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Unassociated Document

    CERTIFICATE
      TO SET FORTH DESIGNATIONS, VOTING POWERS,

    PREFERENCES,
      LIMITATIONS, RESTRICTIONS, AND RELATIVE

    RIGHTS
      OF SERIES A 10% CUMULATIVE CONVERTIBLE

    PREFERRED
      STOCK, $.001 PAR VALUE PER SHARE

    

    

    It
      is
      hereby certified that:

    

    I. The
      name
      of the corporation is Gilder Enterprises, Inc. (the "Corporation"), a Nevada
      corporation.

    

    II. Set
      forth
      hereinafter is a statement of the voting powers, preferences, limitations,
      restrictions, and relative rights of shares of Series A 10% Cumulative
      Convertible Preferred Stock hereinafter designated as contained in a resolution
      of the Board of Directors of the Corporation pursuant to a provision of the
      Certificate of Incorporation of the Corporation permitting the issuance of
      said
      Series A 10% Cumulative Convertible Preferred Stock by resolution of the Board
      of Directors:

    

    Series
      A
      10% Cumulative Convertible Preferred Stock, $.001 par value.

    

    1. Designation:
      Number of Shares.
      The
      designation of said series of Preferred Stock shall be Series A 10% Cumulative
      Convertible Preferred Stock (the "Series A Preferred Stock"). The number of
      shares of Series A Preferred Stock shall be 12,000,000. Each share of Series
      A
      Preferred Stock shall have a stated value equal to $1.00 (as adjusted for any
      stock dividends, combinations or splits with respect to such shares) (the
      "Stated Value"), and $.001 par value. The Corporation will not issue more than
      8,000,000 shares of Series A Preferred Stock (“Original Issue”) and such
      additional shares of Series A Preferred Stock as may be issued in connection
      with the Original Issue.

    

    2. Dividends.

    

    (a) The
      Holders of outstanding shares of Series A Preferred Stock shall be entitled
      to
      receive preferential dividends in cash out of any funds of the Corporation
      before any dividend or other distribution will be paid or declared and set
      apart
      for payment on any shares of any Common Stock, or other class of stock presently
      authorized or to be authorized (the Common Stock, and such other stock being
      hereinafter collectively the "Junior Stock") at the rate of 10% per annum on
      the
      Stated Value, until the occurrence of an Event of Default (as defined in
      Paragraph 7 below) and thereafter at the rate of 20% per annum on the Stated
      Value, payable commencing with the period ending September 30, 2006 and on
      the
      last day of each calendar quarter thereafter. Dividends must be delivered to
      the
      Holders not later than five business days after the end of each period for
      which
      dividends are payable. At the Corporation’s option, provided an Event of Default
      has not occurred and is not continuing on the day such dividends have accrued,
      then such dividend payments may be made in additional shares of Series A
      Preferred Stock valued at the Stated Value thereof. The issuance of such shares
      of Series A Preferred Stock shall constitute full payment of such
      dividends.

    

    (b) The
      dividends on the Series A Preferred Stock at the rates provided above shall
      be
      cumulative whether or not declared so that, if at any time full cumulative
      dividends at the rate aforesaid on all shares of the Series A Preferred Stock
      then outstanding from the date from and after which dividends thereon are
      cumulative to the end of the annual dividend period next preceding such time
      shall not have been paid or declared and set apart for payment, or if the full
      dividend on all such outstanding Series A Preferred Stock for the then current
      dividend period shall not have been paid or declared and set apart for payment,
      the amount of the deficiency shall be paid or declared and set apart for payment
      before any sum shall be set apart for or applied by the Corporation or a
      subsidiary of the Corporation to the purchase, redemption or other acquisition
      of the Series A Preferred Stock or any shares of any other class of stock
      ranking on a parity with the Series A Preferred Stock ("Parity Stock") and
      before any dividend or other distribution shall be paid or declared and set
      apart for payment on any Junior Stock and before any sum shall be set aside
      for
      or applied to the purchase, redemption or other acquisition of Junior
      Stock.

    
      
         

      

      
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    (c) Dividends
      on all shares of the Series A Preferred Stock shall begin to accrue and be
      cumulative from and after the date of issuance thereof. A dividend period shall
      be deemed to commence on the day following a dividend payment date herein
      specified and to end on the next succeeding dividend payment date herein
      specified.

    

    3. Liquidation
      and Optional Redemption Rights.

    

    (a) Upon
      the
      dissolution, liquidation or winding-up of the Corporation, whether voluntary
      or
      involuntary, the Holders of the Series A Preferred Stock shall be entitled
      to
      receive, and before any payment or distribution shall be made on the Junior
      Stock, out of the assets of the Corporation available for distribution to
      stockholders, the Stated Value per share of Series A Preferred Stock and all
      accrued and unpaid dividends to and including the date of payment thereof.
      Upon
      the payment in full of all amounts due to Holders of the Series A Preferred
      Stock, the Holders of the Common Stock of the Corporation and any other class
      of
      Junior Stock shall receive all remaining assets of the Corporation legally
      available for distribution. If the assets of the Corporation available for
      distribution to the Holders of the Series A Preferred Stock shall be
      insufficient to permit payment in full of the amounts payable as aforesaid
      to
      the Holders of Series A Preferred Stock upon such liquidation, dissolution
      or
      winding-up, whether voluntary or involuntary, then all such assets of the
      Corporation shall be distributed to the exclusion of the Holders of shares
      of
      Junior Stock ratably among the Holders of the Series A Preferred
      Stock.

    

    (b) The
      purchase or the redemption by the Corporation of shares of any class of stock,
      the merger or consolidation of the Corporation with or into any other
      corporation or corporations or the sale or transfer by the Corporation of any
      material part of its assets shall be deemed to be a liquidation, dissolution
      or
      winding-up of the Corporation for the purposes of this paragraph 3 except in
      the
      event that in such transaction, the holders of Series A Preferred Stock receive
      securities of the surviving corporation having substantially similar rights
      as
      the Series A Preferred Stock and the stockholders of the Corporation immediately
      prior to such transaction are holders of at least a majority of the voting
      securities of the successor corporation immediately thereafter. This provision
      may be waived in writing by holders of 80% of the then outstanding Series A
      Preferred Stock.

