Document:

PRIVATE
INSTRUMENT FOR THE THIRD ALTERATION OF THE

    SOCIAL
CONTRACT OF

    “GLOBAL MILK NEGÓCIOS E
ADMINISTRAÇÃO

    DE BENS PRÓPRIOS
LTDA.”

    

    NIRE
35.222.921.829

    CNPJ
n. 10.605.431/0001-35

    

    Through
the present private instrument, the parties qualified ahead:

    

    CASTROL LLC., duly established
company and in conformity to the legislation of the state of Delaware, in the
United States of America, with its head Office at Greentree Drive, n.
160,  Room 101, Dover, Kent County, 19904, in this act represent by
its legal representative, Mr. Edison Carmagnani, Brazilian,
married, business man, possessing the ID n. 2.256.983 SSP/SP, enrolled in the
National Registry for Tax-Payers or CPF (port.) under the n. 063.543.788-00,
living and holding residence at Rua Bartira, n. 482, apartment 131, district of
Perdizes in the city of São Paulo, State of São Paulo, P.O. BOX
05009-000;

    

    Trustee
of 100% (one hundred per cent) of the joint stock of GLOBAL MILK NEGÓCIOS E ADMINISTRAÇÃO
DE BENS PRÓPRIOS LTDA. limited society company, with its
head-office at Av. dos Tajurás, n. 236, district of Cidade Jardim, in the city
of São Paulo, State of São Paulo, P.O. BOX 05670-000, enrolled in the National Registry for Legal
Entities of the Brazilian Treasury Department – CNPJ (port.) under the n.
10.605.431/0001-35, with its Social Contract dutifully filed in the
Board of Trade of the
State of São Paulo – JUCESP (port.) under the “NIRE” 35.222.921.829, in a
session held on December 2nd, 2008.

    

    And
also,

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    B&D FOOD CORP., society
located in the United States of America duly established and in conformity to
the legislation of the state of Delaware, located at  Madison Avenue,
n. 575, New York, NY, USA, represented in this act by Mr. Javier Taño Feijóo, Uruguayan, divorced,
business administrator, possessing the RNE n. W275.706-U, enrolled in the
National Registry for Tax-Payers or CPF (port.) under the n. 035.316.128-40,
holding residence at Rua Barata Ribeiro, n. 482, apartment 323, Block. 11,
district of Cerqueira Cesar in the city of São Paulo, State of São Paulo, P.O.
BOX 01308-000;

    

    Have
between them to be fair and of common accord that which follows:

    

    1.           In
this act the partners decide to increase the joint stock of this company by R$
20.000.000,00 (twenty million reais), with the subscription of 300.000 (three
hundred thousand) new shares, going from the current R$ 20.000,00 (twenty
thousand reais) , to R$ 20.020.000,00 (twenty million and twenty thousand reais)
with the admission of the new partner B&D FOOD CORP., in
accordance to the society chart stated in item 3 below.

    

    2.           The
partner CASTROL LLC. ,
in this act, chooses to acquire the full amount of the shares that are present
today at the treasury, which amounts to 01 (one) single share representative of
this society’s joint stock.

    

    

    3.           By
reason of the alterations above, the partners decide to alter the 5th Clause
of the Social Contract, that will as of now have the following
content:

    

    “5th CLAUSE
– The social capital
shall be totally subscribed and integrated, in national currency, in the sum
total of 20.020.000,00 (twenty million and twenty thousand reais) split into
500.000 (five hundred thousand) shares, with the value per unit set at R$ 40,04
(fourty reais and four cents), until December 12th, 2009,  distributed
between the partners in the following way.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  	
                          Partners

                        	 	
                          N. of

                          shares

                        	 	 	
                          Value (R$)

                        	 
	
                          CASTROL
      LLC

                        	 	 	200.000	 	 	 	8.008.000,00	 
	
                          B&D
      FOOD CORP.

                        	 	 	300.000	 	 	 	12.012.000,00	 
	
                          Total

                        	 	 	500.000	 	 	 	20.020.000,00	 

                

              

            

          

        

      

    

    

    First Paragraph: The partners
bind themselves to integrate irrevocably until de date of December 12th, 2009,
the full sum of their participations, under penalty of losing their
shares.

    

    Second Paragraph: The
responsibility of the partners is limited to the value of their shares, but all
are jointly liable for the integration of the social capital, in the terms of
article 1.052 of the Brazilian Civil Code (Law n. 10.406/02).

    

    Third Paragraph: In the event
of an increase in social capital, the partners will have the right of preference
in the subscription of new shares, proportionally to the respective share amount
held by them in the joint stock corporation.

    

    Fourth Paragraph: The shares
are undividable with regard to the joint stock corporation and each shall have
right of vote in the social deliberations.

    

    Fifth Paragraph: It is
prohibited to the partners, under any circumstances, the complete or partial
pawning of the social capital shares, as well as placing them as collateral,
mortgaging or burdening them in any form.

    

    Sixth Paragraph: If joint
ownership over the shares is established, the rights inherent to them shall only
be exercised by the representative joint owner or by the executor of the Estate
of the deceased partner.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Seventh Paragraph: The
institution of Usufruct will be expressly admitted over the representative
shares of the social capital.”

    

    4.           The
partners decide, moreover, to alter the 6th and 7th clauses of the joint stock
corporation’s administration, to include the new administrator Ms. Giovanna Benetti, Brazilian,
single, administrator, possessing the ID n. 33.020.090-2, enrolled in the
National Registry for Tax-Payers or CPF (port.) under the n. 230.407.128-70,
holding residence at Alameda Itapecuru, n. 473, apartment
121,  Commercial Center district, Alphaville, in the city of Barueri,
State of São Paulo, P.O. BOX 06454-080, as of now duly elected, which shall act
together with the previous administrator. Thus, the new content of the referred
clauses shall be as below:

    

    6th Clause  - The
administration of the joint stock company shall be held jointly by Mr. Javier Taño Feijóo, Uruguayan, divorced,
business administrator, possessing the RNE n. W275.706-U, enrolled in the
National Registry for Tax-Payers or CPF (port.) under the n. 035.316.128-40,
holding residence at Rua Barata Ribeiro, n. 482, apartment 323, Block. 11,
district of Cerqueira Cesar in the city of São Paulo, State of São Paulo, P.O.
BOX 01308-000 and by Ms. Giovanna Benetti, Brazilian,
single, administrator, possessing the ID n. 33.020.090-2, enrolled in the
National Registry for Tax-Payers or CPF (port.) under the n. 230.407.128-70,
holding residence at Alameda Itapecuru, n. 473, apartment
121,  Commercial Center district, Alphaville, in the city of Barueri,
State of São Paulo, P.O. BOX 06454-080, under the designation of Administrators, invested with
powers to validly oblige and represent the joint stock corporation, actively and
passively, under judicial observance or not, respected the dispositions of the
7th
and 8th  clauses.

    

    First Paragraph: The legal
representatives may sublet their powers within certain limits, the subletting
having to be endowed with the specification of the powers and the time frame for
which they will be valid, safe for the ad judicia legal
representations.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Second Paragraph: It is
expressly forbidden for the joint stock corporation to stand surety in any form,
as well as holding favors and/or any obligations foreign to their corporate
objectives and interests. .”

