Document:

SUBSCRIPTION
AGREEMENT

 

THIS
SUBSCRIPTION AGREEMENT (this “Agreement”), dated as of November ___, 2013, by and between JH Designs,
Inc., a Nevada corporation (the “Company”), and the subscriber listed on the signature
page hereof(the “Subscriber”). 

 

WHEREAS,
the Company and Subscriber are executing and delivering this Agreement in reliance upon an exemption from securities registration
afforded by the provisions of Section 4(2) and/or Regulation D (“Regulation D”) promulgated by the United States
Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities
Act”); and

 

WHEREAS,
pursuant to that certain Share Exchange Agreement by and among the Company, Cardinal Resources, LLC, a Pennsylvania limited liability
company (“Cardinal”), and the members of Cardinal (the “Members”), a copy of which is attached
hereto as Exhibit A (the “Share Exchange Agreement”), the current majority shareholder of the Company
will cancel shares of common stock such that approximately 36 million shares of common stock and no shares of preferred stock
are outstanding immediately before consummation of the Share Exchange Agreement (not including any Shares issued hereby), and
the Members will exchange their membership interests in Cardinal for approximately 54 million shares of common stock of the Company
(the “Shares”); the Company will thereby become the parent of Cardinal and Cardinal will become a wholly owned
subsidiary of the Company; the date of consummation of the transactions contemplated by the Share Exchange Agreement is referred
to herein as the “Closing Date”); and

 

WHEREAS,
the parties hereto desire that, upon the terms and subject to the conditions contained herein, on the Closing Date the Company
shall issue and sell to Subscriber, and Subscriber shall purchase, the number of shares of common stock, $0.001 par value per
share (the “Shares”) of the Company set forth on the signature page hereof, at the aggregate purchase price
set forth on the signature page hereof, which shall be a price of $0.25 per Share (the “Purchase Price”) together
with a warrant permitting the Subscriber to purchase the number of shares of common stock equal to the number of Shares purchased
by such Subscriber at the exercise price of $0.50 per share (the “Warrant”).

 

NOW, THEREFORE,
in consideration of the mutual covenants and other agreements contained in this Agreement, the Company and Subscriber hereby agree
as follows:

 

1.
Purchase and Sale. Upon the terms and subject to the conditions set forth in this Agreement, at the Closing Date
the Company hereby agrees to sell, assign, transfer and deliver to Subscriber, and Subscriber hereby agrees to purchase and accept
delivery from the Company, the Shares and Warrant free of all liens, pledges, mortgages, security interests, charges, restrictions,
adverse claims or other encumbrances of any kind or nature whatsoever (“Encumbrances”), for the Purchase Price.

 

    	 

    	 

    

 

The Purchase
Price shall be held in escrow by Cardinal’s counsel, Kline Law Group, PC, until the Closing Date. If the Closing Date does
not occur by November 15, 2013, the purchase and sale contemplated hereby shall be deemed void, the Purchase Price will be immediately
returned to the Subscriber without deduction and no interest or fees will be deemed to have accrued. Upon such return of the Purchase
Price by Company’s counsel, the parties hereto waive any and all rights or claims to fees, interests or penalties from each
other or the escrow agent in connection with the deposit of funds, and release of such such funds pursuant hereto.

 

2.
Subscriber Representations and Warranties. Subscriber hereby represents and warrants to and agrees with the Company
that:

 

(a)
Standing of Subscriber. Subscriber has the legal capacity and power to enter into this Agreement.

 

(b) Authorization
and Power. Subscriber has the requisite power and authority to enter into and perform this Agreement and to pay the
Purchase Price and accept the Shares, Warrant and shares of common stock into which the Warrants are exercisable (collectively,
the “Securities”). The execution, delivery and performance of this Agreement by the Subscriber, and the consummation
by the Subscriber of the transactions contemplated hereby, have been duly authorized by all necessary action, and no further consent
or authorization of Subscriber is required. This Agreement has been duly authorized, executed and delivered by the Subscriber
and constitutes, or shall constitute, when executed and delivered, a valid and binding obligation of the Subscriber, enforceable
against Subscriber in accordance with the terms hereof.

