Document:

EX 10.3

Exhibit 10.3
 
CHANGE OF CONTROL AGREEMENT 
THIS CHANGE OF CONTROL AGREEMENT (this "Change of Control Agreement"), is entered into as of April 10, 2014 (the "Effective Date"), by and between First Commonwealth Financial Corporation, a Pennsylvania corporation (the “Company”), and James R. Reske (“Executive”).
W I T N E S S E T H:
WHEREAS, the Compensation & Human Resources Committee ("Compensation Committee") of the Company’s Board of Directors (the “Board”) has determined that it is in the best interests of the Company and its shareholders to assure that the Company will have the continued dedication of the Executive, notwithstanding the possibility, threat or occurrence of a “Change of Control” (as defined below) of the Company;
WHEREAS, the Compensation Committee believes that it is important to diminish the inevitable distraction of the Executive that would result from the personal uncertainties and risks created by a pending or threatened Change of Control and to encourage the Executive to continue to devote Executive’s full attention and dedication to the Company currently and in the event of any threatened or pending Change of Control, and to provide the Executive with compensation and benefit arrangements upon the termination of Executive’s employment following a Change of Control;
WHEREAS, the Compensation Committee has authorized the Company to enter into this Change of Control Agreement with the Executive; and
WHEREAS, the Company and the Executive wish to enter into this Change of Control Agreement in order to accomplish these objectives.

NOW THEREFORE, in consideration of the promises and mutual covenants contained herein, and other good and valuable consideration, the Company and the Executive do hereby agree as follows:

ARTICLE 1
CERTAIN DEFINITIONS

1.1    “Cause” for termination will be deemed to exist if:

(a)the Executive is convicted of, or pleads guilty or nolo contendere to, any crime which constitutes a felony under the laws of the United States of America or of any state or territory thereof, and the commission of that felony resulted in, or was intended to result in, a loss (monetary or otherwise) to the Employer Entities, or any of their respective clients, customers, directors, officers or employees; 

(b)the Executive fails or refuses to perform the Executive’s duties to any of the Employer Entities (other than during such time as the Executive is incapacitated due to an accident or illness or during the Executive’s regularly scheduled vacation periods) with the degree of skill and care reasonably expected of a professional of his experience and stature for a period of thirty (30) consecutive days following the receipt by the Executive of a notice from the Company sent by certified mail, return receipt requested, setting forth in detail the facts upon which the Company relies 

in concluding that the Executive has failed or refused to perform the Executive’s duties and indicating with specificity the duties that the Company demands that the Executive perform without delay;

(c)the Executive engages in an act or acts of dishonesty which result or are intended to result in material damage to the business or reputation of any of the Employer Entities; or

(d)the Executive fails or refuses to comply with any material provision of this Change of Control Agreement or any policy or procedure of any Employer Entity, which violations are demonstrably willful and deliberate on the Executive's part and which result or are intended to result in material damage to the business or reputation of any of the Employer Entities and as to which failure or refusal to comply the Company has notified the Executive in writing.

1.2    “Change of Control” will mean:

(a)    The acquisition, other than from the Company, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act), of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty percent (50%) or more of the then outstanding shares of common stock of the Company; 

(b)    Individuals who, as of April 10, 2014, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board, provided that any individual becoming a director subsequent to April 10, 2014, whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board will be considered as though such individual were a member of the Incumbent Board; or

(c)    Consummation of a reorganization, merger, consolidation, sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case, with respect to which all or substantially all of the individuals and entities who were the beneficial owners of shares outstanding shares of the Company’s common stock immediately prior to such Business Combination do not, following such Business Combination, beneficially own, directly or indirectly, more than fifty-percent (50%) of the then outstanding shares of common stock of the corporation resulting from such a Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries).

Notwithstanding any other provision of this Change of Control Agreement to the contrary, (i) the placement of any of the Employer Entities into receivership or conservatorship by the Federal Deposit Insurance Corporation ("FDIC") or a state or federal banking regulatory agency with jurisdiction over any of the Employer Entities, (ii) the acquisition of fifty-percent (50%) or more of any of the Employer Entities' assets or assumption of fifty-percent (50%) or more of the Employer Entities' deposit liabilities in an FDIC-assisted transaction, and (iii) a change in any Employer Entity's board of directors at the direction of a state or federal banking regulatory authority having jurisdiction over any of the Employer Entities, will not constitute a Change of Control.
1.3    “Client” means any client or prospective client of the Company to whom the Executive provided services, or for whom the Executive transacted business, or whose identity became known to the Executive in connection with the Executive’s relationship with or employment by the Company.

1.4    “Code” means the Internal Revenue Code of 1986, as amended.

1.5    “Employer Entity” means the Company and each of its subsidiaries and affiliates, including without limitation, FCB.

1.6    “Exchange Act” means the Securities Exchange Act of 1934, as amended.

1.7    “Good Reason” means:

(a)    the assignment to the Executive of any duties inconsistent in any respect with the Executive’s title, position, authority, duties or responsibilities immediately prior to the Change of Control or any other action by the Company which results in a diminution of such position, authority, duties or responsibilities, other than an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company promptly after the receipt of notice thereof given by the Executive;

(b)    any requirement of the Company that the Executive (i) be based anywhere more than fifty (50) miles from the office where the Executive is located immediately prior to the Change of Control or (ii) travel on Company business to an extent substantially greater than the travel obligations of the Executive immediately prior to the Change of Control; or

(c)    (i) a reduction by the Company in the Executive’s rate of annual base salary as in effect immediately prior to the Change of Control or (ii) the failure of the Company to continue in effect any employee benefit plan, compensation plan, welfare benefit plan or material fringe benefit plan in which the Executive is participating or entitled to participate immediately prior to the Change of Control, unless the Executive is permitted to participate in other plans providing the Executive with substantially equivalent benefits in the aggregate (at substantially equivalent cost with respect to welfare benefit plans).

1.8    “Protected Period” means the period of time beginning with the date of a Change of Control and ending two (2) years following such Change of Control.  

1.9    “Qualifying Termination” means a termination of the Executive’s employment (i) by the Company other than for Cause, disability or death, or (ii) by the Executive for Good Reason, provided that such termination of employment constitutes a Separation from Service.  

1.10    “Section 409A” means Section 409A of the Code and the regulations and other guidance promulgated thereunder.

1.11    “Section 409A Change of Control” means a "Change of Control Event" as defined in Section 409A.  

1.12    “Section 409A Deferred Compensation” means an amount payable or benefit to be provided under a "nonqualified deferred compensation plan" as defined in Section 409A.

1.13    “Separation from Service” has the meaning set forth in Section 409A.

ARTICLE 2

TERM

2.1    The term of this Change of Control Agreement will begin on the Effective Date and will continue for thirty-six (36) full calendar months thereafter (the "Initial Term").  This term of this Change of Control Agreement will automatically renew for twenty-four (24) full calendar months thereafter on the third anniversary of the Effective Date and on each second anniversary thereafter (each, a "Renewal Term") unless either party hereto gives notice in writing to the other party at least twelve (12) months prior to the end of the Initial Term or any Renewal Term of the party's intent not to renew such term.  Notwithstanding the foregoing, if a Change of Control occurs prior to the end of the Initial Term or Renewal Term, as the case may be, then the term of this Change of Control Agreement will continue until the later of (a) the end of the Protected Period, or (b) if a Qualifying Termination occurs during the Protected Period, the end of the Severance Period.

2.2    Notwithstanding anything in this Section to the contrary, this Change of Control Agreement will terminate if the Executive or the Company terminates the Executive's employment for any reason prior to a Change in Control.

ARTICLE 3

PAYMENTS

3.1    Qualifying Termination.   If during the Protected Period the employment of the Executive is terminated pursuant to a Qualifying Termination, subject to Article 7 hereof, then the Employer Entities will pay to the Executive (or the Executive’s beneficiary as provided in Article 5 hereof) the accrued obligations, severance pay and severance benefits in accordance with Sections 3.2, 3.3 and 3.4 hereof.  If the Executive's employment with the Employer Entities is terminated (i) for any reason prior to or after the Protected Period or (ii) other than pursuant to a Qualifying Termination during the Protected Period, then the Executive will not be entitled to the payment of any severance or provision of any benefits under this Change of Control Agreement.