    

    “7th Clause – It is the
administrators’ joint responsibility:

    a)           to
represent the corporation in a court of law or out of it actively and passively,
judicially or extra-judicially;

    b)           to
administer and manage the business representing the joint stock corporation with
regard to  governmental stances, departments and the like, as well as
to public, private or mixed-economy corporations, in the federal, state or local
spheres and to public notary’s offices in all their branches.

    c)           to
open, move and close any bank accounts whatsoever, to deposit and withdraw
money, bonds and other objects of value, to sign checks, orders of payment,
ordering of checkbooks, withdrawals, duplicates, triplicates, bills of exchange,
as well as any other documents pertaining to the dutiful activities of the joint
stock corporation;

    d)           to
cease, to agree, to compromise, to settle or to make agreements on whichever
entitlements or obligations which involve the corporate interests;

    e)           to
assume under the corporation’s name any obligations or responsibilities
whatsoever, being allowed, to this end, to sign any documents or public and
private contracts, being however forbidden to take out loans under the
corporation’s name, which shall require the unanimous approval of the
partners;

    f)           to
represent the corporation with regard to any financial institutions whatsoever,
banking establishments, in all their portfolios; also regarding the Brazilian
Central Bank and Stock Exchange.

    g)           all
remaining powers necessary to put into effect the corporate objective, as long
as the limits of the following clause are respected.”

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              5.

            	
              Finally,
      the partners decide to consolidate the Corporate Social Contract, with the
      new clauses presently altered
above.

            

    

    

    

    
      	
               

              CONSOLIDATION
      OF THE CORPORATE SOCIAL CONTRACT OF

              GLOBAL
      MILK NEGÓCIOS E ADMINISTRAÇÃO

              DE
      BENS PRÓPRIOS LTDA.

               

            

    

    

    CHAPTER I – OF THE SOCIAL
DENOMINATION AND HEAD OFFICE

    

    1st CLAUSE– The joint stock
corporation shall run under the social denomination of GLOBAL MILK NEGÓCIOS E ADMINISTRAÇÃO
DE BENS PRÓPRIOS LTDA.

    

    2ND CLAUSE - The joint stock
corporation, with its head-office at Av. dos Tajurás, n. 236, district of Cidade
Jardim, in the city of São Paulo, State of São Paulo, P.O. BOX 05670-000, being
able to create or terminate branches, agencies and offices in any location in
the country or overseas, by a resolution of the capital’s majority.

    

    Single Paragraph: The branches
eventually opened shall be terminated in the event the following circumstances
are given:

    a)           if
the head-establishment is terminated; or

    b)           by
decision of the partners which comes to represent the majority of the joint
social capital.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    CHAPTER II – OF THE SOCIAL
OBJECTIVE

    

    3rd CLAUSE - A joint stock
corporation shall have as its objective: The administration of its own goods;
Wholesale and Retail trading of the following food products: sliced, ground and
whole cheeses, butter cream cheese , powdered milk, long-life milk, dry meat,
coalho, milk sweets, cheese bread, mineral water, juices, yogurts, chocolate
milk products, cream cheese based milk  specialty, food compound with
cream of milk and vegetable cream, margarines, milky drinks, pure milk, pure
milk serum, powdered milk serum , powdered food compound; Import and Export of
the products described above; Commercial Representation, on its own or through
third parties, being able to participate in other corporations as partner or
share holder; and Distribution of the food products stated above.

    

    CHAPTER IV – OF THE TIME
LENGHT

    

    4th CLAUSE -  The time
length of the society is undetermined. The date of the beginning of the
activities of the joint stock corporation is November, 24th,
2008.

    

    CHAPTER V – OF THE SOCIAL
CAPITAL AND SHARES

    

    5th CLAUSE – The social capital
shall be totally subscribed and integrated, in national currency, in the sum
total of 20.020.000,00 (twenty million and twenty thousand reais) split into
500.000 (five hundred thousand) shares, with the value per unit set at R$ 40,04
(forty reais and four cents), until December 12th,
2009,  distributed between the partners in the following
way:

    

    
      
        
          
            
              
                
                  	
                          Partners

                        	 	
                          N. of

                          shares

                        	 	 	
                          Value (R$)

                        	 
	
                          CASTROL
      LLC

                        	 	 	200.000	 	 	 	8.008.000,00	 
	
                          B&D
      FOOD CORP.

                        	 	 	300.000	 	 	 	12.012.000,00	 
	
                          Total

                        	 	 	500.000	 	 	 	20.020.000,00	 

                

              

            

          

        

      

    

    

    First Paragraph: The partners
bind themselves to integrate irrevocably until de date of December 12th, 2009,
the full sum of their participations, under penalty of losing their
shares.

    

    Second Paragraph: The
responsibility of the partners is limited to the value of their shares, but all
are jointly liable for the integration of the social capital, in the terms of
article 1.052 of the Brazilian Civil Code (Law n. 10.406/02).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Third Paragraph: In the event
of an increase in social capital, the partners will have the right of preference
in the subscription of new shares, proportionally to the respective share amount
held by them in the joint stock corporation.

    

    Fourth Paragraph: The shares
are undividable with regard to the joint stock corporation and each shall have
right of vote in the social deliberations.

    

    Fifth Paragraph: It is
prohibited to the partners, under any circumstances, the complete or partial
pawning of the social capital shares, as well as placing them as collateral,
mortgaging or burdening them in any form.

    

    Sixth Paragraph: If joint
ownership over the shares is established, the rights inherent to them shall only
be exercised by the representative joint owner or by the executor of the Estate
of the deceased partner.

    

    Seventh Paragraph: The
institution of Usufruct will be expressly admitted over the representative
shares of the social capital.”

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    CHAPTER VI – OF THE
CORPORATE ADMINISTRATION

    

    6th CLAUSE  - The
administration of the joint stock company shall be held jointly by Mr. Javier Taño Feijóo, Uruguayan, divorced,
business administrator, possessing the RNE n. W275.706-U, enrolled in the
National Registry for Tax-Payers or CPF (port.) under the n. 035.316.128-40,
holding residence at Rua Barata Ribeiro, n. 482, apartment 323, Block. 11,
district of Cerqueira Cesar in the city of São Paulo, State of São Paulo, P.O.
BOX 01308-000 and by Ms. Giovanna Benetti, Brazilian,
single, administrator, possessing the ID n. 33.020.090-2, enrolled in the
National Registry for Tax-Payers or CPF (port.) under the n. 230.407.128-70,
holding residence at Alameda Itapecuru, n. 473, apartment
121,  Commercial Center district, Alphaville, in the city of Barueri,
State of São Paulo, P.O. BOX 06454-080, under the designation of Administrators, invested with
powers to validly oblige and represent the joint stock corporation, actively and
passively, under judicial observance or not, respected the dispositions of the
7th  and
8th  clauses.

    

    First Paragraph: The legal
representatives may sublet their powers within certain limits, the subletting
having to be endowed with the specification of the powers and the time frame for
which they will be valid, safe for the ad judicia legal
representations.

    

    Second Paragraph: It is
expressly forbidden for the joint stock corporation to stand surety in any form,
as well as holding favors and/or any obligations foreign to their corporate
objectives and interests.