    
      
         

      

      
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    (c) Commencing
      on the third anniversary of the initial issue date of Series A Preferred Stock
      pursuant to the Subscription Agreement, provided an Event of Default has not
      occurred and is not then continuing, the Corporation will have the option of
      redeeming the Obligation Amount (defined below) ("Optional Redemption"), in
      whole or in part, by paying to the Holder a sum of money equal to one hundred
      twenty percent (120%) of the Obligation Amount to be redeemed (the "Redemption
      Amount"). The Corporation’s election to exercise its right to redeem must be by
      notice in writing (“Notice of Redemption”) and made proportionately to all
      Holders of Series A Preferred Stock. The Notice of Redemption shall specify
      the
      date for such Optional Redemption (the "Redemption Payment Date"), which date
      shall be not less than thirty (30) business days after receipt of the Notice
      of
      Redemption (the "Redemption Period"). A Notice of Redemption shall not be
      effective with respect to any portion of the Obligation Amount for which the
      Holder has a pending election to convert pursuant to Section 4 hereof, or for
      conversions initiated or made by the Holder during the Redemption Period. On
      the
      Redemption Payment Date, the Redemption Amount less any portion of the
      Redemption Amount against which the Holder has exercised its rights pursuant
      to
      Section 4, shall be paid in good funds to the Holder. In the event the
      Corporation fails to pay the Redemption Amount on the Redemption Payment Date
      as
      set forth herein, then (i) such Notice of Redemption will be null and void,
      (ii)
      the Corporation will have no further right to deliver a Notice of Redemption,
      and (iii) the Corporation’s failure may be deemed by the Holder to be a
      non-curable Event of Default. The Corporation may not exercise its right to
      call
      for or execute an Optional Redemption unless: (A) the Registration Statement
      (as
      defined in Section 11.1(iv) of the Subscription Agreement) which includes the
      registration of all of the Common Stock issuable upon conversion of the entire
      Obligation Amount has been effective for the fifteen trading days preceding
      the
      date Notice of Redemption is given (“Lookback Period”) and through the
      Redemption Payment Date, or (B) all the Common Stock issuable upon conversion
      of
      the entire Obligation Amount may be publicly resold without volume limitations
      or restrictions on transfer pursuant to Rule 144(k) under the Securities Act
      of
      1933; and the trading volume of the Common Stock as reported by Bloomberg LP
      for
      the Principal Market (as defined in Section 9(b) of the Subscription Agreement)
      for each day during the Lookback Period is not less than 200,000 shares.

    

    4. Conversion
      into Common Stock.
      Holders
      of shares of Series A Preferred Stock shall have the following conversion rights
      and obligations:

    

    (a) Subject
      to the further provisions of this paragraph 4 each Holder of shares of Series
      A
      Preferred Stock shall have the right at any time commencing after the issuance
      to the Holder of Series A Preferred Stock, to convert such shares, accrued
      and
      unpaid dividends on such shares, and any other sum owed by the Corporation
      arising from the Series A Preferred Stock or pursuant to a Subscription
      Agreement entered into by the Corporation and the Holder or Holder’s predecessor
      in connection with the issuance of Series A Preferred Stock (“Subscription
      Agreement”) (collectively “Obligation Amount”) into fully paid and
      non-assessable shares of Common Stock of the Corporation determined in
      accordance with the Conversion Price provided in paragraph 4(b) below (the
      "Conversion Price"). All issued or accrued but unpaid dividends may be converted
      at the election of the Holder simultaneously with the conversion of principal
      amount of Stated Value of Series A Preferred Stock being converted.

    

    (b) The
      number of shares of Common Stock issuable upon conversion of the Obligation
      Amount shall equal (i) the sum of (A) the Stated Value per share being
      converted, and (B) at the Holder's election, accrued and unpaid dividends on
      such share, divided by (ii) the Conversion Price. The Conversion Price shall
      be
      $1.25, subject to adjustment as described herein and in the Subscription
      Agreement.

    

    (c) Holder
      will give notice of its decision to exercise its right to convert the Series
      A
      Preferred Stock or part thereof by telecopying an executed and completed Notice
      of Conversion (a form of which is annexed as Exhibit
      A
      to the
      Certificate of Designation) to the Corporation via confirmed telecopier
      transmission or otherwise pursuant to Section 13(a) of the Subscription
      Agreement. The Holder will not be required to surrender the Series A Preferred
      Stock certificate until the Series A Preferred Stock has been fully converted.
      Each date on which a Notice of Conversion is telecopied to the Corporation
      in
      accordance with the provisions hereof shall be deemed a Conversion Date. The
      Corporation will itself or cause the Corporation’s transfer agent to transmit
      the Corporation's Common Stock certificates representing the Common Stock
      issuable upon conversion of the Series A Preferred Stock to the Holder via
      express courier for receipt by such Holder within three (3) business days after
      receipt by the Corporation of the Notice of Conversion (the "Delivery Date").
      In
      the event the Common Stock is electronically transferable, then delivery of
      the
      Common Stock must
      be made
      by electronic transfer provided request for such electronic transfer has been
      made by the Holder. A Series A Preferred Stock certificate representing the
      balance of the Series A Preferred Stock not so converted will be provided by
      the
      Corporation to the Holder if requested by Holder, provided the Holder has
      delivered the original Series A Preferred Stock certificate to the Corporation.
      To the extent that a Holder elects not to surrender Series A Preferred Stock
      for
      reissuance upon partial payment or conversion, the Holder hereby indemnifies
      the
      Corporation against any and all loss or damage attributable to a third-party
      claim in an amount in excess of the actual amount of the Stated Value of the
      Series A Preferred Stock then owned by the Holder.

    
      
         

      

      
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    In
      the
      case of the exercise of the conversion rights set forth in paragraph 4(a) the
      conversion privilege shall be deemed to have been exercised and the shares
      of
      Common Stock issuable upon such conversion shall be deemed to have been issued
      upon the date of receipt by the Corporation of the Notice of Conversion. The
      person or entity entitled to receive Common Stock issuable upon such conversion
      shall, on the date such conversion privilege is deemed to have been exercised
      and thereafter, be treated for all purposes as the recordholder of such Common
      Stock and shall on the same date cease to be treated for any purpose as the
      record Holder of such shares of Series A Preferred Stock so
      converted.

    

    Upon
      the
      conversion of any shares of Series A Preferred Stock no adjustment or payment
      shall be made with respect to such converted shares on account of any dividend
      on the Common Stock, except that the Holder of such converted shares shall
      be
      entitled to be paid any dividends declared on shares of Common Stock after
      conversion thereof.

    

    The
      Corporation shall not be required, in connection with any conversion of Series
      A
      Preferred Stock, and payment of dividends on Series A Preferred Stock to issue
      a
      fraction of a share of its Series A Preferred Stock or Common Stock and shall
      instead deliver a stock certificate representing the next whole
      number.

    

    The
      Corporation and Holder may not convert that amount of the Obligation Amount
      on a
      Conversion Date in amounts that would result in the Holder having a beneficial
      ownership of Common Stock which would be in excess of the sum of (i) the number
      of shares of Common Stock beneficially owned by the Holder and its affiliates
      on
      such Conversion Date, and (ii) the number of shares of Common Stock issuable
      upon the conversion of the Obligation Amount with respect to which the
      determination of this proviso is being made on such Conversion Date, which
      would
      result in beneficial ownership by the Holder and its affiliates of more than
      4.99% of the outstanding shares of Common Stock of the Corporation. For the
      purposes of the proviso to the immediately preceding sentence, beneficial
      ownership shall be determined in accordance with Section 13(d) of the Securities
      Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder. Subject
      to
      the foregoing, the Holder shall not be limited to successive exercises which
      would result in the aggregate issuance of more than 4.99%. The Holder may revoke
      the conversion limitation described in this Paragraph, in whole or in part,
      upon
      61 days prior notice to the Corporation. The Holder may allocate which of the
      equity of the Corporation deemed beneficially owned by the Holder shall be
      included in the 4.99% amount described above and which shall be allocated to
      the
      excess above 4.99%. The Holder may waive the conversion limitation described
      in
      this Section in whole or in part, upon and effective after 61 days prior written
      notice to the Company to increase such percentage to up to 9.99%.