 

(c) Information
on Subscriber. Subscriber is, and reasonably believes he will be at the Closing Date, an “accredited investor,”
as such term is defined in Regulation D promulgated by the Commission under the 1933 Act, is experienced in investments and business
matters, has made investments of a speculative nature and has purchased securities of United States publicly-owned companies in
private placements in the past and, with its representatives, has such knowledge and experience in financial, tax and other business
matters as to enable the Subscriber to utilize the information made available by the Company to evaluate the merits and risks
of, and to make an informed investment decision with respect to, the proposed purchase, which the Subscriber hereby agrees represents
a speculative investment. The Subscriber has the authority and is duly and legally qualified to purchase and own the Securities.
The Subscriber is able to bear the risk of such investment for an indefinite period and to afford a complete loss thereof.

 

(d) Purchase
of Securities. The Subscriber will purchase the Securities for its own account for investment
and not with a view toward, or for resale in connection with, the public sale or any distribution thereof in violation of the
Securities Act or any applicable state securities law, and has no direct or indirect arrangement or understandings with any other
person or entity to distribute or regarding the distribution of such Shares;

 

    	 

    	 

    

 

(e) Compliance
with Securities Act. The Subscriber understands and agrees that the Securities have not been registered under the 1933 Act
or any applicable state securities laws by reason of their issuance in a transaction that does not require registration under
the 1933 Act (based in part on the accuracy of the representations and warranties of Subscriber contained herein), and that such
Securities must be held indefinitely unless a subsequent disposition is registered under the 1933 Act or any applicable state
securities laws or is exempt from such registration.

 

(f) Share
Legend. The Shares shall bear the following or similar legend:

 

“THE ISSUANCE AND SALE
OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL
(WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER AND REASONABLY APPROVED BY THE COMPANY), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION
IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING,
THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY
THE SECURITIES.”

 

(g)
Warrant Legend. The Warrant shall bear the following or similar legend

 

“NEITHER THE ISSUANCE
AND SALE OF THE SECURITIES REPRESENTED BY THIS DOCUMENT NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER AND REASONABLY
APPROVED BY THE COMPANY), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD
PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH
A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

    	 

    	 

    

 

(h)
Communication of Offer. Subscriber has a preexisting personal or business relationship with the Company or one or
more of its directors, officers, advisors or control persons, and the offer to issue the Securities
was directly communicated to Subscriber by the Company. At no time was Subscriber presented with or solicited by any leaflet,
newspaper or magazine article, radio or television advertisement, or any other form of general advertising or solicited or invited
to attend a promotional meeting otherwise than in connection and concurrently with such communicated offer;

 

(i)
No Governmental Endorsement. Subscriber understands that no United States federal or state agency or any other governmental
or state agency has passed on or made recommendations or endorsement of the Securities, or the
suitability of the investment in the Securities, nor have such authorities passed upon or endorsed
the merits of the offering of the Securities;

 

(j) Receipt
of Information. Subscriber believes it has received all the information it considers necessary or appropriate for deciding
whether to invest the Principal Amount in the Company and to accept the Securities. Subscriber further represents that through
its representatives it has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions
of the offering of the Securities and the business, properties and financial condition of the Company and to obtain additional
information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense)
necessary to verify the accuracy of any information furnished to it or to which it had access; and

 

(k) No
Market Manipulation. Subscriber has not taken, and will not take, directly or indirectly, any action designed to, or that
might reasonably be expected to, cause or result in stabilization or manipulation of the price of the Common Stock, to facilitate
the sale or resale of the Shares or affect the price at which the Shares may be issued or resold.

 

3. Company
Representations and Warranties. The Company represents and warrants to, and agrees with, Subscriber that:

 

(a) Due
Incorporation. The Company is a corporation duly organized and in good standing under the laws of Nevada, and Cardinal is
a limited liability company duly organized, validly existing and in good standing under the laws of Pennsylvania;

 

(b)
Authority; Enforceability. This Agreement and the Warrant (the “Transaction Documents”) have been duly
authorized, executed and delivered by the Company and are the valid and binding agreements of the Company, enforceable in accordance
with their terms, except as may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting the enforcement
of creditors’ rights generally, or principles of equity. The Company has full power and authority
necessary to enter into and deliver the Transaction Documents and to perform its obligations thereunder;

 

    	 

    	 

    

 