    

    7th CLAUSE – It is the
administrators’ joint responsibility:

    a)           to
represent the corporation in a court of law or out of it actively and passively,
judicially or extra-judicially;

    b)           to
administer and manage the business representing the joint stock corporation with
regard to  governmental stances, departments and the like, as well as
to public, private or mixed-economy corporations, in the federal, state or local
spheres and to public notary’s offices in all their branches.

    c)           to
open, move and close any bank accounts whatsoever, to deposit and withdraw
money, bonds and other objects of value, to sign checks, orders of payment,
ordering of checkbooks, withdrawals, duplicates, triplicates, bills of exchange,
as well as any other documents pertaining to the dutiful activities of the joint
stock corporation;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    d)           to
cease, to agree, to compromise, to settle or to make agreements on whichever
entitlements or obligations which involve the corporate interests;

    e)           to
assume under the corporation’s name any obligations or responsibilities
whatsoever, being allowed, to this end, to sign any documents or public and
private contracts, being however forbidden to take out loans under the
corporation’s name, which shall require the unanimous approval of the
partners;

    f)           to
represent the corporation with regard to any financial institutions whatsoever,
banking establishments, in all their portfolios; also regarding the Brazilian
Central Bank and Stock Exchange.

    g)           all
remaining powers necessary to put into effect the corporate objective, as long
as the limits of the following clause are respected.

    

    CHAPTER VII – OF THE
LIMITATION OF POWERS

    

    8TH CLAUSE – Limitation of the
administrators’ powers. – Without prejudice to the dispositions contained in the
6th
and 7th clauses
above, for the signing and hiring of the matters below, previous written
approval of the partners that represents the simple Majority of the
company:

    a)           acquisition,
selling, mortgaging or rental of any property, movable or real-estate, which
exceeds R$25.000,00 (twenty five thousand reais), be it in a simple operation or
in a series of interconnected operations;

    b)           licensing
or sub-licensing to whichever third parties of whichever brands, patents and
other property rights of which the company is the owner or is entitled
to;

    c)           sale
or transfer, for any reason whatsoever, of any movable good or real-estate
property, pertaining to the permanent assets of the joint stock corporation,
specially its brands and patents.;

    d)           acquisition
or selling of any stock participation in other joint stock corporations, as well
as voting rights in accordance to such stock participation ;

    e)           opening
or closing of branches;

    f)           altering
the corporation’s social contract;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    g)           profit
sharing;

    

    i)           setting
up of the Fiscal Council;

    j)           election
of the members and respective substitutes of the Fiscal Council;

    k)           to
declare bankruptcy or put the company under judicial recovery, or any other form
of liquidation ;

    l)           extending
guarantees or compensation to insure responsibilities or obligations with third
parties, as well as, putting into effect any complimentary act in the
corporation’s name;

    m)           acquiring
any debentures, bonds, credit instruments, or any rights related to
them;

    n)           initiating
any legal action, besides those relative to the credit rights of the
corporation, to the protection of the brands and their related rights or any
other action that pertains to the ordinary handling of the
business;

    o)           naming
a legal representative to practice any of the actions described
above.

    

     9TH CLAUSE – The administrators
will be entitled to a monthly withdrawal of pro-labore bonds whose value
shall be set by decision of partners representing the simple majority of the
joint stock.

    

    10TH CLAUSE – Non-partner
administrators will be expressly admitted under the denomination of non-partner
administrators, which must be named by a resolution of the partners representing
the simple Majority of the joint stock and shall have the same powers conferred
to the partner administrators.

    

    First Paragraph: In case a
non-partner administrator is named in a separate act, he shall be invested in
his respective post by means of the signing of the office taking term set down
in the corporation’s register book, all legal formalities being
obeyed.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Second Paragraph: The mandate,
in case of a non-partner administrator, shall have a length of 05 (five) years,
the extension for another period  of the same length being
allowed.

    

    Third Paragraph: In the 10
(ten) subsequent days to the non-partner’s taking office, in a separate act, he
shall have to, require the proper registration, it being necessary for him to
give his name, nationality, civil status, residence, exhibiting still his
identification documents, the office taking act, the date of his entitling and
the management time-frame.

    

    Fourth Paragraph: The way in
which the non-partner administrators shall be remunerated shall be defined by
the simple majority of the joint stock in a partner meeting specially called for
this end.

    

    11TH CLAUSE – The partner or
non-partner administrator’s mandate, shall be entitled to cease by renouncing or
destitution according to the will of the partners

    

    First Paragraph: For the
destitution of the partner administrators the approval of partners representing
the simple majority of the joint stock shall be necessary; for the destitution
of non-partner administrators, the approval of partners representing a majority
of the joint stock shall be necessary.

    

    Second Paragraph: In case the,
partner or non-partner administrator renounces, it shall only be effective with
regard to the society after it is communicated in writing by the one who is
renouncing; and, with regard to third parties, after the its proper registration
in a competent notary’s office.

    

    CHAPTER VIII – OF THE
PARTNERS’ MEETINGS AND ASSEMBLIES

    

    12th CLAUSE – The partners shall
meet when necessary, by means of summoning by any one of them, through
registered mail, facsimile, e-mail, with 08 (eight) days is advance, this
summoning being required to specify day, hour, place of the meeting and the
order of the day. A registry of the meeting shall be done, and for its
deliberations to acquire validity they shall depend on approval by the majority
of the joint stock, safe for legal or contract-specific quorum.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    First Paragraph: The partners
shall be entitled to be represented by other partners or lawyers, by means of
the extension of a mandate specifying the authorized acts, being then considered
present at the meeting. In the same form, partner that giver their votes through
fax, e-mail or any other written form shall be considered present.

    

    Second Paragraph: Exemption of
summoning – The partner meetings may be held and validly deliberate, being
exempted the formalities for summoning contained in the heading of this clause,
if partners representing the totality of the joint stock are present, or if all
declare themselves, in writing, conscious of the place, date, time and order of
the day.

    

    13TH CLAUSE – Without prejudice to
the holding of the meetings foreseen in the previous clause, a Annual General
Assembly  shall necessarily be held, in the 04 (four) months
subsequent to the end of the fiscal year, to deliberate the following
matters:

    a)           to
take in the reports of the administrators;

    b)           to
approve the balance-sheet and the economical result;

    c)           to
designate administrators, if it is the case; and

    d)           other
matters that are in the order of the day.

    

    First Paragraph: All
dispositions relative to partners’ meetings apply to the Annual General
Assembly, including those related to the exemption of the summoning
formalities.

    

    Second Paragraph: The
announcing of the summoning for the Annual General Assembly shall be made public
03 (three) times.  The date of the first summoning shall take place 08
(eight) days in advance and the last 05 (five) days in advance to the date of
the assembly.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Third Paragraph: Up to 30
(thirty) before the set date of the Annual General Assembly, the documents
related to the matters set in items “a” e “b” of the heading, shall be made
available the partners that do no hold the office of administrator, with the
suitable proof of their having been received.

    

    14TH CLAUSE – Exemption of holding
meetings or assemblies. The meetings and assemblies can be exempted of taking
place when all partners deliberate, in writing, about the matter which would
have been their object, in the exact terms of the 3rd § of
article 1.072 of the Brazilian Civil Code (Law n. 10.406/02).

    

    CHAPATER IX – OF SOCIAL
DELIBERATIONS

    

    15TH CLAUSE – The following
matters depend on the approval of share-holding partners representing the
majority of the joint stock:

    a)  approval of the
administration’s numbers;

    b)  just-cause based
exclusion of a partner.