    

    (d) The
      Conversion Price determined pursuant to Paragraph 4(b) shall be subject to
      adjustment from time to time as follows:

    

    (i) In
      case
      the Corporation shall at any time (A) declare any dividend or distribution
      on
      its Common Stock or other securities of the Corporation other than the Series
      A
      Preferred Stock, (B) split or subdivide the outstanding Common Stock, (C)
      combine the outstanding Common Stock into a smaller number of shares, or (D)
      issue by reclassification of its Common Stock any shares or other securities
      of
      the Corporation, then in each such event the Conversion Price shall be adjusted
      proportionately so that the Holders of Series A Preferred Stock shall be
      entitled to receive the kind and number of shares or other securities of the
      Corporation which such Holders would have owned or have been entitled to receive
      after the happening of any of the events described above had such shares of
      Series A Preferred Stock been converted immediately prior to the happening
      of
      such event (or any record date with respect thereto). Such adjustment shall
      be
      made whenever any of the events listed above shall occur. An adjustment made
      to
      the Conversion Price pursuant to this paragraph 4(d)(i) shall become effective
      immediately after the effective date of the event.

    
      
         

      

      
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    (ii) For
      so
      long as Series A Preferred Stock is outstanding, the Holder is granted the
      anti-dilution and price protection rights set forth in the Subscription
      Agreement and herein.

    

    (e)   
(i)
      In
      case of any merger of the Corporation with or into any other corporation (other
      than a merger in which the Corporation is the surviving or continuing
      corporation and which does not result in any reclassification, conversion,
      or
      change of the outstanding shares of Common Stock) then unless the right to
      convert shares of Series A Preferred Stock shall have terminated as part of
      such
      merger, lawful provision shall be made so that Holders of Series A Preferred
      Stock shall thereafter have the right to convert each share of Series A
      Preferred Stock into the kind and amount of shares of stock and/or other
      securities or property receivable upon such merger by a Holder of the number
      of
      shares of Common Stock into which such shares of Series A Preferred Stock might
      have been converted immediately prior to such consolidation or merger. Such
      provision shall also provide for adjustments which shall be as nearly equivalent
      as may be practicable to the adjustments provided for in sub-paragraph (d)
      of
      this paragraph 4. The foregoing provisions of this paragraph 4(e) shall
      similarly apply to successive mergers.

    

    (ii) In
      case
      of any sale or conveyance to another person or entity of the property of the
      Corporation as an entirety, or substantially as an entirety, in connection
      with
      which shares or other securities or cash or other property shall be issuable,
      distributable, payable, or deliverable for outstanding shares of Common Stock,
      then, unless the right to convert such shares shall have terminated, lawful
      provision shall be made so that the Holders of Series A Preferred Stock shall
      thereafter have the right to convert each share of the Series A Preferred Stock
      into the kind and amount of shares of stock or other securities or property
      that
      shall be issuable, distributable, payable, or deliverable upon such sale or
      conveyance with respect to each share of Common Stock immediately prior to
      such
      conveyance.

    

    (f) Whenever
      the number of shares to be issued upon conversion of the Series A Preferred
      Stock is required to be adjusted as provided in this paragraph 4, the
      Corporation shall forthwith compute the adjusted number of shares to be so
      issued and prepare a certificate setting forth such adjusted conversion amount
      and the facts upon which such adjustment is based, and such certificate shall
      forthwith be filed with the Transfer Agent for the Series A Preferred Stock
      and
      the Common Stock; and the Corporation shall mail to each Holder of record of
      Series A Preferred Stock notice of such adjusted conversion price not later
      than
      the first business day after the event, giving rise to the
      adjustment.

    

    (g) In
      case
      at any time the Corporation shall propose:

    

    (i) to
      pay
      any dividend or distribution payable in shares upon its Common Stock or make
      any
      distribution (other than cash dividends) to the Holders of its Common Stock;
      or

    

    (ii) to
      offer
      for subscription to the Holders of its Common Stock any additional shares of
      any
      class or any other rights; or

    

    (iii) any
      capital reorganization or reclassification of its shares or the merger of the
      Corporation with another corporation (other than a merger in which the
      Corporation is the surviving or continuing corporation and which does not result
      in any reclassification, conversion, or change of the outstanding shares of
      Common Stock); or

    
      
         

      

      
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    (iv) the
      voluntary dissolution, liquidation or winding-up of the
      Corporation;

    

    then,
      and
      in any one or more of said cases, the Corporation shall cause at least fifteen
      (15) days prior notice of the date on which (A) the books of the Corporation
      shall close or a record be taken for such stock dividend, distribution, or
      subscription rights, or (B) such capital reorganization, reclassification,
      merger, dissolution, liquidation or winding-up shall take place, as the case
      may
      be, to be mailed to the Transfer Agent for the Series A Preferred Stock and
      for
      the Common Stock and to the Holders of record of the Series A Preferred
      Stock.

    

    (h) So
      long
      as any shares of Series A Preferred Stock or any Obligation Amount shall remain
      outstanding and the Holders thereof shall have the right to convert the same
      in
      accordance with provisions of this paragraph 4 the Corporation shall at all
      times reserve from the authorized and unissued shares of its Common Stock 175%
      of the number of shares of Common Stock that would be necessary to allow the
      conversion of the entire Obligation Amount.

    

    (i) The
      term
“Common Stock” as used in this Certificate of Designation shall mean the $.001
      par value Common Stock of the Corporation as such stock is constituted at the
      date of issuance thereof or as it may from time to time be changed, or shares
      of
      stock of any class or other securities and/or property into which the shares
      of
      Series A Preferred Stock shall at any time become convertible pursuant to the
      provisions of this paragraph 4.

    

    (j) The
      Corporation shall pay the amount of any and all issue taxes (but not income
      taxes) which may be imposed in respect of any issue or delivery of stock upon
      the conversion of any shares of Series A Preferred Stock, but all transfer
      taxes
      and income taxes that may be payable in respect of any change of ownership
      of
      Series A Preferred Stock or any rights represented thereby or of stock
      receivable upon conversion thereof shall be paid by the person or persons
      surrendering such stock for conversion.

    

    (k) In
      the
      event a Holder shall elect to convert any shares of Series A Preferred Stock
      as
      provided herein, the Corporation may not refuse conversion based on any claim
      that such Holder or any one associated or affiliated with such Holder has been
      engaged in any violation of law, or for any other reason unless, an injunction
      from a court, on notice, restraining and or enjoining conversion of all or
      part
      of said shares of Series A Preferred Stock shall have been sought and obtained
      by the Corporation or at the Corporation’s request or with the Corporation’s
      assistance and the Corporation posts a surety bond for the benefit of such
      Holder equal to 120% of the Obligation Amount sought to be converted, which
      is
      subject to the injunction, which bond shall remain in effect until the
      completion of arbitration/litigation of the dispute and the proceeds of which
      shall be payable to such Holder in the event it obtains judgment.