3.2    Accrued Benefits.  In the event of a Qualifying Termination described in Section 3.1 hereof, the Employer Entities will pay to the Executive any accrued and unpaid base salary and paid time-off, within thirty (30) days following the date of Qualifying Termination or such earlier date as is required by law.

3.3    Severance Pay.  Subject to Article 7 hereof, in the event of a Qualifying Termination described in Section 3.1 hereof, the Employer Entities will pay to the Executive an amount equal to two (2) times:  (i) the Executive’s annual base salary immediately prior to the Change of Control; (ii) the average of the aggregate annual amount of all bonuses paid to the Executive during the thirty-six (36) month period (or the Executive's period of employment with the Employer Entities, if less) preceding the Change of Control; (iii) the aggregate amount of all contributions by the Company for the account of the Executive under the First Commonwealth Financial Corporation 401(k) Savings and Investment Plan during the twelve (12) month period preceding the Change of Control; and (iv) the aggregate of all contributions by the Company for the account of the Executive to the Company’s Non-Qualified Deferred Compensation Plan during the twelve (12) month period preceding the Change of Control.  Subject to Article 7 hereof, such sum will be paid in equal periodic installments payable in accordance with the Employer Entity's normal payroll practices during the twenty-four (24) month period immediately following such Qualifying Termination (the "Severance Period").

3.4    Continued Health Insurance Benefits. In addition to the severance payable pursuant to Section 3.3 hereof, in the event of a Qualifying Termination described in Section 3.1 hereof, the Employer Entities will offer continuation coverage to the Executive, as required by the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA"), under the Company's group health plan on the terms and conditions mandated by COBRA and the Company will pay the full cost of the COBRA premiums on behalf of the Executive and his covered family members during the eighteen (18) month period immediately following such Qualifying Termination.

3.5    Other Compensation and Benefits. 

(a)    Except as expressly provided for in Article 3 hereof, the Executive will not be entitled to severance pay or benefits under any plan, program, policy, practice or other arrangement of any Employer Entity in connection with any Qualifying Termination, including without limitation this Change of Control Agreement or any severance policy of any Employer Entity.
(b)    During the Severance Period, the Executive will not be eligible to participate in any Employer Entity equity-based incentive, other incentive, 401(k) savings, employee stock ownership, deferred compensation, supplemental retirement, supplemental savings, life insurance, short or long term disability, employee welfare benefit, fringe benefit, perquisite, vacation, paid time-off or other employee benefit plan, program, policy, practice or other arrangement of any Employer Entity.  
(c)     Unless otherwise determined by the Board or applicable committee thereof, any outstanding options or other equity based awards held by the Executive to purchase or acquire Employer stock under any equity-based plan of any Employer Entity will be subject to the exercisability, vesting and forfeiture provisions of the respective plan.  Any benefits the Executive has earned with respect to his employment for periods on or prior to the Qualifying Termination under any annual incentive, deferred compensation, supplement retirement or savings, 401(k), employer stock ownership or similar plan of any Employer Entity will be paid in accordance with the terms of such plan.
3.6    Release.  The Company’s obligation to make any payment to the Executive as described in this Article 3 is contingent upon the Executive’s execution and non-revocation of a release within sixty (60) days following the Executive's Separation from Service, in form and substance reasonably satisfactory to the Company, that, in the opinion of the Company’s counsel, is effective to release the Company from all claims relating to the Executive’s employment or the termination thereof (other than under the terms of this Change of Control Agreement), and the Company will have no obligation to make any payment unless and until such a release has become effective.

3.7    Business Expenses.  The Employer Entities will reimburse the Executive for any unreimbursed, reasonable business expenses incurred by the Executive on or before the Qualifying Termination, pursuant to Employer's reimbursement policies, provided that Executive present all expense reports to Employer in accordance with such policies.  All such expense reports must be submitted within thirty (30) days following the date of the Qualifying Termination.

3.8    Withholding Taxes and Other Deductions.  The Employer Entities may withhold from any payments made to the Executive any applicable federal, state, local and other taxes (such as employment taxes), and such other deductions as are prescribed by law.  This includes withholding amounts from payments made pursuant to this Article 3 in order to satisfy any withholding obligations.

ARTICLE 4

LIMITATION ON PAYMENT OF BENEFITS

Notwithstanding anything to the contrary in this Change of Control Agreement, if the payments and benefits pursuant to Article 3 hereof, either alone or together with other payments and benefits which the Executive has the right to receive from the Company or any of its subsidiaries, would constitute a “parachute payment” under Section 280G of the Code, the payments and benefits pursuant to Article 3 hereof will be reduced, in the manner determined by independent tax counsel selected as provided below, by the amount, if any, which is the minimum necessary to result in no portion of the payments and benefits under Article 3 hereof being non-deductible to the Company or such subsidiary pursuant to Section 280G of the Code and subject to the excise tax imposed under Section 4999 of the Code; provided, however, that if such procedure for determining the reduction of payments and benefits is determined by the Company to result in a violation of Section 409A, such reduction will be made on a pro rata basis. The determination of whether any reduction in the payments and benefits is to be made pursuant to Article 3 hereof will be based upon the written advice of independent tax counsel selected by the Company and reasonably acceptable to the Executive. The fees and expenses of the tax counsel will be paid by the Company. The Company will use its best efforts to cause such counsel to prepare the foregoing opinion as promptly as practicable, and in any event, within thirty (30) days after the Change of Control or date of Qualifying Termination, if earlier. The Company and the Executive agree to be bound by the determination of such tax counsel and to make appropriate payments to each other to give effect to the intent and purpose of this Article 4.  

ARTICLE 5
BENEFICIARIES

If the Executive dies after the occurrence of a Qualifying Termination, but prior to the payment of all of the monthly severance payments required by Article 3 hereof, then all remaining severance payments will be paid to the beneficiary designated in writing by the Executive at the same time, and in the same amount, as would have been payable to the Executive. The designation of a beneficiary for purposes of this Article 5 will be revocable during the lifetime of the Executive. If the Executive does not designate a beneficiary under this Change of Control Agreement, the beneficiary will be deemed to be the same person that the Executive designated with respect to the Executive’s group life insurance program maintained by the Company.
ARTICLE 6
EXECUTIVE COVENANTS

6.1    Non-Disparagement.  The Executive agrees that he will not, in writing or orally, or through conduct, disparage, deprecate, discredit, vilify or otherwise say anything negative about the Employer Entities.  The Executive agrees never to disparage the services, products, customers, or employees of any Employer Entity.  These prohibitions include, without limitation, any such statements made through use of social media sites, such as Facebook or Twitter.  

6.2    Non-Disclosure of Confidential Information.  The Executive recognizes and acknowledges that:  (a) in the course of the Executive’s employment by the Employer Entities, it will be necessary for the Executive to acquire information which could include, in whole or in part, information concerning the Employer Entities’ business, sales volume, sales methods, sales proposals, financial statements and reports, 

customers and prospective customers, identity of customers and prospective customers, identity of key purchasing personnel in the employ of customers and prospective customers, amount or kind of customers’ purchases from the Employer Entities, the Employer Entities' sources of supply, the Employer Entities' computer programs, system documentation, special hardware, product hardware, related software development, the Employer Entities' manuals, formulae, processes, methods, machines, compositions, ideas, improvements, inventions, or other confidential or proprietary information belonging to the Employer Entities or relating to the Employer Entities' affairs (collectively referred to herein as the “Confidential Information”); (b) the Confidential Information is the property of the Employer Entities; (c) the use, misappropriation or disclosure of the Confidential Information would constitute a breach of trust and could cause irreparable injury to the Employer Entities; and (d) it is essential to the protection of the Employer Entities' good will and to the maintenance of the Employer Entities' competitive position that the Confidential Information be kept secret and that the Executive not disclose the Confidential Information to others or use the Confidential Information to the Executive’s own advantage or the advantage of others. Confidential Information will not include information otherwise available in the public domain through no act or omission of the Executive.  The Executive agrees to hold and safeguard the Confidential Information in trust for the Employer Entities, its successors and assigns and agrees that he will not, without the prior written consent of the Employer Entities, misappropriate or disclose or make available to anyone for use outside the Employer Entities' organizations at any time, either during his employment with any Employer Entity or subsequent to the termination of his employment with the Employer Entities for any reason, including without limitation, termination by any Employer Entity, any of the Confidential Information, whether or not developed by the Executive, except as required in the performance of the Executive’s duties to the Employer Entities.