    

    16TH CLAUSE – The following
matters depend on the approval of share-holding partners representing Simple
majority of the joint stock::

    a)           the
naming of the a partner or non-partner administrator;

    b)           destitution
of a partner or non-partner administrator

    c)           remuneration
form of the partner of non-partner administrators.

    d)           filing
for judicial or extrajudicial recovery;

    

    17th CLAUSE – The following
matters depend on the approval of share-holding partners representing 2/3 (two
thirds) of the joint stock:

    a)           changing
the social contract;

    b)           incorporation;

    c)           merger;

    d)           extinction
of the corporation;

    e)           ceasing
the state of liquidation;

    f)           dissolution
of the corporation;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    g)           splitting
the corporation;

    h)           transformation;

    i)           opening
and closing of branches, offices or agencies;

    j)           remuneration
form of the partner or non-partner administrators;

    

    CHAPTER  X – OR
THE CEASSING OF SHARES AND RIGHT OF PREFERENCE

    

    18th CLAUSE – The partners shall
not be allowed to cease or transfer their shares, for any reason, completely or
partially, to parties foreign to the corporate chart.

    

    19TH CLAUSE – If no partners show
interest in acquiring shares from the exiting and/or selling partner, the latter
will be given right of dissidence, his entitlements being verified and paid in
the form of the 21st clause
below.

    

    CHAPTER XI – OF THE
DISSOLUTION OF THE JOINT STOCK CORPORATION

    

    20TH CLAUSE – Besides the cases
legally foreseen, the joint stock corporation shall come to be dissolved, at any
time, only by will of the partners representing 3⁄4 (three quarters) of the joint
stock.

    

    21st CLAUSE – The death of any of
the partners shall not cause the dissolution of the joint stock corporation, the
latter continuing with its remaining partners.

    

    First Paragraph: It is
expressly forbidden the admittance of partners foreign to the corporate chart,
for any reason, in the form of heirs, successors, spouses, ex-spouses,
co-inhabitant or former co-inhabitant, safe by expressed acceptance of the
remaining partners.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Second Paragraph: No heirs
and/or successors of the deceased partner being admitted, a special
balance-sheet will be raised, through which the corresponding share value will
be verified, to be paid in 60 (sixty) monthly, successive, installments of equal
value, the first of which shall be paid in the deadline of 90 (ninety) days,
counted from the event .

    

    CHAPTER XII – OF THE
RESOLUTION OF THE JOINT STOCK CORPORATION REGARDING A
PARTNER

    

    22nd CLAUSE – The partner who
wishes to withdraw himself from the corporation shall do his notice in
writing,  with a minimum of 60 (sixty) days in advance, informing his
intention of no longer remaining in the joint stock corporation. The partner’s
entitlements will be verified and paid in the way foreseen in the second
paragraph of the 21st clause
above.

    

    23RD CLAUSE – The exclusion of a
partner shall be expressly admitted by just cause, without prejudice to the
remaining forms of exclusion foreseen in specific legislation, by deliberation
of the partners representing the majority of the joint stock
corporation.

    

    First Paragraph: It will
fitting of the partners’ meeting, specially summoned to this end, to deliberate
on the configuration of just cause, setting conducts and/or acts of undeniable
gravity and endangerment, which put the continuity of the company at risk as
well as the consecution of their corporate objectives.

    

    Second Paragraph: The accused
partner shall be made aware of the date, time and place of the meeting or
assembly that is to deliberate on his exclusion, conferring him the right to
defend and contest.

    

    Third Paragraph: The
entitlements of the excluded partner shall be calculated and paid for in the way
foreseen on the second paragraph of the 21st clause,
above.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    CHAPTER XIII – OF THE FISCAL
YEAR

    

    24TH CLAUSE – The fiscal year
shall coincide with the civil year, it’s Patrimonial Balance-Sheet being raised
December 31st of
every year. The verified profits and losses shall be attributed to the partners
proportionately to their shares in the capital.

    

    First Paragraph: The verified
net profits shall have the destination that is given to them by the partners
representing the majority of the joint stock capital.

    

    Second Paragraph: It is as of
now authorized, the raising of intermediate balance-sheets, for eventual profit
distribution, even if the fiscal year has not come to an end.

    

    CHAPTER XIV – OF THE GENERAL
DISPOSITIONS

    

    25th CLAUSE – The rules relative
to the Joint Stock Corporations are applicable, in supplementary character or in
case of any omissions of the present contract.

    

    26TH CLAUSE – The partner or
non-partner administrators are exempt of extending guarantees for their
management or administration acts.

    

    CHAPTER XV – OF THE
ARBITRATION AND COMPETENT COURT

    

    27TH CLAUSE – Any and all
controversies arising from the present social contract that is not able to be
settled by the partners consensually, shall be resolved through arbitration to
be conducted by arbitrators that are part of the body and in the form regulated
by BOVESPA’s Chamber of Arbitration and Mediation, the partners binding
themselves to this form of solution independently of any other, however specific
or privileged it is, binding themselves through the signing of an arbitration
commitment in the for that  is applicable in the regulations of the
BOVESPA’s Chamber of Arbitration and Mediation or any other Chamber of
Arbitration that is elected in common accord between the partners.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    28th CLAUSE –
Finally,  the Central Judicature of the Capital of the State of
São Paulo is elect as the competent court, to execute any arbitral decision, if
necessary, explicitly excluding any other, independently of how privileged it is
..

    

    

    DECLARATION OF INEXISTANCE
OF IMPEDIMENT FOR THE EXERCISE OF ADMINISTRATION OF A JOINT STOCK
CORPORATION

    

    The
partners and administrators declare, under the auspices of the law, that they
are not impeded to exercise the administration of the joint stock corporation,
by specific legislation or by virtue of a criminal conviction, or because they
are under the effect of penalties that forbid them, even if temporarily, the
access to public office, that they have not been convicted of any bankruptcy
related crime, of prevarication, obstruction or bribery, of trying to obtain
illicit advantages due to public office, of stealing public funds or goods, or
still of having committed crimes against the popular economy, against the
national financial system, against the rules of defense of the competition,
against consumer relations, public trust or property.

    

    And, by
thus being fair and subject to common accord, the Parties sign the present
instrument in 03 (three) copies of equal content and validity, in the concrete
presence of 02 (two) witnesses, so as to generate the expected legal
effects.

     

    São
Paulo, May 7th,
2009

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      
        
          
            
              
                
                  
                    	 
      
	
                            JAVIER
      TAÑO FEIJÓO

                          
	 
      
	 
      
	
                            GIOVANNA
      BENETTI

                          
	 
      
	 
      
	
                            CASTROL
      LLC

                          
	
                            P.
      Edison Carmagnani

                          
	 
      
	
                            B&D
      FOOD COORPORATION

                          
	
                            Javier
      Taño
Feijóo

                          

                  

                

              

            

          

        

      

    

    

    Witnesses:

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	

                                    1.

                                  	 
    	 
      	

                                    2.

                                  	 
    
	Name:
      Geroncio O. Moreira	 
      	Name:
      Ivania Sobral de Brito
	ID:
      14.921.565	 
      	ID:
      14.254.195
	Emitted
      by: SSP/SP	 
      	Emitted
      by:
SSP/SPUnassociated Document

    Exhibit
4.1

     

    EXHIBIT
A

     

    COMMON
STOCK PURCHASE WARRANT

    

     HEMISPHERX
BIOPHARMA, INC.

     

    
      	
              Warrant
      Shares: _______

            	 
      	
              Initial
      Exercise Date: May ___,
      2009            
      

            

    

     

    THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies
that, for value received, _____________ (the “Holder”) is entitled,
upon the terms and subject to the limitations on exercise and the conditions
hereinafter set forth, at any time on or after May __, 2009 (the “Initial Exercise
Date”) and on or prior to the close of business on the fifth anniversary
of the date hereof (the “Termination Date”)
but not thereafter, to subscribe for and purchase from Hemispherx Biopharma,
Inc., a Delaware corporation (the “Company”), up to
______ shares (the “Warrant Shares”) of
Common Stock; provided, however, that the
five year period set forth above as the Termination Date shall be extended for
the number of days during such period in which (i) trading in the Common Stock
is suspended by any Trading Market, or (ii) the Registration Statement is not
effective but in no event later than October __, 2009.   he
purchase price of one share of Common Stock under this Warrant shall be equal to
the Exercise Price, as defined in Section 2(b).