    

    (l) In
      addition to any other rights available to the Holder, if the Corporation fails
      to deliver to the Holder such certificate or certificates pursuant to Section
      4(c) by the Delivery Date and if within seven (7) business days after the
      Delivery Date the Holder purchases (in an open market transaction or otherwise)
      shares of Common Stock to deliver in satisfaction of a sale by such Holder
      of
      the Common Stock which the Holder anticipated receiving upon such conversion
      (a
      "Buy-In"), then the Corporation shall pay in cash to the Holder (in addition
      to
      any remedies available to or elected by the Holder) within five (5) business
      days after written notice from the Holder, the amount by which (A) the Holder's
      total purchase price (including brokerage commissions, if any) for the shares
      of
      Common Stock so purchased exceeds (B) the aggregate Stated Value of the shares
      of Series A Preferred Stock for which such conversion was not timely honored,
      together with interest thereon at a rate of 15% per annum, accruing until such
      amount and any accrued interest thereon is paid in full (which amount shall
      be
      paid as liquidated damages and not as a penalty). For example, if the Holder
      purchases shares of Common Stock having a total purchase price of $11,000 to
      cover a Buy-In with respect to an attempted conversion of $10,000 of Stated
      Value of Series A Preferred Stock, the Corporation shall be required to pay
      the
      Holder $1,000, plus interest. The Holder shall provide the Corporation written
      notice indicating the amounts payable to the Holder in respect of the
      Buy-In.

    
      
         

      

      
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    (m) The
      Corporation understands that a delay in the delivery of Common Stock upon
      conversion of Preferred Stock in the form required pursuant to this Certificate
      and the Subscription Agreement after the Delivery Date could result in economic
      loss to the Holder. As compensation to the Holder for such loss, the Corporation
      agrees to pay (as liquidated damages and not as a penalty) to the Holder for
      such late issuance of Common Stock upon Conversion of the Series A Preferred
      Stock in the amount of $100 per business day after the Delivery Date for each
      $10,000 of Obligation Amount being converted of the corresponding Common stock
      which is not timely delivered. The Corporation shall pay any payments incurred
      under this section in immediately available funds upon demand. Furthermore,
      in
      addition to any other remedies which may be available to the Holder, in the
      event that the Corporation fails for any reason to effect delivery of the Common
      Stock by the Delivery Date, the Holder will be entitled to revoke all or part
      of
      the relevant Notice of Conversion or rescind all by delivery of a notice to
      such
      effect to the Corporation whereupon the Corporation and the Holder shall each
      be
      restored to their respective positions immediately prior to the delivery of
      such
      notice, except that the liquidated damages described above shall be payable
      through the date notice of revocation is given to the Corporation.

    

    5. Voting
      Rights.
      The
      Holder of shares of Series A Preferred Stock shall not have voting rights except
      as described in Section 6 hereof.

    

    6. Restrictions
      and Limitations.

    

    (a) Amendments
      to Charter.
      The
      Corporation shall not amend its certificate of incorporation without the
      approval by the holders of at least 80% of the then outstanding shares of Series
      A Preferred Stock if such amendment would:

    

    (i) change
      the relative seniority rights of the holders of Series A Preferred Stock as
      to
      the payment of dividends in relation to the holders of any other capital stock
      of the Corporation, or create any other class or series of capital stock
      entitled to seniority as to the payment of dividends in relation to the holders
      of Series A Preferred Stock;

    

    (ii) reduce
      the amount payable to the holders of Series A Preferred Stock upon the voluntary
      or involuntary liquidation, dissolution or winding up of the Corporation, or
      change the relative seniority of the liquidation preferences of the holders
      of
      Series A Preferred Stock to the rights upon liquidation of the holders of other
      capital stock of the Corporation, or change the dividend rights of the holders
      of Series A Preferred Stock;

    

    (iii) cancel
      or
      modify the conversion rights of the holders of Series A Preferred Stock provided
      for in Section 4 herein; or

    

    (iv) cancel
      or
      modify the rights of the holders of the Series A Preferred Stock provided for
      in
      this Section 6.

     

    
      
         

      

      
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    7. Event
      of Default.
      

    

    Unless
      waived in writing by Holders of 80% of the then outstanding Series A Preferred
      Stock, the occurrence of any of the following events of default ("Event of
      Default") shall, after the applicable period to cure the Event of Default,
      cause
      the dividend rate of 10% described in paragraph 2 hereof to become 20% from
      and
      after the occurrence of such event:

    

    (i) The
      Corporation fails to timely pay any dividend payment or the failure to timely
      pay any other sum of money due to the Holder from the Corporation and such
      failure continues for a period of seven (7) days after written notice to the
      Corporation from the Holder.

    

    (ii) The
      Corporation breaches any material covenant, term or condition of the
      Subscription Agreement or in this Certificate of Designation, and if capable
      of
      being cured such breach continues for a period of ten (10) days after written
      notice to the Corporation from the Holder.

    

    (iii) Any
      material representation or warranty of the Corporation made in the Subscription
      Agreement, or in any agreement, statement or certificate given in writing
      pursuant thereto shall prove to have been false or misleading at the time when
      made.

    

    (iv) The
      Corporation or any of its subsidiaries shall make an assignment of a substantial
      part of its property or business for the benefit of creditors, or apply for
      or
      consent to the appointment of a receiver or trustee for it or for a substantial
      part of its property or business, or such a receiver or trustee shall otherwise
      be appointed.

    

    (v) Any
      money
      judgment, confession of judgment, writ or similar process shall be entered
      against the Corporation, a subsidiary of the Corporation, or their property
      or
      other assets for more than $100,000, and is not vacated, satisfied, bonded
      or
      stayed within 45 days.

    

    (vi) Bankruptcy,
      insolvency, reorganization or liquidation proceedings or other proceedings
      for
      relief under any bankruptcy law or any law for the relief of debtors shall
      be
      instituted by the Corporation or if instituted against the Corporation or any
      of
      its subsidiaries, is not dismissed within 45 days.

    

    (vii) An
      order
      entered by a court of competent jurisdiction, or by the Securities and Exchange
      Commission, or by the National Association of Securities Dealers, preventing
      purchase and sale transactions in the Corporation’s Common Stock for a period of
      five or more consecutive trading days.

    

    (viii) The
      Corporation's failure to timely deliver to the Holder Common Stock or a
      replacement Preferred Stock certificate (if required) within fifteen (15)
      business days of the required delivery date.

    

    (ix) The
      occurrence of a Non-Registration Event as described in Section 11.4 of the
      Subscription Agreement.

     

    (x) Delisting
      of the Common Stock from the OTC Bulletin Board (“OTCBB”) or such other
      principal market or exchange on which the Common Stock is listed for trading,
      if
      the Common Stock is not quoted or listed on such market or exchange, or quoted
      on the automated quotation system of a national securities association or listed
      on a national securities exchange, within ten (10) trading days after such
      delisting.

    

    (xi) The
      Corporation fails to reserve the amount of Common Stock required to be reserved
      pursuant to Section 4(h) hereof.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    

    (xii) A
      default
      by the Corporation of a material term, covenant, warranty or undertaking of
      any
      other agreement to which the Corporation and Holder are parties, or the
      occurrence of a material event of default under any such other agreement, in
      each case, which is not cured after any required notice and/or cure period,
      or
      if no such period is provided, within 15 days after the sooner of written notice
      from the Holder or the Corporation’s discovery of such default.