6.3    Non-Solicitation of Employees.  The Executive agrees that, during the term of his employment with any Employer Entity and for twenty-four (24) months following termination of the Executive’s employment with the Employer Entities for any reason, including without limitation termination by any Employer Entity for Cause or without Cause, the Executive will not, directly or indirectly, solicit or induce, or attempt to solicit or induce, any employee of any Employer Entity or of any of its subsidiaries or affiliates, to leave any Employer Entity or any of its subsidiaries, or affiliates, for any reason whatsoever, or to hire any such employee

6.4    Return of Materials. Upon the termination of the Executive’s employment with the Employer Entities for any reason, the Executive will promptly deliver to the Employer Entities all correspondence, drawings, blueprints, manuals, letters, notes, notebooks, reports, flow-charts, computer equipment, programs, software, databases, proposals, financial statements and reports, and any documents concerning the Employer Entities' customers or concerning products or processes used by the Employer Entities and, without limiting the foregoing, will promptly deliver to the Employer Entities any and all other documents or materials containing or constituting Confidential Information.

6.5    Work Made for Hire.  The Executive agrees that in the event of publication by the Executive of written or graphic materials constituting “work made for hire,” as defined and used in the Copyright Act of 1976, 17 USC § 1  et seq., the Employer Entities will retain and own all rights in said materials, including right of copyright.

6.6    Jurisdiction and Service of Process.  The Executive and the Company waive any right to a court (including jury) proceeding and instead agree to submit any dispute over the application, interpretation, validity, or any other aspect of this Change of Control Agreement to binding arbitration consistent with the application of the Federal Arbitration Act and the procedural rules of the American Arbitration Association (“AAA”) before an arbitrator who is a member of the National Academy of Arbitrators (“NAA”) out of a 

nationwide panel of eleven (11) arbitrators to be supplied by the AAA.  The Company will absorb the fee charged and the expenses incurred by the neutral arbitrator selected.

6.7    Validity. The terms and provisions of this Article 6 are intended to be separate and divisible provisions and if, for any reason, any one or more of them is held to be invalid or unenforceable, neither the validity nor the enforceability of any other provision of this Change of Control Agreement will thereby be affected. The parties hereto acknowledge that the potential restrictions on the Executive’s future employment imposed by this Article 6 are reasonable in both duration and geographic scope and in all other respects. If for any reason any court of competent jurisdiction will find any provisions of this Article 6 unreasonable in duration or geographic scope or otherwise, the Executive and the Company agree that the restrictions and prohibitions contained herein will be effective to the fullest extent allowed under applicable law in such jurisdiction.

6.8    Consideration. The parties acknowledge that this Change of Control Agreement would not have been entered into and the benefits described herein would not have been promised in the absence of the Executive’s promises under this Article 6.

6.9    Cease Payments. In the event that the Executive breaches any material provision of this Article 6, the Company’s obligation to make or provide payments or benefits under Article 3 will cease, to the extent not already paid or provided.

ARTICLE 7

SECTION 409A

7.1    This Change of Control Agreement will be administered, interpreted and construed in compliance with Section 409A, including any exemption thereunder.  Each payment hereunder, including each installment payment, will be treated as a separate payment for purposes of Section 409A.  With respect to payments subject to Section 409A (and not exempt therefrom), each such payment will be paid as a result of a permissible distribution event, and at a specified time, consistent with Section 409A.  The Executive has no right to, and there will not be, any acceleration or deferral with respect to payments hereunder.  The Executive acknowledges and agrees that the Company will not be liable for, and nothing provided or contained in this Change of Control Agreement will obligate or cause the Company to be liable for, any tax, interest or penalties imposed on the Executive related to or arising with respect to any violation of Section 409A.  For purposes of this Change of Control Agreement, any reference to "termination of employment", "termination" or similar reference will be construed to be a reference to Separation from Service. 
7.2    Notwithstanding any other provision of this Change of Control Agreement to the contrary, to the extent that any amount payable or benefit to be provided under this Change of Control Agreement constitutes Section 409A Deferred Compensation that is not exempt from Section 409A, and such amount or benefit is payable or to be provided as a result of Separation from Service, and the Executive is a "specified employee" (as defined and determined under Section 409A and any relevant procedures that the Company may establish) ("Specified Employee") at the time of his Separation from Service, then such payment or benefit will not be made or provided to the Executive until the day after the date that is six months following the Executive's Separation from Service, at which time all payments or benefits that otherwise would have been paid or provided to the Executive under this Change of Control Agreement during that six-month period, but were not paid or provided because of this Section 7.2, will be paid or provided, with any cash payment to be made in a single lump sum (without any interest with respect to that six-month period).  This six-month delay will cease to be applicable if the Executive's Separation from Service due to death or if the Executive 

dies before the six-month period has elapsed, in which event any such payments or benefits will be paid or provided to the Executive's estate within thirty (30) days of the date of death.
7.3    Notwithstanding any other provision of this Change of Control Agreement to the contrary, to the extent that any amount payable or benefit to be provided under this Change of Control Agreement constitutes Section 409A Deferred Compensation that is not exempt from Section 409A and the Executive is not a Specified Employee at the time of his Separation from Service, then such payment or benefit will not be provided to the Executive until the sixtieth (60th) day following the Executive's Separation from Service, at which time all payments or benefits that otherwise would have been paid or provided to the Executive under this Change of Control Agreement during the sixty (60) days period, but were not paid or provided because of this Section 7.3, will be paid or provided, with any cash payment to be made in a single lump sum (without any interest with respect to that sixty-day period).  

ARTICLE 8

SUCCESSORS; BINDING AGREEMENT

8.1    This Change of Control Agreement will inure to the benefit of and be binding upon the Company and its successors and assigns.

8.2    The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Change of Control Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Change of Control Agreement, “Company” will mean the Company as defined herein and any successor to its business and/or assets which assumes and agrees to perform this Change of Control Agreement by operation of law or otherwise.

8.3    This Change of Control Agreement will be binding upon, and will inure to the benefit of and be enforceable by, the Executive, the Executive’s heirs, personal representatives, executors and administrators.

ARTICLE 9

ATTORNEY’S FEES

Each party will bear all attorney’s fees and related expenses in connection with or relating to the negotiation and enforcement of this Change of Control Agreement; provided, that if the Executive is wholly successful on the merits of any action or proceeding to enforce the Executive’s rights under this Change of Control Agreement, the Company will reimburse all reasonable attorney’s fees and related expenses incurred by the Executive in connection with such action or proceeding.  Any amount payable by the Company in any year pursuant to the prior sentence will not be affected by the amount of any payment made by the Company pursuant to the prior sentence in any other year, and under no circumstances will the Executive by permitted to liquidate or exchange the benefit afforded him in the prior sentence for cash or any other benefit. To the extent any such payment is made via reimbursement to the Executive, no such reimbursement will be made by the Company later than the end of the year following the year in which the underlying expense is incurred.  The reimbursement right set forth in this Article 9 will be limited to fees and expenses incurred during the Executive's employment with the Employer Entities and during the ten (10) year period immediately thereafter. 

ARTICLE 10
EMPLOYMENT WITH EMPLOYER ENTITIES

Employment with the Company for purposes of this Change of Control Agreement will include employment with any Employer Entity.
ARTICLE 11
NO SETOFF

No amounts otherwise due or payable under this Change of Control Agreement will be subject to setoff by the Company, except as otherwise required by law. 

ARTICLE 12
NOT A CONTRACT FOR EMPLOYMENT

This Change of Control Agreement will not in any way constitute an employment agreement between the Company and the Executive and it will not oblige the Executive to continue in the employ of Company, nor will it oblige the Company to continue to employ the Executive.