(c) Company
Capitalization and Voting Rights. The authorized capital stock of the Company consists of 300,000,000 shares of common stock,
$0.0001 par value and no shares of Preferred Stock. As of the date hereof 204,000,000 shares of the Company’s common stock
and no shares of preferred stock are issued and outstanding. No shares of capital stock or other voting securities of the Company
are issued, reserved for issuance or outstanding. All outstanding shares of the capital stock of the Company are, and all such
shares that may be issued prior to the date hereof will be when issued, duly authorized, validly issued, fully paid and nonassessable
and not subject to or issued in violation of any purchase option, call option, right of first refusal, preemptive right, subscription
right or any similar right under any provision of Florida law, the the Company Articles of Incorporation, the the Company Bylaws
or any Contract to which the Company is a party or otherwise bound. There are not any bonds, debentures, notes or other indebtedness
of the Company having the right to vote (or convertible into, or exchangeable for, securities having the right to vote) on any
matters on which holders of the Company’s common stock may vote (“Voting Company Debt”). As of the date of this
Agreement, there are not any options, warrants, rights, convertible or exchangeable securities, “phantom” stock rights,
stock appreciation rights, stock-based performance units, commitments, Contracts, arrangements or undertakings of any kind to
which the Company is a party or by which it is bound (a) obligating the Company to issue, deliver or sell, or cause to be issued,
delivered or sold, additional shares of capital stock or other equity interests in, or any security convertible or exercisable
for or exchangeable into any capital stock of or other equity interest in, the Company or any Voting Company Debt, (b) obligating
the Company to issue, grant, extend or enter into any such option, warrant, call, right, security, commitment, Contract, arrangement
or undertaking or (c) that give any person the right to receive any economic benefit or right similar to or derived from the economic
benefits and rights occurring to holders of the capital stock of the Company. As of the date of this Agreement, there are not
any outstanding contractual obligations of the Company to repurchase, redeem or otherwise acquire any shares of capital stock
of the Company.

 

(d)
Cardinal Capitalization and Voting Rights. The authorized capital of Cardinal consists, or will consist immediately
prior to the Closing Date, of two million (2,000,000) Class A and Class B Units. As of the date hereof,
seven hundred thirty-two thousand nine hundred and twelve (732,912) Class A Units are issued and outstanding, and no Class B Units
are issued. In addition, Cardinal has three outstanding options for the issuance of 100,600.5 Class A Units at $0.65 per Unit,
and promissory notes convertible into approximately 20,017 Class A Units. Cardinal is also currently engaged in an offering of
convertible promissory notes in the principal amount of Three Hundred Fifty Thousand Dollars (US$350,000.00), which will
be convertible into an aggregate of approximately 1.4 million shares of common stock of the Company, together with warrant for
the purchase of up to 420,000 shares of common stock of the Company at $0.50 per share. In addition, a warrant for the purchase
of 42,000 shares of common stock was issued to the placement agent in such note offering. Other than
as described above, no other membership interests, shares of capital stock or other voting securities of Cardinal are issued,
reserved for issuance or outstanding. Cardinal is the sole record and beneficial owner of all of the issued and outstanding capital
stock of each of its subsidiaries. All outstanding Units of Cardinal are duly authorized, validly issued, fully paid and nonassessable
and not subject to or issued in violation of any purchase option, call option, right of first refusal, preemptive right, subscription
right or any similar right under any provision of the law of Pennsylvania, the Cardinal Operating Agreement, the Cardinal Bylaws
or any contract, lease, license, indenture, note, bond, agreement, permit, concession, franchise or other instrument to which
Cardinal is a party or otherwise bound. As of the date of this Agreement, there are not any outstanding contractual obligations
of Cardinal to repurchase, redeem or otherwise acquire any shares of capital stock of Cardinal.

 

    	 

    	 

    

 

(e) Consents.
No consent, approval, authorization or order of any court, governmental agency or body having jurisdiction
over the Company or of any other person is required for the execution by the Company of the Transaction Documents and compliance
and performance by the Company of its obligations hereunder and thereunder, including, without limitation, the issuance of the
Securities;

 

(f) No
Violation or Conflict. Neither the issuance of the Shares or Warrant nor the performance of the Company’s obligations
under the Transaction Documents will:

 

(i) violate,
conflict with, result in a breach of, or constitute a default (or an event which with the giving of notice or the lapse of time
or both would be reasonably likely to constitute a default) under (a) the Operating Agreement or Bylaws of the Company or (b)
any decree, judgment, order or determination applicable to the Company of any court, governmental agency or body having jurisdiction
over the Company or over the properties or assets of the Company; or