     

    Section
1.             Definitions.  Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in
that certain Securities Purchase Agreement (the “Purchase Agreement”),
dated May 18, 2009, among the Company and the purchasers signatory
thereto.

     

    Section
2.             Exercise.

     

    a)           Exercise of
Warrant.  Exercise of the purchase rights represented by this
Warrant may be made, in whole or in part, at any time or times on or after the
Initial Exercise Date and on or before the Termination Date by delivery to the
Company (or such other office or agency of the Company as it may designate by
notice in writing to the registered Holder at the address of the Holder
appearing on the books of the Company) of a duly executed facsimile copy of the
Notice of Exercise Form annexed hereto; and, within three (3) Trading Days of
the date said Notice of Exercise is delivered to the Company, the Company shall
have received payment of the aggregate Exercise Price of the shares thereby
purchased by wire transfer or cashier’s check drawn on a United States bank or,
if available, pursuant to the cashless exercise procedure specified in Section
2(c) below.  Notwithstanding anything herein to the contrary, the
Holder shall not be required to physically surrender this Warrant to the Company
until the Holder has purchased all of the Warrant Shares available hereunder and
the Warrant has been exercised in full, in which case, the Holder shall
surrender this Warrant to the Company for cancellation within three (3) Trading
Days of the date the final Notice of Exercise is delivered to the
Company.  Partial exercises of this Warrant resulting in purchases of
a portion of the total number of Warrant Shares available hereunder shall have
the effect of lowering the outstanding number of Warrant Shares purchasable
hereunder in an amount equal to the applicable number of Warrant Shares
purchased.  The Holder and the Company shall maintain records showing
the number of Warrant Shares purchased and the date of such
purchases.  The Company shall deliver any objection to any Notice of
Exercise Form within 1 Business Day of receipt of such notice.  In the
event of any dispute or discrepancy, the records of the Holder shall be
controlling and determinative in the absence of manifest error. The Holder and any assignee, by
acceptance of this Warrant, acknowledge and agree that, by reason of the
provisions of this paragraph, following the purchase of a portion of the Warrant
Shares hereunder, the number of Warrant Shares available for purchase hereunder
at any given time may be less than the amount stated on the face
hereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    b)           Exercise
Price.  The exercise price per share of the Common Stock under
this Warrant shall be $1.31, subject to adjustment
hereunder (the “Exercise
Price”).

     

    c)           Cashless
Exercise.  If at the time of exercise hereof there is no
effective registration statement registering, or the prospectus contained
therein is not available for the issuance of the Warrant Shares to the Holder
and all of the Warrant Shares are not then registered for resale by Holder into
the market at market prices from time to time on an effective registration
statement for use on a continuous basis (or the prospectus contained therein is
not available for use), then this Warrant may also be exercised, in whole or in
part, at such time by means of a “cashless exercise” in which the Holder shall
be entitled to receive a certificate for the number of Warrant Shares equal to
the quotient obtained by dividing [(A-B) (X)] by (A), where:

     

    
      
        	
              	
                (A)
      =

              	
                the
      VWAP on the Trading Day immediately preceding the date on which Holder
      elects to exercise this Warrant by means of a “cashless exercise,” as set
      forth in the applicable Notice of
Exercise;

              

      

    

    

    
      
        	
              	
                (B)
      =

              	
                the
      Exercise Price of this Warrant, as adjusted hereunder;
  and

              

      

    

    

    
      
        	
              	
                (X)
      =

              	
                the
      number of Warrant Shares that would be issuable upon exercise of this
      Warrant in accordance with the terms of this Warrant if such exercise were
      by means of a cash exercise rather than a cashless
    exercise.

              

      

    

    

    “VWAP” means, for any
date, the price determined by the first of the following clauses that applies:
(a) if the Common Stock is then listed or quoted on a Trading Market, the daily
volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed
or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m.
(New York City time) to 4:02 p.m. (New York City time), (b)  if the OTC
Bulletin Board is not a Trading Market, the volume weighted average price of the
Common Stock for such date (or the nearest preceding date) on the OTC Bulletin
Board, (c) if the Common Stock is not then listed or quoted for trading on the
OTC Bulletin Board and if prices for the Common Stock are then reported in the
“Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or
agency succeeding to its functions of reporting prices), the most recent bid
price per share of the Common Stock so reported, or (d) in all other cases,
the fair market value of a share of Common Stock as determined by an independent
appraiser selected in good faith by the Holders of a majority in interest of the
Securities then outstanding and reasonably acceptable to the Company, the fees
and expenses of which shall be paid by the Company.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be
automatically exercised via cashless exercise pursuant to this Section
2(c).

    

    d)           Mechanics of
Exercise.

     

    i.      Delivery of Certificates
Upon Exercise.  Certificates for shares purchased hereunder
shall be transmitted by the Transfer Agent to the Holder by crediting the
account of the Holder’s prime broker with the Depository Trust Company through
its Deposit Withdrawal Agent Commission (“DWAC”) system if the
Company is then a participant in such system and either (A) there is an
effective Registration Statement permitting the issuance of the Warrant Shares
to or resale of the Warrant Shares by Holder or (B) this Warrant is being
exercised via cashless exercise, and otherwise by physical delivery to the
address specified by the Holder in the Notice of Exercise by the date that is
three (3) Trading Days after the latest of (A) the delivery to the Company of
the Notice of Exercise Form, (B) surrender of this Warrant (if required) and (C)
payment of the aggregate Exercise Price as set forth above (including by
cashless exercise, if permitted) (such date, the “Warrant Share Delivery
Date”).  This Warrant shall be deemed to have been exercised on
the first date on which all of the foregoing have been delivered to the
Company.  The Warrant Shares shall be deemed to have been issued, and
Holder or any other person so designated to be named therein shall be deemed to
have become a holder of record of such shares for all purposes, as of the date
the Warrant has been exercised, with payment to the Company of the Exercise
Price (or by cashless exercise, if permitted) and all taxes required to be paid
by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance of
such shares, having been paid. If the Company fails for any reason to deliver to
the Holder certificates evidencing the Warrant Shares subject to a Notice of
Exercise by the Warrant Share Delivery Date, the Company shall pay to the
Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of
Warrant Shares subject to such exercise (based on the VWAP of the Common Stock
on the date of the applicable Notice of Exercise), $10 per Trading Day
(increasing to $20 per Trading Day on the fifth Trading Day after such
liquidated damages begin to accrue) for each Trading Day after such Warrant
Share Delivery Date until such certificates are delivered or Holder rescinds
such exercise.

     

    ii.           Delivery of New Warrants
Upon Exercise.  If this Warrant shall have been exercised in
part, the Company shall, at the request of a Holder and upon surrender of this
Warrant certificate, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this
Warrant.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    iii.           Rescission
Rights.  If the Company fails to cause the Transfer Agent to
transmit to the Holder a certificate or the certificates representing the
Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date,
then, the Holder will have the right to rescind such exercise.