ARTICLE 13
FDIC EVENTS

If any of the Employer Entities is in default (as defined in Section 3(x)(1) of the Federal Deposit Insurance Act or equivalent provisions relating to a regulator with supervisory authority over any of the Employer Entities), all obligations under this Change of Control Agreement will terminate as of the date of default, but this Article 13 will not affect any vested rights of the parties.  Notwithstanding any other provision of this Change of Control Agreement, the Employer Entities will have no obligation to make any payments to Executive if such payments would be prohibited by applicable federal or state law, including without limitation Part 359 of the regulations of the Federal Deposit Insurance Corporation (12 CFR § 359 et seq.) or any successor provision.
ARTICLE 14
NOTICES

All notices and other communications required to be given hereunder will be in writing and will be deemed to have been delivered or made when mailed, by certified mail, return receipt requested, if to the Executive, to the last address which the Executive will provide to the Employer, in writing, for this purpose, but if the Executive has not then provided such an address, then to the last address of the Executive then on file with the Company; and if to the Company, then to the last address which the Company will provide to the Executive, in writing, for this purpose, but if the Company has not then provided the Executive with such an address, then to:

President and Chief Executive Officer
First Commonwealth Financial Corporation
Old Courthouse Square
601 Philadelphia Street
Indiana, Pennsylvania 15701

ARTICLE 15

GOVERNING LAW AND JURISDICTION

This Change of Control Agreement will be governed by, and construed in accordance with, the laws of the Commonwealth of Pennsylvania, except for the laws governing conflict of laws. In the event that either party will institute suit or other legal proceeding, whether in law or equity, the Courts of the Commonwealth of Pennsylvania will have exclusive jurisdiction with respect thereto.
ARTICLE 16
ENTIRE AGREEMENT

This Change of Control Agreement constitutes the entire understanding between the Company and the Executive concerning the subject matter hereof and supersedes all prior written or oral agreements or understandings between the parties hereto, including without limitation the Original Change of Control Agreement.  No term or provision of this Change of Control Agreement may be changed, waived, amended or terminated except by a written instrument of equal formality to this Change of Control Agreement.  

Signature page follows.

IN WITNESS WHEREOF, the parties have executed this Change of Control Agreement as of the date set forth above.

	
		
	(Corporate Seal)
	FIRST COMMONWEALTH FINANCIAL CORPORATION

	/s/ Matthew C. Tomb
Witness

	By: /s/ T. Michael Price
       Name: T. Michael Price
       Title: President and CEO

	/s/ Gary M. Small
Witness
	

EXECUTIVE

/s/ James R. ReskeSHARE EXCHANGE AGREEMENT

dated as of

April 8th, 2014

between

INDIE GROWERS ASSOCIATION INC.

and

THE UNDERSIGNED SHAREHOLDERS

relating to the purchase and sale

of

100% of the Outstanding Member Units

of

INDIE GROWERS UNION LLC

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

 

SHARE EXCHANGE AGREEMENT

EFFECTIVE DATE OF AGREEMENT: April 8th, 2014

 

THIS SHARE EXCHANGE
AGREEMENT (this “Agreement”) is by and between INDIE GROWERS ASSOCIATION INC. a Nevada corporation (“Buyer”)
and the selling shareholders outlined below (“Sellers”).

W I T N E S S E T H :

WHEREAS the Sellers
are the beneficial owners of 100% of the Member Units of INDIE GROWERS UNION LLC a Washington State LLC (the “Company”)
and desire to sell 100% of the Member Units allocated as described below to Buyer, a publicly traded company and Buyer desires
to purchase the Member Units from Sellers upon the terms and subject to the conditions hereinafter set forth. The member Units
of the Company are held as follows or see attachment B:

85% John Moreno

 

10% Arnie De Witt III 5% Michelle Moreno

 

100% of Indie Growers Union LLC, of which all
Member Units are covered under John Moreno signature.

 

AND WHEREAS Indie Growers Union or the Company
is the registered and beneficial owner of a variety of assets as stated in attachment a and below but inclusive of all contracts
associated with IGU, domain names, intellectual rights and any other assets associated with IGU that are necessary for conducting
the business of the Company, the sufficiency and title of which has been verified by the Buyer.

 

AND WHEREAS the parties agree that the Shares
of Indie Growers Association or the Buyer shall not be subject to a share consolidation for a period of two years from the date
of this Agreement.

 

THEREFORE, the parties hereto agree as
follows:

1.      
Definitions

 

1.                            
Other Definitional and Interpretative Provisions. Unless specified otherwise, in this
Agreement the obligations of any party consisting of more than one Person are joint and several. The words “hereof”,
“herein” and “hereunder” and words of like import used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement. The captions herein are included for convenience of reference
only and shall be ignored in the construction or interpretation hereof. References to Articles and Sections are to Articles and
Sections of this Agreement unless otherwise specified. Any singular term in this Agreement shall be deemed to include the plural,
and any plural term the singular. Whenever the words “include,” “includes” or “including” are
used in this Agreement, they shall be deemed to be followed by the words “without limitation,” whether or not they
are in fact followed by those words or words of like import. “Writing,” “written” and comparable terms
refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. References to any
Person include the successors and permitted assigns of that Person. References from or through any date mean, unless otherwise
specified, from and including or through and including, respectively.

 

2.      
Purchase and Sale and Transfer of Rights, Closing Condition

 

1.                            
Purchase and Sale. Upon the terms and subject to the conditions of this Agreement, Seller
agrees to sell to Buyer and Buyer agrees to purchase from Seller, 100% of the outstanding Member Units of the Company in exchange
for 87,500,000 shares of common stock of the Buyer issued to the Seller at a deemed price of $0.01 per share for a total purchase
value of $875,000. The total amount of the shares issued and outstanding will be 125m shares. The Shares shall be issued as follows:

See attachment B

 

2.                            
Closing. The Closing shall be before or on April 30th, 2014. 

 

Representations and Warranties of the
Sellers

Seller makes the
following representations and warranties to Buyer with respect to the Company as of the date hereof (except to the extent expressly
relating to a specific date, in which event such representation or warranty shall be made as of such date), which shall be unaffected
by any investigation heretofore or hereafter made by or on behalf of Buyer:

3.                            
Corporate Existence and Power. The Company is a LLC duly incorporated, validly existing
and in good standing under the laws of its jurisdiction of incorporation and has all corporate powers required to carry on its
business as now conducted. 

    	 

    	 

    

 

 

4.                            
Corporate Authorization and Binding Effect. The execution, delivery and performance
by Seller of this Agreement, and the consummation by each of the Sellers and the Company of the transactions contemplated hereby
and thereby have been duly authorized by all necessary corporate and shareholder action by each of the Sellers and the Company.
Seller and the Company have full power and authority to execute and deliver this Agreement and to perform its obligations hereunder.
This Agreement and each Related Agreement to which it is a party has been duly executed and delivered by Seller and the Company
and, assuming due and valid authorization, execution and delivery thereof by Buyer, this Agreement is a valid and binding obligation
of Seller and the Company party thereto, enforceable in accordance with its terms and conditions.

 

5.                            
Governmental Authorization. The execution, delivery and performance by the Seller of
this Agreement and the consummation by the Seller of the transactions contemplated hereby require no action by or in respect of,
or filing with, any Governmental Authority.

 

6.                            
Noncontravention. The execution, delivery and performance by the Seller of this Agreement
and the consummation by Seller and the Company of the transactions contemplated hereby and thereby do not and will not contravene
or conflict with the certificates or articles of incorporation or bylaws of the Seller or the Company; contravene or conflict with
or constitute a violation of any provision of any Law binding upon or applicable to the Seller or the Company or any of their respective
properties or assets; result in a violation or a breach of, or constitute a default or require any consent under or give rise to
a right of termination, cancellation or acceleration of any right or obligation of the Company or to a loss of any benefit to which
the Company is entitled under any provision of any note, bond, mortgage, indenture, lease, agreement, contract, obligation or other
instrument to which the Company is bound, or any license, franchise, permit or other similar authorization held by the Company;
or result in the creation or imposition of any Lien on any asset of the Company, except for any Permitted Liens. 

 

7.                            
Capitalization. All outstanding shares of capital stock of the Company are duly authorized,
validly issued, fully paid, nonassessable and free from preemptive rights. Except as set forth in this Section 3.05, there are
no outstanding shares of capital stock or other voting securities of or other ownership interests in the Company; ) securities
of the Company convertible into or exchangeable for shares of capital stock or voting securities of or other ownership interests
in the Company; or options or other rights to acquire from the Company, or any obligation of the Company to issue, transfer or
sell, any capital stock or voting securities of or other ownership interests in the Company or securities convertible into or exchangeable
for capital stock or voting securities of or other ownership interests in the Company (the items in clauses (i), (ii) and (iii)
being referred to collectively as the “Company Securities”). There are no outstanding obligations of the Company to
repurchase, redeem or otherwise acquire any Company Securities. The Company does not have any Subsidiaries.