    

    (xiii) Upon
      the
      occurrence of a Change in Control. A “Change in Control” shall mean (i) the
      Corporation becoming a Subsidiary of another entity, (ii) a majority of the
      board of directors of the Corporation as of the Issue Date of Series A Preferred
      Stock or successors appointed by the board of directors having a majority
      consisting of such persons or their successors no longer serving as directors
      of
      the Corporation except due to natural causes, (iii) if any person or entity
      other
      than
      officers or directors or persons or entities beneficially owning more than
      ten
      percent (10%) or more of the voting power of outstanding capital stock of the
      Corporation as of the Issue date of Series A Preferred Stock, acquires fifty
      percent (50%) or more of the voting power of outstanding capital stock of the
      Corporation, (iv) the sale, lease or transfer of substantially all the assets
      of
      the Corporation or Subsidiaries.

    

    8. Status
      of Converted or Redeemed Stock.
      In case
      any shares of Series A Preferred Stock shall be redeemed or otherwise
      repurchased or reacquired, the shares so redeemed, converted, or reacquired
      shall resume the status of authorized but unissued shares of Preferred Stock
      and
      shall no longer be designated as Series A Preferred Stock.

    

    IN
      WITNESS WHEREOF, the Corporation has caused this Certificate be duly executed
      by
      its undersigned officer thereunto duly authorized, this 29th
      day of
      June, 2006.

    

    
      	 	 
	 	
              GILDER
                ENTERPRISES, INC.

            
	 	 
	 	 
	 	 
	 	
              By: 

            
	 	 

    

    

    
      
        
          

           

          

        

         

      

      
        9

        
          

        

      

      
         

        
        

      

    

    EXHIBIT
      A

    

    NOTICE
      OF
      CONVERSION

    

    (To
      Be
      Executed By the Registered Holder in Order to Convert the Series A Convertible
      Preferred Stock of Gilder Enterprises, Inc.)

    

    The
      undersigned hereby irrevocably elects to convert $______________ of the Stated
      Value of the above Series A Convertible Preferred Stock into shares of Common
      Stock of Gilder Enterprises, Inc. (the "Corporation") according to the
      conditions hereof, as of the date written below.

    

    Date
      of
      Conversion:__________________________________________________________________________

    

    

    Applicable
      Conversion Price Per
      Share:_____________________________________________________

    

    

    Number
      of
      Common Shares Issuable Upon This
      Conversion:____________________________________

    

    Select
      one:

     

     o  
A
      Series A
      Convertible Preferred Stock certificate is being delivered herewith. The
      unconverted portion of such certificate should be reissued and delivered to
      the
      undersigned.

     

     o  
A
      Series A
      Convertible Preferred Stock certificate is not being delivered to Gilder
      Enterprises, Inc.

    

    Signature:____________________________________________________________________________

    

    

    Print
      Name:__________________________________________________________________________

    

    

    Address:_____________________________________________________________________________

    

    ____________________________________________________________________________________

    

    Deliveries
      Pursuant to this Notice of Conversion Should Be Made to:

    

    ____________________________________________________________________________________

    

    ____________________________________________________________________________________

    

    ____________________________________________________________________________________

    
       

      
        
           

        

        
          10Unassociated Document

    THIS
      WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
      AND
      THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
      OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO GILDER ENTERPRISES, INC. THAT SUCH REGISTRATION IS NOT
      REQUIRED.

    

    
      	 	
              Right
                to Purchase ________ shares of Common Stock of Gilder Enterprises,
                Inc.
                (subject to adjustment as provided
                herein)

            

    

    

    FORM
      OF CLASS A COMMON STOCK PURCHASE WARRANT

     

    
      	
              No. 2006-A-001

            	
              Issue
                Date: _________, 2006

            

    

     

    GILDER
      ENTERPRISES, INC., a corporation organized under the laws of the State of Nevada
      (the “Company”), hereby certifies that, for value received, _________________,
      _____________________________________________________________________ Telecopier
      Number _______________or
      its
      assigns (the “Holder”), is entitled, subject to the terms set forth below, to
      purchase from the Company at any time commencing on the Issue Date and until
      5:00 p.m., E.S.T on the fifth (5th)
      anniversary of the Issue Date (the “Expiration Date”), ________ fully paid and
      nonassessable shares of Common Stock at a per share purchase price of $2.00.
      The
      aforedescribed purchase price per share, as adjusted from time to time as herein
      provided, is referred to herein as the “Purchase Price.” The number and
      character of such shares of Common Stock and the Purchase Price are subject
      to
      adjustment as provided herein. The Company may reduce the Purchase Price without
      the consent of the Holder provided ten days prior notice of such reduction
      is
      given to the Holder. Capitalized terms used and not otherwise defined herein
      shall have the meanings set forth in that certain Subscription Agreement (the
      “Subscription
      Agreement”),
      dated
      ________, 2006, entered into by the Company and initial Holder of this
      Warrant.

    

    As
      used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings: 

     

    (a) The
      term
“Company” shall mean Gilder Enterprises, Inc. and any corporation which shall
      succeed or assume the obligations of Gilder Enterprises, Inc. hereunder.

     

    (b) The
      term
“Common Stock” includes (a) the Company’s common stock, $.001 par value per
      share, as authorized on the date of the Subscription Agreement, and (b) any
      Other Securities into which or for which any of the securities described in
      (a) may be converted or exchanged pursuant to a plan of recapitalization,
      reorganization, merger, sale of assets or otherwise.

     

    (c) The
      term
“Other Securities” refers to any stock (other than Common Stock) and other
      securities of the Company or any other person (corporate or otherwise) which
      the
      holder of the Warrant at any time shall be entitled to receive, or shall have
      received, on the exercise of the Warrant, in lieu of or in addition to Common
      Stock, or which at any time shall be issuable or shall have been issued in
      exchange for or in replacement of Common Stock or Other Securities pursuant
      to
      Section 5 or otherwise. 

     

    (d) The
      term
“Warrant Shares” shall mean the Common Stock issuable upon exercise of this
      Warrant.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1. Exercise
      of Warrant.

     

    1.1. Number
      of Shares Issuable upon Exercise.
      From
      and after the Issue Date through and including the Expiration Date, the Holder
      hereof shall be entitled to receive, upon exercise of this Warrant in whole
      in
      accordance with the terms of subsection 1.2 or upon exercise of this
      Warrant in part in accordance with subsection 1.3, Common Stock of the
      Company, subject to adjustment pursuant to Section 4.

     

    1.2. Full
      Exercise.
      This
      Warrant may be exercised in full by the Holder hereof by delivery of an original
      or facsimile copy of the form of subscription attached as Exhibit A hereto
      (the “Subscription Form”) duly executed by such Holder and surrender of the
      original Warrant within four (4) days of exercise, to the Company at its
      principal office or at the office of its Warrant Agent (as provided
      hereinafter), accompanied by payment, in cash, wire transfer or by certified
      or
      official bank check payable to the order of the Company, in the amount obtained
      by multiplying the number of shares of Common Stock for which this Warrant
      is
      then exercisable by the Purchase Price then in effect. 