 

(ii) result
in the creation or imposition of any lien, charge or encumbrance upon the securities issuable upon exercise or conversion of the
Untis and Warrant except in favor of Subscriber as described herein;

 

    	 

    	 

    

 

(g) No
Liens. The Shares and the shares of common stock issuable upon exchange, exercise and conversion of the Warrant:

 

(i) shall be
free and clear of any security interests, liens, claims or other Encumbrances, subject only to restrictions upon transfer under
the Securities Act and any applicable state securities laws;

 

(ii) shall have
been duly and validly issued, fully paid and non-assessable; and

 

(iii) will not
subject the holders thereof to personal liability by reason of being such holders;

 

(h) No
General Solicitation. Neither the Company, nor any of its affiliates, nor any person or entity acting on its or their behalf,
has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities
Act) in connection with the offer or sale of the Securities; and

 

(i) Investment
Company. The Company is not an “investment company” within the meaning of the Investment Company Act of 1940,
as amended.

 

4. Non-Public
Information. While the Securities are held by the Subscriber, the Company covenants and agrees that neither it nor any other
person acting on its behalf will at any time provide the Subscriber with any information that the Company believes constitutes
material non-public information. The Company understands and confirms that the Subscriber shall be relying on the foregoing representations
in effecting transactions in securities of the Company.

 

5.
Broker’s Commission/Finder’s Fee. Each party hereto represents to the other that there are no parties
entitled to receive fees, commissions, finder’s fees, due diligence fees or similar payments in connection with the consummation
of the transactions contemplated hereby. Each party hereto agrees to indemnify the other against and hold the other harmless from
any and all liabilities to any persons claiming brokerage commissions or similar fees on account of services purported to have
been rendered on behalf of the indemnifying party in connection with this Agreement or the transactions contemplated hereby and
arising out of the indemnifying party’s actions.

 

6.
Covenants Regarding Indemnification. Each party hereto
agrees to indemnify, hold harmless, reimburse and defend the other party and the other party’s officers, directors, agents,
counsel, affiliates, members, managers, control persons, and principal shareholders, as applicable, against any claim, cost, expense,
liability, obligation, loss or damage (including reasonable legal fees) of any nature, incurred by or imposed upon the indemnified
party or any such person which results, arises out of or is based upon (i) any breach of any representation or warranty by the
indemnifying party in this Agreement or (ii) any breach or default in performance by the indemnifying party of any covenant or
undertaking to be performed by the indemnifying party.

 

    	 

    	 

    

 

7. Miscellaneous.

 

(a) Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery or facsimile, addressed as set forth in the preamble paragraph hereto or to such other address as such party
shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery at the address designated in the preamble paragraph hereto (if delivered on a
business day during normal business hours where such notice is to be received), or the first business day following such delivery
(if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second
business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur.

 

(b) Entire
Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof
and may be amended only by a writing executed by both parties hereto. Neither the Company nor Subscriber has relied on any representations
not contained or referred to in this Agreement and the documents delivered herewith.

 

(c) Counterparts/Execution.
This Agreement may be executed in any number of counterparts and by the different signatories hereto on separate counterparts,
each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same
instrument. This Agreement may be executed by facsimile transmission, PDF, electronic signature or other similar electronic means
with the same force and effect as if such signature page were an original thereof.

 

(d)
Law Governing this Agreement. This Agreement shall be governed by and construed in accordance with the laws of the
State of California without regard to principles of conflicts of laws. Any action brought by either party hereto against the other
concerning the transactions contemplated by this Agreement shall be brought only in the state courts of California or in the federal
courts located in the State of California. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction
and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based
upon forum non conveniens. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A
JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HERE UNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

    	 

    	 

    

 

(e) Severability.
In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party
hereto hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding
in connection with this Agreement by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any other manner permitted by law.

 

(f) Counsel;
Ambiguities. Each party and its counsel have participated fully in the review and revision of this Agreement and the other
Transaction Documents. The parties understand and agree that any rule of construction to the effect that ambiguities are to be
resolved against the drafting party shall not apply in interpreting this Agreement or the other Transaction Documents. The language
in this Agreement and the other Transaction Documents shall be interpreted as to its fair meaning and not strictly for or against
any party.