     

    iv.           Compensation for Buy-In on
Failure to Timely Deliver Certificates Upon Exercise.  In
addition to any other rights available to the Holder, if the Company fails to
cause the Transfer Agent to transmit to the Holder a certificate or the
certificates representing the Warrant Shares pursuant to an exercise on or
before the Warrant Share Delivery Date, and if after such date the Holder is
required by its broker to purchase (in an open market transaction or otherwise)
or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to
deliver in satisfaction of a sale by the Holder of the Warrant Shares which the
Holder anticipated receiving upon such exercise (a “Buy-In”), then the
Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the
Holder’s total purchase price (including brokerage commissions, if any) for the
shares of Common Stock so purchased exceeds (y) the amount obtained by
multiplying (1) the number of Warrant Shares that the Company was required to
deliver to the Holder in connection with the exercise at issue times (2) the
price at which the sell order giving rise to such purchase obligation was
executed, and (B) at the option of the Holder, either reinstate the portion of
the Warrant and equivalent number of Warrant Shares for which such exercise was
not honored (in which case such exercise shall be deemed rescinded) or deliver
to the Holder the number of shares of Common Stock that would have been issued
had the Company timely complied with its exercise and delivery obligations
hereunder.  For example, if the Holder purchases Common Stock having a
total purchase price of $11,000 to cover a Buy-In with respect to an attempted
exercise of shares of Common Stock with an aggregate sale price giving rise to
such purchase obligation of $10,000, under clause (A) of the immediately
preceding sentence the Company shall be required to pay the Holder $1,000. The
Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss.  Nothing herein shall limit a
Holder’s right to pursue any other remedies available to it hereunder, at law or
in equity including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver
certificates representing shares of Common Stock upon exercise of the Warrant as
required pursuant to the terms hereof.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    v.      No Fractional Shares or
Scrip.  No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant.  As to any
fraction of a share which the Holder would otherwise be entitled to purchase
upon such exercise, the Company shall, at its election, either pay a cash
adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole
share.

     

    vi.           Charges, Taxes and
Expenses.  Issuance of certificates for Warrant Shares shall be
made without charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such certificate, all of which
taxes and expenses shall be paid by the Company, and such certificates shall be
issued in the name of the Holder or in such name or names as may be directed by
the Holder; provided, however, that in the
event certificates for Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by the Holder
and the Company may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental thereto.

     

    vii.           Closing of
Books.  The Company will not close its stockholder books or
records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    e)           Holder’s Exercise
Limitations.  The Company shall not effect any exercise of this
Warrant, and a Holder shall not have the right to exercise any portion of this
Warrant, pursuant to Section 2 or otherwise, to the extent that after giving
effect to such issuance after exercise as set forth on the applicable Notice of
Exercise, the Holder (together with the Holder’s Affiliates, and any other
Persons acting as a group together with the Holder or any of the Holder’s
Affiliates), would beneficially own in excess of the Beneficial Ownership
Limitation (as defined below).  For purposes of the foregoing sentence, the
number of shares of Common Stock beneficially owned by the Holder and its
Affiliates shall include the number of shares of Common Stock issuable upon
exercise of this Warrant with respect to which such determination is being made,
but shall exclude the number of shares of Common Stock which would be issuable
upon (i) exercise of the remaining, nonexercised portion of this Warrant
beneficially owned by the Holder or any of its Affiliates and (ii) exercise or
conversion of the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, any other  Common Stock
Equivalents) subject to a limitation on conversion or exercise analogous to the
limitation contained herein beneficially owned by the Holder or any of its
Affiliates.  Except as set forth in the preceding sentence, for purposes of
this Section 2(e), beneficial ownership shall be calculated in accordance with
Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder, it being acknowledged by the Holder that the Company is not
representing to the Holder that such calculation is in compliance with Section
13(d) of the Exchange Act and the Holder is solely responsible for any schedules
required to be filed in accordance therewith.   To the extent
that the limitation contained in this Section 2(e) applies, the determination of
whether this Warrant is exercisable (in relation to other securities owned by
the Holder together with any Affiliates) and of which portion of this Warrant is
exercisable shall be in the sole discretion of the Holder, and the submission of
a Notice of Exercise shall be deemed to be the Holder’s determination of whether
this Warrant is exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant is
exercisable, in each case subject to the Beneficial Ownership Limitation, and
the Company shall have no obligation to verify or confirm the accuracy of such
determination.   In addition, a determination as to any group
status as contemplated above shall be determined in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated
thereunder.  For purposes of this Section 2(e), in determining the
number of outstanding shares of Common Stock, a Holder may rely on the number of
outstanding shares of Common Stock as reflected in (A) the Company’s most recent
periodic or annual report filed with the Commission, as the case may be, (B) a
more recent public announcement by the Company or (C) a more recent written
notice by the Company or the Transfer Agent setting forth the number of shares
of Common Stock outstanding.  Upon the written or oral request of a Holder,
the Company shall within two Trading Days confirm orally and in writing to the
Holder the number of shares of Common Stock then outstanding.  In any case,
the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company,
including this Warrant, by the Holder or its Affiliates since the date as of
which such number of outstanding shares of Common Stock was
reported.  The “Beneficial Ownership
Limitation” shall be 4.9% of the number of shares of the Common Stock
outstanding immediately after giving effect to the issuance of shares of Common
Stock issuable upon exercise of this Warrant.  The Holder, upon not
less than 61 days’ prior notice to the Company, may increase or decrease the
Beneficial Ownership Limitation provisions of this Section 2(e), provided that
the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of
shares of the Common Stock outstanding immediately after giving effect to the
issuance of shares of Common Stock upon exercise of this Warrant held by the
Holder and the provisions of this Section 2(e) shall continue to
apply.  Any such increase or decrease will not be effective until the
61st
day after such notice is delivered to the Company.  The provisions of
this paragraph shall be construed and implemented in a manner otherwise than in
strict conformity with the terms of this Section 2(e) to correct this paragraph
(or any portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or
supplements necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a successor holder of
this Warrant.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    Section
3.             Certain
Adjustments.

     

    a)           Stock Dividends and
Splits. If the Company, at any time while this Warrant is outstanding:
(i) pays a stock dividend or otherwise makes a distribution or distributions on
shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not
include any shares of Common Stock issued by the Company upon exercise of this
Warrant), (ii) subdivides outstanding shares of Common Stock into a larger
number of shares, (iii) combines (including by way of reverse stock split)
outstanding shares of Common Stock into a smaller number of shares, or (iv)
issues by reclassification of shares of the Common Stock any shares of capital
stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common
Stock (excluding treasury shares, if any) outstanding immediately before such
event and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event, and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged.  Any
adjustment made pursuant to this Section 3(a) shall become effective immediately
after the record date for the determination of stockholders entitled to receive
such dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or
re-classification.

     

    b)           RESERVED.

     

    c)           Subsequent Rights
Offerings.  If the Company, at any time while the Warrant is
outstanding, shall issue rights, options or warrants to all holders of Common
Stock (and not to the Holders) entitling them to subscribe for or purchase
shares of Common Stock at a price per share less than the VWAP on the record
date mentioned below, then, the Exercise Price shall be multiplied by a
fraction, of which the denominator shall be the number of shares of the Common
Stock outstanding on the date of issuance of such rights, options or warrants
plus the number of additional shares of Common Stock offered for subscription or
purchase, and of which the numerator shall be the number of shares of the Common
Stock outstanding on the date of issuance of such rights, options or warrants
plus the number of shares which the aggregate offering price of the total number
of shares so offered (assuming receipt by the Company in full of all
consideration payable upon exercise of such rights, options or warrants) would
purchase at such VWAP.  Such adjustment shall be made whenever such
rights, options or warrants are issued, and shall become effective immediately
after the record date for the determination of stockholders entitled to receive
such rights, options or warrants.