 

8.                            
Ownership of Shares. Seller is the record and beneficial owner of the Shares, free and
clear of any Lien, and will transfer and deliver to Buyer at the Closing valid title to the Shares, free and clear of any Lien.

 

9.                            
Permits; Compliance. The Company is in possession of all franchises, grants, authorizations,
licenses, permits, easements, variances, exceptions, consents, certificates, approvals, clearances and orders of any Governmental
Authority necessary for the Company to operate its repair and manufacturing business as currently conducted, to own, lease and
operate its properties and to carry on the Business (the “Company Permits”) and the use and operation by the Company
of its properties and the conduct of the Business comply with the requirements and conditions of all Company Permits.

 

10.                         
Financial Statements. The Company is newly formed and does not yet have consolidated
financial statements of the Company, (collectively, the “Financial Statements”).

 

11.                         
Books and Records. The books of account, minute books and stock record books of the
Company are complete and correct in all material respects and have been maintained in accordance with reasonable and customary
business practices. The minute books of the Company contain records that are complete and correct in all material respects of all
meetings of, and corporate action taken by (including all actions by unanimous written consent), the shareholders and directors
of the Company since inception. True and complete copies of all minute books and all stock record books of the Company have heretofore
been made available to Buyer.

 

12.                         
Absence of Certain Changes. The Company has conducted its business in the ordinary course
consistent with past practices and there has not been:

 

                      
a.           
any event, occurrence or development which has had a Company Material Adverse Effect;

                      
b.           
any declaration, setting aside or payment of any dividend or other distribution with respect
to any shares of capital stock of the Company, or any repurchase, redemption or other acquisition by the Company of any outstanding
shares of capital stock or other securities of, or other ownership interests in, the Company;

                       
c.           
any amendment of any material term of any outstanding security of the Company;

                      
d.           
any incurrence, assumption, amendment or guarantee by the Company of any indebtedness for borrowed
money, or any foreign currency, hedging, financial derivatives or similar transactions, other than in the ordinary course of business
and consistent with past practices;

                       
e.           
any creation or assumption by the Company of any Lien, other than Permitted Liens, on any asset
of the Company;

                       
f.           
 any transaction or commitment made, or any contract or agreement entered into, by the Company
relating to its assets or the Business (including the acquisition or disposition of any assets), in either case, material to the
Company, other than transactions and commitments in the ordinary course of business consistent with past practices and those contemplated
by this Agreement;

    	 

    	 

    

 

                       
g.           
any material change in any method of accounting or accounting practice by the Company.

                      
h.           
any payment, discharge or satisfaction of any material claim, liability or obligation, except
in the ordinary course of business or pursuant to the terms of any Material Contract;

                        
i.           
any material modification to a Material Contract;

                        
j.           
except as required under applicable law or pursuant to existing agreements, any grant of any
severance or termination pay to any director, officer or employee of the Company, increase in compensation, bonus or other benefits
payable under any severance or retirement or termination pay policies of the Company, entering into of any employment, deferred
compensation or other similar agreement (or any amendment to any such existing agreement) with any director, officer or employee
of the Company or adoption of any new Employee Plan or modification of any Employee Plan, in the case of each of clauses (i) through
(iv), other than in the ordinary course of business consistent with past practices; or

                      
k.           
any disposal or lapse of any rights to the use of any Intellectual Property Right, which would
have a Company Material Adverse Effect.

 

13.                         
No Undisclosed Material Liabilities. There are no liabilities or obligations of the
Company of any kind, other than:

 

                      
a.           
liabilities or obligations disclosed or provided for in the Balance Sheet or the notes thereto;

                      
b.           
liabilities or obligations incurred in the ordinary course of business since the Balance Sheet
Date;

                       
c.           
liabilities or obligations under this Agreement; and

                      
d.           
other liabilities or obligations which in the aggregate would not have a Company Material Adverse
Effect.

 

14.                         
Litigation. As of the date of this Agreement, there is no judicial or administrative
action, suit or proceeding pending, or to the Knowledge of Seller, threatened against the Company or relating to the Business,
any of the Company’s properties or any of the officers or directors of such companies before any court or arbitrator or before
or by any Governmental Authority that would, individually or in the aggregate, have a Company Material Adverse Effect. The Company
is not subject to any judgment, order or decree that would result in a Company Material Adverse Effect.

 

15.                         
Taxes. The Company has also separately filed all material Tax Returns that it was required
to file for each taxable period. All such Tax Returns were timely filed, correct and complete in all material respects and were
prepared in substantial compliance with all applicable laws and regulations. The Company has paid all material Taxes shown or required
to be shown on such separate Tax Returns.

 

                   
a.              
There are no Liens for Taxes (other than Taxes not yet due and payable) upon any of the assets
of the Company.

                   
b.              
The Company has withheld and paid all employment, sales, use and other Taxes required to have
been withheld and paid in connection with any amounts paid or owing to any employee, independent contractor, creditor or other
third party.

                    
c.              
There is no pending or any threatened dispute or claim concerning any material Tax liability
of the Company for any taxable period during which the Company was a member of the Seller’s Affiliated Group.

 

16.                         
Certain Business Practices. Neither the Company nor any of its directors, officers employees
or any other person authorized to act on behalf of the Company has used any corporate funds for unlawful contributions, gifts,
entertainment or other unlawful expenses relating to political activity, made any unlawful payment to foreign or domestic government
officials or employees or to foreign or domestic political parties or campaigns from corporate funds, violated any provision of
the Foreign Corrupt Practices Act of 1977, as amended, or made any bribe, rebate, payoff, influence payment, kickback or other
similar unlawful payment to any foreign or domestic government official or employee from corporate funds.

 

17.                         
Environmental Matters. Except as to matters that would not have a Company Material Adverse
Effect:

 

i.        
no complaint has been filed, no penalty has been assessed, and no third-party investigation,
claim, suit, proceeding or review is pending or is threatened by any Governmental Authority or other Person against the Company
and, in each case, alleging or relating to any violation by the Company of any Environmental Law;

ii.       
the Company is in compliance with all Environmental Laws and has obtained and is in compliance
with all permits, licenses, franchises, certificates, approvals and other similar authorizations of any Governmental Authority
(collectively, “Environmental Permits”) required by Environmental Laws to conduct the Business;

 

18.                        
Compliance With Laws and Court Orders. The Company is in compliance with all, and is
not under investigation with respect to applicable Laws.

19.                        
Employee Matters. The Company is in compliance in all material respects with all applicable
Laws respecting employment and employment practices, terms, and conditions of employment, and wages and hours and is not engaged
in any unfair labor practice.

 

20.                         
Title to Assets; Liens. The Company has good title to all the properties and assets
reflected in the Balance Sheet and all assets purchased by the Company since the Balance Sheet Date free and clear of all Liens
(other than Permitted Liens). At the time of the Closing, the assets of the Company, taken together with the rights and benefits
to Buyer arising under the Related Agreements, shall be adequate in all material respects to allow Buyer at such time to conduct
the Business substantially as it is currently being conducted.

    	 

    	 

    

 

21.                         
Material Contracts. The Company is not a party to or bound by any agreement or contract
except as disclosed.

 

                   
a.              
Each agreement, contract, plan, lease, arrangement or commitment required to be disclosed pursuant
to this Section (collectively, “Material Contracts”) is a valid and binding agreement of the Company and is in full
force and effect, and none of the Company or, to the Knowledge of Seller, any other party thereto is in default or breach in any
respect under the terms of any such agreement, contract, plan, lease, arrangement or commitment.

 

22.                     
Insurance. Seller has made available to Buyer copies of all insurance policies providing
coverage in favor of the Company or any of its properties, including “all risk” insurance policies (collectively, the
“Insurance Policies”). There are no material claims by the Company pending under any of the Insurance Policies as to
which coverage has been questioned, denied or disputed by the underwriters of such policies or in respect of which such underwriters
have reserved their rights. As of the date hereof, all Insurance Policies are in full force and effect, all premiums due thereon
have been paid and the Company is in compliance in all material respects with the terms and provisions of the Insurance Policies.