 

(g)
Captions. The captions of the various sections and paragraphs of this Agreement have been inserted only for the
purposes of convenience; such captions are not a part of this Agreement and shall not be deemed in any manner to modify, explain,
enlarge or restrict any of the provisions of this Agreement.

 

[signature
page follows]

 

    	 

    	 

    

 

IN WITNESS
WHEREOF, the parties has caused this Agreement to be executed on and as of the date set forth above.

 

	 	JH
    DESIGNS, INC.
	 	 	 
	 	By:	 
	 	Name:
    	 
	 	Title:
    	 

 

	SUBSCRIBER:
	 

        Name of Subscriber:

         

        _________________________________________

         

        Address:

         

        _________________________________________

        _________________________________________

         

        Fax No.: __________________________________

         

        Taxpayer ID# (if applicable): ___________________

         

        _________________________________________

        (Signature)

         

        By: ______________________________________

         

        Dated: ______________________________, 2013

         

        Number of Shares:___________________________

        Aggregate Purchase Price:_____________________

         

        Warrant Shares:_____________________________

        Warrant Exercise Price: _______________________

 

[Signature
Page to JH Designs, Inc. Subscription Agreement]

 

    	 

    	 

    

 

EXHIBIT
A

 

SHARE EXCHANGE
AGREEMENTNEITHER THE ISSUANCE AND SALE OF THE SECURITIES
REPRESENTED BY THIS DOCUMENT NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER AND REASONABLY APPROVED BY THE COMPANY), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

  

 

COMMON STOCK PURCHASE WARRANT

 

	Number
    of shares:                                              	Holder: 
	 	 
	Exercise Price per Share: $0.50	Warrant
    No.                            
	 	 
	Expiration Date: November 30, 2016	Issue Date; November __, 2013

 

FOR VALUE RECEIVED, JH DESIGNS, INC.,
a Nevada corporation (the “Company”), hereby certifies that _______________________________, or its registered
assigns (the “Warrant Holder”), is entitled to purchase the securities set forth below. This Warrant is the
“Warrant” referenced in that certain Subscription Agreement executed on the date hereof by and between the Company
and the Warrant Holder (the “Subscription Agreement”). This Warrant is subject to the terms and conditions contained
in the Subscription Agreement.

 

This Warrant entitles the Warrant Holder to
purchase from the Company at any time after the Closing Date and before the Expiration Date, ____________________________ (_________)
shares (the “Warrant Shares”) of common stock (the “Common Stock”), of the Company at an
exercise price of Zero and 50/100 United States Dollars (US$0.50) per share (as adjusted from time to time as provided in Section
6, the “Exercise Price”), at any time and from time to time from and after the date hereof and through and including
5:00 p.m. New York time on November 30, 2016 (the “Expiration Date”).

 

This Warrant is subject to the following terms and conditions:

 

1.Registration of
Warrant. The Company shall register this Warrant upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Warrant Holder hereof from time to time. The Company may deem and treat the registered
Warrant Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Warrant
Holder, and for all other purposes, and the Company shall not be affected by notice to the contrary.

 

    	 

    	 

    

 

2.Investment Representation.
The Warrant Holder by accepting this Warrant represents that the Warrant Holder is acquiring this Warrant for its own account or
the account of an affiliate for investment purposes and not with the view to any offering or distribution and that the Warrant
Holder will not sell or otherwise dispose of this Warrant or the underlying Warrant Shares in violation of applicable securities
laws. The Warrant Holder acknowledges that the certificates representing any Warrant Shares will bear a legend indicating that
they have not been registered under the United States Securities Act of 1933, as amended (the “1933 Act”) and
may not be sold by the Warrant Holder except pursuant to an effective registration statement or pursuant to an exemption from registration
requirements of the 1933 Act and in accordance with federal and state securities laws. If this Warrant was acquired by the Warrant
Holder pursuant to the exemption from the registration requirements of the 1933 Act afforded by Regulation S thereunder, the Warrant
Holder acknowledges and covenants that this Warrant may not be exercised by or on behalf of a Person during the one year distribution
compliance period (as defined in Regulation S) following the date hereof. “Person” means an individual, partnership,
firm, limited liability company, trust, joint venture, association, corporation, or any other legal entity.