     

    d)           Pro Rata
Distributions.  If the Company, at any time while this Warrant
is outstanding, shall distribute to all holders of Common Stock (and not to the
Holders) evidences of its indebtedness or assets (including cash and cash
dividends) or rights or warrants to subscribe for or purchase any security other
than the Common Stock), then in each such case the Exercise Price shall be
adjusted by multiplying the Exercise Price in effect immediately prior to the
record date fixed for determination of stockholders entitled to receive such
distribution by a fraction of which the denominator shall be the VWAP determined
as of the record date mentioned above, and of which the numerator shall be such
VWAP on such record date less the then per share fair market value at such
record date of the portion of such assets or evidence of indebtedness so
distributed applicable to one outstanding share of the Common Stock as
determined by the Board of Directors in good faith.  In either case
the adjustments shall be described in a statement provided to the Holder of the
portion of assets or evidences of indebtedness so distributed or such
subscription rights applicable to one share of Common Stock.  Such
adjustment shall be made whenever any such distribution is made and shall become
effective immediately after the record date mentioned above.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    e)           Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the
Company, directly or indirectly, in one or more related transactions effects any
merger or consolidation of the Company with or into another Person, (ii) the
Company, directly or indirectly, effects any sale, lease, license, assignment,
transfer, conveyance or other disposition of all or substantially all of its
assets in one or a series of related transactions, (iii) any, direct or
indirect, purchase offer, tender offer or exchange offer (whether by the Company
or another Person) is completed pursuant to which holders of Common Stock are
permitted to sell, tender or exchange their shares for other securities, cash or
property and has been accepted by the holders of 50% or more of the outstanding
Common Stock, (iv) the Company, directly or indirectly, in one or more related
transactions effects any reclassification, reorganization or recapitalization of
the Common Stock or any compulsory share exchange pursuant to which the Common
Stock is effectively converted into or exchanged for other securities, cash or
property, (v) the Company, directly or indirectly, in one or more related
transactions consummates a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person whereby such other Person
acquires more than 50% of the outstanding shares of Common Stock (not including
any shares of Common Stock held by the other Person or other Persons making or
party to, or associated or affiliated with the other Persons making or party to,
such stock or share purchase agreement or other business combination) (each a
“Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, at the option of the Holder (without regard to any
limitation in Section 2(e) on the exercise of this Warrant), the number of
shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and any additional consideration
(the “Alternate
Consideration”) receivable as a result of such Fundamental Transaction by
a holder of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such Fundamental Transaction (without regard to
any limitation in Section 2(e) on the exercise of this Warrant).  For
purposes of any such exercise, the determination of the Exercise Price shall be
appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration.  If holders of Common Stock are given any choice as to
the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration
it receives upon any exercise of this Warrant following such Fundamental
Transaction.  Notwithstanding anything to the contrary, in the event
of a Fundamental Transaction that is (1) an all cash transaction, (2) a “Rule
13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or (3) a
Fundamental Transaction involving a person or entity not traded on a national
securities exchange, including, but not limited to, the Nasdaq Global Select
Market, the Nasdaq Global Market, or the Nasdaq Capital Market, the Company or
any Successor Entity (as defined below) shall, at the Holder’s option,
exercisable at any time concurrently with, or within 30 days after, the
consummation of the Fundamental Transaction, purchase this Warrant from the
Holder by paying to the Holder an amount of cash equal to the Black Scholes
Value of the remaining unexercised portion of this Warrant on the date of the
consummation of such Fundamental Transaction.  “Black Scholes Value”
means the value of this Warrant based on the Black and Scholes Option Pricing
Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”)
determined as of the day of consummation of the applicable Fundamental
Transaction for pricing purposes and reflecting (A) a risk-free interest rate
corresponding to the U.S. Treasury rate for a period equal to the time between
the date of the public announcement of the applicable Fundamental Transaction
and the Termination Date, (B) an expected volatility equal to the greater of
100% and the 100 day volatility obtained from the HVT function on Bloomberg as
of the Trading Day immediately following the public announcement of the
applicable Fundamental Transaction, (C) the underlying price per share used in
such calculation shall be the sum of the price per share being offered in cash,
if any, plus the value of any non-cash consideration, if any, being offered in
such Fundamental Transaction and (D) a remaining option time equal to the time
between the date of the public announcement of the applicable Fundamental
Transaction and the Termination Date.  The Company shall cause any
successor entity in a Fundamental Transaction in which the Company is not the
survivor (the “Successor Entity”) to
assume in writing all of the obligations of the Company under this Warrant and
the other Transaction Documents in accordance with the provisions of this
Section 3(e) pursuant to written agreements in form and substance reasonably
satisfactory to the Holder and approved by the Holder (without unreasonable
delay) prior to such Fundamental Transaction and shall, at the option of the
holder of this Warrant, deliver to the Holder in exchange for this Warrant a
security of the Successor Entity evidenced by a written instrument substantially
similar in form and substance to this Warrant which is exercisable for a
corresponding number of shares of capital stock of such Successor Entity (or its
parent entity) equivalent to the shares of Common Stock acquirable and
receivable upon exercise of this Warrant (without regard to any limitations on
the exercise of this Warrant) prior to such Fundamental Transaction, and with an
exercise price which applies the exercise price hereunder to such shares of
capital stock (but taking into account the relative value of the shares of
Common Stock pursuant to such Fundamental Transaction and the value of such
shares of capital stock, such number of shares of capital stock and such
exercise price being for the purpose of protecting the economic value of this
Warrant immediately prior to the consummation of such Fundamental Transaction),
and which is reasonably satisfactory in form and substance to the Holder. Upon
the occurrence of any such Fundamental Transaction, the Successor Entity shall
succeed to, and be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of this Warrant and the other
Transaction Documents referring to the “Company” shall refer instead to the
Successor Entity), and may exercise every right and power of the Company and
shall assume all of the obligations of the Company under this Warrant and the
other Transaction Documents with the same effect as if such Successor Entity had
been named as the Company herein.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    f)           Calculations. All
calculations under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of this Section 3,
the number of shares of Common Stock deemed to be issued and outstanding as of a
given date shall be the sum of the number of shares of Common Stock (excluding
treasury shares, if any) issued and outstanding.

     

    g)           Notice to
Holder.

     

    i.      Adjustment to Exercise
Price. Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 3, the Company shall promptly mail to the Holder a notice
setting forth the Exercise Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment. If the Company enters into a
Variable Rate Transaction that is not an Exempt Transaction and is not a
continuation of the Company’s existing Common Stock Purchase Agreement with
Fusion Capital Fund II, LLC (provided that it recommences no earlier than 30
days after the Closing Date), despite the prohibition thereon in the Purchase
Agreement, the Company shall be deemed to have issued Common Stock or Common
Stock Equivalents at the lowest possible conversion or exercise price at which
such securities may be converted or exercised.

     

    ii.           Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any other
distribution in whatever form) on the Common Stock, (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights, (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, or any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property, or (E) the Company shall authorize the voluntary
or involuntary dissolution, liquidation or winding up of the affairs of the
Company, then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company,
at least 20 calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice.  To the extent that
any notice provided hereunder constitutes, or contains, material, non-public
information regarding the Company or any of the Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K.  The Holder shall remain entitled to exercise this
Warrant during the period commencing on the date of such notice to the effective
date of the event triggering such notice except as may otherwise be expressly
set forth herein.

