
      
         

      

      
        3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]