 

3.Validity of Warrant
and Issue of Shares. The Company represents and warrants that this Warrant has been duly authorized and validly issued and
warrants and agrees that all of Common Stock that may be issued upon the exercise of the rights represented by this Warrant will,
when issued upon such exercise, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens
and charges with respect to the issue thereof. The Company further warrants and agrees that during the period within which the
rights represented by this Warrant may be exercised, the Company will at all times have authorized and reserved a sufficient number
of Common Stock to provide for the exercise of the rights represented by this Warrant.

 

 4. Registration of Transfers and Exchange of Warrants.

 

a. Subject to compliance
with the legend set forth on the face of this Warrant, the Company shall register the transfer of any portion of this Warrant in
the Warrant Register, upon surrender of this Warrant with the Form of Assignment attached hereto duly completed and signed, to
the Company at the office specified in or pursuant to Section 9. Upon any such registration or transfer, a new warrant to purchase
Common Stock, in substantially the form of this Warrant (any such new warrant, a “New Warrant”), evidencing
the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion
of this Warrant not so transferred, if any, shall be issued to the transferring Warrant Holder. The acceptance of the New Warrant
by the transferee thereof shall be deemed the acceptance of such transferee of all of the rights and obligations of a Warrant Holder
of a Warrant.

 

    	 

    	 

    

 

b. This Warrant is exchangeable,
upon the surrender hereof by the Warrant Holder to the office of the Company specified in or pursuant to Section 9 for one or more
New Warrants, evidencing in the aggregate the right to purchase the number of Warrant Shares which may then be purchased hereunder.
Any such New Warrant will be dated the date of such exchange.

 

 5. Exercise of Warrants.

 

a. Exercise of this Warrant
shall be made upon surrender of this Warrant with the Form of Election to Purchase attached hereto duly completed and signed to
the Company, at its address set forth in Section 9. Payment upon exercise may be made at the written option of the Warrant Holder
either in (i) cash, wire transfer or by certified or official bank check payable to the order of the Company equal to the applicable
aggregate purchase price, (ii) by delivery of Warrant Shares issuable upon exercise of the Warrants in accordance with Section
(b) below or (iii) by a combination of any of the foregoing methods, for the number of Warrant Shares specified in such form (as
such exercise number shall be adjusted to reflect any adjustment in the total number of Warrant Shares issuable to the Warrant
Holder per the terms of this Warrant) and the Warrant Holder shall thereupon be entitled to receive the number of duly authorized,
validly issued, fully-paid and non-assessable Warrant Shares determined as provided herein. The Company shall promptly (but in
no event later than five (5) business days after the Date of Exercise as defined herein) issue or cause to be issued and cause
to be delivered to or upon the written order of the Warrant Holder and in such name or names as the Warrant Holder may designate
(subject to the restrictions on transfer described in the legend set forth on the face of this Warrant), a certificate for the
Warrant Shares issuable upon such exercise, with such restrictive legend as required by the 1933 Act, as applicable. Any person
so designated by the Warrant Holder to receive Warrant Shares shall be deemed to have become holder of record of such Warrant Shares
as of the Date of Exercise of this Warrant.

 

b. If the closing price (as quoted by the OTC
Markets or other principal trading market, if applicable) reported on the day immediately preceding the Date of Exercise (the “Fair
Market Value”) of one share of Common Stock is greater than the Exercise Price of one Warrant Share (at the date of calculation
as set forth below), in lieu of exercising this Warrant for cash, the Warrant Holder may elect to receive shares equal to the number
of shares of Common Stock computed using the following formula:

 

	X=	Y (A-B)	 
	 	A	 
	 
	Where X= the number of shares of Common Stock to be issued to the Warrant Holder
	 
	Y=	the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised (at the date of such calculation)
	 
	A=	Fair Market Value
	 
	B=	Exercise Price (as adjusted to the date of such calculation)

  

    	 

    	 

    

 

For purposes of Rule 144 promulgated under
the 1933 Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction in
the manner described above shall be deemed to have been acquired by the Warrant Holder, and the holding period for the Warrant
Shares shall be deemed to have commenced, on the date this Warrant was originally issued.

 

c. A “Date of
Exercise” means the date on which the Company shall have received (i) this Warrant (or any New Warrant, as applicable),
with the Form of Election to Purchase attached hereto (or attached to such New Warrant) appropriately completed and duly signed,
and (ii) payment of the Exercise Price for the number of Warrant Shares so indicated by the Warrant Holder to be purchased.