 

23.                     
Intellectual Property. No Company Intellectual Property Right is subject to any outstanding
judgment, injunction, order, decree or agreement restricting the use thereof by the Company or restricting the licensing thereof
by the Company to any Person.

 

                   
a.              
Except as expressly disclosed to Buyer, the Company has the sole and exclusive right to use
the Company Intellectual Property Rights, and no consent of any third party is required for the use thereof by the Company following
additional Intellectual Property Rights other than the Company Intellectual Closing. To the Knowledge of Seller, no claims have
been asserted by any person challenging the use of any Company Intellectual Property Rights, or challenging or questioning the
validity or effectiveness of any such license or agreement. No Property Rights are necessary or material to the conduct of the
Business.

 

3.      
Representations and Warranties of Buyer

Buyer hereby makes
the following representations and warranties to the Sellers as of the date hereof (except to the extent expressly relating to a
specific date, in which event such representation or warranty shall be made as of such date), which shall be unaffected by any
investigation heretofore or hereafter made.

1.                            
Corporate Existence and Power. Buyer is a corporation duly incorporated, validly existing
and in good standing under the laws of its jurisdiction of incorporation and has all corporate powers required to carry on its
business as now conducted. 

 

2.                            
Corporate Authorization. The execution, delivery and performance by Buyer of this Agreement
and each Related Agreement to which it is a party and the consummation by Buyer of the transactions contemplated hereby and thereby
have been duly authorized by all necessary corporate and shareholder action by Buyer. Buyer has full power and authority to execute
and deliver this Agreement and to perform its obligations hereunder. This Agreement has been duly executed and delivered by Buyer
and, assuming due and valid authorization, execution and delivery thereof by each Seller party thereto, this Agreement is a valid
and binding obligation of Buyer, enforceable in accordance with its terms and conditions.

 

3.                            
Governmental Authorization. The execution, delivery and performance by Buyer of this
Agreement and each Related Agreement and the consummation by Buyer of the transactions contemplated hereby and thereby require
no action by or in respect of, or filing with, any Governmental Authority

 

4.                            
Noncontravention. The execution, delivery and performance by Buyer of this Agreement
and the consummation by Buyer of the transactions contemplated hereby do not and will not contravene or conflict with the articles
of incorporation or bylaws of Buyer, assuming compliance with the matters referred to in Section 4.03, contravene or conflict with
or constitute a violation of any provision of any Law binding upon or applicable to Buyer, result in a violation or a breach of,
or constitute a default or require any consent under or give rise to a right of termination, cancellation or acceleration of any
right or obligation of Buyer or to a loss of any benefit to which Buyer is entitled under any provision of any note, bond, mortgage,
indenture, lease, agreement, contract, obligation or other instrument to which Buyer is bound, or any license, permit or other
similar authorization held by Buyer.

 

5.                            
Litigation. As of the date of this Agreement, there is no judicial or administrative
action, suit or proceeding pending, or to the knowledge of Buyer, threatened against Buyer before any Governmental Authority which
in any manner challenges or seeks to prevent, enjoin, alter or materially delay the transactions contemplated by this Agreement.

 

4.      
Covenants of the Sellers

Each of the Sellers
agrees that:

1.                            
Conduct of the Company. Except as expressly contemplated by this Agreement or as otherwise
consented to by Buyer in writing, during the period from the date hereof and continuing, each of the Sellers shall cause the Company
to:

 

                      
a.           
conduct its business in the usual, regular and ordinary course consistent with past practices;

                      
b.           
not mortgage, pledge, sell or dispose of any assets with a value of $3,000 or more in the aggregate,
and not waive, release, grant, transfer or permit to lapse any Company rights of value in excess of $5,000 in the aggregate;

                       
c.           
comply in all material respects with all provisions of any Material Contracts to which the
Company is a party;

    	 

    	 

    

 

 

                      
d.           
not take any action that would result in the representation set forth in Section 3.10(k) being
untrue;

                       
e.           
not enter into any agreement or understanding with any other Person containing any exclusivity,
non-competition or similar provisions that would materially restrict the ability of the Company to compete;

                       
f.           
not adopt or propose any change in its organizational documents (including bylaws); and

 

2.                            
Access to Information; Confidentiality. 

 

3.                                              
 

                      
a.           
After the Closing, Seller will hold, and will use their best efforts to cause their respective
officers, directors, employees, accountants, counsel, consultants, advisors and agents to hold, in confidence, unless compelled
to disclose by judicial or administrative process or by other requirements of law, all confidential documents and information concerning
the Company, except to the extent that such information can be shown to have been previously known on a nonconfidential basis by
either Seller, in the public domain through no fault of Sellers or their Affiliates or later lawfully acquired by any Seller from
sources other than those related to its prior ownership of the Company. The obligation of Sellers and their Affiliates to hold
any such information in confidence shall be satisfied if they exercise the same care with respect to such information as they would
take to preserve the confidentiality of their own similar information.

                      
b.           
On and after the Closing Date, Seller will afford, promptly to Buyer and its agents reasonable
access to its books of account, financial and other records (including accountant’s work papers), information, employees
and auditors to the extent reasonably necessary for Buyer in connection with any audit, investigation, dispute or litigation (other
than any dispute or litigation involving either of the Sellers) relating to the Business; provided that any such access
by Buyer shall be conducted during normal business hours and shall not unreasonably interfere with the conduct of the business
of the Sellers, Buyer shall bear all of the out-of-pocket costs and expenses (including reasonable attorneys’ fees, but excluding
reimbursement of Seller for general overhead, salaries and employee benefits) reasonably incurred in connection with the foregoing.

                       
     
 

4.                            
Notices of Certain Events. From the date hereof, Seller shall promptly notify Buyer
of:

 

                      
a.           
any actions, suits, claims, investigations or proceedings commenced against the Company or
in respect of which the Company has an indemnification obligation and as to which Seller has Knowledge that, if pending on the
date of this Agreement, would have been required to have been disclosed pursuant to Section 3.12.

 

5.      
Covenants of Buyer

Buyer agrees that:

1.                            
Confidentiality. Prior to the Closing Date and after any termination of this Agreement,
Buyer and its Affiliates will hold, and will use their best efforts to cause their respective officers, directors, employees, accountants,
counsel, consultants, advisors and agents to hold, in confidence all confidential documents and information concerning the Company
furnished to Buyer or its Affiliates in connection with the transaction contemplated by this Agreement.

 

2.                            
Trademarks; Tradenames. Buyer shall not permit the Company to use any of the marks or
names of Seller that the parties agree shall belong to Seller after closing. 

 

6.      
Covenants of Buyer and the Sellers

Buyer and the Sellers
agree that:

1.                            
Best Efforts; Further Assurances. Subject to the terms and conditions of this Agreement,
Buyer and the Sellers will use their best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all
things necessary or desirable under applicable laws and regulations to consummate the transactions contemplated by this Agreement.
Seller and Buyer shall, and the Sellers shall cause the Company prior to the Closing, and Buyer shall cause the Company after the
Closing, to execute and deliver such other documents, certificates, agreements and other writings and to take such other actions
as may be necessary or desirable in order to consummate or implement expeditiously the transactions contemplated by this Agreement.

 

2.                            
Public Announcements. The parties agree to consult with each other before issuing any
press release or making any public statement with respect to this Agreement or the transactions contemplated hereby and, except
for any press releases and public announcements the making of which may be required by applicable law or any listing agreement
with any national securities exchange, will not issue any such press release or make any such public statement prior to such consultation..

 

3.                            
Operational Agreement. Both parties agree that within 90 days of closing an operational
partnership agreement shall be in place, inclusive of employment agreements for principal officers of the Seller. Buyer and Seller
have to date negotiated most of the terms of the agreement and will use their best faith efforts to complete and ratify said agreement.
In the event of a failure to complete an agreement Seller retains the right to purchase the shares sold to the Buyer for an equal
amount of consideration expended by the Buyer. 