     

    
      
         

      

      
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    Section
4.             Transfer of
Warrant.

     

    a)           Transferability.  This
Warrant and all rights hereunder (including, without limitation, any
registration rights) are transferable, in whole or in part, upon surrender of
this Warrant at the principal office of the Company or its designated agent,
together with a written assignment of this Warrant substantially in the form
attached hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such
transfer.  Upon such surrender and, if required, such payment, the
Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees, as applicable, and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled.  The Warrant, if properly
assigned in accordance herewith, may be exercised by a new holder for the
purchase of Warrant Shares without having a new Warrant issued.

     

    b)           New Warrants. This
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney.  Subject to compliance
with Section 4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice. All Warrants issued on transfers or exchanges shall be dated
the initial issuance date set forth on the first page of this Warrant and shall
be identical with this Warrant except as to the number of Warrant Shares
issuable pursuant thereto.

     

    c)           Warrant Register. 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 Holder hereof from time to time.  The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the
contrary.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    d)           Representation by the
Holder.  The Holder, by the acceptance hereof, represents and
warrants that it is acquiring this Warrant and, upon any exercise hereof, will
acquire the Warrant Shares issuable upon such exercise, for its own account and
not with a view to or for distributing or reselling such Warrant Shares or any
part thereof in violation of the Securities Act or any applicable state
securities law, except pursuant to sales registered or exempted under the
Securities Act.

     

    Section
5.             Miscellaneous.

     

    a)           No Rights as Stockholder
Until Exercise.  This Warrant does not entitle the Holder to
any voting rights, dividends or other rights as a stockholder of the Company
prior to the exercise hereof as set forth in Section 2(d)(i).

     

    b)           Loss, Theft, Destruction or
Mutilation of Warrant. The Company covenants that upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate relating to
the Warrant Shares, and in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it (which, in the case of the Warrant, shall
not include the posting of any bond), and upon surrender and cancellation of
such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

     

    c)           Saturdays, Sundays,
Holidays, etc.  If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not
be a Business Day, then, such action may be taken or such right may be exercised
on the next succeeding Business Day.

     

    d)           Authorized
Shares.

     

    The
Company covenants that, during the period the Warrant is outstanding, it will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant.  The Company further covenants
that its issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant.  The Company will
take all such reasonable action as may be necessary to assure that such Warrant
Shares may be issued as provided herein without violation of any applicable law
or regulation, or of any requirements of the Trading Market upon which the
Common Stock may be listed.  The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this
Warrant and payment for such Warrant Shares in accordance herewith, be duly
authorized, validly issued, fully paid and nonassessable and free from all
taxes, liens and charges created by the Company in respect of the issue thereof
(other than taxes in respect of any transfer occurring contemporaneously with
such issue).

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    Except
and to the extent as waived or consented to by the Holder, the Company shall not
by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against
impairment.  Without limiting the generality of the foregoing, the
Company will (i) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (ii) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant and (iii) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof, as may be,
necessary to enable the Company to perform its obligations under this
Warrant.

     

    Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

     

    e)           Jurisdiction. All
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be determined in accordance with the provisions of the
Purchase Agreement.

     

    f)           Restrictions.  The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered, and the Holder does not utilize cashless exercise,
will have restrictions upon resale imposed by state and federal securities
laws.

     

    g)           Nonwaiver and
Expenses.  No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice Holder’s rights, powers or
remedies.  Without limiting any other provision of this Warrant or the
Purchase Agreement, if the Company willfully and knowingly fails to comply with
any provision of this Warrant, which results in any material damages to the
Holder, the Company shall pay to Holder such amounts as shall be sufficient to
cover any costs and expenses including, but not limited to, reasonable
attorneys’ fees, including those of appellate proceedings, incurred by Holder in
collecting any amounts due pursuant hereto or in otherwise enforcing any of its
rights, powers or remedies hereunder.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    h)           Notices.  Any
notice, request or other document required or permitted to be given or delivered
to the Holder by the Company shall be delivered in accordance with the notice
provisions of the Purchase Agreement.

     

    i)           Limitation of
Liability.  No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant to purchase Warrant
Shares, and no enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

     

    j)           Remedies.  The
Holder, in addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific performance of its
rights under this Warrant.  The Company agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach
by it of the provisions of this Warrant and hereby agrees to waive and not to
assert the defense in any action for specific performance that a remedy at law
would be adequate.

     

    k)           Successors and
Assigns.  Subject to applicable securities laws, this Warrant
and the rights and obligations evidenced hereby shall inure to the benefit of
and be binding upon the successors and permitted assigns of the Company and the
successors and permitted assigns of Holder.  The provisions of this
Warrant are intended to be for the benefit of any Holder from time to time of
this Warrant and shall be enforceable by the Holder or holder of Warrant
Shares.

     

    l)           Amendment.  This
Warrant may be modified or amended or the provisions hereof waived with the
written consent of the Company and Holders holding Warrants at least equal to
66% of the Warrant Shares issuable upon exercise of all then outstanding
Warrants.

     

    m)           Severability.  Wherever
possible, each provision of this Warrant shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Warrant.

     

    n)           Headings.  The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

    

    ********************

    

    (Signature
Pages Follow)

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

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

    

    
      
        	
                HEMISPHERX
      BIOPHARMA, INC.

              
	 
      
	
                By:__________________________________________

                     Name:

                     Title:

              

      

    

     

     

    NOTICE
OF EXERCISE

    

    TO:           HEMISPHERX
BIOPHARMA, INC.

    

    (1) The
undersigned hereby elects to purchase ________ Warrant Shares of the Company
pursuant to the terms of the attached Warrant (only if exercised in full), and
tenders herewith payment of the exercise price in full, together with all
applicable transfer taxes, if any.

     

    (2) Payment
shall take the form of (check applicable box):

     

    o in lawful money of the
United States; or

     

    o [if permitted] the
cancellation of such number of Warrant Shares as is necessary, in accordance
with the formula set forth in subsection 2(c), to exercise this Warrant with
respect to the maximum number of Warrant Shares purchasable pursuant to the
cashless exercise procedure set forth in subsection 2(c).

     

    (3) Please
issue a certificate or certificates representing said Warrant Shares in the name
of the undersigned or in such other name as is specified below:

     

    _______________________________

    

    The
Warrant Shares shall be delivered to the following DWAC Account Number or by
physical delivery of a certificate to:

     

    _______________________________

    

    _______________________________

    

    _______________________________

    

    

    [SIGNATURE
OF HOLDER]

    

    Name of
Investing Entity:
________________________________________________________________________

    Signature of Authorized Signatory of
Investing Entity:
_________________________________________________

    Name of
Authorized Signatory:
___________________________________________________________________

    Title of
Authorized Signatory:
____________________________________________________________________

    Date:
________________________________________________________________________________________

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    ASSIGNMENT
FORM

    

    (To
assign the foregoing warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the warrant.)

    FOR VALUE
RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
rights evidenced thereby are hereby assigned to

    

    _______________________________________________
whose address is

    

    _______________________________________________________________.

    

    _______________________________________________________________

    

    Dated:  ______________,
_______

     

    Holder’s
Signature:             _____________________________

    

    Holder’s
Address:               _____________________________

    

    _____________

    ________________

     

    Signature
Guaranteed:  ___________________________________________

     

    NOTE:  The
signature to this Assignment Form must correspond with the name as it appears on
the face of the Warrant, without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank or trust
company.  Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign
the foregoing Warrant.

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