     

    1.3. Partial
      Exercise.
      This
      Warrant may be exercised in part (but not for a fractional share) by surrender
      of this Warrant in the manner and at the place provided in subsection 1.2
      except that the amount payable by the Holder on such partial exercise shall
      be
      the amount obtained by multiplying (a) the number of whole shares of Common
      Stock designated by the Holder in the Subscription Form by (b) the Purchase
      Price then in effect. On any such partial exercise, the Company, at its expense,
      will forthwith issue and deliver to or upon the order of the Holder hereof
      a new
      Warrant of like tenor, in the name of the Holder hereof or as such Holder (upon
      payment by such Holder of any applicable transfer taxes) may request, the whole
      number of shares of Common Stock for which such Warrant may still be exercised
      for the balance of.

     

    1.4. Fair
      Market Value.
      Fair
      Market Value of a share of Common Stock as of a particular date (the
“Determination Date”) shall mean: 

     

    (a) If
      the
      Company’s Common Stock is traded on an exchange or is quoted on the National
      Association of Securities Dealers, Inc. Automated Quotation (“NASDAQ”), National
      Market System, the NASDAQ Capital Market or the American Stock Exchange, LLC,
      then the closing or last sale price, respectively, reported for the last
      business day immediately preceding the Determination Date;

     

    (b) If
      the
      Company’s Common Stock is not traded on an exchange or on the NASDAQ National
      Market System, the NASDAQ Capital Market or the American Stock Exchange, Inc.,
      but is traded in the over-the-counter market, then the average of the closing
      bid and ask prices reported for the last business day immediately preceding
      the
      Determination Date;

     

    (c) Except
      as
      provided in clause (d) below, if the Company’s Common Stock is not publicly
      traded, then as the Holder and the Company agree, or in the absence of such
      an
      agreement, by arbitration in accordance with the rules then standing of the
      American Arbitration Association, before a single arbitrator to be chosen from
      a
      panel of persons qualified by education and training to pass on the matter
      to be
      decided; or

     

    (d) If
      the
      Determination Date is the date of a liquidation, dissolution or winding up,
      or
      any event deemed to be a liquidation, dissolution or winding up pursuant to
      the
      Company’s charter, then all amounts to be payable per share to holders of the
      Common Stock pursuant to the charter in the event of such liquidation,
      dissolution or winding up, plus all other amounts to be payable per share in
      respect of the Common Stock in liquidation under the charter, assuming for
      the
      purposes of this clause (d) that all of the shares of Common Stock then
      issuable upon exercise of all of the Warrants are outstanding at the
      Determination Date.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

     

    1.5. Company
      Acknowledgment.
      The
      Company will, at the time of the exercise of the Warrant, upon the request
      of
      the Holder hereof acknowledge in writing its continuing obligation to afford
      to
      such Holder any rights to which such Holder shall continue to be entitled after
      such exercise in accordance with the provisions of this Warrant. If the Holder
      shall fail to make any such request, such failure shall not affect the
      continuing obligation of the Company to afford to such Holder any such
      rights.

     

    1.6. Trustee
      for Warrant Holders.
      In the
      event that a qualified bank or trust company shall have been appointed as
      trustee for the Holder of the Warrants pursuant to Subsection 3.2, such
      bank or trust company shall have all the powers and duties of a warrant agent
      (as hereinafter described) and shall accept, in its own name for the account
      of
      the Company or such successor person as may be entitled thereto, all amounts
      otherwise payable to the Company or such successor, as the case may be, on
      exercise of this Warrant pursuant to this Section 1. 

     

      1.7. Delivery
      of Stock Certificates, etc. on Exercise.
      The
      Company agrees that the shares of Common Stock purchased upon exercise of this
      Warrant shall be deemed to be issued to the Holder hereof as the record owner
      of
      such shares as of the close of business on the date on which this Warrant shall
      have been surrendered and payment made for such shares as aforesaid. As soon
      as
      practicable after the exercise of this Warrant in full or in part, and in any
      event within three (3) business
      days
      thereafter (“Warrant Share Delivery Date”), the Company at its expense
      (including the payment by it of any applicable issue taxes) will cause to be
      issued in the name of and delivered to the Holder hereof, or as such Holder
      (upon payment by such Holder of any applicable transfer taxes) may direct in
      compliance with applicable securities laws, a certificate or certificates for
      the number of duly and validly issued, fully paid and nonassessable shares
      of
      Common Stock (or Other Securities) to which such Holder shall be entitled on
      such exercise, plus, in lieu of any fractional share to which such Holder would
      otherwise be entitled, cash equal to such fraction multiplied by the then Fair
      Market Value of one full share of Common Stock, together with any other stock
      or
      other securities and property (including cash, where applicable) to which such
      Holder is entitled upon such exercise pursuant to Section 1 or otherwise.
      The Company understands that a delay in the delivery of the Warrant Shares
      after
      the Warrant Share Delivery Date could result in economic loss to the Holder.
      As
      compensation to the Holder for such loss, the Company agrees to pay (as
      liquidated damages and not as a penalty) to the Holder for late issuance of
      Warrant Shares upon exercise of this Warrant the amount of $100 per business
      day
      after the Warrant Share Delivery Date for each $10,000 of Purchase Price of
      Warrant Shares for which this Warrant is exercised which are not timely
      delivered. The Company shall pay any payments incurred under this Section in
      immediately available funds upon demand. Furthermore, in addition to any other
      remedies which may be available to the Holder, in the event that the Company
      fails for any reason to effect delivery of the Warrant Shares by the Warrant
      Share Delivery Date, the Holder may revoke all or part of the relevant Warrant
      exercise by delivery of a notice to such effect to the Company whereupon the
      Company and the Holder shall each be restored to their respective positions
      immediately prior to the exercise of the relevant portion of this Warrant,
      except that the liquidated damages described above shall be payable through
      the
      date notice of revocation or rescission is given to the Company. 

     

    2. Cashless
      Exercise.

     

    (a) Except
      as
      described below, if a Registration Statement (as defined in the Subscription
      Agreement) (“Registration Statement”) is effective and the Holder may sell its
      shares of Common Stock upon exercise hereof pursuant to the Registration
      Statement, this Warrant may be exercisable in whole or in part for cash only
      as
      set forth in Section 1 above. If no such Registration Statement is
      available
      during
      the time that such Registration Statement is required to be effective pursuant
      to the terms of the Subscription Agreement, payment upon exercise may be made
      at
      the option of the Holder either in cash, wire transfer or by certified or
      official bank check payable to the order of the Company equal to the applicable
      aggregate Purchase Price or commencing one year after the Issue Date, (i) by
      cashless exercise in accordance with Section (b) below or (ii) by
      a combination of any of the foregoing methods, for the number of shares of
      Common Stock specified in such form (as such exercise number shall be adjusted
      to reflect any adjustment in the total number of shares of Common Stock issuable
      to the Holder per the terms of this Warrant) and the Holder shall thereupon
      be
      entitled to receive the number of duly authorized, validly issued, fully-paid
      and non-assessable shares of Common Stock (or Other Securities) determined
      as
      provided herein.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

     

    (b) If
      the
      Fair Market Value of one share of Common Stock is greater than the Purchase
      Price (at the date of calculation as set forth below), in lieu of exercising
      this Warrant for cash, the Holder may elect to receive shares equal to the
      value
      (as determined below) of this Warrant (or the portion thereof being cancelled)
      by surrender of this Warrant at the principal office of the Company together
      with the properly endorsed Subscription Form in which event the Company shall
      issue to the Holder a 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
                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=

            	
              the
                average of the closing bid prices of the Common Stock for the five
                (5)
                Trading Days immediately prior to (but not including) the Exercise
                Date

            

    

     

    
      	 	
              B=

            	
              Purchase
                Price (as adjusted to the date of such
                calculation)

            

    

     

    (c) The
      Holder may employ the cashless exercise feature described in Section (b) above
      only during the pendency of a Non-Registration Event as described in Section
      11
      of the Subscription Agreement.