 

7.      
Conditions to Closing

    	 

    	 

    

 

1.                            
Conditions to Obligations of Buyer and the Sellers. The obligations of Buyer and the
Sellers to consummate the Closing are subject to the satisfaction of the following conditions:

 

                      
a.           
no provision of any Law shall prohibit the consummation of the Closing;

                      
b.           
there shall not be in effect any Law enacted, enforced, promulgated, issued or deemed applicable
to the transactions contemplated hereby of any Governmental Authority that makes illegal or otherwise materially restrains or prohibits
the consummation of the transactions contemplated hereby.

 

2.                            
Conditions to Obligation of Buyer. The obligation of Buyer to consummate the Closing
is subject to the satisfaction of the following further conditions:

 

                      
a.           
the Seller shall have performed or complied with in all material respects all of the covenants
and agreements required to be performed by it on or prior to the Closing Date under this Agreement, and the representations and
warranties of the Seller set forth in this Agreement shall be true at and as of the Closing Date as if made at and as of such time
(except as to any representation or warranty which speaks as of a specific date, which must be true as of such date;

                      
b.           
there shall not have occurred any Company Material Adverse Effect after the date hereof which
is continuing on the Closing Date;

                       
c.           
Buyer shall have received all documents it may reasonably request relating to the existence
of the Seller and the authority of the Seller for this Agreement, all in form and substance reasonably satisfactory to Buyer; and

 

3.                            
Conditions to Obligation of the Sellers. The obligation of the Sellers to consummate
the Closing is subject to satisfaction of the following further conditions:

 

                      
a.           
Buyer shall have performed or complied with in all material respects all of the covenants and
agreements required to be performed by it on or prior to the Closing Date under this Agreement, and the representations and warranties
of Buyer set forth in this Agreement shall be true at and as of the Closing Date as if made at and as of such time (except as to
any representation or warranty which speaks as of a specific date, which must be true as of such date); and

                      
b.           
the Seller shall have received all documents it may reasonably request relating to the existence
of Buyer and the authority of Buyer for this Agreement, all in form and substance reasonably satisfactory to the Sellers.

 

8.      
Survival; Indemnification

 

1.                            
Survival. Except as specifically set forth below, the representations and warranties
of the parties hereto contained in this Agreement or in any certificate or other writing delivered pursuant hereto or in connection
herewith shall survive the Closing until the first anniversary of the Closing Date. The covenants and agreements of the parties
hereto contained in this Agreement or in any certificate or other writing delivered pursuant hereto or in connection herewith shall
survive the Closing indefinitely or for the shorter period explicitly specified therein, except that for such covenants and agreements
that survive for such shorter period, breaches thereof shall survive indefinitely or until the latest date permitted by law. Notwithstanding
the preceding sentences, any breach of representation, warranty, covenant or agreement in respect of which indemnity may be sought
under this Agreement shall survive the time at which it would otherwise terminate pursuant to the preceding sentences, if notice
of the inaccuracy or breach thereof giving rise to such right of indemnity shall have been given to the party against whom such
indemnity may be sought prior to such time.

 

2.                            
Indemnification. Effective at and after the Closing, Seller hereby indemnifies Buyer
and its Affiliates against and agrees to hold each of them harmless from any and all damage, loss and expense (including reasonable
expenses of investigation and reasonable attorneys’ fees and expenses and any fines or penalties imposed) (“Damages”,
which shall not include amounts subject to indemnification by the Sellers) actually suffered by Buyer or any of its Affiliates
arising out of any misrepresentation or breach of representation or warranty (each such misrepresentation and breach, a “Warranty
Breach”) or breach of covenant or agreement made or to be performed by the Sellers pursuant to this Agreement. 

 

                      
a.           
Effective at and after the Closing, Buyer hereby indemnifies Seller and its Affiliates against
and agrees to hold each of them harmless from any and all Damages actually suffered by Seller or any of its Affiliates arising
out of any Warranty Breach or breach of covenant or agreement made or to be performed by Buyer pursuant to this Agreement. 

 

3.                            
Procedures. The party seeking indemnification under Section 10.02 (the “Indemnified
Party”) agrees to give prompt notice to the party against whom indemnity is sought (the “Indemnifying Party”)
of the assertion of any claim, or the commencement of any suit, action or proceeding (“Claim”) in respect of which
indemnity may be sought under such Section and will provide the Indemnifying Party such information with respect thereto that the
Indemnifying Party may reasonably request. The failure to so notify the Indemnifying Party shall not relieve the Indemnifying Party
of its obligations hereunder, except to the extent such failure shall have adversely affected the Indemnifying Party.

 

                      
a.           
The Indemnifying Party shall be entitled to participate in the defense of any Claim asserted
by any third party (“Third Party Claim”) and, subject to the limitations set forth in this Section, shall be entitled
to assume the control of and appoint lead counsel for such defense, in each case at its expense.

                      
b.           
If the Indemnifying Party shall assume the control of the defense of any Third Party Claim
in accordance with the provisions of this Section 10.03, the Indemnifying Party shall obtain the prior written consent of the Indemnified
Party (which shall not be unreasonably withheld, delayed or conditioned) before entering into any settlement of such Third Party
Claim, but only if the 

    	 

    	 

    

 

settlement does not release the Indemnified
Party from all liabilities and obligations with respect to such Third Party Claim or if the settlement imposes injunctive or other
equitable relief against the Indemnified Party, and the Indemnified Party shall be entitled to participate in the defense of such
Third Party Claim and to employ separate counsel of its choice for such purpose. The fees and expenses of such separate counsel
shall be paid by the Indemnified Party. The Indemnifying Party shall have no indemnification obligations with respect to any Third
Party Claim that shall be settled by the Indemnified Party without the prior written consent of the Indemnifying Party, which consent
shall not be unreasonably withheld, delayed or conditioned.

                       
c.           
Each party shall cooperate, and cause their respective Affiliates to cooperate, in the defense
or prosecution of any Third Party Claim and shall furnish or cause to be furnished such records, information and testimony, and
attend such conferences, discovery proceedings, hearings, trials or appeals, as may be reasonably requested in connection therewith.
The Indemnified Party shall keep the Indemnifying Party fully informed of the defense of any Third Party Claim conducted by such
Indemnified Party.

                      
d.           
Each Indemnified Party shall use reasonable efforts to collect any amounts available under
insurance coverage, or from any other Person alleged to be responsible, for any Damages payable under Section 10.02.

 

4.                            
Knowledge. Notwithstanding anything in this Agreement to the contrary, the rights of
the parties to indemnification based on the representations and warranties set forth in this Agreement shall not be affected by
any investigation conducted with respect to, or any knowledge acquired (or capable of being acquired) about the accuracy or inaccuracy
of or compliance with, any such representation or warranty.

 

9.      
Termination

 

1.                            
Grounds for Termination. This Agreement may be terminated at any time prior to the Closing:

 

                      
a.           
by mutual written agreement of Seller and Buyer;

                      
b.           
by either Seller or Buyer if consummation of the transactions contemplated hereby would violate
any nonappealable final order, decree or judgment of any Governmental Authority having competent jurisdiction; or

                       
c.           
by Buyer if Seller shall have filed a petition for relief under the Bankruptcy Code prior to
the Closing or an involuntary petition for relief under the Bankruptcy Code is filed against Seller prior to the Closing by any
party other than (x) Buyer or its Affiliates or (y) any Person acting at the direction of or in concert with Buyer or its Affiliates
and such petition is not dismissed prior to the Closing;

 

The party desiring
to terminate this Agreement pursuant to clauses of this Section 11.01 shall give notice of such termination to the other party.

2.                            
Effect of Termination. If this Agreement is terminated as permitted by Section 11.01,
such termination shall be without liability of any party (or any stockholder, director, officer, employee, agent, consultant or
representative of such party) to any other party to this Agreement; provided that if such termination shall result from either
party’s willful failure to fulfill a condition to the performance of the obligations of the other party, failure to perform
a covenant set forth in this Agreement or breach of any representation or warranty or agreement contained herein, such failing
or breaching party shall be fully liable for any and all Damages incurred or suffered by the other party as a result of such failure
or breach. The provisions of Section 6.01, 12.03, 12.05, 12.06 and 12.07 shall survive any termination hereof pursuant to Section
11.01.