 

d. This Warrant shall
be exercisable at any time and from time to time for such number of Warrant Shares as is indicated in the attached Form of Election
To Purchase. If less than all of the Warrant Shares which may be purchased under this Warrant are exercised at any time, the Company
shall issue or cause to be issued, at its expense, a New Warrant evidencing the right to purchase the remaining number of Warrant
Shares for which no exercise has been evidenced by this Warrant.

 

6.Adjustment of
Exercise Price and Number of Shares. The character of the shares of stock or other securities at the time issuable upon exercise
of this Warrant and the Exercise Price therefor, are subject to adjustment upon the occurrence of the following events:

 

a.Adjustment for Stock
Splits, Stock Dividends, Recapitalizations, Etc. The Exercise Price of this Warrant and the number of shares of Common Stock
or other securities at the time issuable upon exercise of this Warrant shall be appropriately adjusted to reflect any stock dividend,
stock split, combination of shares, reclassification, recapitalization or other similar event affecting the number of outstanding
shares of stock or securities.

 

b.Adjustment for Reorganization,
Consolidation, Merger, Etc. In case of any consolidation or merger of the Company with or into any other corporation, entity
or person, or any other corporate reorganization, in which the Company shall not be the continuing or surviving entity of such
consolidation, merger or reorganization (any such transaction being hereinafter referred to as a “Reorganization”),
then, in each case, the holder of this Warrant, on exercise hereof at any time after the consummation or effective date of such
Reorganization (the “Effective Date”), shall receive, in lieu of the shares of stock or other securities at
any time issuable upon the exercise of the Warrant issuable on such exercise prior to the Effective Date, the stock and other securities
and property (including cash) to which such holder would have been entitled upon the Effective Date if such holder had exercised
this Warrant immediately prior thereto (all subject to further adjustment as provided in this Warrant).

 

c.Certificate as to
Adjustments. In case of any adjustment or readjustment in the price or kind of securities issuable on the exercise of this
Warrant, the Company will promptly give written notice thereof to the holder of this Warrant in the form of a certificate, certified
and confirmed by the Board of Directors of the Company, setting forth such adjustment or readjustment and showing in reasonable
detail the facts upon which such adjustment or readjustment is based.

 

    	 

    	 

    

 

7.Registration Rights.
If, after the date hereof, the Company
shall prepare
and file
with the
United States Securities and Exchange Commission
(the “Commission”) a registration
statement
relating
to an offering
for its
own account or
the account
of other
sunder the 1933
Act of any of its
equity securities,
other
than on Form S-4
or Form S-8 (each
as promulgated
under the 1933
Act) or
their
then equivalents
relating
to equity
securities
to be issued
solely in
connection
with any acquisition
of any entity
or business
or equity securities
issuable
in connection
with stock
option or
other employee
benefit
plans,
then the
Company shall
send to the Warrant Holder written
notice of such
determination
and, unless the Warrant Holder objects to the registration of the Warrant Shares or any part
thereof in writing within
ten (10) calendar
days after
receipt
of such notice,
the Company
shall include
in such registration
statement
all of the
Warrant
Shares, subject
to customary
cutbacks
applicable
to all holders
of registration
rights.
To the extent
not all
of the Warrant
Shares may
be included
for registration
in the registration
statement,
as are
sult of the
Commission’s
application
of Rule
415 under the 1933 Act,
priority
in such registration
statement
will be given
to the other
Common
Stock included
there in
inpreference
to the
Warrant
Shares except
no preference
shall be given
to shares held
by affiliates.
The obligations
of the Company
under this Section
may be waived
by the Warrant Holder. Not
with standing
any thing
to the contrary
herein,
the registration
rights
granted
to the Warrant Holder shall
not be applicable
for such times
as such Warrant
Shares
may be sold
by the Holder
there of without
restriction
pursuant
to Rule 144 of the 1933 Act.

 

8.Fractional Shares.
The Company shall not be required to issue or cause to be issued fractional Warrant Shares on the exercise of this Warrant. The
number of full Warrant Shares that shall be issuable upon the exercise of this Warrant shall be computed on the basis of the aggregate
number of Warrants Shares purchasable on exercise of this Warrant so presented. If any fraction of a Warrant Share would, except
for the provisions of this Section 8, be issuable on the exercise of this Warrant, the Company shall, at its option, (i) pay an
amount in cash equal to the Exercise Price multiplied by such fraction or (ii) round the number of Warrant Shares issuable, up
to the next whole number.