     

    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 shall be deemed to have been acquired by the Holder, and the holding
      period for the Warrant Shares shall be deemed to have commenced, on the date
      this Warrant was originally issued.

     

    3. Adjustment
      for Reorganization, Consolidation, Merger, etc.

     

    3.1. Reorganization,
      Consolidation, Merger, etc.
      In case
      at any time or from time to time, the Company shall (a) effect a
      reorganization, (b) consolidate with or merge into any other person or
      (c) transfer all or substantially all of its properties or assets to any
      other person under any plan or arrangement contemplating the dissolution of
      the
      Company, then, in each such case, as a condition to the consummation of such
      a
      transaction, proper and adequate provision shall be made by the Company whereby
      the Holder of this Warrant, on the exercise hereof as provided in
      Section 1, at any time after the consummation of such reorganization,
      consolidation or merger or the effective date of such dissolution, as the case
      may be, shall receive, in lieu of the Common Stock (or Other Securities)
      issuable on such exercise prior to such consummation or such effective date,
      the
      stock and other securities and property (including cash) to which such Holder
      would have been entitled upon such consummation or in connection with such
      dissolution, as the case may be, if such Holder had so exercised this Warrant,
      immediately prior thereto, all subject to further adjustment thereafter as
      provided in Section 4.

     

    3.2. Dissolution.
      In the
      event of any dissolution of the Company following the transfer of all or
      substantially all of its properties or assets, the Company, prior to such
      dissolution, shall at its expense deliver or cause to be delivered the stock
      and
      other securities and property (including cash, where applicable) receivable
      in
      accordance with Section 3.1 by the Holder upon their exercise after the
      effective date of such dissolution pursuant to this Section 3 to a bank or
      trust company (a “Trustee”) having its principal office in New York, NY, as
      trustee for the Holder. 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

     

    3.3. Continuation
      of Terms.
      Upon
      any reorganization, consolidation, merger or transfer (and any dissolution
      following any transfer) referred to in this Section 3, this Warrant shall
      continue in full force and effect and the terms hereof shall be applicable
      to
      the Other Securities and property receivable on the exercise of this Warrant
      after the consummation of such reorganization, consolidation or merger or the
      effective date of dissolution following any such transfer, as the case may
      be,
      and shall be binding upon the issuer of any Other Securities, including, in
      the
      case of any such transfer, the person acquiring all or substantially all of
      the
      properties or assets of the Company, whether or not such person shall have
      expressly assumed the terms of this Warrant as provided in Section 4. In
      the event this Warrant does not continue in full force and effect after the
      consummation of the transaction described in this Section 3, then only in
      such event will the Company’s securities and property (including cash, where
      applicable) receivable by the Holder of the Warrants be delivered to the Trustee
      as contemplated by Section 3.2.

     

    3.4 Share
      Issuance.
      Until
      the Expiration Date, prior to the complete exercise of this Warrant, the Holder
      is granted the anti-dilution and price protection rights set forth in the
      Subscription Agreement and herein.

     

    4. Extraordinary
      Events Regarding Common Stock.
      In the
      event that the Company shall (a) issue additional shares of the Common
      Stock as a dividend or other distribution on outstanding Common Stock,
      (b) subdivide its outstanding shares of Common Stock, or (c) combine
      its outstanding shares of the Common Stock into a smaller number of shares
      of
      the Common Stock, then, in each such event, the Purchase Price shall,
      simultaneously with the happening of such event, be adjusted by multiplying
      the
      then Purchase Price by a fraction, the numerator of which shall be the number
      of
      shares of Common Stock outstanding immediately prior to such event and the
      denominator of which shall be the number of shares of Common Stock outstanding
      immediately after such event, and the product so obtained shall thereafter
      be
      the Purchase Price then in effect. The Purchase Price, as so adjusted, shall
      be
      readjusted in the same manner upon the happening of any successive event or
      events described herein in this Section 4. The number of shares of Common
      Stock that the Holder of this Warrant shall thereafter, on the exercise hereof
      as provided in Section 1, be entitled to receive shall be adjusted to a
      number determined by multiplying the number of shares of Common Stock that
      would
      otherwise (but for the provisions of this Section 4) be issuable on such
      exercise by a fraction of which (a) the numerator is the Purchase Price
      that would otherwise (but for the provisions of this Section 4) be in
      effect, and (b) the denominator is the Purchase Price in effect on the date
      of such exercise.

     

    5. Certificate
      as to Adjustments.
      In each
      case of any adjustment or readjustment in the shares of Common Stock issuable
      on
      the exercise of the Warrants, the Company at its expense will promptly cause
      its
      Chief Financial Officer or other appropriate designee to compute such adjustment
      or readjustment in accordance with the terms of the Warrant and prepare a
      certificate setting forth such adjustment or readjustment and showing in detail
      the facts upon which such adjustment or readjustment is based, including a
      statement of (a) the consideration received or receivable by the Company
      for any additional shares of Common Stock issued or sold or deemed to have
      been
      issued or sold, (b) the number of shares of Common Stock outstanding or
      deemed to be outstanding, and (c) the Purchase Price and the number of
      shares of Common Stock to be received upon exercise of this Warrant, in effect
      immediately prior to such adjustment or readjustment and as adjusted or
      readjusted as provided in this Warrant. The Company will forthwith mail a copy
      of each such certificate to the Holder of the Warrant and any Warrant Agent
      of
      the Company (appointed pursuant to Section 11 hereof).

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

     

    6. Reservation
      of Stock, etc. Issuable on Exercise of Warrant; Financial
      Statements.
      The
      Company will at all times reserve and keep available, solely for issuance and
      delivery on the exercise of the Warrants, all shares of Common Stock from time
      to time issuable on the exercise of the Warrant. This Warrant entitles the
      Holder hereof to receive copies of all financial and other information
      distributed or required to be distributed to the holders of the Company’s Common
      Stock. 

     

    7. Assignment;
      Exchange of Warrant.
      Subject
      to compliance with applicable securities laws, this Warrant, and the rights
      evidenced hereby, may be transferred by any registered holder hereof (a
“Transferor”). On the surrender for exchange of this Warrant, with the
      Transferor’s endorsement in the form of Exhibit B attached hereto (the
“Transferor Endorsement Form”) and together with an opinion of counsel
      reasonably satisfactory to the Company that the transfer of this Warrant will
      be
      in compliance with applicable securities laws, the Company at its expense,
      twice, only, but with payment by the Transferor of any applicable transfer
      taxes, will issue and deliver to or on the order of the Transferor thereof
      a new
      Warrant or Warrants of like tenor, in the name of the Transferor and/or the
      transferee(s) specified in such Transferor Endorsement Form (each a
“Transferee”), calling in the aggregate on the face or faces thereof for the
      number of shares of Common Stock called for on the face or faces of the Warrant
      so surrendered by the Transferor. No such transfers shall result in a public
      distribution of the Warrant.

