Document:

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.

 

 

COMMON
STOCK PURCHASE WARRANT

 

	Number
    of shares: 420,000	 	Holder:
	 	 	 
	Exercise
    Price per Share: $0.25 	 	Warrant
    No. 001
	 	 	 
	Expiration
    Date: November 31, 2016	 	Issue
    Date; November 22, 2013

 

FOR VALUE RECEIVED, CARDINAL
RESOURCES, LLC., a Pennsylvania limited liability company (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. It is anticipated that this Warrant will be assumed by JHDG at the Closing
Date pursuant to the Assignment and Assumption Agreement (as such terms are defined in the Subscription Agreement), and that all
of the obligations of the Company herein will be assumed by JHDG. If the Closing Date does not occur by November 31, 2013, then
this Warrant will be deemed void. As a result, following the Closing Date, the term the “Company” as used herein
shall refer to JHDG and its subsidiaries, including Cardinal Resources, LLC, unless specifically stated otherwise.

 

This Warrant entitles the Warrant
Holder to purchase from the Company at any time after the Closing Date and before the Expiration Date, four hundred twenty thousand
(420,000) shares (the “Warrant Shares”) of common stock (the “Common Stock”), of the Company
at an exercise price of Zero and 25/100 United States Dollars (US$0.25) 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 31, 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; Lock-up. 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 others
under 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 a
result
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
therein
in preference
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. Notwithstanding
anything
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
thereof 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:	 
	 	 	 
	 	Cardinal Resources,
    LLC	 
	 	1505 E. Carson
    Street, Suite 200	 
	 	Pittsburgh,
    PA 15203	 
	 	Attn: Kevin
    Jones, Managing Member	 
	 	 	 
	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.

 

 

	 	CARDINAL
    RESOURCES, LLC
	 	 	 
	 	By:	/s/
    Kevin Jones
	 	Name:	Kevin
    Jones
	 	Title:	Managing
    Member

 

    	 

    	 

    

 

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 WarrantASSIGNMENT
AND ASSUMPTION AGREEMENT

 

THIS ASSIGNMENT AND ASSUMPTION
AGREEMENT (the “Agreement”) is made effective as of the November 22, 2013, by and between Cardinal Resources,
LLC (the “Assignor”) and JH Designs, Inc.(the “Assignee”).

 

WHEREAS, Assignor and its
members, and Assignee are parties to that certain Share Exchange Agreement, a copy of which is attached hereto as Exhibit A (the
“Share Exchange Agreement”); and

 

WHEREAS, Assignor is party
to that certain Subscription Agreement and related Note and Warrants, copies of which are attached hereto as Exhibits B, C and
D (the “Subscription Agreement,” “Note” and “Warrants,” respectively)
in connection with a bridge loan financing; and

 

WHEREAS, the parties intend
that at the Closing Date (as such term is defined in the Subscription Agreement), Assignee assume the Assignor’s obligations
under the Subscription Agreement, Note and Warrants upon consummation of the transactions contemplated by the Share Exchange Agreement
in accordance with the terms of the Share Exchange Agreement and in order to facilitate the bridge financing.

 

NOW
THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged by each of the parties hereto, the parties hereto agree as follows:

 

1. Assignment. Subject
to and in accordance with the terms and conditions set forth in this Agreement, effective at the Closing Date, the Assignor hereby
grants, sells, assigns, and conveys to the Assignee, without recourse, Assignor’s right, title and interest in and to the
Subscription Agreement, Note and Warrants, and Assignee hereby assumes all of the right, title and interests in, and obligations
of Assignor under, such agreements and instruments, including, without limitation, the obligation to issue shares of common stock
upon exercise or conversion of the Note and Warrants, pursuant to the terms thereof. If the Closing Date does not occur on or
before October 15, 2013, this Agreement will be void.

 

2. Representations. Assignor
has all requisite authority to execute and deliver this Agreement and any other document contemplated by this Agreement and to
perform its obligations hereunder and to consummate the transactions contemplated hereby. Assignee has all requisite power and
authority to execute and deliver this Agreement and any other document contemplated by this Agreement to be signed by the Assignee
and to perform its obligations hereunder and to consummate the transactions contemplated hereby.

 

3. Entire Agreement. This
Agreement constitutes the entire agreement between the parties in respect of the assignments contemplated hereby and there are
no warranties, representations, terms, conditions, or collateral agreements expressed or implied, statutory or otherwise, other
then expressly set forth in this Agreement. This Agreement expressly supersedes and replaces any and all prior understandings
or agreements between the parties with respect to the subject matter of this Agreement.

 

    	 

    	 

    

 

4. All Further Acts. Each
of the parties hereto will do any and all such acts and will execute any and all such documents as may reasonably be necessary
from time to time to give full force and effect to the provisions and intent of this Agreement. The Assignor further agrees that
it will, at any time and from time to time after the date hereof, upon the Assignee’s request, execute, acknowledge and
deliver or cause to be executed and delivered, all further documents or instruments necessary to effect the transactions contemplated
in this Agreement.

 

5. Choice of Law. This
Agreement shall be governed by, and construed with, the laws of the State of California, without giving effect to the conflict
of laws provisions thereof.

 

6. No Assignment. No Party
may assign any right, benefit or interest in this Agreement without the written consent of the other party, which consent may
not be unreasonably withheld. This Agreement will inure to the benefit of, and be binding upon, the Assignors and the Assignee
and their respective successors and assigns.

 

7. Amendment. This Agreement
may not be amended except by an instrument in writing signed by each of the parties.

 

8. Counterparts and Electronic
Means. This Agreement may be executed in several counterparts, each of which will be deemed to be an original and all of which
will together constitute one and the same instrument. Delivery of an executed copy of this Agreement by electronic facsimile transmission
or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of
this Agreement as of the day and year first written above.

 

    	 

    	 

    

 

IN WITNESS WHEREOF
the parties hereto have executed this Agreement as of the day and year first above written.

 

	Assignor:
    Cardinal Resources, LLC	 
	 	 	 
	By:	/s/
    Kevin Jones	 
	Name:
    	Kevin
    Jones	 
	Title:
    	Managing
    Member	 

 

Assignee:

 

JH Designs, Inc.

 

	By:	/s/
    Kevin Jones	 
	Name:	Kevin
    Jones	 
	Title:	CEO	 

 

    	 

    	 

    

 

EXHIBIT A

 

SHARE EXCHANGE
AGREEMENT

 

    	 

    	 

    

 

EXHIBIT B

 

SUBSCRIPTION
AGREEMENT

 

    	 

    	 

    

 

EXHIBIT C

 

CONVERTIBLE PROMISSORY NOTE

 

    	 

    	 

    

 

EXHIBIT D

 

WARRANTS

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