 

9.Notice. All
notices and other communications hereunder shall be in writing and shall be deemed to have been given (i) on the date they are
delivered if delivered in person; (ii) on the date initially received if delivered by facsimile transmission followed by registered
or certified mail confirmation; (iii) on the date delivered by an overnight courier service; or (iv) on the third business day
after it is mailed by registered or certified mail, return receipt requested with postage and other fees prepaid as follows:

 

    	 

    	 

    

 

	 	If to the Company:	 
	 	 	 
	 	 	JH Designs, Inc.	 
	 	 	c/o Cardinal Resources, LLC	 
	 	 	1505 E. Carson Street, Suite 200	 
	 	 	Pittsburgh, PA 15203	 
	 	 	Attn: Kevin Jones	 
	 	 	 
	 	If to the Warrant Holder:	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

 10. Miscellaneous.

 

a. This Warrant shall
be binding on and inure to the benefit of the parties hereto and their respective successors and permitted assigns. This Warrant
may be amended only in writing and signed by the Company and the Warrant Holder.

 

b. Nothing in this Warrant
shall be construed to give to any person or corporation other than the Company and the Warrant Holder any legal or equitable right,
remedy or cause of action under this Warrant; this Warrant shall be for the sole and exclusive benefit of the Company and the Warrant
Holder.

 

c. This Warrant shall
be governed by, construed and enforced in accordance with the internal laws of the State of California without regard to the principles
of conflicts of law thereof.

 

d. The headings herein
are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions
hereof.

 

e. In
case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and
enforceablilty of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby
and the parties will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially
reasonably substitute therefore, and upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

f. The Warrant Holder
shall not, by virtue hereof, be entitled to any voting or other rights of a shareholder of the Company, either at law or equity,
and the rights of the Warrant Holder are limited to those expressed in this Warrant.

 

[-signature page follows-]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Warrant to be duly executed by the authorized officer as of the date first above stated.

  

	 	JH DESIGNS, INC.
	 	 	 
	 	By: 	 
	 	Name: 	 
	 	Title: 	 

 

    	 

    	 

    

 

FORM OF ELECTION TO PURCHASE

 

(To be executed by the Warrant Holder to exercise the right
to purchase shares of Common Stock under the foregoing Warrant)

 

To: JH DESIGNS, INC.

 

The undersigned, pursuant to the provisions
set forth in the attached Warrant, hereby irrevocably elects to purchase (check applicable box):

 

	      	 	                            shares
    of the Common Stock covered by such Warrant; or
	       	 	the maximum number of shares of Common Stock covered by such Warrant pursuant to the cashless exercise procedure set forth therein.
	 

 

The undersigned herewith makes payment of the
full purchase price for such shares at the price per share provided for in such Warrant, which is $___________. Such payment takes
the form of (check applicable box or boxes):

 

	       	$	                     in
    lawful money of the United States; and/or
	      	 	the cancellation of such portion of the attached Warrant as is exercisable for a total of _______ shares of Common Stock (using a Fair Market Value of $_______ per share for purposes of this calculation); and/or
	 

 

	       	 	the cancellation of such number of shares of Common Stock as is necessary, in accordance with the formula set forth in Section 2 of the Warrant, to exercise this Warrant with respect to the maximum number of shares of Common Stock purchasable pursuant to the cashless exercise procedure set forth in Section 2.
	 

  

After application of the cashless exercise
feature as described above, _____________ shares of Common Stock are required to be delivered pursuant to the instructions below.

 

The undersigned represents and warrants that
all offers and sales by the undersigned of the securities issuable upon exercise of the within Warrant shall be made pursuant to
registration of the Common Stock under the Securities Act of 1933, as amended (the “Securities Act”), or pursuant to
an exemption from registration under the Securities Act.

 

	 	Name of Warrant Holder:
	 	 	 
	 	(Print)	 
	 	 	 
	 	(By:)	 
	 	 	 
	 	(Name:)	 
	 	 	 
	 	(Title:)	 
	 	 	 
	 	Signatures must conform in all respects to the name of the Warrant Holder on the face of the Warrant.

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