     

    8. Replacement
      of Warrant.
      On
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant and, in the case of any such loss,
      theft or destruction of this Warrant, on delivery of an indemnity agreement
      or
      security reasonably satisfactory in form and amount to the Company or, in the
      case of any such mutilation, on surrender and cancellation of this Warrant,
      the
      Company at its expense, twice only, will execute and deliver, in lieu thereof,
      a
      new Warrant of like tenor.

     

    9. Registration
      Rights.
      The
      Holder of this Warrant has been granted certain registration rights by the
      Company. These registration rights are set forth in the Subscription Agreement.
      The terms of the Subscription Agreement are incorporated herein by this
      reference.

     

    10. Maximum
      Exercise.
      The
      Holder shall not be entitled to exercise this Warrant on an exercise
      date, in
      connection with that number of shares of Common Stock which would be in excess
      of the sum of (i) the number of shares of Common Stock beneficially owned
      by the Holder and its affiliates on an exercise date, and (ii) the number
      of shares of Common Stock issuable upon the exercise of this Warrant with
      respect to which the determination of this limitation is being made on an
      exercise date, which would result in beneficial ownership by the Holder and
      its
      affiliates of more than 4.99% of the outstanding shares of Common Stock on
      such
      date. For the purposes of the immediately preceding sentence, beneficial
      ownership shall be determined in accordance with Section 13(d) of the
      Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder.
      Subject to the foregoing, the Holder shall not be limited to aggregate exercises
      which would result in the issuance of more than 4.99%. The
      restriction described in this paragraph may be waived, in whole or in part,
      upon sixty-one (61) days prior notice from the Holder to the Company to increase
      such percentage to up to 9.99%. 

     

    11. Warrant
      Agent.
      The
      Company may, by written notice to the Holder of the Warrant, appoint an agent
      (a
“Warrant Agent”) for the purpose of issuing Common Stock on the exercise of this
      Warrant pursuant to Section 1, exchanging this Warrant pursuant to
      Section 7, and replacing this Warrant pursuant to Section 8, or any of
      the foregoing, and thereafter any such issuance, exchange or replacement, as
      the
      case may be, shall be made at such office by such Warrant Agent. 

     

    12. Transfer
      on the Company’s Books.
      Until
      this Warrant is transferred on the books of the Company, the Company may treat
      the registered holder hereof as the absolute owner hereof for all purposes,
      notwithstanding any notice to the contrary. 

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

     

    13. 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, telegram, or facsimile, addressed as set forth
      below 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 or delivery
      by
      facsimile, with accurate confirmation generated by the transmitting facsimile
      machine, at the address or number designated below (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 or
      (c)
      three business days after deposited in the mail if delivered pursuant to
      subsection (ii) above.
      The
      addresses for such communications shall be: (i) if to the Company to:
Gilder
      Enterprises, Inc., 7 Deer Park Drive, Suite K, Monmouth Junction, NJ 08852,
      Attn: Al Kraus, CEO, telecopier:
      (732) 329-8650, with a copy by telecopier only to: Kronish Lieb Weiner &
Hellman, LLP, 1114 Avenue of the Americas, New York, NY 10036, Attn: Alison
      Newman, Esq., telecopier: (212) 479-6275, and (ii) if to the Holder, to the
      addresses and telecopier number set forth in the first paragraph of this
      Warrant, with an additional copy by telecopier only to: Grushko & Mittman,
      P.C., 551 Fifth Avenue, Suite 1601, New York, New York 10176, telecopier number:
      (212) 697-3575.

    

    14. Miscellaneous.
      This
      Warrant and any term hereof may be changed, waived, discharged or terminated
      only by an instrument in writing signed by the party against which enforcement
      of such change, waiver, discharge or termination is sought. This Warrant shall
      be construed and enforced in accordance with and governed by the laws of New
      York. Any dispute relating to this Warrant shall be adjudicated in New York
      County in the State of New York. The headings in this Warrant are for purposes
      of reference only, and shall not limit or otherwise affect any of the terms
      hereof. The invalidity or unenforceability of any provision hereof shall in
      no
      way affect the validity or enforceability of any other provision.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Company has executed this Warrant as of the date first
      written above. 

     

    
      	 	
              GILDER
                ENTERPRISES, INC.

               

               

               

              By:________________________________________

              Name:
                

              Title:
                

               

               

               

               

               

            
	
              Witness:

               

               

              _____________________________

            	 	 

    

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    Exhibit A

    FORM
      OF
      SUBSCRIPTION

    (to
      be
      signed only on exercise of Warrant)

    TO:
      Gilder Enterprises, Inc. 

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant
      (No.____), 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 in Section 2.

    

    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 the Warrant to the extent necessary, in accordance with the
      formula set forth in Section 2, 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.

    

    The
      undersigned requests that the certificates for such shares be issued in the
      name
      of, and delivered to _____________________________________________________
      whose
      address is 

     

    
      

    

     

      
        

      

    

    Number
      of
      Shares of Common Stock Beneficially Owned on the date of exercise: Less
      than
      five percent (5%) of the outstanding Common Stock of Gilder Enterprises,
      Inc.

     

    The
      undersigned represents and warrants that the representations and warranties
      in
      Section 4 of the Subscription Agreement (as defined in this Warrant) are true
      and accurate with respect to the undersigned on the date hereof.

    

    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.

    
      	 	
            
	
              Dated:___________________

            	
               

                

              

              (Signature
                must conform to name of holder as specified on the face of the
                Warrant)

               

               

               

                

                

              

              (Address)

            

    

    

    
      
         

      

      
        9

        
          

        

      

      
         

        
        

      

    

    

 

    Exhibit B

    

    FORM
      OF
      TRANSFEROR ENDORSEMENT

    (To
      be
      signed only on transfer of Warrant)

    For
      value
      received, the undersigned hereby sells, assigns, and transfers unto the
      person(s) named below under the heading “Transferees” the right represented by
      the within Warrant to purchase the percentage and number of shares of Common
      Stock of Gilder Enterprises, Inc. to which the within Warrant relates specified
      under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such
      person Attorney to transfer its respective right on the books of Gilder
      Enterprises, Inc. with full power of substitution in the premises.

     

    
      	
              Transferees

            	
              Percentage
                Transferred

            	
              Number
                Transferred

            
	 	 	 
	 	 	 
	 	 	 

    

    

    

    
      	
              Dated:
                ______________, ___________

               

               

               

              Signed
                in the presence of:

               

               

                

              

              (Name)

               

               

              ACCEPTED
                AND AGREED:

              [TRANSFEREE]

               

               

               

                

              

              (Name)

            	 	
               

              (Signature
                must conform to name of holder as specified on the face of the
                warrant)

               

               

               

               

               

                

                

              

              (address)

               

               

               

                

                

              

              (address)

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