 

10.   
Miscellaneous

 

1.                            
Notices. All notices and other communications hereunder shall be in writing (including
facsimile transmission, with confirmation of receipt) and shall be deemed to have been duly given when delivered personally or
by facsimile, when received by the addressee, if sent by Express Mail, Federal Express or other express delivery service (receipt
requested), or three business days after being sent by registered or certified mail, return receipt requested, in each case to
the other party at the following addresses (or to such other address for a party as shall be specified by like notice, provided
that notices of a change of address shall be effective only upon receipt thereof) provided that any communication by facsimile
shall be confirmed by a copy sent via overnight mail to the physical address of the recipient set forth above. All such notices,
requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to
5 p.m. in the place of receipt and such day is a Business Day in the place of receipt. Otherwise, any such notice, request or communication
shall be deemed not to have been received until the next succeeding Business Day in the place of receipt.

 

2.                            
Amendments and Waivers. Any provision of this Agreement may be amended or waived only
if such amendment or waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement, or in the
case of a waiver, by the party against whom the waiver is to be effective.

 

                      
a.           
No failure or delay by any party in exercising any right, power or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or
the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive
of any rights or remedies provided by law.

 

3.                            
Expenses. Except as otherwise provided herein, all costs and expenses incurred in connection
with this Agreement shall be paid by the party incurring such cost or expense.

    	 

    	 

    

 

 

4.                            
Successors and Assigns. The provisions of this Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns; provided that no party may assign, delegate or
otherwise transfer any of its rights or obligations under this Agreement without the consent of each other party hereto.

 

5.                            
Governing Law. This Agreement shall be governed by and construed in accordance with
the laws and courts of the State of Nevada, without regard to the conflicts of law rules of such country.

 

6.                            
Jurisdiction. The parties hereto agree that any suit, action or proceeding seeking to
enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated
hereby shall be brought in the State of Nevada. In any such suit, action or proceeding each party irrevocably waives, to the fullest
extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or
proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient
forum. 

 

7.                            
Counterparts; Effectiveness; Third-Party Beneficiaries. This Agreement may be signed
in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto
were upon the same instrument. No provision of this Agreement is intended to confer any rights, benefits, remedies, obligations
or liabilities hereunder upon any Person other than the parties hereto and their respective successors and assigns.

 

8.                            
Entire Agreement. This Agreement constitutes the entire agreement between the parties
with respect to the subject matter of this Agreement and supersedes all prior agreements and understandings, both oral and written,
between the parties with respect to the subject matter of this Agreement.

 

9.                            
Severability. If any term, provision, covenant or restriction of this Agreement is held
by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or
invalidated so long as the economic and legal substance of the transactions contemplated hereby is not affected in any manner materially
adverse to any party. Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so as to affect
the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby
be consummated as originally contemplated to the fullest extent possible. 

 

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

	 	 
	By:	/s/ Robert Coleridge	/s/ Arnie De Witt III
	Name: Robert Coleridge	Name:ARNIE DE WITT III
	
        Title:President

        INDIE GROWERS ASSOCIATION INC.
	
        Shareholder

        Indie Growers Union LLC

	
         

         
	 	 
	
         

        By:
	/s/ John Moreno	By:	/s/ John Moreno
	Name: JOHN MORENO	Name:John Moreno 
	
        Shareholder

        Indie Growers Union LLC
	
        Title: Authorized Signatory for
        all units

        INDIE GROWERS UNION LLC

 

 

 

 

 

 

    	 

    	 

    

 

 

 

Attachment A

 

This agreement was made by and amongst Michelle & John Moreno
care of Indie Growers Union (hereinafter referred to as “Indie Growers Union/MJ Exchange.org”), Colorado & Washington
State Medical Dispensaries (hereinafter referred to as “MMJ DISPENSORIES”) and Arnie Dewitt III (hereinafter referred
to as “Dewitt Sales Inc.” DBA Kung Fu Vapes) is made in reference to the following facts listed below.

 

IGU, MMJ Dispensaries, & Kung Fu Vapes have organized and are
presently conducting business for the purpose of which is (IGU) mixed media marketing, promotion and publishing of HD Content,
“The Green Factory”, the recording and production of compact discs pertaining to the score of The TV Show, records,
merchandise and custom specialty merchandise music & any film related items or major network submission of the Green Factory,
CD/DVD of soundtrack, artwork, and the like, artist/celebrity management, marketing and direction, television and film specials.
(MMJ Dispensaries) Consulting, Building of and servicing of Grow Operations, Grow Equipment Sales and Acquisition, Distribution
Points In state. (IGU) Unionization of All Indie Growers in Washington State, Colorado and each state of the USA. Approved Washington
State Licensing Operation Set Up & SOP consolation, Clandestine Farming, Grower Training, Washington State Inventory Tracking
Software Integration, Armed Logistical Transport, 200 Master Strains, Grow Operation CAD Presentations, Media marketing to all
cannabis Industry IGU members. Exclusive Sales and Service agreement covering The entire United States for Kung Fu Vape Pens, V
Hit and G Hit Product line, import and distribution from China to America, full servicing and warranty of Vape pen products for
Cannabis and in store servicing of Vape Pen Clients. The referenced business conducted by Indie Growers Union & Dewitt Sales
Inc. own equipment, business connections, and R & D, time and Industry connections invested by Indie Growers Union & Dewitt
Sales Inc. over 8 years of doing business (Under Radar) in addition Indie Growers Union & Dewitt Sales Inc. MMJ Dispensaries
has agreed to accept a buyout and or leasing of its license & brand for a Commission from IGU. This will entitle IGU &
Dewitt Sales Inc. to funds generated from MMJ DISPENSORIES, Infrastructure, employees, managers, accountant/book keeper, or any
of its DBA’s and real property. As agreed once the $50,000 good faith has been paid to IGU, All acquired MMJ Dispensaries
in our union agree to allow IGU Operational Authority to Inventory Audit, Gap Audit, DOR Records, Internal Books and Weekly Deposit
verification, and installation of IP Cameras for IGU & Investment Group. In order to accommodate daily operations of MMJ Dispensaries,
Indie Growers Union & Dewitt Sales Inc. for accounting purposes and maintaining of funds for the said business, the parties
will be required to Operate under Indie Growers Union LLC, a Washington Based LLC with no personal liability, that will be activated
by 2/29/2014. This will help prepare for MMJ DISPENSORIES Union members and Public Roll out of Indie Growers & MJ Exchanage.org
and to execute the business now being conducted by said Pre Incorporation , and hereby carry out their expressed desires and intentions
and to jointly contribute as hereinafter set forth, in order to commence and continue the same. All marijuana retail and other
licenses and contracts past, present and future held by Indie Growers Union LLC. will also be vended in.

 

Based upon the foregoing recital of fact all of which are incorporated
herein by reference and mutual promises, terms and conditions hereinafter set forth the parties agree as follows.

 

The parties hereby associate with one another to form a Washington
State Based Entity (hereinafter referred to as the “corporation”) under and pursuant to the laws of the state of Washington
with the following characteristics.

 

The name of the corporation shall be “Indie Growers Union which
may conduct business in any similar or different name at the determination of the board of directors, including but not limited
to the use of the name or names associated with “North West Dream Makerz, Indie Growers Union, MMJ Dispensories, Dewitt Sales
Inc Incorporated and dot.com.

 

 

LIST of ASSETS

Indie Growers UNION LLC

DBA Indie Growers Association

Date: March 15th, 2014

UBI Number: 603-380-361

 

 

CORPORATE PROPERTY

DeWitt Sales 

MMJ Dispensaries

Kung Fu Vapes

 

    	 

    	 

    

 

 

 

 

 

Attachment B

SHARE ALLOCATION

Indie Growers Association

Total shares: 87,500,000

 

John Moreno,

90% or 74,375,000 shares

 

Arnie DeWitt III,

10% or 8,750,000 shares

 

Michelle Moreno

5% or 4,375,000 shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

 

 

 

 

 

 

Attachment C

 

BOARD OF DIRECTORS

2014 - 2015

Indie Growers Association

 

EXECUTIVE TEAM

Arnie DeWitt III, President & CFO

John Moreno, Vice President of Operations

Robert Coleridge CTO

 

DIRECTORS

Michelle Moreno Director of Community Outreach

TBA

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